Bill Text: NY S02009 | 2017-2018 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation necessary to implement the state 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-Amended.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-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2009--B IN SENATE January 23, 2017 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT intentionally omitted (Part A); intentionally omitted (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 population of one million or more; and to repeal section 54-f of the state finance law relating thereto (Part C); intentionally omitted (Part D); intentionally omitted (Part E); intentionally omit- ted (Part F); intentionally omitted (Part G); intentionally omitted (Part H); intentionally omitted (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); intentionally omitted (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); intentionally omitted (Part N); intentionally omitted (Part O); intentionally omitted (Part P); to amend the tax law, in relation to the treatment of single member limited liability companies that are disregarded entities in determining eligibility for tax credits (Part Q); intentionally omitted (Part R); intentionally omitted (Part S); to amend the tax law, in relation to increasing the child and dependent care tax credit (Part T); intentionally omitted (Part U); intentionally omitted (Part V); intentionally omitted (Part W); intentionally omitted (Part X); intentionally omitted (Part Y); intentionally omitted (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); intentionally omitted (Part EE); intentionally omitted (Part FF); intentionally omitted (Part GG); intentionally omitted (Part HH); intentionally omitted (Part II); intentionally omitted (Part JJ); intentionally omitted (Part KK); intentionally omitted (Part LL); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operation of charitable gaming; to amend the social services law, in relation to penalties for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-07-7S. 2009--B 2 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 and the general municipal law relating thereto (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York racing association, and to repeal certain provisions of such law relating thereto (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 imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part 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); to amend the state finance law, in relation to the distribution of certain gaming aid; and providing for the repeal of such provisions upon expiration thereof (Part RR); to amend the tax law and the administrative code of the city of New York, in relation to business income base and certain small business taxpayers (Part SS); to amend the tax law, in relation to real property tax credits for manufacturers (Part TT); to amend the tax law, in relation to the farm workforce retention credit (Part UU); to amend the tax law, in relation to the investment tax credit for certain taxpayers that operate a farm operation (Part VV); to amend the tax law, in relation to a credit for donations to a food bank or other emergency food program by New York state farmers (Part WW); to amend the tax law, in relation to minimum wage reimbursement credit (Part XX); to amend the real property tax law, in relation to the STAR exemption for property owned by small businesses (Part YY); to amend the tax law, in relation to the use of fulfillment services of certain persons (Part ZZ); to amend the tax law and the administrative code of the city of New York, in relation to qualified financial instruments of RICS and REITS (Part AAA); to amend the tax law, in relation to exempting unitary corporation dividends from the definition of business capital for the purposes of the franchise tax on business corporations (Part BBB); to amend the tax law, in relation to the amount of credit towards sales and compensating use taxes for vendors (Part CCC); to amend the tax law and the economic development law, in relation to the creation of the empire state music production credit and the empire state digital gaming media production credit; to repeal subdivision 11 of section 352 of the economic development law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part DDD); to amend the public housing law and the tax law, in relation to providing certain tax credits for construction or rehabil- itation of middle-income housing (Part EEE); to amend the tax law, in relation to establishing a credit against income tax for the rehabili- tation of distressed commercial properties (Part FFF); to amend the tax law, in relation to providing a tax credit for universal visita- bility; and providing for the repeal of such provisions upon the expi- ration thereof (Part GGG); to amend the tax law, in relation to theS. 2009--B 3 imposition of tax and rate (Part HHH); to amend the tax law, in relation to the metropolitan commuter transportation mobility tax (Part III); to amend the tax law, in relation to the metropolitan transportation business tax surcharge (Part JJJ); to amend the tax law, in relation to increasing the exemption for pensions and annui- ties for certain persons (Part KKK); to amend the tax law and the insurance law, in relation to increasing the tax credits for premiums paid for long-term care insurance or for a policy rider to a life insurance policy (Part LLL); to amend the tax law, in relation to establishing a tax deduction for the adoption of a child with special needs (Part MMM); to amend the tax law, in relation to cost of living adjustment (Part NNN); to amend the tax law, in relation to returns and liabilities (Part OOO); to amend the tax law, in relation to designated accounts for personal income tax refunds (Part PPP); to amend the real property tax law and the tax law, in relation to remov- ing references to the school tax relief credit; and to repeal certain provisions of such laws relating thereto (Part QQQ); to amend the tax law, in relation to advance payments of the school tax relief credit (Part RRR); to amend the tax law, in relation to exempting certain monuments from sales and use taxes (Part SSS); to amend the tax law, in relation to providing an exemption for tangible personal property and services sold by a cemetery; in relation to establishing an amnes- ty program for cemetery corporations (Part TTT); to amend the tax law, in relation to granting sales and compensating use tax exemptions for certain tangible personal property and services used in the operation of recreational skiing facilities (Part UUU); to amend the tax law, in relation to exemptions from the sales and compensating use tax for tastings held by a licensed brewery, farm brewery, cider producer, farm cidery, distillery or farm distillery in accordance with the alcoholic beverage control law (Part VVV); to amend the tax law, in relation to the prepayment of sales tax on motor fuel and Diesel motor fuel; and providing for the repeal of such provisions upon expiration thereof (Part WWW); to amend the tax law and part C of chapter 2 of the laws of 2005 amending the tax law relating to exemptions from sales and use taxes, in relation to extending certain provisions ther- eof; to amend the general city law and the administrative code of the city of New York, in relation to extending certain provisions relating to relocation and employment assistance credits; to amend the general city law and the administrative code of the city of New York, in relation to extending certain provisions relating to specially eligi- ble premises and special rebates; to amend the administrative code of the city of New York, in relation to extending certain provisions relating to exemptions and deductions from base rent; to amend the real property tax law, in relation to extending certain provisions relating to eligibility periods and requirements; to amend the real property tax law, in relation to extending certain provisions relating to eligibility periods and requirements, benefit periods and applica- tions for abatements; to amend the administrative code of the city of New York, in relation to extending certain provisions relating to a special reduction in determining the taxable base rent; to amend the real property tax law and the administrative code of the city of New York, in relation to extending certain provisions relating to applica- tions for abatement of tax payments (Part XXX); to amend the tax law and the education law, in relation to enacting the "education afforda- bility act" (Part YYY); to amend the tax law, in relation to estab- lishing the green building credit (Part ZZZ); to amend the tax law, inS. 2009--B 4 relation to establishing a forestry stewardship and habitat conserva- tion credit for personal income and business franchise taxes (Part AAAA); to amend chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local government tax levies, in relation to eliminating the expiration of and making permanent certain provisions thereof (Part BBBB); to amend the New York state urban development corporation act, in relation to certain qualified entities (Part CCCC); to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to certain fiscal requirements imposed with respect to conducting horse races at raceways and racetracks; and providing for the repeal of certain provisions upon the expiration thereof (Part DDDD); to amend the racing, pari-mutuel wagering and breeding law and the workers' compensation law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part EEEE); to amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games (Part FFFF); to amend the racing, pari-mutuel wagering and breeding law, in relation to creating the racing fan advisory council (Part GGGG); to amend the tax law, in relation to an additional vendor's marketing allowance (Part HHHH); to amend the tax law, in relation to allowable college tuition expenses (Part IIII); to amend the education law and the tax law, in relation to establishing the college debt freedom account program (Part JJJJ); to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund (Part KKKK); to amend the racing, pari-mutuel wagering and breeding law, in relation to approval, denial and renewal of casi- no and gaming employee licenses and registrations (Part LLLL); and to amend the tax law, in relation to authorizing advertising during quick draw and on lottery tickets (Part MMMM) 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 MMMM. The effective date for each partic- 5 ular provision contained within such Part is set forth in the last 6 section of such Part. Any provision in any section contained within a 7 Part, including the effective date of the Part, which makes a reference 8 to a section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Intentionally Omitted 14 PART B 15 Intentionally OmittedS. 2009--B 5 1 PART C 2 Section 1. Section 54-f of the state finance law is REPEALED. 3 § 2. Subsection (ggg) of section 606 of the tax law, as added by 4 section 1 of part E of chapter 60 of the laws of 2016, and as relettered 5 by section 1 of part A of chapter 73 of the laws of 2016, is amended to 6 read as follows: 7 (ggg) School tax reduction credit for residents of a city with a popu- 8 lation over one million. (1) For taxable years beginning after two thou- 9 sand fifteen, a school tax reduction credit shall be allowed to a resi- 10 dent individual of the state who is a resident of a city with a 11 population over one million, as provided below. The credit shall be 12 allowed against the taxes authorized by this article reduced by the 13 credits permitted by this article. If the credit exceeds the tax as so 14 reduced, the excess shall be treated as an overpayment of tax to be 15 credited or refunded in accordance with the provisions of section six 16 hundred eighty-six of this article, provided however, that no interest 17 will be paid thereon. For purposes of this subsection, no credit shall 18 be granted to an individual with respect to whom a deduction under 19 subsection (c) of section one hundred fifty-one of the internal revenue 20 code is allowable to another taxpayer for the taxable year. 21 (2) The amount of the credit under this [paragraph] subsection shall 22 be determined based upon the taxpayer's income as defined in subpara- 23 graph (ii) of paragraph (b) of subdivision four of section four hundred 24 twenty-five of the real property tax law. 25 (3) For taxable years beginning in two thousand sixteen, the credit 26 shall be determined as provided in this paragraph, provided that for the 27 purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) 28 of this paragraph with income of more than two hundred fifty thousand 29 dollars shall not receive a credit. 30 (A) Married individuals filing joint returns and surviving spouses. In 31 the case of married individuals who make a single return jointly and of 32 a surviving spouse, the credit shall be one hundred twenty-five dollars. 33 (B) All others. In the case of an unmarried individual, a head of a 34 household or a married individual filing a separate return, the credit 35 shall be sixty-two dollars and fifty cents. 36 (4) For taxable years beginning after two thousand sixteen, the credit 37 shall equal the "fixed" amount provided by paragraph (4-a) of this 38 subsection plus the "rate reduction" amount provided by paragraph (4-b) 39 of this subsection. 40 (4-a) The "fixed" amount of the credit shall be determined as provided 41 in this paragraph, provided that any taxpayer with income of more than 42 two hundred fifty thousand dollars shall not receive such amount. 43 (A) Married individuals filing joint returns and surviving spouses. In 44 the case of married individuals who make a single return jointly and of 45 a surviving spouse, the "fixed" amount of the credit shall be one 46 hundred twenty-five dollars. 47 (B) All others. In the case of an unmarried individual, a head of a 48 household or a married individual filing a separate return, the "fixed" 49 amount of the credit shall be sixty-two dollars and fifty cents. 50 (4-b) The "rate reduction" amount of the credit shall be determined as 51 provided in this paragraph, provided that any taxpayer with income of 52 more than five hundred thousand dollars shall not receive such amount. 53 (A) For married individuals who make a single return jointly and for a 54 surviving spouse:S. 2009--B 6 1 If the city taxable income is: The "rate reduction" amount is: 2 Not over $21,600 0.171% of the city taxable income 3 Over $21,600 but not over $500,000 $37 plus 0.228% of excess over 4 $21,600 5 Over $500,000 Not applicable 6 (B) For a head of household: 7 If the city taxable income is: The "rate reduction" amount is: 8 Not over $14,400 0.171% of the city taxable income 9 Over $14,400 but not over $500,000 $25 plus 0.228% of excess over 10 $14,400 11 Over $500,000 Not applicable 12 (C) For an unmarried individual or a married individual filing 13 a separate return: 14 If the city taxable income is: The "rate reduction" amount is: 15 Not over $12,000 0.171% of the city taxable income 16 Over $12,000 but not over $500,000 $21 plus 0.228% of excess over 17 $12,000 18 Over $500,000 Not applicable 19 [(3)] (5) Part-year residents. If a taxpayer changes status during the 20 taxable year from resident to nonresident, or from nonresident to resi- 21 dent, the school tax reduction credit authorized by this subsection 22 shall be prorated according to the number of months in the period of 23 residence. 24 § 3. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the 25 tax law, as amended by section 2 of part B of chapter 59 of the laws of 26 2015, are amended to read as 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 subsection 31 (b) of section thirteen hundred six of this article and on the city 32 taxable income of every city resident surviving spouse shall be deter- 33 mined in accordance 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 year beginning after two thousand fourteen 44 and before 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 excess 52 over $500,000 over $90,000 53 Over $500,000 $16,803 plus 3.4% of excessS. 2009--B 7 1 over $500,000 2 [(B)] (C) For taxable years beginning after two thousand nine and 3 before two thousand fifteen: 4 If the city taxable income is: The tax is: 5 Not over $21,600 2.55% of the city taxable income 6 Over $21,600 but not $551 plus 3.1% of excess 7 over $45,000 over $21,600 8 Over $45,000 but not $1,276 plus 3.15% of excess 9 over $90,000 over $45,000 10 Over $90,000 but not $2,694 plus 3.2% of excess 11 over $500,000 over $90,000 12 Over $500,000 $15,814 plus 3.4% of excess 13 over $500,000 14 (2) Resident heads of households. The tax under this section for each 15 taxable year on the city taxable income of every city resident head of a 16 household shall be determined in accordance with the following tables: 17 (A) For taxable years beginning after two thousand [fourteen] sixteen: 18 If the city taxable income is: The tax is: 19 Not over $14,400 2.7% of the city taxable income 20 Over $14,400 but not $389 plus 3.3% of excess 21 over $30,000 over $14,400 22 Over $30,000 but not $904 plus 3.35% of excess 23 over $60,000 over $30,000 24 Over $60,000 $1,909 plus 3.4% of excess 25 over $60,000 26 (B) For taxable years beginning after two thousand fourteen and before 27 two thousand sixteen: 28 If the city taxable income is: The tax is: 29 Not over $14,400 2.55% of the city taxable income 30 Over $14,400 but not $367 plus 3.1% of excess 31 over $30,000 over $14,400 32 Over $30,000 but not $851 plus 3.15% of excess 33 over $60,000 over $30,000 34 Over $60,000 but not $1,796 plus 3.2% of excess 35 over $500,000 over $60,000 36 Over $500,000 $16,869 plus 3.4% of excess 37 over $500,000 38 [(B)] (C) For taxable years beginning after two thousand nine and before 39 two thousand fifteen: 40 If the city taxable income is: The tax is: 41 Not over $14,400 2.55% of the city taxable income 42 Over $14,400 but not $367 plus 3.1% of excess 43 over $30,000 over $14,400 44 Over $30,000 but not $851 plus 3.15% of excess 45 over $60,000 over $30,000 46 Over $60,000 but not $1,796 plus 3.2% of excess 47 over $500,000 over $60,000 48 Over $500,000 $15,876 plus 3.4% of excessS. 2009--B 8 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 city resident married individual 6 who makes a single return jointly with his or her spouse under 7 subsection (b) of section thirteen hundred six of this article or a city 8 resident head of household or a city resident surviving spouse, and on 9 the city taxable income of every city resident estate and trust shall be 10 determined in accordance 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 seventeen: 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% 31 of excess 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% 43 of excess over $500,000 44 § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the 45 administrative code of the city of New York, as amended by section 3 of 46 part B of chapter 59 of the laws of 2015, are amended to read as 47 follows: 48 (1) Resident married individuals filing joint returns and resident 49 surviving spouses. The tax under this section for each taxable year on 50 the city taxable income of every city resident married individual whoS. 2009--B 9 1 makes a single return jointly with his or her spouse under subdivision 2 (b) of section 11-1751 of this chapter and on the city taxable income of 3 every city resident surviving spouse shall be determined in accordance 4 with the following tables: 5 (A) For taxable years beginning after two thousand [fourteen] sixteen: 6 If the city taxable income is: The tax is: 7 Not over $21,600 2.7% of the city taxable income 8 Over $21,600 but not $583 plus 3.3% of excess 9 over $45,000 over $21,600 10 Over $45,000 but not $1,355 plus 3.35% of excess 11 over $90,000 over $45,000 12 Over $90,000 $2,863 plus 3.4% of excess 13 over $90,000 14 (B) For taxable years beginning after two thousand fourteen and before 15 two thousand seventeen: 16 If the city taxable income is: The tax is: 17 Not over $21,600 2.55% of the city taxable income 18 Over $21,600 but not $551 plus 3.1% of excess 19 over $45,000 over $21,600 20 Over $45,000 but not $1,276 plus 3.15% of excess 21 over $90,000 over $45,000 22 Over $90,000 but not $2,694 plus 3.2% of excess 23 over $500,000 over $90,000 24 Over $500,000 $16,803 plus 3.4% of excess 25 over $500,000 26 [(B)] (C) For taxable years beginning after two thousand nine and 27 before two thousand fifteen: 28 If the city taxable income is: The tax is: 29 Not over $21,600 2.55% of the city taxable income 30 Over $21,600 but not $551 plus 3.1% of excess 31 over $45,000 over $21,600 32 Over $45,000 but not $1,276 plus 3.15% of excess 33 over $90,000 over $45,000 34 Over $90,000 but not $2,694 plus 3.2% of excess 35 over $500,000 over $90,000 36 Over $500,000 $15,814 plus 3.4% of excess 37 over $500,000 38 (2) Resident heads of households. The tax under this section for each 39 taxable year on the city taxable income of every city resident head of a 40 household shall be determined in accordance with the following tables: 41 (A) For taxable years beginning after two thousand [fourteen] sixteen: 42 If the city taxable income is: The tax is: 43 Not over $14,400 2.7% of the city taxable income 44 Over $14,400 but not $389 plus 3.3% of excess 45 over $30,000 over $14,400 46 Over $30,000 but not $904 plus 3.35% of excess 47 over $60,000 over $30,000 48 Over $60,000 $1,909 plus 3.4% of excess 49 over $60,000S. 2009--B 10 1 (B) For taxable years beginning after two thousand fourteen and before 2 two thousand sixteen: 3 If the city taxable income is: The tax is: 4 Not over $14,400 2.55% of the city taxable income 5 Over $14,400 but not $367 plus 3.1% of excess 6 over $30,000 over $14,400 7 Over $30,000 but not $851 plus 3.15% of excess 8 over $60,000 over $30,000 9 Over $60,000 but not $1,796 plus 3.2% of excess 10 over $500,000 over $60,000 11 Over $500,000 $16,869 plus 3.4% of excess 12 over $500,000 13 [(B)] (C) For taxable years beginning after two thousand nine and 14 before two thousand fifteen: 15 If the city taxable income is: The tax is: 16 Not over $14,400 2.55% of the city taxable income 17 Over $14,400 but not $367 plus 3.1% of excess 18 over $30,000 over $14,400 19 Over $30,000 but not $851 plus 3.15% of excess 20 over $60,000 over $30,000 21 Over $60,000 but not $1,796 plus 3.2% of excess 22 over $500,000 over $60,000 23 Over $500,000 $15,876 plus 3.4% of excess 24 over $500,000 25 (3) Resident unmarried individuals, resident married individuals 26 filing separate returns and resident estates and trusts. The tax under 27 this section for each taxable year on the city taxable income of every 28 city resident individual who is not a married individual who makes a 29 single return jointly with his or her spouse under subdivision (b) of 30 section 11-1751 of this chapter or a city resident head of a household 31 or a city resident surviving spouse, and on the city taxable income of 32 every city resident estate and trust 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 $12,000 2.7% of the city taxable income 37 Over $12,000 but not $324 plus 3.3% of excess 38 over $25,000 over $12,000 39 Over $25,000 but not $753 plus 3.35% of excess 40 over $50,000 over $25,000 41 Over $50,000 $1,591 plus 3.4% of excess 42 over $50,000 43 (B) For taxable years beginning after two thousand fourteen and before 44 two thousand sixteen: 45 If the city taxable income is: The tax is: 46 Not over $12,000 2.55% of the city taxable income 47 Over $12,000 but not $306 plus 3.1% of excess 48 over $25,000 over $12,000 49 Over $25,000 but not $709 plus 3.15% of excess 50 over $50,000 over $25,000S. 2009--B 11 1 Over $50,000 but not $1,497 plus 3.2% of excess 2 over $500,000 over $50,000 3 Over $500,000 $16,891 plus 3.4% of excess 4 over $500,000 5 [(B)] (C) For taxable years beginning after two thousand nine and 6 before two thousand fifteen: 7 If the city taxable income is: The tax is: 8 Not over $12,000 2.55% of the city taxable income 9 Over $12,000 but not $306 plus 3.1% of excess 10 over $25,000 over $12,000 11 Over $25,000 but not $709 plus 3.15% of excess 12 over $50,000 over $25,000 13 Over $50,000 but not $1,497 plus 3.2% of excess 14 over $500,000 over $50,000 15 Over $500,000 $15,897 plus 3.4% of excess 16 over $500,000 17 § 5. Notwithstanding any provision of law to the contrary, the method 18 of determining the amount to be deducted and withheld from wages on 19 account of taxes imposed by or pursuant to the authority of article 30 20 of the tax law in connection with the implementation of the provisions 21 of this act shall be prescribed by the commissioner of taxation and 22 finance with due consideration to the effect such withholding tables and 23 methods would have on the receipt and amount of revenue. The commission- 24 er of taxation and finance shall adjust such withholding tables and 25 methods in regard to taxable years beginning in 2017 and after in such 26 manner as to result, so far as practicable, in withholding from an 27 employee's wages an amount substantially equivalent to the tax reason- 28 ably estimated to be due for such taxable years as a result of the 29 provisions of this act. Provided, however, for tax year 2017 the with- 30 holding tables shall reflect as accurately as practicable the full 31 amount of tax year 2017 liability so that such amount is withheld by 32 December 31, 2017. In carrying out his or her duties and responsibil- 33 ities under this section, the commissioner of taxation and finance may 34 prescribe a similar procedure with respect to the taxes required to be 35 deducted and withheld by local laws imposing taxes pursuant to the 36 authority of articles 30, 30-A and 30-B of the tax law, the provisions 37 of any other law in relation to such a procedure to the contrary 38 notwithstanding. 39 § 6. 1. Notwithstanding any provision of law to the contrary, no addi- 40 tion to tax shall be imposed for failure to pay the estimated tax in 41 subsection (c) of section 685 of the tax law and subdivision (c) of 42 section 11-1785 of the administrative code of the city of New York with 43 respect to any underpayment of a required installment due prior to, or 44 within thirty days of, the effective date of this act to the extent that 45 such underpayment was created or increased by the amendments made by 46 this act, provided, however, that the taxpayer remits the amount of any 47 underpayment prior to or with his or her next quarterly estimated tax 48 payment. 49 2. The commissioner of taxation and finance shall take steps to publi- 50 cize the necessary adjustments to estimated tax and, to the extent 51 reasonably possible, to inform the taxpayer of the tax liability changes 52 made by this act.S. 2009--B 12 1 § 7. This act shall take effect immediately and shall apply to taxable 2 years beginning on and after January 1, 2017. 3 PART D 4 Intentionally Omitted 5 PART E 6 Intentionally Omitted 7 PART F 8 Intentionally Omitted 9 PART G 10 Intentionally Omitted 11 PART H 12 Intentionally Omitted 13 PART I 14 Intentionally Omitted 15 PART J 16 Section 1. Subdivision 5 of section 81 of the state finance law, as 17 added by chapter 432 of the laws of 2016, is amended to read as follows: 18 5. Moneys shall be payable from the fund on the audit and warrant of 19 the comptroller on vouchers approved and certified by the commissioner 20 of health, for veterans' homes operated by the department of health, and 21 by the [commissioner of education] chancellor of the state university of 22 New York, for the veterans' home operated by the state university of New 23 York. 24 § 2. This act shall take effect immediately and shall be deemed to 25 have been in full force and effect on and after November 14, 2016. 26 PART K 27 Section 1. Section 352 of the economic development law, as added by 28 section 1 of part MM of chapter 59 of the laws of 2010, subdivisions 7, 29 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 as amended and 30 subdivision 11 as added by section 1 of part K of chapter 59 of the laws 31 of 2015, is amended to read as follows: 32 § 352. Definitions. For the purposes of this article: 33 1. "Agriculture" means both agricultural production (establishments 34 performing the complete farm or ranch operation, such as farm owner-op-S. 2009--B 13 1 erators, tenant farm operators, and sharecroppers) and agricultural 2 support (establishments that perform one or more activities associated 3 with farm operation, such as soil preparation, planting, harvesting, and 4 management, on a contract or fee basis). 5 2. "Back office operations" means a business function that may include 6 one or more of the following activities: customer service, information 7 technology and data processing, human resources, accounting and related 8 administrative functions. 9 3. "Benefit-cost ratio" means the following calculation: the numerator 10 is the sum of (i) the value of all remuneration projected to be paid for 11 all net new jobs during the period of participation in the program, and 12 (ii) the value of capital investments to be made by the business enter- 13 prise during the period of participation in the program, and the denomi- 14 nator is the amount of total tax benefits under this article that will 15 be used and refunded. 16 4. "Certificate of eligibility" means the document issued by the 17 department to an applicant that has completed an application to be 18 admitted into the excelsior jobs program and has been accepted into the 19 program by the department. Possession of a certificate of eligibility 20 does not by itself guarantee the eligibility to claim the tax credit. 21 5. "Certificate of tax credit" means the document issued to a partic- 22 ipant by the department, after the department has verified that the 23 participant has met all applicable eligibility criteria in this article. 24 The certificate shall be issued annually if such criteria are satisfied 25 and shall specify the exact amount of each of the tax credit components 26 under this article that a participant may claim, pursuant to section 27 three hundred fifty-five of this article, and shall specify the taxable 28 year in which such credit may be claimed. 29 6. "Distribution center" means a large scale facility involving proc- 30 essing, repackaging and/or movement of finished or semi-finished goods 31 to retail locations across a multi-state area. 32 7. "Entertainment company" means a corporation, partnership, limited 33 partnership, or other entity principally engaged in the production or 34 post production of (i) motion pictures, which shall include feature- 35 length films and television films, (ii) instructional videos, (iii) 36 televised commercial advertisements, (iv) animated films or cartoons, 37 (v) music videos, (vi) television programs, which shall include, but not 38 be limited to, television series, television pilots, and single tele- 39 vision episodes, or (vii) programs primarily intended for radio broad- 40 cast. "Entertainment company" shall not include an entity (i) principal- 41 ly engaged in the live performance of events, including, but not limited 42 to, theatrical productions, concerts, circuses, and sporting events, 43 (ii) principally engaged in the production of content intended primarily 44 for industrial, corporate or institutional end-users, (iii) principally 45 engaged in the production of fundraising films or programs, or (iv) 46 engaged in the production of content for which records are required 47 under section 2257 of title 18, United States code, to be maintained 48 with respect to any performer in such production. 49 8. "Financial services data centers or financial services customer 50 back office operations" means operations that manage the data or 51 accounts of existing customers or provide product or service information 52 and support to customers of financial services companies, including 53 banks, other lenders, securities and commodities brokers and dealers, 54 investment banks, portfolio managers, trust offices, and insurance 55 companies.S. 2009--B 14 1 9. "Investment zone" shall mean an area within the state that had been 2 designated under paragraph (i) of subdivision (a) and subdivision (d) of 3 section nine hundred fifty-eight of the general municipal law that was 4 wholly contained within up to four distinct and separate contiguous 5 areas as of the date immediately preceding the date the designation of 6 such area expired pursuant to section nine hundred sixty-nine of the 7 general municipal law. 8 10. "Life sciences" means the field of biotechnology, pharmaceuticals, 9 biomedical technologies, life systems technologies, health informatics, 10 health robotics or biomedical devices. 11 11. "Life sciences company" means a business entity or an organization 12 or institution that devotes the majority of its efforts in the various 13 stages of research, development, technology transfer and commercializa- 14 tion related to any life sciences field. 15 12. "Manufacturing" means the process of working raw materials into 16 products suitable for use or which gives new shapes, new quality or new 17 combinations to matter which has already gone through some artificial 18 process by the use of machinery, tools, appliances, or other similar 19 equipment. "Manufacturing" does not include an operation that involves 20 only the assembly of components, provided, however, the assembly of 21 motor vehicles or other high value-added products shall be considered 22 manufacturing. 23 [11.] 13. "Music production" means the process of creating sound 24 recordings of at least eight minutes, recorded in professional sound 25 studios, intended for commercial release. "Music production" does not 26 include recording of live concerts, or recordings that are primarily 27 spoken word or wildlife or nature sounds, or produced for instructional 28 use or advertising or promotional purposes. 29 [12.] 14. "Net new jobs" means: 30 (a) jobs created in this state that (i) are new to the state, 31 (ii) have not been transferred from employment with another business 32 located in this state including from a related person in this state, 33 (iii) are either full-time wage-paying jobs or equivalent to a full- 34 time wage-paying job requiring at least thirty-five hours per week, and 35 (iv) are filled for more than six months; or 36 (b) jobs obtained by an entertainment company in this state (i) as a 37 result of the termination of a licensing agreement with another enter- 38 tainment company, (ii) that the commissioner determines to be at risk of 39 leaving the state as a direct result of the termination, (iii) that are 40 either full-time wage-paying jobs or equivalent to a full-time wage-pay- 41 ing job requiring at least thirty-five hours per week, and (iv) that are 42 filled for more than six months. 43 [13.] 15. "Participant" means a business entity that: 44 (a) has completed an application prescribed by the department to be 45 admitted into the program; 46 (b) has been issued a certificate of eligibility by the department; 47 (c) has demonstrated that it meets the eligibility criteria in section 48 three hundred fifty-three and subdivision two of section three hundred 49 fifty-four of this article; and 50 (d) has been certified as a participant by the commissioner. 51 [14.] 16. "Preliminary schedule of benefits" means the maximum aggre- 52 gate amount of each component of the tax credit that a participant in 53 the excelsior jobs program is eligible to receive pursuant to this arti- 54 cle. The schedule shall indicate the annual amount of each component of 55 the credit a participant may claim in each of its ten years of eligibil- 56 ity. The preliminary schedule of benefits shall be issued by theS. 2009--B 15 1 department when the department approves the application for admission 2 into the program. The commissioner may amend that schedule, provided 3 that the commissioner complies with the credit caps in section three 4 hundred fifty-nine of this article. 5 [15.] 17. "Qualified investment" means an investment in tangible prop- 6 erty (including a building or a structural component of a building) 7 owned by a business enterprise which: 8 (a) is depreciable pursuant to section one hundred sixty-seven of the 9 internal revenue code; 10 (b) has a useful life of four years or more; 11 (c) is acquired by purchase as defined in section one hundred seven- 12 ty-nine (d) of the internal revenue code; 13 (d) has a situs in this state; and 14 (e) is placed in service in the state on or after the date the certif- 15 icate of eligibility is issued to the business enterprise. 16 [16.] 18. "Regionally significant project" means (a) a manufacturer 17 creating at least fifty net new jobs in the state and making significant 18 capital investment in the state; (b) a business creating at least twenty 19 net new jobs in agriculture in the state and making significant capital 20 investment in the state, (c) a financial services firm, distribution 21 center, or back office operation creating at least three hundred net new 22 jobs in the state and making significant capital investment in the 23 state, (d) a scientific research and development firm creating at least 24 twenty net new jobs in the state, and making significant capital invest- 25 ment in the state, (e) a life sciences company creating at least twenty 26 net new jobs in the state and making significant capital investment in 27 the state or [(e)] (f) an entertainment company creating or obtaining at 28 least two hundred net new jobs in the state and making significant capi- 29 tal investment in the state. Other businesses creating three hundred or 30 more net new jobs in the state and making significant capital investment 31 in the state may be considered eligible as a regionally significant 32 project by the commissioner as well. The commissioner shall promulgate 33 regulations pursuant to section three hundred fifty-six of this article 34 to determine what constitutes significant capital investment for each of 35 the project categories indicated in this subdivision and what additional 36 criteria a business must meet to be eligible as a regionally significant 37 project, including, but not limited to, whether a business exports a 38 substantial portion of its products or services outside of the state or 39 outside of a metropolitan statistical area or county within the state. 40 [17.] 19. "Related person" means a "related person" pursuant to 41 subparagraph (c) of paragraph three of subsection (b) of section four 42 hundred sixty-five of the internal revenue code. 43 [18.] 20. "Remuneration" means wages and benefits paid to an employee 44 by a participant in the excelsior jobs program. 45 [19.] 21. "Research and development expenditures" mean the expenses of 46 the business enterprise that are qualified research expenses under the 47 federal research and development credit under section forty-one of the 48 internal revenue code and are attributable to activities conducted in 49 the state. If the federal research and development credit has expired, 50 then the research and development expenditures shall be calculated as if 51 the federal research and development credit structure and definition in 52 effect in federal tax year two thousand nine were still in effect. 53 [20.] 22. "Scientific research and development" means conducting 54 research and experimental development in the physical, engineering, and 55 life sciences, including but not limited to agriculture, electronics, 56 environmental, biology, botany, biotechnology, computers, chemistry,S. 2009--B 16 1 food, fisheries, forests, geology, health, mathematics, medicine, ocean- 2 ography, pharmacy, physics, veterinary, and other allied subjects. For 3 the purposes of this article, scientific research and development does 4 not include medical or veterinary laboratory testing facilities. 5 [21.] 23. "Software development" means the creation of coded computer 6 instructions or production or post-production of video games, as defined 7 in subdivision one-a of section six hundred eleven of the general busi- 8 ness law, other than those embedded and used exclusively in advertising, 9 promotional websites or microsites, and also includes new media as 10 defined by the commissioner in regulations. 11 § 2. Subdivisions 1 and 3 of section 353 of the economic development 12 law, as amended by section 2 of part K of chapter 59 of the laws of 13 2015, are amended to read as follows: 14 1. To be a participant in the excelsior jobs program, a business enti- 15 ty shall operate in New York state predominantly: 16 (a) as a financial services data center or a financial services back 17 office operation; 18 (b) in manufacturing; 19 (c) in software development and new media; 20 (d) in scientific research and development; 21 (e) in agriculture; 22 (f) in the creation or expansion of back office operations in the 23 state; 24 (g) in a distribution center; 25 (h) in an industry with significant potential for private-sector 26 economic growth and development in this state as established by the 27 commissioner in regulations promulgated pursuant to this article. In 28 promulgating such regulations the commissioner shall include job and 29 investment criteria; 30 (i) as an entertainment company; [or] 31 (j) in music production; or 32 (k) as a life sciences company. 33 3. For the purposes of this article, in order to participate in the 34 excelsior jobs program, a business entity operating predominantly in 35 manufacturing must create at least ten net new jobs; a business entity 36 operating predominately in agriculture must create at least five net new 37 jobs; a business entity operating predominantly as a financial service 38 data center or financial services customer back office operation must 39 create at least fifty net new jobs; a business entity operating predomi- 40 nantly in scientific research and development must create at least five 41 net new jobs; a business entity operating predominantly in software 42 development must create at least five net new jobs; a business entity 43 creating or expanding back office operations must create at least fifty 44 net new jobs; a business entity operating predominately in music 45 production must create at least five net new jobs; a business entity 46 operating predominantly as an entertainment company must create or 47 obtain at least one hundred net new jobs; or a business entity operating 48 predominantly as a distribution center in the state must create at least 49 seventy-five net new jobs, notwithstanding subdivision five of this 50 section; or a business entity operating predominately as a life sciences 51 company must create at least five net new jobs; or a business entity 52 must be a regionally significant project as defined in this article; or 53 § 3. Subdivision 4 of section 353 of the economic development law, as 54 amended by section 1 of part C of chapter 68 of the laws of 2013, is 55 amended to read as follows:S. 2009--B 17 1 4. A business entity operating predominantly in one of the industries 2 referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi- 3 sion one of this section but which does not meet the job requirements of 4 subdivision three of this section must have at least twenty-five full- 5 time job equivalents unless such business is a business entity operating 6 predominantly in manufacturing then it must have at least ten full-time 7 job equivalents and must demonstrate that its benefit-cost ratio is at 8 least ten to one. 9 § 4. Subdivision 5 of section 354 of the economic development law, as 10 amended by section 2 of part O of chapter 60 of the laws of 2016, is 11 amended to read as follows: 12 5. A participant may claim tax benefits commencing in the first taxa- 13 ble year that the business enterprise receives a certificate of tax 14 credit or the first taxable year listed on its preliminary schedule of 15 benefits, whichever is later. A participant may claim such benefits for 16 the next nine consecutive taxable years, provided that the participant 17 demonstrates to the department that it continues to satisfy the eligi- 18 bility criteria specified in section three hundred fifty-three of this 19 article and subdivision two of this section in each of those taxable 20 years, and provided that no tax credits may be allowed for taxable years 21 beginning on or after January first, two thousand [twenty-seven] thirty. 22 If, in any given year, a participant who has satisfied the eligibility 23 criteria specified in section three hundred fifty-three of this article 24 realizes job creation less than the estimated amount, the credit shall 25 be reduced by the proportion of actual job creation to the estimated 26 amount, provided the proportion is at least seventy-five percent of the 27 jobs estimated. 28 § 5. Section 359 of the economic development law, as amended by 29 section 1 of part O of chapter 60 of the laws of 2016, is amended to 30 read as follows: 31 § 359. Cap on tax credit. The total amount of tax credits listed on 32 certificates of tax credit issued by the commissioner for any taxable 33 year may not exceed the limitations set forth in this section. One-half 34 of any amount of tax credits not awarded for a particular taxable year 35 in years two thousand eleven through two thousand twenty-four may be 36 used by the commissioner to award tax credits in another taxable year. 37 Credit components in the aggregate With respect to taxable 38 shall not exceed: years beginning in: 39 $ 50 million 2011 40 $ 100 million 2012 41 $ 150 million 2013 42 $ 200 million 2014 43 $ 250 million 2015 44 $ 183 million 2016 45 $ 183 million 2017 46 $ 183 million 2018 47 $ 183 million 2019 48 $ 183 million 2020 49 $ 183 million 2021 50 $ 133 million 2022 51 $ 83 million 2023 52 $ 36 million 2024S. 2009--B 18 1 Twenty-five percent of tax credits shall be allocated to businesses 2 accepted into the program under subdivision four of section three 3 hundred fifty-three of this article and seventy-five percent of tax 4 credits shall be allocated to businesses accepted into the program under 5 subdivision three of section three hundred fifty-three of this article. 6 Provided, however, if by September thirtieth of a calendar year, the 7 department has not allocated the full amount of credits available in 8 that year to either: (i) businesses accepted into the program under 9 subdivision four of section three hundred fifty-three of this article or 10 (ii) businesses accepted into the program under subdivision three of 11 section three hundred fifty-three of this article, the commissioner may 12 allocate any remaining tax credits to businesses referenced in this 13 paragraph as needed; provided, however, that under no circumstances may 14 the aggregate statutory cap for all program years be exceeded. One 15 hundred percent of the unawarded amounts remaining at the end of two 16 thousand twenty-four may be allocated in subsequent years, notwithstand- 17 ing the fifty percent limitation on any amounts of tax credits not 18 awarded in taxable years two thousand eleven through two thousand twen- 19 ty-four. Provided, however, no tax credits may be allowed for taxable 20 years beginning on or after January first, two thousand [twenty-seven] 21 thirty. 22 § 6. Subdivision (b) of section 31 of the tax law, as amended by 23 section 3 of part O of chapter 60 of the laws of 2016, is amended to 24 read as follows: 25 (b) To be eligible for the excelsior jobs program credit, the taxpayer 26 shall have been issued a "certificate of tax credit" by the department 27 of economic development pursuant to subdivision four of section three 28 hundred fifty-four of the economic development law, which certificate 29 shall set forth the amount of each credit component that may be claimed 30 for the taxable year. A taxpayer may claim such credit for ten consec- 31 utive taxable years commencing in the first taxable year that the 32 taxpayer receives a certificate of tax credit or the first taxable year 33 listed on its preliminary schedule of benefits, whichever is later, 34 provided that no tax credits may be allowed for taxable years beginning 35 on or after January first, two thousand [twenty-seven] thirty. The 36 taxpayer shall be allowed to claim only the amount listed on the certif- 37 icate of tax credit for that taxable year. Such certificate must be 38 attached to the taxpayer's return. No cost or expense paid or incurred 39 by the taxpayer shall be the basis for more than one component of this 40 credit or any other tax credit, except as provided in section three 41 hundred fifty-five of the economic development law. 42 § 7. The tax law is amended by adding a new section 43 to read as 43 follows: 44 § 43. Life sciences tax credits. (a) Life sciences research and devel- 45 opment tax credit. (1) Allowance of credit. (i) A taxpayer that is a 46 qualified life sciences company, or that is a sole proprietor of or a 47 partner in a partnership that is a qualified life sciences company or a 48 shareholder of a New York S corporation that is a qualified life 49 sciences company, and is subject to tax under article nine-A or twenty- 50 two of this chapter, shall be allowed a credit against such tax, pursu- 51 ant to the provisions referred to in subdivision (e) of this section, 52 for a period of five years, as provided in clause (B) of subparagraph 53 (ii) of this paragraph, to be computed as provided in this subdivision, 54 provided that no credit shall be allowed for taxable years beginning on 55 or after January first, two thousand twenty-eight. Such credit may beS. 2009--B 19 1 claimed in the taxable year specified on the certificate of tax credit 2 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, provided 56 that no credit shall be allowed for taxable years beginning on or afterS. 2009--B 20 1 January first, two thousand twenty-eight. Such credit shall be claimed 2 in the taxable year specified on the certificate of angel investment 3 issued to the qualified angel investor. 4 (ii) The amount of the credit shall be equal to twenty-five percent of 5 each angel investment made during the taxable year. 6 (iii) The total amount of credit allowable to a qualified angel inves- 7 tor, or, if the qualified angel investor is properly included or 8 required to be included in a combined report, to the combined group, 9 taken in the aggregate, shall not exceed two hundred fifty thousand 10 dollars. If the angel investor is a partner in a partnership or share- 11 holder of a New York S corporation, then the total amount of credit 12 allowable shall be applied at the entity level, so that the total amount 13 of credit allowable to all the partners or shareholders of each such 14 entity, taken in the aggregate, does not exceed two hundred fifty thou- 15 sand dollars. 16 (iv) No investment made by the taxpayer and used either as the basis 17 for the allowance of the credit provided for pursuant to this subdivi- 18 sion or used in the calculation of the credit provided pursuant to this 19 subdivision shall be used to claim any other credit allowed pursuant to 20 this chapter or used in the calculation of any other credit allowed 21 pursuant to this chapter. 22 (2) Recapture. (i) If the certificate of angel investment of an angel 23 investor issued by the department of economic development under this 24 section is revoked by such department because the investment made by the 25 angel investor does not meet the eligibility requirements set forth in 26 this section and in regulation, the amount of credit described in this 27 subdivision and claimed by such angel investor prior to that revocation 28 shall be added back as tax in the taxable year in which any such revoca- 29 tion becomes final. 30 (ii) Where a taxpayer sells, transfers or otherwise disposes of corpo- 31 rate stock, a partnership interest or other ownership interest arising 32 from the making of an angel investment that was the basis, in whole or 33 in part, for the allowance of the credit provided for under this subdi- 34 vision, or where an investment that was the basis for such allowance is, 35 in whole or in part, recovered by such taxpayer, and such disposition or 36 recovery occurs during the taxable year or within forty-eight months 37 from the close of the taxable year with respect to which such credit is 38 allowed, the taxpayer shall add back as tax, with respect to the taxable 39 year in which the disposition or recovery described above occurred, the 40 amount of the credit originally claimed by the taxpayer. 41 (3) Maximum amount of credits. The aggregate amount of tax credits 42 allowed under this subdivision to taxpayers subject to tax under arti- 43 cles nine-A and twenty-two of this chapter in any taxable year shall be 44 five million dollars. Such aggregate amount of credits shall be allo- 45 cated by the department of economic development among taxpayers in order 46 of priority based upon the date of filing an application for allocation 47 of angel investor tax credit with such department. If the total amount 48 of allocated credits applied for in any particular year exceeds the 49 aggregate amount of tax credits allowed for such year under this subdi- 50 vision, such excess shall be treated as having been applied for on the 51 first day of the subsequent year. 52 (c) Definitions. As used in this section the following terms shall 53 have the following meanings: 54 (1) "Angel investment" means an investment in the form of a contrib- 55 ution to the capital of the qualified life sciences company, provided 56 that such investment is at risk and is not secured or guaranteed. AnS. 2009--B 21 1 "angel investment" does not include any loans, or investments in hedge 2 funds or commodity funds with institutional investors or with invest- 3 ments in a business involved in retail, real estate, professional 4 services, gaming or financial services. 5 (2) "Angel investor" means an accredited investor, as defined by the 6 United State Securities and Exchange Commission pursuant to section 7 seventy-seven-b of title fifteen of the United States Code, or a network 8 of accredited investors, that reviews new or proposed businesses for 9 potential investment and that may seek active involvement, such as 10 consulting and mentoring, in a life sciences company. "Angel investor" 11 does not include a person controlling, directly or indirectly, fifty 12 percent or more of the life sciences company invested in by the angel 13 investor or who is involved in the life sciences company in a full-time 14 professional capacity, and does not include a corporation of which such 15 life sciences company is a direct or indirect subsidiary, as defined in 16 section two hundred eight of this chapter. 17 (3) "Certificate of angel investment" means the document issued to a 18 qualified angel investor by the department of economic development for 19 each angel investment made by the qualified angel investor, after the 20 department or economic development has verified that such angel investor 21 has met all applicable criteria in this section to be eligible for the 22 angel investor tax credit allowed under subdivision (b) of this section, 23 including but not limited to certifying that the life sciences company 24 in which the angel investor has made such investment is a qualified life 25 sciences company. The certificate shall be issued annually if such 26 criteria are satisfied and shall specify the exact amount of each angel 27 investment made by the angel investor and the amount of the tax credit 28 that may be claimed by such angel investor, pursuant to subdivision (b) 29 of this section, and shall specify the taxable year in which such credit 30 may be claimed. 31 (4) "Certificate of tax credit" means the document issued to a quali- 32 fied life sciences company by the department of economic development, 33 after the department of economic development has verified that such life 34 sciences company has met all applicable criteria in this section to be 35 eligible for the life sciences research and development tax credit 36 allowed under subdivision (a) of this section, including but not limited 37 to verifying that the life sciences company is a new business. The 38 certificate shall be issued annually if such criteria are satisfied and 39 shall specify the exact amount of the life sciences research and devel- 40 opment tax credit that may be claimed by such qualified life sciences 41 company, pursuant to subdivision (a) of this section, and shall specify 42 the taxable year in which such credit may be claimed. 43 (5) "New business" means any business that qualifies as a new business 44 under either paragraph (f) of subdivision one of section two hundred 45 ten-B or paragraph ten of subsection one of section six hundred six of 46 this chapter. 47 (6) "Qualified angel investor" means an angel investor certified by 48 the department of economic development as an angel investor. 49 (7) "Qualified life sciences company" means a life sciences company, 50 as defined in subdivision eleven of section three hundred fifty-two of 51 the economic development law, that has been certified by the department 52 of economic development as a life sciences company and is a new busi- 53 ness. Provided that, for purposes of the angel investor tax credit 54 provided pursuant to subdivision (b) of this section, a qualified life 55 sciences company shall at the time that the angel investor makes an 56 initial angel investment in such life sciences company employ twenty orS. 2009--B 22 1 fewer persons during the taxable year and shall have had, during the 2 immediately preceding taxable year, gross receipts of not greater than 3 five hundred thousand dollars. Provided however, for purposes of the 4 credits authorized under this section, the department of economic devel- 5 opment shall not certify as a life sciences company any corporation, 6 partnership, limited partnership, or other entity that has been within 7 the immediately preceding sixty months a related person to an entity 8 that is a life sciences company or an entity that is engaged in scien- 9 tific research and development as defined in subdivision twenty-two of 10 section three hundred fifty-two of the economic development law. 11 (8) "Research and development expenditures" means qualified research 12 expenses as defined in subsection (b) of section 41 of the internal 13 revenue code, provided, however, that such qualified research expenses 14 shall not include amounts under subparagraph (B) of paragraph 1 of 15 subsection (b) of section 41 of the internal revenue code and as further 16 described in paragraph 3 of subsection (b) of section 41 of the internal 17 revenue code. If section 41 of the internal revenue code has expired, 18 then the research and development expenses shall be calculated as if the 19 federal research and development credit structure and definition in 20 effect in section 41 in federal tax year two thousand nine were still in 21 effect. 22 (9) "Related person" means a related person as defined in subparagraph 23 (c) of paragraph three of subsection (b) of section 465 of the internal 24 revenue code. For this purpose, a "related person" shall include an 25 entity that would have qualified as a "related person" if it had not 26 been dissolved, liquidated, merged with another entity or otherwise 27 ceased to exist or operate. 28 (d)(1) For purposes of this section, in order to be eligible for the 29 life sciences research and development tax credit allowed under subdivi- 30 sion (a) of this section, a life sciences company must be issued a 31 certificate of tax credit by the department of economic development. 32 The department of economic development shall verify that such life 33 sciences company has met all applicable eligibility criteria in this 34 section before issuing a certificate of tax credit, including but not 35 limited to verifying that the life sciences company is a new business. 36 (2) For purposes of this section, in order to be eligible for the 37 angel investor tax credit allowed under subdivision (b) of this section, 38 an angel investor must be issued a certificate of angel investment by 39 the department of economic development for each angel investment for 40 which the credit is claimed. The department of economic development 41 shall verify that such angel investor has met all applicable eligibility 42 criteria in this section before issuing a certificate of angel invest- 43 ment, including but not limited to certifying that the life sciences 44 company in which the angel investor has made such investment is a quali- 45 fied life sciences company. 46 (3) The commissioner of economic development, after consulting with 47 the commissioner, shall promulgate regulations by October thirty-first, 48 two thousand seventeen to establish procedures for the allocation of tax 49 credits allowed under this section. Such rules and regulations shall 50 include provisions describing the application process for each credit, 51 the due dates for such applications, the eligibility standards for qual- 52 ified life sciences companies, the standards which shall be used to 53 evaluate the applications, the documentation that will be provided to 54 taxpayers to substantiate to the department the amount of tax credits 55 allocated to such taxpayers, and such other provisions as deemed neces- 56 sary and appropriate. Notwithstanding any other provisions to theS. 2009--B 23 1 contrary in the state administrative procedure act, such rules and regu- 2 lations may be adopted on an emergency basis if necessary to meet such 3 October thirty-first, two thousand seventeen deadline. 4 (e) Cross-references. For application of the credits provided for in 5 this section, see the following provisions of this chapter: 6 (1) article 9-A: section 210-B: subdivision 52. 7 (2) article 22: section 606: subsection (hhh). 8 (f) Notwithstanding any provision of this chapter, (i) employees and 9 officers of the department of economic development and the department 10 shall be allowed and are directed to share and exchange information 11 regarding the credits applied for, allowed, or claimed pursuant to this 12 section and taxpayers who are applying for credits or who are claiming 13 credits, including information contained in or derived from credit claim 14 forms submitted to the department and applications for certification 15 submitted to the department of economic development, and (ii) the 16 commissioner and the commissioner of the department of economic develop- 17 ment may release the names and addresses of any taxpayer claiming these 18 credits and the amount of the credit earned by the taxpayer. Provided, 19 however, if a taxpayer claims either of these credits because it is a 20 member of a limited liability company or a partner in a partnership, 21 only the amount of credit earned by the entity and not the amount of 22 credit claimed by the taxpayer may be released. 23 (g) For purposes of the credits allowed under this section, the number 24 of persons employed by a qualified life sciences company during the 25 taxable year shall be determined by ascertaining the number of such 26 individuals employed full-time by such company, excluding general execu- 27 tive officers, on the thirty-first day of March, the thirtieth day of 28 June, the thirtieth day of September and the thirty-first day of Decem- 29 ber during each taxable year, by adding together the number of such 30 individuals ascertained on each of such dates and dividing the sum so 31 obtained by the number of such dates occurring within such taxable year. 32 An individual employed full-time means an employee in a job consisting 33 of at least thirty-five hours per week, or two or more employees who are 34 in jobs that together constitute the equivalent of a job of at least 35 thirty-five hours per week (full-time equivalent). 36 § 8. Section 210-B of the tax law is amended by adding a new subdivi- 37 sion 52 to read as follows: 38 52. Life sciences tax credits. (a) Life sciences research and develop- 39 ment tax credit. (1) Allowance of credit. A taxpayer that is eligible 40 pursuant to subdivision (a) of section forty-three of this chapter shall 41 be allowed a credit to be computed as provided in such subdivision 42 against the tax imposed by this article. 43 (2) Application of credit. The credit allowed under this paragraph for 44 any taxable year shall not reduce the tax due for such year to less than 45 the amount prescribed in paragraph (d) of subdivision one of section two 46 hundred ten of this article. Provided, however, that if the amount of 47 the credit allowable under this paragraph for any taxable year reduces 48 the tax to such amount or if the taxpayer otherwise pays tax based on 49 the fixed dollar minimum amount, the excess shall be treated as an over- 50 payment of tax to be credited or refunded in accordance with the 51 provisions of section one thousand eighty-six of this chapter. Provided, 52 further, the provisions of subsection (c) of section one thousand eight- 53 y-eight of this chapter notwithstanding, no interest shall be paid ther- 54 eon. 55 (b) Angel investor tax credit. (1) Allowance of credit. A taxpayer 56 that is eligible pursuant to subdivision (b) of section forty-three ofS. 2009--B 24 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 Intentionally Omitted 49 PART MS. 2009--B 25 1 Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax 2 law, as amended by chapter 420 of the laws of 2016, is amended to read 3 as follows: 4 (5) For the period two thousand fifteen through two thousand [nine-5teen] twenty-two, in addition to the amount of credit established in 6 paragraph two of this subdivision, a taxpayer shall be allowed a credit 7 equal to the product (or pro rata share of the product, in the case of a 8 member of a partnership) of ten percent and the amount of wages or sala- 9 ries paid to individuals directly employed (excluding those employed as 10 writers, directors, music directors, producers and performers, including 11 background actors with no scripted lines) by a qualified film production 12 company or a qualified independent film production company for services 13 performed by those individuals in one of the counties specified in this 14 paragraph in connection with a qualified film with a minimum budget of 15 five hundred thousand dollars. For purposes of this additional credit, 16 the services must be performed in one or more of the following counties: 17 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 18 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 19 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 20 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 21 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 22 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, 23 Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, 24 Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant 25 to the authority of this paragraph shall be five million dollars each 26 year during the period two thousand fifteen through two thousand [nine-27teen] twenty-two of the annual allocation made available to the program 28 pursuant to paragraph four of subdivision (e) of this section. Such 29 aggregate amount of credits shall be allocated by the governor's office 30 for motion picture and television development among taxpayers in order 31 of priority based upon the date of filing an application for allocation 32 of film production credit with such office. If the total amount of allo- 33 cated credits applied for under this paragraph in any year exceeds the 34 aggregate amount of tax credits allowed for such year under this para- 35 graph, such excess shall be treated as having been applied for on the 36 first day of the next year. If the total amount of allocated tax credits 37 applied for under this paragraph at the conclusion of any year is less 38 than five million dollars, the remainder shall be treated as part of the 39 annual allocation made available to the program pursuant to paragraph 40 four of subdivision (e) of this section. However, in no event may the 41 total of the credits allocated under this paragraph and the credits 42 allocated under paragraph [five] six of subdivision (a) of section thir- 43 ty-one of this article exceed five million dollars in any year during 44 the period two thousand fifteen through two thousand [nineteen] twenty- 45 two. 46 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 47 amended by section 1-a of part P of chapter 60 of the laws of 2016, is 48 amended to read as follows: 49 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 50 subdivision (a) of this section shall be increased by an additional four 51 hundred twenty million dollars in each year starting in two thousand ten 52 through two thousand [nineteen] twenty-two provided however, seven 53 million dollars of the annual allocation shall be available for the 54 empire state film post production credit pursuant to section thirty-one 55 of this article in two thousand thirteen and two thousand fourteen and 56 twenty-five million dollars of the annual allocation shall be availableS. 2009--B 26 1 for the empire state film post production credit pursuant to section 2 thirty-one of this article in each year starting in two thousand fifteen 3 through two thousand [nineteen] twenty-two. This amount shall be allo- 4 cated by the governor's office for motion picture and television devel- 5 opment among taxpayers in accordance with subdivision (a) of this 6 section. If the commissioner of economic development determines that the 7 aggregate amount of tax credits available from additional pool 2 for the 8 empire state film production tax credit have been previously allocated, 9 and determines that the pending applications from eligible applicants 10 for the empire state film post production tax credit pursuant to section 11 thirty-one of this article is insufficient to utilize the balance of 12 unallocated empire state film post production tax credits from such 13 pool, the remainder, after such pending applications are considered, 14 shall be made available for allocation in the empire state film tax 15 credit pursuant to this section, subdivision twenty of section two 16 hundred ten-B and subsection (gg) of section six hundred six of this 17 chapter. Also, if the commissioner of economic development determines 18 that the aggregate amount of tax credits available from additional pool 19 2 for the empire state film post production tax credit have been previ- 20 ously allocated, and determines that the pending applications from 21 eligible applicants for the empire state film production tax credit 22 pursuant to this section is insufficient to utilize the balance of unal- 23 located film production tax credits from such pool, then all or part of 24 the remainder, after such pending applications are considered, shall be 25 made available for allocation for the empire state film post production 26 credit pursuant to this section, subdivision thirty-two of section two 27 hundred ten-B and subsection (qq) of section six hundred six of this 28 chapter. The governor's office for motion picture and television devel- 29 opment must notify taxpayers of their allocation year and include the 30 allocation year on the certificate of tax credit. Taxpayers eligible to 31 claim a credit must report the allocation year directly on their empire 32 state film production credit tax form for each year a credit is claimed 33 and include a copy of the certificate with their tax return. In the case 34 of a qualified film that receives funds from additional pool 2, no 35 empire state film production credit shall be claimed before the later of 36 the taxable year the production of the qualified film is complete, or 37 the taxable year immediately following the allocation year for which the 38 film has been allocated credit by the governor's office for motion 39 picture and television development. 40 § 3. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 41 amended by section 2 of part JJ of chapter 59 of the laws of 2014, is 42 amended to read as follows: 43 (6) For the period two thousand fifteen through two thousand [nine-44teen] twenty-two, in addition to the amount of credit established in 45 paragraph two of subdivision (a) of this section, a taxpayer shall be 46 allowed a credit equal to the product (or pro rata share of the product, 47 in the case of a member of a partnership) of ten percent and the amount 48 of wages or salaries paid to individuals directly employed (excluding 49 those employed as writers, directors, music directors, producers and 50 performers, including background actors with no scripted lines) for 51 services performed by those individuals in one of the counties specified 52 in this paragraph in connection with the post production work on a qual- 53 ified film with a minimum budget of five hundred thousand dollars at a 54 qualified post production facility in one of the counties listed in this 55 paragraph. For purposes of this additional credit, the services must be 56 performed in one or more of the following counties: Albany, Allegany,S. 2009--B 27 1 Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, 2 Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, 3 Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, 4 Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenecta- 5 dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, 6 Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed 7 pursuant to the authority of this paragraph shall be five million 8 dollars each year during the period two thousand fifteen through two 9 thousand [nineteen] twenty-two of the annual allocation made available 10 to the empire state film post production credit pursuant to paragraph 11 four of subdivision (e) of section twenty-four of this article. Such 12 aggregate amount of credits shall be allocated by the governor's office 13 for motion picture and television development among taxpayers in order 14 of priority based upon the date of filing an application for allocation 15 of post production credit with such office. If the total amount of allo- 16 cated credits applied for under this paragraph in any year exceeds the 17 aggregate amount of tax credits allowed for such year under this para- 18 graph, such excess shall be treated as having been applied for on the 19 first day of the next year. If the total amount of allocated tax credits 20 applied for under this paragraph at the conclusion of any year is less 21 than five million dollars, the remainder shall be treated as part of the 22 annual allocation for two thousand seventeen made available to the 23 empire state film post production credit pursuant to paragraph four of 24 subdivision (e) of section twenty-four of this article. However, in no 25 event may the total of the credits allocated under this paragraph and 26 the credits allocated under paragraph five of subdivision (a) of section 27 twenty-four of this article exceed five million dollars in any year 28 during the period two thousand fifteen through two thousand [nineteen] 29 twenty-two. 30 § 4. This act shall take effect immediately. 31 PART N 32 Intentionally Omitted 33 PART O 34 Intentionally Omitted 35 PART P 36 Intentionally Omitted 37 PART Q 38 Section 1. Legislative findings. The legislature finds it necessary to 39 revise a decision of the tax appeals tribunal that disturbed the long- 40 standing policy of the department of taxation and finance that single 41 member limited liability companies that are treated as disregarded enti- 42 ties for federal income tax purposes also would be treated as disre- 43 garded entities for purposes of determining eligibility of the owners of 44 such entities for tax credits allowed under article 9, 9-A, 22, 32 45 (prior to its repeal) or 33 of the tax law. The decision of the taxS. 2009--B 28 1 appeals tribunal, if allowed to stand, will result in the denial of tax 2 credits, such as empire zone tax credits, to taxpayers who in prior 3 years received those credits. 4 § 2. The tax law is amended by adding a new section 43 to read as 5 follows: 6 § 43. Single member limited liability companies and eligibility for 7 tax credits. A limited liability company that has a single member and is 8 disregarded as an entity separate from its owner for federal income tax 9 purposes (without reference to any special rules related to the imposi- 10 tion of certain federal taxes, including but not limited to certain 11 employment and excise taxes) shall be disregarded as an entity separate 12 from its owner for purposes of determining whether or not the taxpayer 13 that is the single member of such limited liability company satisfies 14 the requirements to be eligible for any tax credit allowed under article 15 nine, nine-A, twenty-two or thirty-three of this chapter or allowed 16 under article thirty-two of this chapter prior to the repeal of such 17 article. Such requirements, including but not limited to any necessary 18 certification, employment or investment thresholds, payment obligations, 19 and any time period for eligibility, shall be imposed on the taxpayer 20 and the determination of whether or not such requirements have been 21 satisfied and the computation of the credit shall be made by deeming 22 such taxpayer and such limited liability company to be a single entity. 23 If the taxpayer is the single member of more than one limited liability 24 company that is disregarded as an entity separate from its owner, the 25 determination of whether or not the requirements to be eligible for any 26 tax credit allowed under article nine, nine-A, twenty-two or thirty- 27 three of this chapter or allowed under article thirty-two of this chap- 28 ter prior to the repeal of such article have been satisfied and the 29 computation of the credit shall be made by deeming such taxpayer and 30 such limited liability companies to be a single entity. However, if the 31 taxpayer is the single member of more than one limited liability company 32 that are each separately certified under the empire zones program, as 33 defined under article eighteen-B of the general municipal law, the 34 taxpayer may elect to have each certified business enterprise treated 35 separately under the requirements of the empire zones program based on 36 the effective date of certification of each separate business enter- 37 prise. In such instance, the separate treatment of two or more business 38 enterprises shall be determined by an election made by the taxpayer, 39 which election includes the date of certification of the business enter- 40 prise and its intended benefit period. Such election shall apply to all 41 taxable years for which the statute of limitation for seeking a refund 42 or assessing additional tax is still open. 43 § 3. This act shall take effect immediately; provided however, that 44 section 43 of the tax law, as added by section two of this act, shall 45 apply to all taxable years for which the statute of limitations for 46 seeking a refund or assessing additional tax is still open. 47 PART R 48 Intentionally Omitted 49 PART S 50 Intentionally OmittedS. 2009--B 29 1 PART T 2 Section 1. Subsection (c) of section 606 of the tax law is amended by 3 adding a new paragraph (1-a) to read as follows: 4 (1-a) For taxable years beginning after two thousand seventeen, for a 5 taxpayer with New York adjusted gross income of less than one hundred 6 fifty thousand dollars, the applicable percentage shall be the applica- 7 ble percentage otherwise computed under paragraph one of this subsection 8 multiplied by a factor as follows: 9 If New York adjusted gross 10 income is: The factor is: 11 Less than $50,000 0.5 12 At least $50,000 and less 13 than $55,000 1.1682 14 At least $55,000 and less 15 than $60,000 1.2733 16 At least $60,000 and less 17 than $65,000 2.322 18 At least $65,000 and less 19 than $150,000 3.000 20 § 2. Subsection (c) of section 606 of the tax law is amended by adding 21 a new paragraph 1-b to read as follows: 22 (1-b) Notwithstanding anything in this subsection to the contrary, a 23 taxpayer shall be allowed a credit as provided in this subsection equal 24 to the applicable percentage of the credit allowable under section twen- 25 ty-one of the internal revenue code for the same taxable year (without 26 regard to whether the taxpayer in fact claimed the credit under such 27 section twenty-one for such taxable year) that would have been allowed 28 absent the application of section 21(c) of such code for taxpayers with 29 more than two qualifying individuals, provided however, that the credit 30 shall be calculated as if the dollar limit on amount creditable shall 31 not exceed seven thousand five hundred dollars if there are three quali- 32 fying individuals, eight thousand five hundred dollars if there are four 33 qualifying individuals, and nine thousand dollars if there are five or 34 more qualifying individuals. 35 § 3. This act shall take effect immediately. 36 PART U 37 Intentionally Omitted 38 PART V 39 Intentionally Omitted 40 PART W 41 Intentionally Omitted 42 PART X 43 Intentionally OmittedS. 2009--B 30 1 PART Y 2 Intentionally Omitted 3 PART Z 4 Intentionally Omitted 5 PART AA 6 Intentionally Omitted 7 PART BB 8 Intentionally Omitted 9 PART CC 10 Intentionally Omitted 11 PART DD 12 Intentionally Omitted 13 PART EE 14 Intentionally Omitted 15 PART FF 16 Intentionally Omitted 17 PART GG 18 Intentionally Omitted 19 PART HH 20 Intentionally Omitted 21 PART II 22 Intentionally Omitted 23 PART JJS. 2009--B 31 1 Intentionally Omitted 2 PART KK 3 Intentionally Omitted 4 PART LL 5 Intentionally Omitted 6 PART MM 7 Section 1. Article 19-B of the executive law is REPEALED. 8 § 1-a. Article 9-A of the general municipal law is REPEALED. 9 § 1-b. Article 14-H of the general municipal law is REPEALED. 10 § 2. The racing, pari-mutuel wagering and breeding law is amended by 11 adding a new article 15 to read as follows: 12 ARTICLE 15 13 CHARITABLE GAMING 14 Title 1. General provisions. 15 2. Bingo control. 16 3. Local option for conduct of bingo by certain organizations. 17 4. Local option for conduct of games of chance by certain organ- 18 izations. 19 TITLE 1 20 GENERAL PROVISIONS 21 Section 1500. Definitions. 22 1501. Forms. 23 1502. Participation by persons under the age of eighteen. 24 1503. Sundays. 25 1504. Advertising of charitable games. 26 1505. Sanctions for violations. 27 1506. Severability. 28 § 1500. Definitions. As used in this article, in addition to the defi- 29 nitions set forth in section one hundred one of this chapter, the 30 following terms shall have the following meanings: 31 1. "Authorized bingo lessor" shall mean a person, firm or corporation 32 other than a licensee to conduct bingo under the provisions of this 33 article, who or which owns or is a net lessee of premises and offer the 34 same for leasing by him, her or it to an authorized organization for any 35 consideration whatsoever, direct or indirect, for the purpose of 36 conducting bingo therein, provided, that he, she or it, as the case may 37 be, shall not be: 38 (a) a person convicted of a crime if there is a direct relationship 39 between one or more of the previous criminal offenses and the integrity 40 of bingo, considering the factors set forth in section seven hundred 41 fifty-three of the correction law; 42 (b) a person who is or has been a professional gambler or gambling 43 promoter or who for other reasons is not of good moral character; 44 (c) a public officer who receives any consideration, direct or indi- 45 rect, as owner or lessor of premises offered for the purpose of conduct- 46 ing bingo therein; orS. 2009--B 32 1 (d) a firm or corporation in which a person defined in paragraph (a), 2 (b) or (c) of this subdivision or a person married or related in the 3 first degree to such a person has greater than a ten percent proprie- 4 tary, equitable or credit interest or in which such a person is active 5 or employed. 6 Nothing contained in this subdivision shall be construed to bar any 7 firm or corporation that is not organized for pecuniary profit and no 8 part of the net earnings of which inure to the benefit of any individ- 9 ual, member or shareholder, from being an authorized bingo lessor solely 10 because a public officer, or a person married or related in the first 11 degree to a public officer, is a member of, active in or employed by 12 such firm or corporation. 13 2. "Authorized games of chance lessor" shall mean an authorized organ- 14 ization that has been granted a lessor's license pursuant to the 15 provisions of title four of this article or a municipality. 16 3. "Authorized organization" shall mean any bona fide religious or 17 charitable organization or bona fide educational, fraternal, civic or 18 service organization or bona fide organization of veterans, volunteer 19 firefighters or volunteer ambulance workers that by its charter, certif- 20 icate of incorporation, constitution or act of the legislature has among 21 its dominant purposes one or more of the lawful purposes as defined in 22 this section, provided that each shall operate without profit to its 23 members and provided that each such organization has engaged in serving 24 one or more of the lawful purposes as defined in this section for a 25 period of one year immediately prior to applying for a license under 26 this article. No organization shall be deemed an authorized organization 27 that is formed primarily for the purpose of conducting bingo or games of 28 chance and that does not devote at least seventy-five percent of its 29 activities to other than conducting bingo or games of chance. No poli- 30 tical party, political campaign or political campaign committee shall be 31 deemed an authorized organization. 32 4. "Authorized supplier of games of chance equipment" shall mean any 33 person, firm, partnership, corporation or organization licensed by the 34 commission to sell or lease games of chance equipment or paraphernalia 35 that meets the specifications and regulations established by the commis- 36 sion. Nothing herein shall prevent an authorized organization from 37 purchasing common articles, such as cards and dice, from normal sources 38 of supply of such articles or from constructing equipment and parapher- 39 nalia for games of chance for its own use. However, no such equipment 40 or paraphernalia, constructed or owned by an authorized organization 41 shall be sold or leased to any other authorized organization, without 42 written permission from the commission. 43 5. "Bell jars" shall mean and include those games in which a partic- 44 ipant shall draw a card that contains numbers, colors or symbols that 45 are covered and that, when uncovered, may reveal that a prize shall be 46 awarded on the basis of a designated winning number, color or symbol or 47 combination of numbers, colors or symbols. Such card shall be drawn from 48 a jar, vending machine or other suitable device or container. Bell jars 49 shall also include seal cards, coin boards, event games and merchandise 50 boards. Notwithstanding any other provision of law, bell jar vending 51 machines shall dispense preprinted physical bell jar tickets and may 52 include features to aid players and enhance accountability, including 53 functionality to electronically verify if a ticket is redeemable for a 54 prize, reveal ticket results through creative audio and video displays, 55 and electronically aggregate winning prizes for continue play or a 56 single voucher for prize redemption. After the effective date of thisS. 2009--B 33 1 article, no new bell jar ticket vending machine shall be deployed or 2 used by any licensed authorized organization within the jurisdictional 3 boundaries defined in subdivision two of section thirteen hundred eleven 4 of this chapter unless the board shall first issue a formal written 5 opinion that the specific type of vending machine to be deployed is not 6 violative of a valid and effective gaming compact between the state and 7 an Indian tribe or nation. 8 6. "Bingo" shall mean a specific game of chance, commonly known as 9 bingo or lotto, in which prizes are awarded on the basis of designated 10 numbers or symbols on a card conforming to numbers or symbols selected 11 at random. 12 7. "Bingo control law" shall mean title two of this article. 13 8. "Bingo licensing law" shall mean title three of this article. 14 9. "Bonus ball" shall mean a bingo game that is played in conjunction 15 with one or more regular or special bingo games designated as bonus ball 16 games by the licensed authorized organization during one or more consec- 17 utive bingo occasions in which a prize is awarded to the player obtain- 18 ing a specified winning bingo pattern when the last number called by the 19 licensed authorized organization is the designated bonus ball number. 20 The bonus ball prize shall be based upon a percentage of the sales from 21 opportunities to participate in bonus ball games not to exceed seventy- 22 five percent of the sum of money received from the sale of bonus ball 23 opportunities or ten thousand dollars, whichever shall be less, and 24 which is not subject to the prize limits imposed by subdivisions five 25 and six of section fifteen hundred twenty-three and paragraph (a) of 26 subdivision one of section fifteen hundred twenty-five of this article. 27 The percentage shall be specified both in the application for the bingo 28 license and the license. Notwithstanding section fifteen hundred thir- 29 ty-one of this article, not more than one dollar shall be charged per 30 player for an opportunity to participate in all bonus ball games 31 conducted during a single bingo occasion, and the total amount collected 32 from the sale of bonus ball opportunities and the amount of the prize to 33 be awarded shall be announced prior to the start of each bingo occasion. 34 10. "Clerk" shall mean the clerk of a municipality outside the city of 35 New York. 36 11. "Coin board" and "merchandise board" shall mean a board used in 37 conjunction with bell jar tickets that contains and displays various 38 coins and/or merchandise as prizes. A player having a bell jar ticket 39 with a number matching a pre-designated number reflected on the board 40 for a prize wins that prize. 41 11-a. "Commission" shall mean the New York state gaming commission. 42 12. "Department" shall mean the New York city department of consumer 43 affairs. 44 13. "Early bird" shall mean a bingo game that is played as a special 45 game, conducted not more than twice during a bingo occasion, in which 46 prizes are awarded based upon a percentage not to exceed seventy-five 47 percent of the sum of money received from the sale of the early bird 48 cards and that is neither subject to the prize limits imposed by subdi- 49 visions five and six of section fifteen hundred twenty-three and para- 50 graph (a) of subdivision one of section fifteen hundred twenty-five, nor 51 the special game opportunity charge limit imposed by section fifteen 52 hundred thirty-one of this article. The percentage shall be specified 53 both in the application for bingo license and the license. Not more 54 than one dollar shall be charged per card with the total amount 55 collected from the sale of the early bird cards and the prize for each 56 game to be announced before the commencement of each game.S. 2009--B 34 1 14. "Event game" shall mean a bell jar game in which certain winners 2 are determined by the random selection of one or more bingo numbers, the 3 use of a seal card or by another method approved by the commission. 4 15. "Flare" shall mean a poster description of the bell jar game, 5 which shall include: 6 (a) a declaration of the number of winners and amount of prizes in 7 each deal; 8 (b) the number of prizes available in the deal; 9 (c) the number of tickets in each deal that contain the stated prize; 10 (d) the manufacturer's game form number and the serial number of the 11 deal, which shall be identical to the serial number imprinted on each 12 ticket contained in the deal; and 13 (e) such other requirements as the rules and regulations of the 14 commission may require. 15 16. "Games of chance" shall mean and include only the games known as 16 "merchandise wheels," "coin boards," "merchandise boards," "seal cards," 17 "event games," "raffles," "bell jars" and such other specific games as 18 may be authorized by the commission, in which prizes are awarded on the 19 basis of a designated winning number or numbers, color or colors, symbol 20 or symbols determined by chance, but not including games commonly known 21 as "bingo" or "lotto," which are controlled under titles two and three 22 of this article, and also not including "bookmaking," "policy or numbers 23 games" and "lottery" as defined in section 225.00 of the penal law. 24 17. "Lawful purposes" shall mean one or more of the following causes, 25 deeds or activities: 26 (a) those that benefit needy or deserving persons indefinite in number 27 by enhancing their opportunity for religious or educational advancement, 28 by relieving them from disease, suffering or distress, or by contribut- 29 ing to their physical well-being, by assisting them in establishing 30 themselves in life as worthy and useful citizens, or by increasing their 31 comprehension of and devotion to the principles upon which this nation 32 was founded and enhancing their loyalty to their governments; 33 (b) those that initiate, perform or foster worthy public works or 34 enable or further the erection or maintenance of public structures; 35 (c) those that initiate, perform or foster the provisions of services 36 to veterans by encouraging the gathering of such veterans and enable or 37 further the erection or maintenance of facilities for use by such veter- 38 ans that shall be used primarily for charitable or patriotic purposes, 39 or those purposes that shall be authorized by a bona fide organization 40 of veterans, provided however that such proceeds are disbursed in 41 accordance with the rules and regulations of the commission and section 42 fifteen hundred fifty-four of this article; and 43 (d) those that otherwise lessen the burdens borne by the government or 44 that are voluntarily undertaken by an authorized organization to augment 45 or supplement services that the government would normally render to the 46 people, including, in the case of volunteer firefighters' activities, 47 the purchase, erection or maintenance of a building for a firehouse, 48 activities open to the public for the enhancement of membership and the 49 purchase of equipment that can reasonably be expected to increase the 50 efficiency of response to fires, accidents, public calamities and other 51 emergencies. 52 18. "License period" shall mean: 53 (a) for bingo, the duration of a license issued pursuant to section 54 fifteen hundred twenty-five of this article; 55 (b) for games of chance other than bell jars or raffles, a period of 56 time not to exceed fourteen consecutive hours; andS. 2009--B 35 1 (c) for bell jars and raffles, a period of time running from January 2 first to December thirty-first of the year set forth in the license. 3 19. "Limited-period bingo" shall mean the conduct of bingo by a 4 licensed authorized organization, for a period of not more than seven of 5 twelve consecutive days in any one year, at a festival, bazaar, carnival 6 or similar function conducted by such licensed authorized organization. 7 No authorized organization licensed to conduct limited-period bingo 8 shall be otherwise eligible to conduct bingo pursuant to this title in 9 the same year. 10 20. "Municipal officer" shall mean the chief law enforcement officer 11 of a municipality outside the city of New York, or if such municipality 12 exercises the option set forth in subdivision two of section fifteen 13 hundred sixty-three of this article, the chief law enforcement officer 14 of the county. 15 21. "Municipality" shall mean any city, town or village within this 16 state. 17 22. "Net lease" shall mean a written agreement between a lessor and 18 lessee under the terms of which the lessee is entitled to the 19 possession, use or occupancy of the whole or part of any commercial 20 premises for which the lessee pays rent to the lessor and likewise 21 undertakes to pay substantially all of the regularly recurring expenses 22 incident to the operation and maintenance of such leased premises. 23 23. "Net proceeds" shall mean: 24 (a) in relation to the gross receipts from one or more occasions of 25 bingo, the amount that remains after deducting the reasonable sums 26 necessarily and actually expended for bingo supplies and equipment, 27 prizes, stated rental, if any, bookkeeping or accounting services 28 according to a schedule of compensation prescribed by the commission, 29 janitorial services and utility supplies if any, license fees, and the 30 cost of bus transportation, if authorized by the commission; 31 (b) in relation to bell jars, the difference between the ideal handle 32 from the sale of bell jar tickets, seal cards, merchandise boards and 33 coin boards less the amount of money paid out in prizes and less the 34 purchase price of the bell jar deal, seal card deal, merchandise board 35 deal or coin board deal. Additionally, a credit shall be permitted 36 against the net proceeds fee tendered to the commission for unsold tick- 37 ets of the bell jar deal so long as the unsold tickets have the same 38 serial and form number as the tickets for which the fee is rendered; 39 (c) in relation to the gross receipts from one or more license periods 40 of games of chance, the amount that shall remain after deducting the 41 reasonable sums necessarily and actually expended for supplies and 42 equipment, prizes, security-personnel, stated rental, if any, bookkeep- 43 ing or accounting services according to a schedule of compensation 44 prescribed by the commission, janitorial services and utility supplies, 45 if any, license fees, and the cost of bus transportation, if authorized 46 by the clerk or department; 47 (d) in relation to the gross rent received by an organization licensed 48 to conduct bingo for the use of its premises by another licensee, the 49 amount that remains after deducting the reasonable sums necessarily and 50 actually expended for janitorial services and utility supplies directly 51 attributable thereto if any; and 52 (e) in relation to the gross rent received by an authorized games of 53 chance lessor for the use of its premises by a game of chance licensee, 54 the amount that shall remain after deducting the reasonable sums neces- 55 sarily and actually expended for janitorial services and utility 56 supplies directly attributable thereto if any.S. 2009--B 36 1 24. (a) "One occasion" shall mean the successive operations of any one 2 single type of game of chance that results in the awarding of a series 3 of prizes amounting to five hundred dollars or four hundred dollars 4 during any one license period, in accordance with the provisions of 5 subdivision eight of section fifteen hundred fifty-four of this article, 6 as the case may be. 7 (b) For purposes of the game of chance known as a merchandise wheel or 8 a raffle, "one occasion" shall mean the successive operations of any one 9 such merchandise wheel or raffle for which the limit on a series of 10 prizes provided by subdivision six of section fifteen hundred fifty-four 11 of this article shall apply. 12 (c) For purposes of the game of chance known as a bell jar, "one occa- 13 sion" shall mean the successive operation of any one such bell jar, seal 14 card, event game, coin board, or merchandise board that results in the 15 awarding of a series of prizes amounting to six thousand dollars. 16 (d) For the purposes of the game of chance known as raffle "one occa- 17 sion" shall mean a calendar year during which successive operations of 18 such game are conducted. 19 25. "Operation" shall mean, in regard to a game of chance, the play of 20 a single type of game of chance necessary to determine the outcome or 21 winners each time wagers are made. A single drawing of a winning ticket 22 or other receipt in a raffle shall be deemed one operation. 23 26. "Premises" shall mean, in regard to games of chance, a designated 24 area within a building, hall, tent or grounds reasonably identified for 25 the conduct of games of chance. Nothing herein shall require such area 26 to be enclosed. 27 27. "Prize," where supercard is played as set forth in subdivision 28 thirty-three of this section, shall mean the sum of money or actual 29 value of merchandise awarded to the winner or winners on a game card 30 during a game of bingo and the sum of money or actual value of merchan- 31 dise awarded to the winner or winners on a supercard in excess of the 32 total receipts derived from the sale of supercards for that specific 33 game. 34 28. "Raffle" shall mean and include those games of chance in which a 35 participant pays money in return for a ticket or other receipt and in 36 which a prize is awarded on the basis of a winning number or numbers, 37 color or colors, or symbol or symbols designated on the ticket or 38 receipt, determined by chance as a result of: 39 (a) a drawing from among those tickets or receipts previously sold; or 40 (b) a random event, the results of which correspond with tickets or 41 receipts previously sold. 42 29. "Seal cards" shall mean a board or placard used in conjunction 43 with a deal of the same serial number that contains one or more 44 concealed areas that, when removed or opened, reveal a predesignated 45 winning number, letter or symbol located on the board or placard. A seal 46 card used in conjunction with an event game shall not be required to 47 contain lines for prospective seal winners to sign their name. 48 30. "Series of prizes" shall mean the total amount of single prizes 49 minus the total amount of wagers lost during the successive operations 50 of a single type of game of chance, except that for merchandise wheels 51 and raffles, "series of prizes" shall mean the sum of cash and the fair 52 market value of merchandise awarded as single prizes during the succes- 53 sive operations of any single merchandise wheel or raffle. In the game 54 of raffle, a series of prizes may include a percentage of the sum of 55 cash received from the sale of raffle tickets.S. 2009--B 37 1 31. "Single prize" shall mean the sum of money or fair market value of 2 merchandise or coins awarded to a participant by a games of chance 3 licensee in any one operation of a single type of game of chance in 4 excess of his or her wager. 5 32. "Single type of game" shall mean the games of chance known as 6 merchandise wheels, coin boards, merchandise boards, event games, 7 raffles and bell jars and each other specific game of chance authorized 8 by the commission. 9 33. "Supercard" shall mean a bingo card on which prizes are awarded, 10 which card is selected by the player, containing five designated 11 numbers, colors or symbols, corresponding to the letters B, I, N, G, O, 12 displayed on the bingo board of the bingo premises operator, which can 13 be played concurrently with the other bingo cards played during the game 14 of bingo. 15 § 1501. Forms. The commission shall, to the greatest extent practica- 16 ble, make forms and applications required by this article or related 17 rules and regulations of the commission available in electronic formats 18 that minimize paperwork and are designed to maximize efficiency for 19 authorized organizations, municipalities and the commission. 20 § 1502. Participation by persons under the age of eighteen. 1. No 21 person under the age of eighteen years shall be permitted to play any 22 game of bingo or any game of chance conducted pursuant to this article. 23 2. No person under the age of eighteen years shall be permitted to 24 conduct, operate or assist in the conduct of any game of bingo or game 25 of chance conducted pursuant to this article. Provided, however for the 26 game of bingo a person under the age eighteen shall be permitted to 27 assist in the preparation and sale of concession stand items if accompa- 28 nied by an adult. 29 3. Persons under the age of eighteen years may be permitted to attend 30 games of chance at the discretion of the games of chance licensee. 31 Provided, however that a person under the age of eighteen years of age 32 who is sixteen years of age or older shall be permitted to assist in any 33 raffle or bingo if accompanied by an adult. 34 § 1503. Sundays. A municipality may restrict a license to conduct 35 bingo or games of chance by providing that no bingo or games of chance 36 shall be conducted on the first day of the week, commonly known as 37 Sunday, if the provisions of a local law or an ordinance duly adopted by 38 the governing body of the municipality issuing the license prohibits the 39 conduct of bingo or games of chance pursuant to this title on such days. 40 § 1504. Advertising of charitable games. A licensee may advertise the 41 conduct of an occasion of bingo or games of chance event to the general 42 public by means of newspaper, radio, circular, handbill and poster, by 43 one sign not exceeding sixty square feet in area, which may be displayed 44 on or adjacent to the premises owned or occupied by a licensed author- 45 ized organization, by other signs as may be permitted by the rules and 46 regulations of the commission and through the internet or television as 47 may be permitted by the rules and regulations of the commission. When an 48 organization is licensed or authorized to conduct bingo occasions or 49 games of chance events on the premises of another licensed authorized 50 organization or of an authorized bingo lessor or authorized games of 51 chance lessor, one additional such sign may be displayed on or adjacent 52 to the premises in which the occasions are to be conducted. Additional 53 signs may be displayed upon any firefighting equipment belonging to any 54 licensed authorized organization that is a volunteer fire company, or 55 upon any equipment of a first aid or rescue squad in and throughout the 56 community served by such volunteer fire company or such first aid orS. 2009--B 38 1 rescue squad, as the case may be. All advertisements shall be limited 2 to: 3 (a) the description of such event as "bingo," "games of chance" or 4 "casino night," as the case may be; 5 (b) the name of the authorized organization conducting such bingo 6 occasions or games of chance; 7 (c) the license number of the authorized organization as assigned by 8 the clerk or department; 9 (d) the prizes offered; and 10 (e) the date, location and time of the bingo occasion or games of 11 chance event. 12 § 1505. Sanctions for violations. The commission shall have the power 13 to issue letters of reprimand or impose fines in any amount up to the 14 maximum authorized by section one hundred sixteen of this chapter for 15 any violation of this article or the rules and regulations of the 16 commission. A person or entity that has been fined may request a de novo 17 hearing before the commission to review and determine such fine, pursu- 18 ant to the rules and regulations of the commission. 19 § 1506. Severability. If any provision of this article or the applica- 20 tion thereof to any municipality, person or circumstances shall be 21 adjudged unconstitutional by any court of competent jurisdiction, the 22 remainder of this article or the application thereof to other munici- 23 palities, persons and circumstances shall not be affected thereby, and 24 the legislature hereby declares that it would have enacted this title 25 without the invalid provision or application, as the case may be, had 26 such invalidity been apparent. 27 TITLE 2 28 BINGO CONTROL 29 Section 1510. Short title. 30 1511. Purpose of title. 31 1512. Other agency assistance. 32 1513. Powers and duties of the commission. 33 1514. Hearings; immunity. 34 1515. Place of investigations and hearings; witnesses; books and 35 documents. 36 1516. Privilege against self-incrimination. 37 1517. Filing and availability of rules and regulations. 38 1518. Municipality to file copies of local laws and ordinances; 39 reports. 40 § 1510. Short title. This title shall be known and may be cited as the 41 bingo control law. 42 § 1511. Purpose of title. The purpose of this title is to implement 43 section nine of article one of the state constitution, as amended by 44 vote of the people at the general election in November, nineteen hundred 45 fifty-seven. The legislature hereby declares that the raising of funds 46 for the promotion of bona fide charitable, educational, scientific, 47 health, religious, civic and patriotic causes and undertakings, where 48 the beneficiaries are indefinite, is in the public interest. It hereby 49 finds that, as conducted prior to the enactment of this title, bingo was 50 the subject of exploitation by professional gamblers, promoters and 51 commercial interests. It is hereby declared to be the policy of the 52 legislature that all phases of the supervision, licensing and the regu- 53 lation of bingo and of the conduct of bingo games, should be controlled 54 closely and that the laws and regulations pertaining thereto should be 55 construed strictly and enforced rigidly; that the conduct of bingo and 56 all attendant activities should be so regulated and adequate controls soS. 2009--B 39 1 instituted as to discourage commercialization in all its forms, includ- 2 ing the rental of commercial premises for bingo games, and to ensure a 3 maximum availability of the net proceeds of bingo exclusively for appli- 4 cation to the worthy causes and undertakings specified herein; that the 5 only justification for this title is to foster and support such worthy 6 causes and undertakings, and that the mandate of section nine of article 7 one of the state constitution, as amended, should be carried out by 8 rigid regulation to prevent commercialized gambling, prevent partic- 9 ipation by criminal and other undesirable elements and prevent the 10 diversion of funds from the purposes herein authorized. 11 § 1512. Other agency assistance. To effectuate the purposes of this 12 title, the governor may authorize any department, division, board, 13 bureau, commission or agency of the state or in any political subdivi- 14 sion thereof to provide such facilities, assistance and data as will 15 enable the commission properly to carry out its activities and effectu- 16 ate its purposes hereunder. 17 § 1513. Powers and duties of the commission. 1. The commission shall 18 have the power and it shall be its duty to: 19 (a) supervise the administration of the bingo licensing law and adopt, 20 amend and repeal rules and regulations governing the issuance and amend- 21 ment of licenses thereunder and the conducting of bingo under such 22 licenses, which rules and regulations shall have the force and effect of 23 law and shall be binding upon all municipalities issuing licenses and 24 upon licensees thereunder and licensees of the commission, to the end 25 that such licenses shall be issued to qualified licensees only and that 26 said bingo games shall be fairly and properly conducted for the purposes 27 and in the manner in the said bingo licensing law prescribed and to 28 prevent the bingo games thereby authorized to be conducted from being 29 conducted for commercial purposes or purposes other than those therein 30 authorized, participated in by criminal or other undesirable elements 31 and the funds derived from the bingo games being diverted from the 32 purposes authorized, and, to provide uniformity in the administration of 33 said law throughout the state, the commission shall prescribe forms of 34 application for licenses, licenses, amendment of licenses, reports of 35 the conduct of bingo games and other matters incident to the adminis- 36 tration of such law; 37 (b) conduct, anywhere within the state, investigations of the adminis- 38 tration, enforcement and potential or actual violations of the bingo 39 licensing law and of the rules and regulations of the commission; 40 (c) review all determinations and actions of the municipal governing 41 body in issuing an initial license and review the issuance of subsequent 42 licenses and, after hearing, revoke those licenses that do not in all 43 respects meet the requirements of this title and the rules and regu- 44 lations of the commission; 45 (d) suspend or revoke a license, after hearing, for any violation of 46 the provisions of this title or the rules and regulations of the commis- 47 sion; 48 (e) hear appeals from the determinations and action of the municipal 49 governing body in connection with the refusing to issue licenses, the 50 suspension and revocation of licenses and the imposition of fines in the 51 manner prescribed by law and the action and determination of the commis- 52 sion upon any such appeal shall be binding upon the municipal governing 53 body and all parties thereto; 54 (f) initiate prosecutions for violations of this title and of the 55 bingo licensing law;S. 2009--B 40 1 (g) carry on continuous study of the operation of the bingo licensing 2 law to ascertain from time to time defects therein jeopardizing or 3 threatening to jeopardize the purposes of this title and to formulate 4 and recommend changes in such law and in other laws of the state that 5 the commission may determine to be necessary for the realization of such 6 purposes, and to the same end to make a continuous study of the opera- 7 tion and administration of similar laws that may be in effect in other 8 states of the United States; 9 (h) supervise the disposition of all funds derived from the conduct of 10 bingo by authorized organizations not currently licensed to conduct such 11 bingo games; and 12 (i) issue an identification number to an applicant authorized organ- 13 ization if the commission determines that the applicant satisfies the 14 requirements of the bingo licensing law and the rules and regulations of 15 the commission. 16 2. (a) The commission shall have the power to issue or, after hearing, 17 refuse to issue a license permitting a person, firm or corporation to 18 sell or distribute to any other person, firm or corporation engaged in 19 business as a wholesaler, jobber, distributor or retailer of all cards, 20 boards, sheets, pads and all other supplies, devices and equipment 21 designed for use in the play of bingo by an organization duly licensed 22 to conduct bingo games or to sell or distribute any such materials 23 directly to such an organization. For the purposes of this section the 24 words "sell or distribute" shall include, without limitation, the 25 following activities: offering for sale, receiving, handling, maintain- 26 ing, storing the same on behalf of such an organization, distributing or 27 providing the same to such an organization and offering for sale or 28 lease bingo devices and equipment. Each such license shall be valid for 29 one year. 30 (b) (1) No person, firm or corporation, other than an organization 31 that is or has been during the preceding twelve months duly licensed to 32 conduct bingo games, shall sell or distribute bingo supplies or equip- 33 ment without having first obtained a license therefor upon written 34 application made, verified and filed with the commission in the form 35 prescribed by the rules and regulations of the commission. 36 (2) The commission, as a part of its determination concerning the 37 applicant's suitability for licensing as a bingo supplier, shall require 38 the applicant to furnish to the commission two sets of fingerprints. 39 Such fingerprints shall be submitted to the division of criminal justice 40 services for a state criminal history record check, as defined in subdi- 41 vision one of section three thousand thirty-five of the education law, 42 and may be submitted to the federal bureau of investigation for a 43 national criminal history record check. 44 (3) In each such application for a license under this section shall be 45 stated: 46 (i) the name and address of the applicant; 47 (ii) the names and addresses of its officers, directors, shareholders 48 or partners; 49 (iii) the amount of gross receipts realized on the sale or distrib- 50 ution of bingo supplies and equipment to duly licensed organizations 51 during the last preceding calendar or fiscal year; and 52 (iv) such other information as shall be prescribed by such rules and 53 regulations. 54 (4) The fee for such license shall be as prescribed by regulation of 55 the commission, which shall take into account the quantity of gross 56 sales of the applicant.S. 2009--B 41 1 (c) The following shall be ineligible for such a license: 2 (1) a person convicted of a crime if there is a direct relationship 3 between one or more of the previous criminal offenses and the integrity 4 of bingo, considering the factors set forth in section seven hundred 5 fifty-three of the correction law; 6 (2) a person who is or has been a professional gambler or gambling 7 promoter or who for other reasons is not of good moral character; 8 (3) a public officer or employee; 9 (4) an operator or proprietor of a commercial hall duly licensed under 10 the bingo licensing law; and 11 (5) a firm or corporation in which a person defined in subparagraph 12 one, two, three or four of this paragraph, or a person married or 13 related in the first degree to such a person, has greater than a ten 14 percent proprietary, equitable or credit interest or in which such a 15 person is active or employed. 16 (d) The commission shall have power to examine or cause to be examined 17 the books and records of any applicant for a license, or any licensee, 18 under this section. Any information so received shall not be disclosed 19 except so far as may be necessary for the purpose of carrying out the 20 provisions of this article. 21 (e) Any solicitation of an organization licensed to conduct bingo 22 games, to purchase or induce the purchase of bingo supplies and equip- 23 ment, or any representation, statement or inquiry designed or reasonably 24 tending to influence such an organization to purchase the same, other 25 than by a person licensed or otherwise authorized pursuant to this 26 section shall constitute a violation of this section. 27 (f) Any person who willfully makes any material false statement in any 28 application for a license authorized to be issued under this title or 29 who willfully violates any of the provisions of this section or of any 30 license issued hereunder shall be guilty of a misdemeanor and, in addi- 31 tion to the penalties in such case made and provided, shall forfeit any 32 license issued to him, her or it under this section and be ineligible to 33 apply for a license under this section for one year thereafter. 34 (g) At the end of the license period, a recapitulation shall be made 35 as between the licensee and the commission in respect of the gross sales 36 actually recorded during the license period and the fee paid therefor, 37 and any deficiency of fee thereby shown to be due shall be paid by the 38 licensee and any excess of fee thereby shown to have been paid shall be 39 credited to said licensee in such manner as the commission by the rules 40 and regulations shall prescribe. 41 3. The commission shall have the power to approve and establish a 42 standard set of bingo cards comprising a consecutively numbered series 43 and shall by rules and regulations prescribe the manner in which such 44 cards are to be reproduced and distributed to licensed authorized organ- 45 izations. The sale or distribution to a licensed authorized organization 46 of any card or cards other than those contained in the standard set of 47 bingo cards shall constitute a violation of this section. Licensed 48 authorized organizations shall not be required to use nor to maintain 49 such cards seriatim excepting that the same may be required in the 50 conduct of limited-period bingo games. 51 § 1514. Hearings; immunity. 1. A hearing upon any investigation or 52 review authorized by this article may be conducted by two or more 53 members of the commission or by a hearing officer duly designated by the 54 commission, as the commission shall determine. 55 2. A person who has violated any provision of this article, or of the 56 rules and regulations of the commission, or any term of any licenseS. 2009--B 42 1 issued under this article or such rules and regulations, is a competent 2 witness against another person so charged. In any hearing upon any 3 investigation or review authorized by this article, for or relating to a 4 violation of any provision of said article or of the rules and regu- 5 lations of the commission or of the term of any such license, the 6 commission may confer immunity upon such witness in accordance with the 7 provisions of section 50.20 of the criminal procedure law. Such immuni- 8 ty shall be conferred only upon the vote of at least three members of 9 the commission and only after affording the attorney general and the 10 appropriate district attorney a reasonable opportunity to be heard with 11 respect to any objections that they or either of them may have to the 12 granting of such immunity. 13 § 1515. Place of investigations and hearings; witnesses; books and 14 documents. The commission may conduct investigations and hearings within 15 or without the state and shall have power to compel the attendance of 16 witnesses, the production of books, records, documents and other 17 evidence by the issuance of a subpoena signed by a person authorized by 18 the commission to do so. 19 § 1516. Privilege against self-incrimination. The willful refusal to 20 answer a material question or the assertion of privilege against self- 21 incrimination during a hearing upon any investigation or review author- 22 ized by this article by any licensee or any person identified with any 23 licensee as an officer, director, stockholder, partner, member, employee 24 or agent thereof shall constitute sufficient cause for the revocation or 25 suspension of any license issued under this title or under the licensing 26 law, as the commission or as the municipal governing body may determine. 27 § 1517. Filing and availability of rules and regulations. A copy of 28 every rule and regulation adopted and promulgated by the commission 29 shall be made available to the various municipalities operating under 30 the bingo licensing law. 31 § 1518. Municipality to file copies of local laws and ordinances; 32 reports. Each municipality in which the bingo licensing law is adopted 33 shall file with the commission a copy of each local law or ordinance 34 enacted pursuant thereto within ten days after the same has been 35 approved by a majority of the electors voting on a proposition submitted 36 at a general or special election, or within ten days after the same has 37 been amended or repealed by the common council or other local legisla- 38 tive body and on or before February first of each year, and at any other 39 time or times that the commission may determine, make a report to the 40 commission of the number of licenses issued therein under the bingo 41 licensing law, the names and addresses of the licensees, the aggregate 42 amount of license fees collected, the names and addresses of all persons 43 detected of violating the bingo licensing law, this title or the rules 44 and regulations adopted by the commission pursuant hereto, and of all 45 persons prosecuted for such violations and the result of each such pros- 46 ecution, the penalties imposed therein during the preceding calendar 47 year, or the period for which the report is required, which report may 48 contain any recommendations for improvement of the bingo licensing law 49 or the administration thereof that the governing body of the munici- 50 pality deems desirable. 51 TITLE 3 52 LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS 53 Section 1520. Short title; purpose of title. 54 1521. Local option. 55 1522. Local laws and ordinances. 56 1523. Restrictions upon conduct of bingo games.S. 2009--B 43 1 1524. Application for license. 2 1525. Investigation; matters to be determined; issuance of 3 license; fees; duration of license. 4 1526. Hearing; amendment of license. 5 1527. Form and contents of license; display of license. 6 1528. Control and supervision; suspension of licenses; 7 inspection of premises. 8 1529. Frequency of game; sale of alcoholic beverages. 9 1530. Persons operating and conducting bingo games; equipment; 10 expenses; compensation. 11 1531. Charge for admission and participation; amount of prizes; 12 award of prizes. 13 1532. Statement of receipts, expenses; additional license fees. 14 1533. Examination of books and records; examination of managers, 15 etc.; disclosure of information. 16 1534. Appeals from municipal governing body to commission. 17 1535. Exemption from prosecution. 18 1536. Offenses; forfeiture of license; ineligibility to apply 19 for license. 20 1537. Unlawful bingo. 21 1538. Title inoperative until adopted by voters. 22 1539. Amendment and repeal of local laws and ordinances. 23 1540. Delegation of authority. 24 1541. Powers and duties of mayors or managers of certain cities. 25 § 1520. Short title; purpose of title. This title shall be known and 26 may be cited as the bingo licensing law. The legislature hereby declares 27 that the raising of funds for the promotion of bona fide charitable, 28 educational, scientific, health, religious, civic and patriotic causes 29 and undertakings, where the beneficiaries are indefinite, is in the 30 public interest. It hereby finds that, as conducted prior to the effec- 31 tive date of this title, bingo was the subject of exploitation by 32 professional gamblers, promoters, and commercial interests. It is hereby 33 declared to be the policy of the legislature that all phases of the 34 supervision, licensing and regulation of bingo and of the conduct of 35 bingo games, should be closely controlled and that the laws and regu- 36 lations pertaining thereto should be strictly construed and rigidly 37 enforced; that the conduct of the bingo game and all attendant activ- 38 ities should be so regulated and adequate controls so instituted as to 39 discourage commercialization in all its forms, including the rental of 40 commercial premises for bingo games, and to ensure a maximum availabili- 41 ty of the net proceeds of bingo exclusively for application to the 42 worthy causes and undertakings specified herein; that the only justi- 43 fication for this title is to foster and support such worthy causes and 44 undertakings, and that the mandate of section nine of article one of the 45 state constitution, as amended, should be carried out by rigid regu- 46 lation to prevent commercialized gambling, prevent participation by 47 criminal and other undesirable elements and prevent the diversion of 48 funds from the purposes herein authorized. 49 § 1521. Local option. Subject to the provisions of this title, and 50 pursuant to the direction contained in subdivision two of section nine 51 of article one of the constitution of the state, the legislature hereby 52 gives and grants to every municipality the right, power and authority to 53 authorize the conduct of bingo games by authorized organizations within 54 the territorial limits of such municipality provided, however, that 55 where the electors of a village hereafter approve a local law or ordi- 56 nance pursuant to section fifteen hundred twenty-three of this title,S. 2009--B 44 1 the right, power and authority under this title of any town in which 2 such village is located shall not extend to such village during such 3 time as such village local law or ordinance is in effect. 4 § 1522. Local laws and ordinances. 1. The common council or other 5 local legislative body of any municipality may, either by local law or 6 ordinance, provide that it shall be lawful for any authorized organiza- 7 tion, upon obtaining a license therefor as provided in this title, to 8 conduct the game of bingo within the territorial limits of such munici- 9 pality, subject to the provisions of such local law or ordinance, the 10 provisions of this title and the provisions of the bingo control law. 11 2. No such local law or ordinance shall become operative or effective 12 unless and until it has been approved by a majority of the electors 13 voting on a proposition submitted at a general or special election held 14 within such municipality who are qualified to vote for officers of such 15 municipality. 16 3. The time, method and manner of submission, preparation and 17 provision of ballots and ballot labels, balloting by voting machine and 18 conducting the election, canvassing the result and making and filing the 19 returns and all other procedure with reference to the submission of and 20 action upon any proposition for the approval of any such local law or 21 ordinance shall be the same as in the case of any other proposition to 22 be submitted to the electors of such municipality at a general or 23 special election in such municipality, as provided by law. 24 § 1523. Restrictions upon conduct of bingo games. The conduct of bingo 25 games authorized by local law or ordinance shall be subject to the 26 following restrictions without regard to whether such restrictions are 27 contained in such local law or ordinance, but nothing in this section 28 shall be construed to prevent the inclusion within such local law or 29 ordinance of other provisions imposing additional restrictions upon the 30 conduct of bingo games: 31 1. No person, firm, association, corporation or organization, other 32 than a licensee under the provisions of this title, shall 33 (a) conduct bingo; or 34 (b) lease or otherwise make available for conducting bingo a hall or 35 other premises for any consideration whatsoever, direct or indirect, 36 without obtaining the prior written approval of the commission. 37 2. No bingo games shall be held, operated or conducted on or within 38 any leased premises if rental under such lease is to be paid, wholly or 39 partly, on the basis of a percentage of the receipts or net profits 40 derived from the operation of such game. 41 3. No authorized organization licensed under the provisions of this 42 title shall purchase, lease or receive any supplies or equipment specif- 43 ically designed or adapted for use in the conduct of bingo games from 44 other than a supplier licensed under the bingo control law or from 45 another authorized organization. 46 4. The entire net proceeds of any game of bingo and of any rental 47 shall be devoted exclusively to the lawful purposes of the organization 48 permitted to conduct the same. 49 5. No prize shall exceed the sum or value of five thousand dollars in 50 any single game of bingo. 51 6. No series of prizes on any one bingo occasion shall aggregate more 52 than fifteen thousand dollars. 53 7. No person except a bona fide member of any such organization shall 54 participate in the management or operation of such bingo game. 55 8. No person shall receive any remuneration for participating in the 56 management or operation of any game of bingo.S. 2009--B 45 1 9. The unauthorized conduct of a bingo game and any willful violation 2 of any provision of any local law or ordinance shall constitute and be 3 punishable as a misdemeanor. 4 10. No person licensed to sell bingo supplies or equipment, or any 5 agent of such person, shall conduct, participate in or assist in the 6 conduct of bingo. Nothing herein shall prohibit a licensed distributor 7 from selling, offering for sale or explaining a product to an authorized 8 organization or installing or servicing bingo equipment upon the prem- 9 ises of a bingo game licensee. 10 11. Limited-period bingo shall be conducted in accordance with the 11 provisions of this title and the rules and regulations of the commis- 12 sion. 13 § 1524. Application for license. 1. To conduct bingo. (a) Each appli- 14 cant for a license to conduct bingo shall, after obtaining an identifi- 15 cation number from the commission, file with the clerk of the munici- 16 pality an application therefor in the form prescribed in the rules and 17 regulations of the commission, duly executed and verified, in which such 18 applicant shall state: 19 (1) the name and address of the applicant together with sufficient 20 facts relating to such applicant's incorporation and organization to 21 enable the governing body of the municipality to determine whether or 22 not the applicant is a bona fide authorized organization; 23 (2) the names and addresses of the applicant's officers; 24 (3) the place or places where, and the date or dates and the time or 25 times when, the applicant intends to conduct bingo under the license 26 applied for; 27 (4) in case the applicant intends to lease premises for this purpose 28 from other than an authorized organization, the name and address of the 29 licensed bingo lessor of such premises, and the capacity or potential 30 capacity for public assembly purposes of space in any premises presently 31 owned or occupied by the applicant; 32 (5) the amount of rent to be paid or other consideration to be given 33 directly or indirectly for each occasion for use of the premises of 34 another authorized organization licensed under this title to conduct 35 bingo or for use of the premises of a licensed bingo lessor; 36 (6) all other items of expense intended to be incurred or paid in 37 connection with the holding, operating and conducting of such games of 38 bingo and the names and addresses of the persons to be paid and the 39 purposes for which such persons are to be paid; 40 (7) the specific purposes to which the entire net proceeds of such 41 games of bingo are to be devoted and in what manner; 42 (8) that no commission, salary, compensation, reward or recompense 43 will be paid to any person for conducting such bingo game or games or 44 for assisting therein except as in this title otherwise provided; and 45 (9) such other information as shall be prescribed by the rules and 46 regulations of the commission. 47 (b) In each application there shall be designated an active member or 48 members of the applicant organization under whom the game or games of 49 bingo will be conducted and to the application shall be appended a 50 statement executed by the member or members so designated, that he, she 51 or they will be responsible for the conduct of such bingo games in 52 accordance with the terms of the license and the rules and regulations 53 of the commission and of this title. 54 2. Bingo lessor. (a) Each applicant for a license to lease premises to 55 a licensed organization for the purposes of conducting bingo therein 56 shall file with the clerk of the municipality an application therefor inS. 2009--B 46 1 a form prescribed in the rules and regulations of the commission duly 2 executed and verified, which shall set forth: 3 (1) the name and address of the applicant; 4 (2) designation and address of the premises intended to be covered by 5 the license sought; 6 (3) lawful capacity for public assembly purposes; 7 (4) cost of premises and assessed valuation for real estate tax 8 purposes, or annual net lease rent, whichever is applicable; 9 (5) gross rentals received and itemized expenses for the immediately 10 preceding calendar or fiscal year, if any; 11 (6) gross rentals, if any, derived from bingo during the last preced- 12 ing calendar or fiscal year; 13 (7) computation by which proposed rental schedule was determined; 14 (8) number of occasions on which applicant anticipates receiving rent 15 for bingo during the ensuing year or shorter period if applicable; 16 (9) proposed rent for each such occasion; estimated gross rental 17 income from all other sources during the ensuing year; 18 (10) estimated expenses itemized for ensuing year and amount of each 19 item allocated to bingo rentals; 20 (11) a statement that the applicant in all respects conforms with the 21 specifications contained in the definition of "authorized bingo lessor" 22 set forth in section fifteen hundred of this article; and 23 (12) such other information as shall be prescribed by the rules and 24 regulations of the commission. 25 (b) At the end of the license period, a recapitulation, in a manner 26 prescribed in the rules and regulations of the commission, shall be made 27 as between the licensee and the municipal governing body in respect of 28 the gross rental actually received during the license period and the fee 29 paid therefor. The licensee shall pay any deficiency of fee thereby 30 shown to be due and any excess of fee thereby shown to have been paid 31 shall be credited to such licensee, in such manner as the commission by 32 rules and regulations shall prescribe. 33 § 1525. Investigation; matters to be determined; issuance of license; 34 fees; duration of license. 1. The governing body of the municipality 35 shall make an investigation of the qualifications of each applicant and 36 the merits of each application, with due expedition after the filing of 37 the application. 38 (a) Issuance of licenses to conduct bingo. If the governing body of 39 the municipality determines: 40 (1) that the applicant is duly qualified to be licensed to conduct 41 bingo under this title; 42 (2) that the member or members of the applicant designated in the 43 application to conduct bingo are bona fide active members of the appli- 44 cant and are persons of good moral character and have never been 45 convicted of a crime if there is a direct relationship between one or 46 more of the previous criminal offenses and the integrity of bingo, 47 considering the factors set forth in section seven hundred fifty-three 48 of the correction law; 49 (3) that such games of bingo are to be conducted in accordance with 50 the provisions of this title and in accordance with the rules and regu- 51 lations of the commission; 52 (4) that the proceeds thereof are to be disposed of as provided by 53 this title; 54 (5) if the governing body is satisfied that no commission, salary, 55 compensation, reward or recompense whatever will be paid or given to any 56 person holding, operating or conducting or assisting in the holding,S. 2009--B 47 1 operation and conduct of any such games of bingo except as in this title 2 otherwise provided; and 3 (6) that no prize will be offered and given in excess of the sum or 4 value of five thousand dollars in any single game of bingo and that the 5 aggregate of all prizes offered and given in all of such games of bingo 6 conducted on a single occasion, under said license shall not exceed the 7 sum or value of fifteen thousand dollars, then the municipality shall 8 issue a license to the applicant for the conduct of bingo upon payment 9 of a license fee for each bingo occasion, to be established by regu- 10 lation of the commission. Notwithstanding anything to the contrary in 11 this paragraph, the governing body shall refuse to issue a license to an 12 applicant seeking to conduct bingo in premises of a licensed bingo 13 lessor where such governing body determines that the premises presently 14 owned or occupied by such applicant are in every respect adequate and 15 suitable for conducting bingo games. 16 (b) Issuance of licenses to bingo lessors. If the governing body of 17 the municipality determines that: 18 (1) the applicant seeking to lease a hall or premises for the conduct 19 of bingo to an authorized organization is duly qualified to be licensed 20 under this title; 21 (2) the applicant satisfies the requirements for an authorized bingo 22 lessor as defined in section fifteen hundred of this article; 23 (3) at the time of the issuance of an initial license, there is a 24 public need and that public advantage will be served by the issuance of 25 such license; 26 (4) the applicant has filed its proposed rent for each bingo occasion; 27 (5) the commission has approved as fair and reasonable a schedule of 28 maximum rentals for each such occasion; 29 (6) there is no diversion of the funds of the proposed lessee from the 30 lawful purposes as defined in this title; and 31 (7) such leasing of a hall or premises for the conduct of bingo is to 32 be in accordance with the provisions of this title and in accordance 33 with the rules and regulations of the commission, such governing body 34 shall issue a license permitting the applicant to lease said premises 35 for the conduct of bingo to the authorized organization or organizations 36 specified in the application during the period therein specified or such 37 shorter period as the governing body of the municipality determines, but 38 not to exceed one year, upon payment of a license fee established by 39 regulation of the commission. 40 2. On or before the thirtieth day of each month, the treasurer of the 41 municipality shall transmit to the state comptroller a sum equal to 42 fifty percent of all bingo lessor license fees and sixty percent of all 43 license fees for the conduct of bingo collected by such municipality 44 pursuant to this section during the preceding calendar month. 45 3. No license shall be issued under this title that is effective for a 46 period of more than one year. In the case of limited-period bingo, no 47 license shall be issued authorizing the conduct of such games on more 48 than two occasions in any one day, nor shall any license be issued under 49 this title that is effective for a period of more than seven of twelve 50 consecutive days in any one year. No license for the conduct of limit- 51 ed-period bingo shall be issued in cities having a population of one 52 million or more. 53 § 1526. Hearing; amendment of license. 1. No application for the issu- 54 ance of a license shall be denied by the governing body until after a 55 hearing, held on due notice to the applicant, at which the applicantS. 2009--B 48 1 shall be entitled to be heard upon the qualifications of the applicant 2 and the merits of the application. 3 2. Any license issued under this title may be amended, upon applica- 4 tion made to the governing body of the municipality that issued such 5 license, if the subject matter of the proposed amendment could lawfully 6 and properly have been included in the original license and upon payment 7 of such additional license fee if any, as would have been payable if 8 such amendment had been so included. 9 § 1527. Form and contents of license; display of license. 1. Each 10 license to conduct bingo shall be in such form as the rules and regu- 11 lations of the commission prescribe and shall contain: 12 (a) the name and address of the licensee; 13 (b) the names of the member or members of the licensee under whom the 14 games will be conducted; 15 (c) the place or places where and the date or dates and time or times 16 when such games are to be conducted; 17 (d) the specific purposes to which the entire net proceeds of such 18 games are to be devoted; and 19 (e) if any prize or prizes are to be offered and given in cash, a 20 statement of the amounts of the prizes authorized so to be offered and 21 given and any other information that the rules and regulations of the 22 commission may require. 23 2. Each license issued for the conduct of any game of bingo shall be 24 displayed conspicuously at the place where such game of bingo is to be 25 conducted at all times during such conduct. 26 3. Each license to lease premises for conducting bingo shall be in 27 such form as the rules and regulations of the commission prescribe and 28 shall contain a statement of the name and address of the licensee and 29 the address of the leased premises, the amount of permissible rent and 30 any other information that the rules and regulations of the commission 31 may require. Each such license shall be displayed conspicuously upon 32 such premises at all times during the conduct of bingo. 33 § 1528. Control and supervision; suspension of licenses; inspection of 34 premises. 1. The governing body of any municipality issuing any license 35 under this title shall have and exercise rigid control and close super- 36 vision over all games of bingo conducted under such license, to the end 37 that the same are fairly conducted in accordance with the provisions of 38 such license, the provisions of the rules and regulations of the commis- 39 sion and the provisions of this title and such governing body. 40 2. The commission shall have the power and the authority to suspend 41 any license issued by such governing body and to revoke the same, and, 42 additionally, in the case of an authorized bingo lessor, to impose a 43 fine in an amount not exceeding one thousand dollars, after notice and 44 hearing, for violation of any such provisions, and shall have the right 45 of entry, by the commission's officers and agents, at all times into any 46 premises where any game of bingo is being conducted or where it is 47 intended that any such game of bingo shall be conducted, or where any 48 equipment being used or intended to be used in the conduct thereof is 49 found, for the purpose of inspecting the same. 50 3. In addition to the authority granted pursuant to subdivision two of 51 this section, the governing body in a city having a population of one 52 million or more and the commission may impose a fine in an amount not 53 exceeding one thousand dollars, after notice and hearing, on any licen- 54 see under this title for violation of any provision of such license, 55 this title or rules and regulations of the commission.S. 2009--B 49 1 § 1529. Frequency of game; sale of alcoholic beverages. No game or 2 games of bingo, except limited-period bingo, shall be conducted under 3 any license issued under this title more often than on eighteen days in 4 any three successive calendar months. No game or games of limited-period 5 bingo shall be conducted between the hours of twelve midnight and noon, 6 and no more than sixty games may be conducted on any single occasion of 7 limited-period bingo. No game or games of bingo shall be conducted in 8 any room or outdoor area where alcoholic beverages are sold, served or 9 consumed during the progress of the game or games. 10 § 1530. Persons operating and conducting bingo games; equipment; 11 expenses; compensation. 1. (a) No person shall hold, operate or conduct 12 any game of bingo under any license issued under this title except a 13 bona fide member of the authorized organization to which the license is 14 issued. No person shall assist in the holding, operating or conducting 15 of any game of bingo under such license except such a bona fide member 16 or a bona fide member of an organization or association that is an 17 auxiliary to the licensee or a bona fide member of an organization or 18 association of which such licensee is an auxiliary or a bona fide member 19 of an organization or association that is affiliated with the licensee 20 by being, with it, auxiliary to another organization or association and 21 except bookkeepers or accountants as hereinafter provided, but any 22 person may assist the licensed organization in any activity related to 23 the game of bingo that does not actually involve the holding, conduct- 24 ing, managing or operating of such game of bingo. 25 (b) No game of bingo shall be conducted with any equipment except such 26 as shall be owned absolutely or leased by the authorized organization so 27 licensed or used without payment of any compensation therefor by the 28 licensee. 29 (c) Lease terms and conditions shall be subject to the rules and regu- 30 lations of the commission. 31 (d) This title shall not be construed to authorize or permit an 32 authorized organization to engage in the business of leasing bingo 33 supplies or equipment. 34 (e) No items of expense shall be incurred or paid in connection with 35 the conducting of any game of bingo pursuant to any license issued under 36 this title, except those that are reasonable and are necessarily 37 expended for bingo supplies and equipment, prizes, stated rental, if 38 any, bookkeeping or accounting services according to a schedule of 39 compensation prescribed by the commission, janitorial services and util- 40 ity supplies, if any, and license fees, and the cost of bus transporta- 41 tion, if authorized by the commission. 42 2. Notwithstanding any provision of this title to the contrary, a 43 person who is a bona fide member of an organization licensed to conduct 44 the game of bingo and is also a bona fide member of one or more other 45 organizations that are also licensed to conduct the game of bingo, and 46 such organizations are not affiliates or auxiliaries of the others, 47 shall be authorized to operate, conduct or assist in the operation or 48 conduct of games of bingo held by any of such organizations licensed to 49 conduct bingo. 50 § 1531. Charge for admission and participation; amount of prizes; 51 award of prizes. 1. Except in the conduct of limited-period bingo, the 52 regulations of the commission shall establish a maximum amount to be 53 charged by any licensee for admission to any room or place in which any 54 game or games of bingo are to be conducted under any license issued 55 under this title, which admission fee, upon payment thereof, shall enti- 56 tle the person paying the same to participate without additional chargeS. 2009--B 50 1 in all regular games of bingo to be played under such license on such 2 occasion. 3 2. In the conduct of limited-period bingo: 4 (a) no admission fee shall be charged; 5 (b) not more than an amount established by regulation of the commis- 6 sion shall be charged for a single opportunity to participate in any one 7 game of bingo, which charge, upon payment thereof, shall entitle the 8 person paying the same to one card for participation in one such game; 9 and 10 (c) no licensee shall sell more than five opportunities to each player 11 participating in any one game of bingo. Every winner in a game of bingo 12 shall be determined and every prize shall be awarded and delivered with- 13 in the same calendar day as that upon which the game of bingo was 14 played. 15 § 1532. Statement of receipts, expenses; additional license fees. 1. 16 Within seven days after the conclusion of any occasion of bingo, the 17 authorized organization that conducted the same, and such authorized 18 organization's members who were in charge thereof, and when applicable 19 the authorized organization that rented its premises therefor, shall 20 each furnish to the clerk or the department a statement subscribed by 21 the member in charge and affirmed by such person as true, under the 22 penalties of perjury, showing the amount of the gross receipts derived 23 therefrom and each item of expense incurred, or paid, and each item of 24 expenditure made or to be made, the name and address of each person to 25 whom each such item has been paid, or is to be paid, with a detailed 26 description of the merchandise purchased or the services rendered there- 27 for, the net proceeds derived from such game or rental, as the case may 28 be, and the use to which such proceeds have been or are to be applied 29 and a list of prizes offered and given, with the respective values ther- 30 eof. A clerk or the department shall make provisions for the electronic 31 filing of such statement. It shall be the duty of each licensee to main- 32 tain and keep such books and records as may be necessary to substantiate 33 the particulars of each such statement and within fifteen days after the 34 end of each calendar quarter during which there has been any occasion of 35 bingo, a summary statement of such information, in form prescribed by 36 the commission, shall be furnished in the same manner to the commission. 37 2. Upon the filing of such statement of receipts, the authorized 38 organization furnishing the same shall pay to the clerk of the munici- 39 pality as and for an additional license fee a sum based upon the 40 reported net proceeds, if any, for the occasion covered by such state- 41 ment and determined in accordance with such schedule as shall be estab- 42 lished from time to time by the commission to defray the cost to munici- 43 palities of administering the provisions of this article. 44 § 1533. Examination of books and records; examination of managers, 45 etc.; disclosure of information. 1. The governing body of the munici- 46 pality and the commission shall have power to examine or cause to be 47 examined the books and records of any: 48 (a) authorized organization that is or has been licensed to conduct 49 bingo, so far as such books and records may relate to bingo, including 50 the maintenance, control and disposition of net proceeds derived from 51 bingo or from the use of its premises for bingo, and to examine any 52 manager, officer, director, agent, member or employee thereof under oath 53 in relation to the conduct of any such game of bingo under any such 54 license, the use of its premises for bingo, or the disposition of net 55 proceeds derived from bingo, as the case may be; andS. 2009--B 51 1 (b) licensed authorized bingo lessor so far as such books and records 2 may relate to leasing premises for bingo and to examine said lessor or 3 any manager, officer, director, agent or employee thereof under oath in 4 relation to such leasing. 5 2. Any information so received shall not be disclosed except so far as 6 may be necessary for the purpose of carrying out the provisions of this 7 article. 8 § 1534. Appeals from municipal governing body to commission. Any 9 applicant for, or holder of, any license issued or to be issued under 10 this title aggrieved by any action of the governing body of the munici- 11 pality to which such application has been made or by which such license 12 has been issued, may appeal to the commission from the determination of 13 said governing body by filing with the governing body a written notice 14 of appeal within thirty days after the determination or action appealed 15 from. Upon the hearing of such appeal, the evidence, if any, taken 16 before the governing body and any additional evidence may be produced 17 and shall be considered in arriving at a determination of the matters in 18 issue. Action of the commission upon said appeal shall be binding upon 19 said governing body and all parties to said appeal. 20 § 1535. Exemption from prosecution. No person or corporation lawfully 21 conducting, or participating in the conduct of bingo or permitting the 22 conduct upon any premises owned or leased by him, her or it under any 23 license lawfully issued pursuant to this title, shall be liable to pros- 24 ecution or conviction for violation of any provision of article two 25 hundred twenty-five of the penal law or any other law or ordinance to 26 the extent that such conduct is specifically authorized by this title, 27 but this immunity shall not extend to any person or corporation knowing- 28 ly conducting or participating in the conduct of bingo under any license 29 obtained by any false pretense or by any false statement made in any 30 application for license or otherwise, or permitting the conduct upon any 31 premises owned or leased by him, her or it of any game of bingo 32 conducted under any license known to him, her or it to have been 33 obtained by any such false pretense or statement. 34 § 1536. Offenses; forfeiture of license; ineligibility to apply for 35 license. Any person who, or association or corporation that: 36 1. makes any false statement in any application for any license 37 authorized to be issued under this title; 38 2. pays or receives, for the use of any premises for conducting bingo, 39 a rental in excess of the amount specified as the permissible rent in 40 the license provided for in subdivision two of section fifteen hundred 41 twenty-four of this title; 42 3. fails to keep books and records that fully and truly record all 43 transactions connected with the conducting of bingo or the leasing of 44 premises to be used for the conduct of bingo; 45 4. falsifies or makes any false entry in any books or records so far 46 as such books or records relate in any manner to the conduct of bingo, 47 to the disposition of the proceeds thereof and to the application of the 48 rents received by any authorized organization; 49 5. diverts or pays any portion of the net proceeds of any game of 50 bingo to any person, association or corporation, except in furtherance 51 of one or more of the lawful purposes defined in this title; or 52 6. violates any of the provisions of this title or of any term of any 53 license issued under this title; shall be guilty of a misdemeanor and 54 shall forfeit any license issued under this title and be ineligible to 55 apply for a license under this title for one year thereafter.S. 2009--B 52 1 § 1537. Unlawful bingo. 1. For the purposes of this section, bingo 2 shall include a game of bingo whether or not a person who participates 3 as a player furnishes something of value for the opportunity to partic- 4 ipate. 5 2. Any person, firm, partnership, association, corporation or organ- 6 ization holding, operating or conducting bingo is guilty of a misdemea- 7 nor, except when operating, holding or conducting: 8 (a) in accordance with a valid license issued pursuant to this title; 9 or 10 (b) within a municipality that has authorized the conduct of bingo 11 games by authorized organizations: 12 (1) within the confines of a home for purposes of amusement or recre- 13 ation where no player or other person furnishes anything of value for 14 the opportunity to participate and the prizes awarded or to be awarded 15 are nominal. 16 (2) within any apartment, condominium or cooperative complex, retire- 17 ment community, or other group residential complex or facility where: 18 (i) sponsored by the operator of or an association related to such 19 complex, community or facility; 20 (ii) such games are conducted solely for the purpose of amusement and 21 recreation of its residents; 22 (iii) no player or other person furnishes anything of value for the 23 opportunity to participate; 24 (iv) the value of the prizes do not exceed ten dollars for any one 25 game or a total of one hundred fifty dollars in any calendar day; 26 (v) such games are not conducted on more than fifteen days during any 27 calendar year; and 28 (vi) no person other than an employee or volunteer of such complex, 29 community or facility conducts or assists in conducting the game or 30 games. 31 (3) on behalf of any bona fide social, charitable, educational, recre- 32 ational, fraternal or age-group organization, club or association solely 33 for the purpose of amusement and recreation of its members or benefici- 34 aries where: 35 (i) no player or other person furnishes anything of value for the 36 opportunity to participate; 37 (ii) the value of the prizes do not exceed ten dollars for any one 38 game or a total of one hundred fifty dollars in any calendar day; 39 (iii) such games are not conducted on more than fifteen days during 40 any calendar year; 41 (iv) no person other than a bona fide active member of the organiza- 42 tion, club or association participates in the conduct of the games; and 43 (v) no person is paid for conducting or assisting in the conduct of 44 the game or games. 45 (4) as a hotel's, motel's, recreational or entertainment facility's or 46 common carrier's social activity solely for the purpose of amusement and 47 recreation of its patrons where: 48 (i) no player or other person furnishes anything of value for the 49 opportunity to participate; 50 (ii) the value of the prizes do not exceed ten dollars for any one 51 game or a total of one hundred fifty dollars in any calendar day; 52 (iii) such games are not conducted on more than fifteen days during 53 any calendar year; 54 (iv) no person other than an employee or volunteer conducts or assists 55 in conducting the game or games; andS. 2009--B 53 1 (v) the game or games are not conducted in the same room where alco- 2 holic beverages are sold. 3 (5) The commission and the governing body of the municipality in which 4 bingo games are conducted pursuant to paragraph (b) of subdivision two 5 of this section shall have the authority to regulate the conduct of such 6 games. Any bingo game or games, in which no participant or other person 7 furnishes anything of value for the opportunity to participate, that is 8 or are operated in violation of paragraph (b) of subdivision two of this 9 section, a civil penalty of not more than one hundred dollars may be 10 imposed for the first such violation, a civil penalty of not more than 11 one hundred fifty dollars may be imposed for the second such violation 12 in a period of three years and a civil penalty of not more than two 13 hundred dollars may be imposed for the third or subsequent such 14 violation in a period of five years. 15 3. The provisions of this section shall apply to all municipalities 16 within this state, including those municipalities where this title is 17 inoperative. 18 § 1538. Title inoperative until adopted by voters. Except as provided 19 in section fifteen hundred forty, the provisions of this title shall 20 remain inoperative in any municipality unless and until a proposition 21 therefor submitted at a general or special election in such municipality 22 is approved by a vote of the majority of the qualified electors in such 23 municipality voting thereon. 24 § 1539. Amendment and repeal of local laws and ordinances. 1. Any 25 local law or ordinance concerning bingo may be amended, from time to 26 time, or repealed by the common council or other local legislative body 27 of the municipality that enacted it and such amendment or repeal, as the 28 case may be, may be made effective and operative not earlier than thirty 29 days following the effective date of the local law or ordinance effect- 30 ing such amendment or repeal, as the case may be. 31 2. The approval of a majority of the electors of such municipality 32 shall not be a condition prerequisite to the taking effect of such local 33 law or ordinance. 34 § 1540. Delegation of authority. The governing body of a municipality 35 may delegate to a municipal officer or officers designated by such muni- 36 cipality for that purpose any of the authority granted to it hereby in 37 relation to the issuance, amendment and cancellation of licenses, the 38 conduct of investigations and hearings, the supervision of the operation 39 of the games and the collection and transmission of fees. 40 § 1541. Powers and duties of mayors or managers of certain cities. 41 Notwithstanding any other provision of this title, whenever the charter 42 of any city, or any special or local law, provides that the mayor or 43 manager of such city is the chief law enforcement officer thereof, then 44 and in that event such mayor or manager, as the case may be, shall have, 45 exercise and perform all the powers and duties otherwise prescribed by 46 this title to be exercised and performed by the governing body of such 47 city except those prescribed by section fifteen hundred twenty-two of 48 this title, and in any such case, the term "governing body of a munici- 49 pality" as used in this title shall be deemed to mean and include the 50 mayor or manager of any such city. 51 TITLE 4 52 LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN 53 ORGANIZATIONS 54 Section 1550. Short title; purpose of title. 55 1551. Local option. 56 1552. Local laws and ordinances.S. 2009--B 54 1 1553. Powers and duties of the commission. 2 1554. Restrictions upon conduct of games of chance. 3 1555. Authorized supplier of games of chance equipment. 4 1556. Declaration of state's exemption from operation of 5 provisions of 15 U.S.C. § 1172. 6 1557. Legal shipments of gaming devices into New York state. 7 1558. Application for license. 8 1559. Raffles; license not required. 9 1560. Investigation; matters to be determined; issuance of 10 license; fees; duration of license. 11 1561. Hearing; amendment of license. 12 1562. Form and contents of license; display of license. 13 1563. Control and supervision; suspension of identification 14 numbers and licenses; inspections of premises. 15 1564. Frequency of games. 16 1565. Persons operating games; equipment; expenses; compen- 17 sation. 18 1566. Charge for admission and participation; amount of prizes; 19 award of prizes. 20 1567. Statement of receipts and expenses; additional license 21 fees. 22 1568. Examination of books and records; examination of officers 23 and employees; disclosure of information. 24 1569. Appeals for the decision of a municipal officer, clerk or 25 department to the commission. 26 1570. Exemption from prosecution. 27 1571. Offenses; forfeiture of license; ineligibility to apply 28 for license. 29 1572. Unlawful games of chance. 30 1573. Title inoperative until adopted by voters. 31 1574. Amendment and repeal of local laws and ordinances. 32 1575. Manufacturers of bell jars; reports and records. 33 1576. Distributor of bell jars; reports and records. 34 1577. Transfer restrictions. 35 1578. Bell jars compliance and enforcement. 36 § 1550. Short title; purpose of title. This title shall be known and 37 may be cited as the games of chance licensing law. The legislature here- 38 by declares that the raising of funds for the promotion of bona fide 39 charitable, educational, scientific, health, religious and patriotic 40 causes and undertakings, where the beneficiaries are undetermined, is in 41 the public interest. The legislature hereby finds that, as conducted 42 prior to the effective date of this title, games of chance were the 43 subject of exploitation by professional gamblers, promoters and commer- 44 cial interests. It is hereby declared to be the policy of the legisla- 45 ture that all phases of the supervision, licensing and regulation of 46 games of chance and of the conduct of games of chance should be closely 47 controlled and that the laws and regulations pertaining thereto should 48 be strictly construed and rigidly enforced; that the conduct of the game 49 and all attendant activities should be so regulated and adequate 50 controls so instituted as to discourage commercialization of gambling in 51 all its forms, including the rental of commercial premises for games of 52 chance, and to ensure a maximum availability of the net proceeds of 53 games of chance exclusively for application to the worthy causes and 54 undertakings specified herein; that the only justification for this 55 title is to foster and support such worthy causes and undertakings, and 56 that the mandate of subdivision two of section nine of article one ofS. 2009--B 55 1 the state constitution, as amended, should be carried out by rigid regu- 2 lations to prevent commercialized gambling, prevent participation by 3 criminal and other undesirable elements and prevent the diversion of 4 funds from the purposes herein authorized. 5 § 1551. Local option. Subject to the provisions of this title, and 6 pursuant to the direction contained in subdivision two of section nine 7 of article one of the state constitution, the legislature hereby gives 8 and grants to every municipality the right, power and authority to 9 authorize the conduct of games of chance by authorized organizations 10 within the territorial limits of such municipality. A local law or ordi- 11 nance adopted by a town shall be operative in any village or within any 12 part of any village located within such town if, after adoption of such 13 local law or ordinance, the board of trustees of such village adopts a 14 local law or resolution subject to a permissive referendum as provided 15 in article nine of the village law authorizing the issuance of licenses 16 by the town for games of chance within such village. Such local law or 17 resolution may be repealed only by a local law or resolution that shall 18 also be subject to a permissive referendum, or by enactment of a local 19 law authorizing games of chance as provided in section fifteen hundred 20 fifty-two of this title. 21 § 1552. Local laws and ordinances. 1. The common council or other 22 local legislative body of any municipality may, either by local law or 23 ordinance, provide that it shall be lawful for any authorized organiza- 24 tion, upon obtaining a license therefor as hereinafter provided, to 25 conduct games of chance within the territorial limits of such munici- 26 pality, subject to the provisions of such local law or ordinance, the 27 provisions of this title and the provisions set forth by the commission. 28 2. No such local law or ordinance shall become operative or effective 29 unless and until it shall have been approved by a majority of the elec- 30 tors voting on a proposition submitted at a general or special election 31 held within such municipality who are qualified to vote for officers of 32 such municipality. 33 3. The time, method and manner of submission, preparation and 34 provision of ballots and ballot labels, balloting by voting machine and 35 conducting the election, canvassing the result and making and filing the 36 returns and all other procedure with reference to the submission of and 37 action upon any proposition for the approval of any such local law or 38 ordinance shall be the same as in the case of any other proposition to 39 be submitted to the electors of such municipality at a general or 40 special election in such municipality, as provided by law. 41 § 1553. Powers and duties of the commission. The commission shall have 42 the power and it shall be the duty of the commission to: 43 1. supervise the administration of the games of chance licensing law 44 and to adopt, amend and repeal rules and regulations governing the issu- 45 ance and amendment of licenses thereunder and the conducting of games 46 under such licenses, which rules and regulations shall have the force 47 and effect of law and shall be binding upon all municipalities issuing 48 licenses, and upon licensees of the commission, to the end that such 49 licenses shall be issued to qualified licensees only, and that said 50 games shall be fairly and properly conducted for the purposes and in the 51 manner of the said games of chance licensing law prescribed and to 52 prevent the games of chance thereby authorized to be conducted from 53 being conducted for commercial purposes or purposes other than those 54 therein authorized, participated in by criminal or other undesirable 55 elements and the funds derived from the games being diverted from the 56 purposes authorized, and to provide uniformity in the administration ofS. 2009--B 56 1 said law throughout the state, the commission shall prescribe forms of 2 application for licenses, licensees, amendment of licenses, reports of 3 the conduct of games and other matters incident to the administration of 4 such law. 5 2. conduct, anywhere in the state, investigations of the adminis- 6 tration, enforcement and potential or actual violations of the games of 7 chance licensing law and of the rules and regulations of the commission. 8 3. review all determinations and actions of the clerk or department in 9 issuing an initial license and it may review the issuance of subsequent 10 licenses and, after hearing, revoke those licenses that do not in all 11 respects meet the requirements of this title and the rules and regu- 12 lations of the commission. 13 4. suspend or revoke a license, after hearing, for any violation of 14 the provisions of this title or the rules and regulations of the commis- 15 sion. 16 5. hear appeals from the determinations and action of the clerk, 17 department or municipal officer in connection with the refusing to issue 18 licenses, the suspension and revocation of licenses and the imposition 19 of fines in the manner prescribed by law and the action and determi- 20 nation of the commission upon any such appeal shall be binding upon the 21 clerk, department or municipal officer and all parties thereto. 22 6. carry on continuous study of the operation of the games of chance 23 licensing law to ascertain from time to time defects therein jeopardiz- 24 ing or threatening to jeopardize the purposes of this title, and to 25 formulate and recommend changes in such law and in other laws of the 26 state that the commission may determine to be necessary for the realiza- 27 tion of such purposes, and to the same end to make a continuous study of 28 the operation and administration of similar laws that may be in effect 29 in other states of the United States. 30 7. supervise the disposition of all funds derived from the conduct of 31 games of chance by authorized organizations not currently licensed to 32 conduct such games. 33 8. issue an identification number to an applicant authorized organiza- 34 tion if the commission determines that the applicant satisfies the 35 requirements of the games of chance licensing law and the rules and 36 regulations of the commission. 37 9. approve and establish a standard set of games of chance equipment 38 and by rules and regulations prescribe the manner in which such equip- 39 ment is to be reproduced and distributed to licensed authorized organ- 40 izations. The sale or distribution to a licensed authorized organization 41 of any equipment other than that contained in the standard set of games 42 of chance equipment shall constitute a violation of this section. 43 § 1554. Restrictions upon conduct of games of chance. The conduct of 44 games of chance authorized by local law or ordinance shall be subject to 45 the following restrictions without regard to whether the restrictions 46 are contained in such local law or ordinance, but nothing herein shall 47 be construed to prevent the inclusion within such local law or ordinance 48 of other provisions imposing additional restrictions upon the conduct of 49 such games: 50 1. No person, firm, partnership, corporation or organization, other 51 than a licensee under the provisions of section fifteen hundred sixty of 52 this title, shall 53 (a) conduct such game; or 54 (b) lease or otherwise make available for conducting games of chance 55 premises for any consideration whatsoever, direct or indirect, without 56 obtaining the prior written approval of the commission.S. 2009--B 57 1 2. No game of chance shall be held, operated or conducted on or within 2 any leased premises if rental under such lease is to be paid, wholly or 3 partly, on the basis of a percentage of the receipts or net profits 4 derived from the operation of such game. 5 3. No authorized organization licensed under the provisions of this 6 title shall purchase, lease, or receive any supplies or equipment 7 specifically designed or adapted for use in the conduct of games of 8 chance from other than a supplier licensed by the commission or from 9 another authorized organization. Lease terms and conditions shall be 10 subject to rules and regulations of the commission. The provisions of 11 this title shall not be construed to authorize or permit an authorized 12 organization to engage in the business of leasing games of chance, 13 supplies or equipment. No organization shall purchase bell jar tickets, 14 or deals of bell jar tickets, from any other person or organization 15 other than those specifically authorized under section fifteen hundred 16 seventy-six of this title. 17 4. The entire net proceeds of any game of chance shall be devoted 18 exclusively to the lawful purposes of the organization permitted to 19 conduct the same and the net proceeds of any rental derived therefrom 20 shall be devoted exclusively to the lawful purposes of the authorized 21 games of chance lessor. 22 5. (a) No single prize awarded by games of chance other than raffle 23 shall exceed the sum or value of three hundred dollars, except that for 24 merchandise wheels, no single prize shall exceed the sum or value of two 25 hundred fifty dollars, and for bell jar, no single prize shall exceed 26 the sum or value of one thousand dollars. 27 (b) No single prize awarded by raffle shall exceed the sum or value of 28 three hundred thousand dollars. 29 (c) No single wager shall exceed six dollars and for bell jars, coin 30 boards or merchandise boards, no single prize shall exceed one thousand 31 dollars, provided, however, that such limitation shall not apply to the 32 amount of money or value paid by the participant in a raffle in return 33 for a ticket or other receipt. 34 (d) For coin boards and merchandise boards, the value of a prize shall 35 be determined by the cost of such prize to the authorized organization 36 or, if donated, the fair market value of such prize. 37 6. (a) No authorized organization shall award a series of prizes 38 consisting of cash or of merchandise with an aggregate value in excess 39 of: 40 (1) ten thousand dollars during the successive operations of any one 41 merchandise wheel; and 42 (2) six thousand dollars during the successive operations of any bell 43 jar, coin board or merchandise board. 44 (b) No series of prizes awarded by raffle shall have an aggregate 45 value in excess of five hundred thousand dollars. 46 (c) For coin boards and merchandise boards, the value of a prize shall 47 be determined by its cost to the authorized organization or, if donated, 48 its fair market value. 49 7. In addition to merchandise wheels, raffles and bell jars, no more 50 than five other single types of games of chance shall be conducted 51 during any one license period. 52 8. (a) Except for merchandise wheels and raffles, no series of prizes 53 on any one occasion shall aggregate more than four hundred dollars when 54 the licensed authorized organization conducts five single types of games 55 of chance during any one license period. Except for merchandise wheels, 56 raffles and bell jars, no series of prizes on any one occasion shallS. 2009--B 58 1 aggregate more than five hundred dollars when the licensed authorized 2 organization conducts fewer than five single types of games of chance, 3 exclusive of merchandise wheels, raffles and bell jars, during any one 4 license period. 5 (b) No authorized organization shall award by raffle prizes with an 6 aggregate value in excess of three million dollars during any one 7 license period. 8 9. Except for the limitations on the sum or value for single prizes 9 and series of prizes, no limit shall be imposed on the sum or value of 10 prizes awarded to any one participant during any occasion or any license 11 period. 12 10. (a) No person except a bona fide member of the licensed authorized 13 organization shall participate in the management of such games. 14 (b) No person except a bona fide member of the licensed authorized 15 organization, its auxiliary or affiliated organization, shall partic- 16 ipate in the operation of such game, as set forth in section fifteen 17 hundred sixty-five of this title. 18 11. No person shall receive any remuneration for participating in the 19 management or operation of any such game. 20 12. No authorized organization shall extend credit to a person to 21 participate in playing a game of chance. 22 13. (a) No game of chance, other than a raffle that complies with 23 paragraph (b) of this subdivision, shall be conducted on other than the 24 premises of an authorized organization or an authorized games of chance 25 lessor; provided, however, nothing in this subdivision shall prohibit a 26 game of chance from being conducted on state-owned property. 27 (b) Raffle tickets may be sold to the public outside the premises of 28 an authorized organization or an authorized games of chance lessor if 29 such sales occur in a municipality that: 30 (1) has 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; 33 (2) is located in the county in which the municipality issuing the 34 raffle license is located or in a county that is contiguous to the coun- 35 ty in which the municipality issuing the raffle license is located; and 36 (3) has not objected to such sales after the commission gives notice 37 to such municipality of an authorized organization's request to sell 38 such raffle tickets in such municipality. 39 (c) The commission may by regulation prescribe the advance notice an 40 authorized organization must provide to the commission in order to take 41 advantage of the provisions of paragraph (b) of this subdivision, forms 42 in which such a request shall be made and the time period in which a 43 municipality must communicate an objection to the commission. 44 (d) No sale of raffle tickets shall be made more than one hundred 45 eighty days prior to the date scheduled for the occasion at which the 46 raffle will be conducted. 47 (e) The winner of any single prize in a raffle shall not be required 48 to be present at the time such raffle is conducted. 49 14. No person licensed to manufacture, distribute or sell games of 50 chance supplies or equipment, or their agents, shall conduct, partic- 51 ipate in, or assist in the conduct of games of chance. Nothing herein 52 shall prohibit a licensed distributor from selling, offering for sale or 53 explaining a product to an authorized organization or installing or 54 servicing games of chance equipment upon the premises of games of chance 55 licensees.S. 2009--B 59 1 15. The unauthorized conduct of a game of chance shall constitute and 2 be punishable as a misdemeanor. 3 16. No coins or merchandise from a coin board or merchandise board 4 shall be redeemable or convertible into cash directly or indirectly by 5 the authorized organization. 6 17. No game of chance shall involve wagering of money by one player 7 against another player. 8 § 1555. Authorized supplier of games of chance equipment. 1. No 9 person, firm, partnership, corporation or organization shall sell or 10 distribute supplies or equipment specifically designed or adapted for 11 use in conduct of games of chance without having first obtained a 12 license therefor upon written application made, verified and filed with 13 the commission in the form prescribed by the rules and regulations of 14 the commission. As a part of the commission's determination concerning 15 the applicant's suitability for licensing as a games of chance supplier, 16 the commission shall require the applicant to furnish to the commission 17 two sets of fingerprints. Such fingerprints shall be submitted to the 18 division of criminal justice services for a state criminal history 19 record check, as defined in subdivision one of section three thousand 20 thirty-five of the education law, and may be submitted to the federal 21 bureau of investigation for a national criminal history record check. 22 Manufacturers of bell jar tickets shall be considered suppliers of such 23 equipment. In each such application for a license under this section 24 shall be stated the name and address of the applicant; the names and 25 addresses of its officers, directors, shareholders or partners; the 26 amount of gross receipts realized on the sale and rental of games of 27 chance supplies and equipment to duly licensed authorized organizations 28 during the last preceding calendar or fiscal year, and such other infor- 29 mation as shall be prescribed by such rules and regulations. The fee for 30 such license shall be a sum equal to an amount established by commission 31 regulation plus an amount equal to two percent of the gross sales and 32 rentals, if any, of games of chance equipment and supplies to authorized 33 organizations or authorized games of chance lessors by the applicant 34 during the preceding calendar year, or fiscal year if the applicant 35 maintains his accounts on a fiscal year basis. No license granted 36 pursuant to the provisions of this section shall be effective for a 37 period of more than one year. 38 2. The following shall be ineligible for such a license: 39 (a) a person convicted of a crime if there is a direct relationship 40 between one or more of the previous criminal offenses and the integrity 41 of charitable gaming, considering the factors set forth in section seven 42 hundred fifty-three of the correction law; 43 (b) a person who is or has been a professional gambler or gambling 44 promoter or who for other reasons is not of good moral character; 45 (c) a public officer or employee; 46 (d) an authorized games of chance lessor; or 47 (e) a firm or corporation in which a person defined in subparagraph 48 (a), (b), (c) or (d) of this subdivision has greater than a ten percent 49 proprietary, equitable or credit interest or in which such a person is 50 active or employed. 51 3. The commission shall have power to examine or cause to be examined 52 the books and records of any applicant for a license under this section. 53 Any information so received shall not be disclosed except so far as may 54 be necessary for the purpose of carrying out the provisions of this 55 title.S. 2009--B 60 1 4. Any solicitation of an organization licensed to conduct games of 2 chance, to purchase or induce the purchase of games of chance supplies 3 and equipment, other than by a person licensed or otherwise authorized 4 pursuant to this section, shall constitute a violation of this section. 5 5. Any person who willfully makes any material false statement in any 6 application for a license authorized to be issued under this section or 7 who willfully violates any of the provisions of this section or of any 8 license issued hereunder shall be guilty of a misdemeanor and, in addi- 9 tion to the penalties in such case made and provided, shall forfeit any 10 license issued to him, her or it under this section and be ineligible to 11 apply for a license under this section for one year thereafter. 12 6. At the end of such period specified in the license, a recapitu- 13 lation shall be made as between the licensee and the commission in 14 respect of the gross sales and rentals actually recorded during that 15 period and the fee paid therefor, and any deficiency of fee thereby 16 shown to be due shall be paid by the licensee and any excess of fee 17 thereby shown to have been paid shall be credited to said licensee in 18 such manner as the commission by rules and regulations shall prescribe. 19 § 1556. Declaration of state's exemption from operation of provisions 20 of 15 U.S.C. § 1172. Pursuant to section two of an Act of Congress of 21 the United States entitled "An act to prohibit transportation of gambl- 22 ing devices in interstate and foreign commerce," approved January 23 second, nineteen hundred fifty-one, being chapter 1194, 64 Stat. 1134, 24 and also designated as 15 U.S.C. §§ 1171-1177, the state of New York, 25 acting by and through the duly elected and qualified members of its 26 legislature, does hereby, in accordance with and in compliance with the 27 provisions of section two of said Act of Congress, declare and proclaim 28 that it is exempt from the provisions of section two of said Act of 29 Congress. 30 § 1557. Legal shipments of gaming devices into New York state. All 31 shipments into this state of gaming devices, excluding slot machines and 32 coin operated gambling devices, as defined in subdivision seven-a of 33 section 225.00 of the penal law, the registering, recording and labeling 34 of which has been duly had by the manufacturer or dealer thereof in 35 accordance with sections three and four of an Act of Congress of the 36 United States entitled "An act to prohibit transportation of gambling 37 devices in interstate and foreign commerce," approved January second, 38 nineteen hundred fifty-one, being chapter 1194, 64 Stat. 1134, and also 39 designated as 15 U.S.C. §§ 1171-1177, shall be deemed legal shipments 40 thereof into this state. 41 § 1558. Application for license. 1. To conduct games of chance. (a) 42 Each applicant for a license shall, after obtaining an identification 43 number from the commission, file with the clerk or department, an appli- 44 cation therefor in a form to be prescribed by the commission, duly 45 executed and verified, in which shall be stated: 46 (1) the name and address of the applicant together with sufficient 47 facts relating to its incorporation and organization to enable such 48 clerk or department, as the case may be, to determine whether or not it 49 is a bona fide authorized organization; 50 (2) the names and addresses of its officers; the place or places 51 where, the date or dates and the time or times when the applicant 52 intends to conduct games under the license applied for; 53 (3) the amount of rent to be paid or other consideration to be given 54 directly or indirectly for each licensed period for use of the premises 55 of an authorized games of chance lessor;S. 2009--B 61 1 (4) all other items of expense intended to be incurred or paid in 2 connection with the holding, operating and conducting of such games of 3 chance and the names and addresses of the persons to whom, and the 4 purposes for which, they are to be paid; 5 (5) the purposes to which the entire net proceeds of such games are to 6 be devoted and in what manner; that no commission, salary, compensation, 7 reward or recompense will be paid to any person for conducting such game 8 or games or for assisting therein except as in this title otherwise 9 provided; and such other information as shall be prescribed by such 10 rules and regulations; and 11 (6) the name of each single type of game of chance to be conducted 12 under the license applied for and the number of merchandise wheels and 13 raffles, if any, to be operated. 14 (b) In each application there shall be designated not less than four 15 bona fide members of the applicant organization under whom the game or 16 games of chance will be managed and to the application shall be appended 17 a statement executed by the members so designated, that they will be 18 responsible for the management of such games in accordance with the 19 terms of the license, the rules and regulations of the commission, this 20 title and the applicable local laws or ordinances. 21 2. Authorized games of chance lessor. Each applicant for a license to 22 lease premises to a licensed organization for the purposes of conducting 23 games of chance therein shall file with the clerk or department an 24 application therefor, in a form to be prescribed by the commission duly 25 executed and verified, which shall set forth: 26 (a) the name and address of the applicant; 27 (b) designation and address of the premises intended to be covered by 28 the license sought; 29 (c) a statement that the applicant in all respects conforms with the 30 specifications contained in the definition of "authorized organization" 31 set forth in section fifteen hundred of this article; and 32 (d) a statement of the lawful purposes to which the net proceeds from 33 any rental are to be devoted by the applicant and such other information 34 as shall be prescribed by the commission. 35 3. In counties outside the city of New York, municipalities may, 36 pursuant to section fifteen hundred fifty-two of this title, adopt an 37 ordinance providing that an authorized organization having obtained an 38 identification number from the commission, and having applied for no 39 more than one license to conduct games of chance during the period not 40 less than twelve nor more than eighteen months immediately preceding, 41 may file with the clerk or department a summary application in a form to 42 be prescribed by the commission duly executed and verified, containing 43 the names and addresses of the applicant organization and its officers, 44 the date, time and place or places where the applicant intends to 45 conduct games under the license applied for, the purposes to which the 46 entire net proceeds of such games are to be devoted and the information 47 and statement required by paragraph (b) of subdivision one of this 48 section in lieu of the application required under subdivision one of 49 this section. 50 4. (a) Notwithstanding and in lieu of the licensing requirements set 51 forth in this title, an authorized organization defined in section 52 fifteen hundred of this article may file a verified statement, for which 53 no fee shall be required, with the clerk or department and the commis- 54 sion attesting that such organization shall derive net proceeds or net 55 profits from raffles in an amount less than thirty thousand dollars 56 during one occasion or part thereof at which raffles are to beS. 2009--B 62 1 conducted. Such statement shall be on a single-page form prescribed by 2 the commission, and shall be deemed a license to conduct raffles: 3 (1) under this title; and 4 (2) within the municipalities in which the authorized organization is 5 domiciled that have passed a local law, ordinance or resolution in 6 accordance with sections fifteen hundred fifty-one and fifteen hundred 7 fifty-two of this title approving the conduct of games of chance, and in 8 municipalities that have passed a local law, ordinance or resolution in 9 accordance with sections fifteen hundred fifty-one and fifteen hundred 10 fifty-two of this title approving the conduct of games of chance that 11 are located in the county in which the municipality issuing the license 12 is located and in the counties that are contiguous to the county in 13 which the municipality issuing the raffle license is located, provided 14 those municipalities have authorized the licensee, in writing, to sell 15 such raffle tickets therein. 16 (b) An organization that has filed a verified statement with the clerk 17 or department and the commission attesting that such organization shall 18 derive net proceeds or net profits from raffles in an amount less than 19 thirty thousand dollars during one occasion or part thereof that in fact 20 derives net proceeds or net profits exceeding thirty thousand dollars 21 during any one occasion or part thereof shall be required to obtain a 22 license as required by this title and shall be subject to the provisions 23 of section fifteen hundred sixty-seven of this title. 24 § 1559. Raffles; license not required. 1. Notwithstanding the licens- 25 ing requirements set forth in this title and their filing requirements 26 set forth in subdivision four of section fifteen hundred fifty-eight of 27 this title, an authorized organization may conduct a raffle without 28 complying with such licensing requirements or such filing requirements, 29 provided, that such organization shall derive net proceeds from raffles 30 in an amount less than five thousand dollars during the conduct of one 31 raffle and shall derive net proceeds from raffles in an amount less than 32 thirty thousand dollars during one calendar year. 33 2. No person under the age of eighteen shall be permitted to play, 34 operate or assist in any raffle conducted pursuant to this section. 35 3. No raffle shall be conducted pursuant to this section except within 36 a municipality in which the authorized organization is domiciled that 37 has passed a local law, ordinance or resolution in accordance with 38 sections fifteen hundred fifty-one and fifteen hundred fifty-two of this 39 title approving the conduct of games of chance, and in municipalities 40 that have passed a local law, ordinance or resolution in accordance with 41 sections fifteen hundred fifty-one and fifteen hundred fifty-two of this 42 title approving the conduct of games of chance that are located within 43 the county or contiguous to the county in which the organization is 44 domiciled. 45 § 1560. Investigation; matters to be determined; issuance of license; 46 fees; duration of license. 1. The clerk or department shall make an 47 investigation of the qualifications of each applicant and the merits of 48 each application, with due expedition after the filing of the applica- 49 tion. 50 (a) Issuance of licenses to conduct games of chance. If such clerk or 51 department determines: 52 (1) that the applicant is duly qualified to be licensed to conduct 53 games of chance under this title; 54 (2) that the member or members of the applicant designated in the 55 application to manage games of chance are bona fide active members of 56 the applicant and are persons of good moral character and have neverS. 2009--B 63 1 been convicted of a crime if there is a direct relationship between one 2 or more of the previous criminal offenses and the integrity of charita- 3 ble gaming, considering the factors set forth in section seven hundred 4 fifty-three of the correction law; 5 (3) that such games are to be conducted in accordance with the 6 provisions of this title and in accordance with the rules and regu- 7 lations of the commission and applicable local laws or ordinances and 8 that the proceeds thereof are to be disposed of as provided by this 9 title; and 10 (4) is satisfied that no commission, salary, compensation, reward or 11 recompense whatsoever will be paid or given to any person managing, 12 operating or assisting therein except as in this title otherwise 13 provided, then such clerk or department shall issue a license to the 14 applicant for the conduct of games of chance upon payment of a license 15 fee in an amount established by regulation of the commission for each 16 license period. 17 (b) Issuance of licenses to authorized games of chance lessors. If 18 such clerk or department determines: 19 (1) that the applicant seeking to lease premises for the conduct of 20 games of chance to a games of chance licensee is duly qualified to be 21 licensed under this title; 22 (2) that the applicant satisfies the requirements for an authorized 23 organization as defined in section fifteen hundred of this article; 24 (3) that the applicant has filed its proposed rent for each license 25 period; and 26 (4) that such proposed rent is fair and reasonable; 27 (5) that the net proceeds from any rental will be devoted to the 28 lawful purposes of the applicant; 29 (6) that there is no diversion of the funds of the proposed lessee 30 from the lawful purposes as defined in this title; and 31 (7) that such leasing of premises for the conduct of such games is to 32 be in accordance with the provisions of this title, with the rules and 33 regulations of the commission and applicable local laws and ordinances, 34 then such clerk or department shall issue a license permitting the 35 applicant to lease said premises for the conduct of such games to the 36 games of chance licensee or licensees specified in the application 37 during the period therein specified or such shorter period as such clerk 38 or department determines, but not to exceed twelve license periods 39 during a calendar year, upon payment of a license fee in an amount 40 established by the regulations of the commission. Nothing herein shall 41 be construed to require the applicant to be licensed under this title to 42 conduct games of chance. 43 (c) Issuance of license upon summary application. If, upon the basis 44 of a summary application as prescribed under subdivision three of 45 section fifteen hundred fifty-eight of this title, the clerk or depart- 46 ment determines that the applicant is duly qualified to be licensed to 47 conduct games of chance under this title, said clerk or department shall 48 forthwith issue said license. In the event the clerk or department has 49 reason to believe that the applicant is not so qualified the applicant 50 shall be directed to file an application pursuant to subdivision one of 51 section fifteen hundred fifty-eight of this title. 52 2. On or before the last day of each month, the treasurer of the muni- 53 cipality in which the licensed property is located shall transmit to the 54 state comptroller a sum equal to fifty percent of all authorized games 55 of chance lessor license fees and sixty percent of all license fees forS. 2009--B 64 1 the conduct of games of chance collected by such clerk or department 2 pursuant to this section during the preceding calendar month. 3 3. No license shall be issued under this section that is effective for 4 a period of more than one year. 5 § 1561. Hearing; amendment of license. 1. No application for the issu- 6 ance of a license to conduct games of chance or lease premises to an 7 authorized organization shall be denied by the clerk or department, 8 until after a hearing, held on due notice to the applicant, at which the 9 applicant shall be entitled to be heard upon the qualifications of the 10 applicant and the merits of the application. 11 2. Any license issued under this title may be amended, upon applica- 12 tion made to such clerk or department that issued it, if the subject 13 matter of the proposed amendment could lawfully and properly have been 14 included in the original license and upon payment of such additional 15 license fee, if any, as would have been payable if it had been so 16 included. 17 § 1562. Form and contents of license; display of license. 1. Each 18 license to conduct games of chance shall be in such form as shall be 19 prescribed in the rules and regulations of the commission and shall 20 contain: 21 (a) a statement of the name and address of the licensee, of the names 22 and addresses of the members of the licensee under whom the games will 23 be managed; 24 (b) a statement of the place or places where, and the date or dates 25 and time or times when, such games are to be conducted; 26 (c) a statement of the purposes to which the entire net proceeds of 27 such games are to be devoted; 28 (d) the name of each single type of game to be conducted under the 29 license and the number of merchandise wheels and raffles, if any, to be 30 operated; and 31 (e) any other information that may be required by the rules and regu- 32 lations of the commission to be contained therein. 33 2. Each license issued for the conduct of any games shall be displayed 34 conspicuously at the place where such games are to be conducted at all 35 times during the conduct thereof. 36 3. Each license to lease premises for conducting games of chance shall 37 be in such form as shall be prescribed in the rules and regulations of 38 the commission and shall contain a statement of the name and address of 39 the licensee and the address of the leased premises, the amount of 40 permissible rent and any information that may be required by said rules 41 and regulations to be contained therein, and each such license shall be 42 conspicuously displayed upon such premises at all times during the 43 conduct of games of chance. 44 § 1563. Control and supervision; suspension of identification numbers 45 and licenses; inspections of premises. 1. The municipal officer or 46 department shall have and exercise rigid control and close supervision 47 over all games of chance conducted under such license, to the end that 48 the same are conducted fairly in accordance with the provisions of such 49 license, the provisions of the rules and regulations promulgated by the 50 commission and the provisions of this title. Such municipal officer or 51 department and the commission shall have the power and the authority to 52 suspend temporarily any license issued by the clerk or department and/or 53 impose fines for violations not to exceed one thousand dollars. Tempo- 54 rary suspension of licenses shall be followed promptly by a hearing, and 55 after notice and hearing, the clerk, department or the commission may 56 suspend or revoke the same and declare the violator ineligible to applyS. 2009--B 65 1 for a license for a period not exceeding twelve months thereafter. Any 2 fines tendered to the clerk, department or the commission shall not be 3 paid from funds derived from the conduct of games of chance. The munici- 4 pal officer and the department or the commission shall additionally have 5 the right of entry, by their respective municipal officers and agents, 6 at all times into any premises where any game of chance is being 7 conducted or where it is intended that any such game shall be conducted, 8 or where any equipment being used or intended to be used in the conduct 9 thereof is found, for the purpose of inspecting the same. Upon suspen- 10 sion or revocation of any license or upon declaration of ineligibility 11 to apply for a license, the commission may suspend or revoke the iden- 12 tification number issued pursuant to section fifteen hundred fifty-three 13 of this title. An agent of the appropriate municipal officer or depart- 14 ment shall make an on-site inspection during the conduct of all games of 15 chance licensed pursuant to this title. 16 2. A municipality may, by local law or ordinance enacted pursuant to 17 the provisions of section fifteen hundred fifty-two of this title, 18 provide that the powers and duties set forth in subdivision one of this 19 section shall be exercised by the chief law enforcement officer of the 20 county. In the event a municipality exercises this option, the fees 21 provided for by subdivision two of section fifteen hundred sixty-seven 22 of this title shall be remitted to the chief fiscal officer of the coun- 23 ty. 24 3. Service of alcoholic beverages. Subject to the applicable 25 provisions of the alcoholic beverage control law, beer may be offered 26 for sale during the conduct of games of chance on games of chance prem- 27 ises as such premises are defined in section fifteen hundred of this 28 article; provided, however, that nothing herein shall be construed to 29 limit the offering for sale of any other alcoholic beverage in areas 30 other than the games of chance premises or the sale of any other alco- 31 holic beverage in premises where only the games of chance known as bell 32 jars or raffles are conducted. 33 § 1564. Frequency of games. 1. No game or games of chance shall be 34 conducted under any license issued under this title more often than 35 twelve times in any calendar year. No particular premises shall be used 36 for the conduct of games of chance on more than twenty-four license 37 periods during any one calendar year. 38 2. Games of chance other than bell jars and raffles may be conducted 39 at any time, unless the games of chance license provides otherwise. No 40 license may restrict the times in which bell jars or raffles are 41 conducted, subject to the limitations on the license period for such 42 games set forth in subdivision eighteen of section fifteen hundred of 43 this article. 44 § 1565. Persons operating games; equipment; expenses; compensation. 1. 45 No person shall operate any game of chance under any license issued 46 under this title except a bona fide member of the authorized organiza- 47 tion to which the license is issued, or a bona fide member of an organ- 48 ization or association that is an auxiliary to the licensee or a bona 49 fide member of an organization or association of which such licensee is 50 an auxiliary or a bona fide member of an organization or association 51 that is affiliated with the licensee by being, with it, auxiliary to 52 another organization or association. Nothing herein shall be construed 53 to limit the number of games of chance licensees for whom such persons 54 may operate games of chance nor to prevent non-members from assisting 55 the licensee in any activity other than managing or operating games. For 56 the purpose of the sale of tickets for the game of raffle, the termS. 2009--B 66 1 "operate" shall not include the sale of such tickets by persons of 2 lineal or collateral consanguinity to members of an authorized organiza- 3 tion licensed to conduct a raffle. 4 2. No game of chance shall be conducted with any equipment except such 5 as shall be owned or leased by the authorized organization so licensed 6 or used without payment of any compensation therefor by the licensee. 7 However, in no event shall bell jar tickets be transferred from one 8 authorized organization to another, with or without payment of any 9 compensation thereof. 10 3. The head or heads of the authorized organization shall upon request 11 certify, under oath, that the persons operating any game of chance are 12 bona fide members of such authorized organization, auxiliary or affil- 13 iated organization. 14 4. Upon request by a municipal officer or the department any such 15 person involved in such games of chance shall certify that he or she has 16 no criminal record or shall disclose previous criminal offenses for 17 consideration of the factors set forth in section seven hundred fifty- 18 three of the correction law. 19 5. No items of expense shall be incurred or paid in connection with 20 the conducting of any game of chance pursuant to any license issued 21 under this title except those that are reasonable and are necessarily 22 expended for games of chance supplies and equipment, prizes, security 23 personnel, stated rental, if any, bookkeeping or accounting services 24 according to a schedule of compensation prescribed by the commission, 25 janitorial services and utility supplies if any, and license fees, and 26 the cost of bus transportation, if authorized by such clerk or depart- 27 ment. 28 6. No commission, salary, compensation, reward or recompense shall be 29 paid or given to any person for the sale or assisting with the sale of 30 raffle tickets. 31 § 1566. Charge for admission and participation; amount of prizes; 32 award of prizes. 1. A fee may be charged by any licensee for admission 33 to any game or games of chance conducted under any license issued under 34 this title. The clerk or department may in its discretion fix a minimum 35 fee. 36 2. With the exception of bell jars, coin boards, seal cards, merchan- 37 dise boards and raffles, every winner shall be determined and every 38 prize shall be awarded and delivered within the same calendar day as 39 that upon which the game was played. 40 3. A player may purchase a chance with cash or, if the authorized 41 organization wishes, with a personal check, credit card or debit card. 42 § 1567. Statement of receipts and expenses; additional license fees. 43 1. Within seven days after the conclusion of any license period other 44 than a license period for a raffle, or as otherwise prescribed by the 45 commission, the authorized organization that conducted the same, and its 46 members who were in charge thereof, and when applicable the authorized 47 games of chance lessor that rented its premises therefor, shall each 48 furnish to the clerk or department a statement subscribed by the member 49 in charge and affirmed by him or her as true, under the penalties of 50 perjury, showing the amount of the gross receipts derived therefrom and 51 each item of expense incurred, or paid, and each item of expenditure 52 made or to be made other than prizes, the name and address of each 53 person to whom each such item of expense has been paid, or is to be 54 paid, with a detailed description of the merchandise purchased or the 55 services rendered therefor, the net proceeds derived from the conduct of 56 games of chance during such license period, and the use to which suchS. 2009--B 67 1 proceeds have been or are to be applied. It shall be the duty of each 2 licensee to maintain and keep such books and records as may be necessary 3 to substantiate the particulars of each such statement. 4 2. Within thirty days after the conclusion of an occasion during which 5 a raffle was conducted, the authorized organization conducting such 6 raffle and the members in charge of such raffle, and, when applicable, 7 the authorized games of chance lessor that rented its premises therefor, 8 shall each furnish to the clerk or department a statement on a form 9 prescribed by the commission, subscribed by the member in charge and 10 affirmed by him or her as true, under the penalties of perjury, showing: 11 (a) the number of tickets printed; 12 (b) the number of tickets sold; 13 (c) the price and the number of tickets returned to or retained by the 14 authorized organization as unsold; 15 (d) a description and statement of the fair market value for each 16 prize actually awarded; 17 (e) the amount of the gross receipts derived therefrom; 18 (f) each item of expenditure made or to be made other than prizes; 19 (g) the name and address of each person to whom each such item of 20 expense has been paid, or is to be paid; 21 (h) a detailed description of the merchandise purchased or the 22 services rendered therefor; 23 (i) the net proceeds derived from the raffle at such occasion; and 24 (j) the use to which the proceeds have been or are to be applied. It 25 shall be the duty of each licensee to maintain and keep such books and 26 records as may be necessary to substantiate the particulars of each such 27 statement, provided, however, where the cumulative net proceeds or net 28 profits derived from the conduct of a raffle or raffles are less than 29 thirty thousand dollars during any one occasion, in such case, the 30 reporting requirement shall be satisfied by the filing within thirty 31 days of the conclusion of such occasion a verified statement prescribed 32 by the commission attesting to the amount of such net proceeds or net 33 profits and the distribution thereof for lawful purposes with the clerk 34 or department and a copy with the commission, and provided further, 35 however, where the cumulative net proceeds derived from the conduct of a 36 raffle or raffles are less than five thousand dollars during any one 37 occasion and less than thirty thousand dollars during one calendar year, 38 no reporting shall be required. 39 3. Any authorized organization required to file an annual report with 40 the secretary of state pursuant to article seven-A of the executive law 41 or the attorney general pursuant to article eight of the estates, powers 42 and trusts law shall include with such annual report a copy of the 43 statement required to be filed with the clerk or department pursuant to 44 subdivision one or two of this section. 45 4. Upon the filing of such statement of receipts pursuant to subdivi- 46 sion one or two of this section, the authorized organization furnishing 47 the same shall pay to the clerk or department as and for an additional 48 license fee a sum based upon the reported net proceeds, if any, for the 49 license period, or in the case of raffles, for the occasion covered by 50 such statement and determined in accordance with such schedule as shall 51 be established from time to time by the commission to defray the actual 52 cost to municipalities or counties of administering the provisions of 53 this title, but such additional license fee shall not exceed five 54 percent of the net proceeds for such license period. The provisions of 55 this subdivision shall not apply to the net proceeds from the sale of 56 bell jar tickets. No fee shall be required where the net proceeds or netS. 2009--B 68 1 profits derived from the conduct of a raffle or raffles are less than 2 thirty thousand dollars during any one occasion. 3 § 1568. Examination of books and records; examination of officers and 4 employees; disclosure of information. The clerk or department and the 5 commission shall have power to examine or cause to be examined the books 6 and records of: 7 1. any authorized organization that is or has been licensed to conduct 8 games of chance, so far as they may relate to games of chance, including 9 the maintenance, control and disposition of net proceeds derived from 10 games of chance or from the use of its premises for games of chance, and 11 to examine any manager, officer, director, agent, member or employee 12 thereof under oath in relation to the conduct of any such game under any 13 such license, the use of its premises for games of chance, or the dispo- 14 sition of net proceeds derived from games of chance, as the case may be; 15 or 16 2. any authorized games of chance lessor, so far as such books and 17 records may relate to leasing premises for games of chance, and to exam- 18 ine such lessor or any manager, officer, director, agent or employee 19 thereof under oath in relation to such leasing. Any information so 20 received shall not be disclosed except so far as may be necessary for 21 the purpose of carrying out the provisions of this title. 22 § 1569. Appeals for the decision of a municipal officer, clerk or 23 department to the commission. Any applicant for, or holder of, any 24 license issued or to be issued under this title aggrieved by any action 25 of a municipal officer, clerk or department, to which such application 26 has been made or by which such license has been issued, may appeal to 27 the commission from the determination of said municipal officer, clerk 28 or department by filing with such municipal officer, clerk or department 29 a written notice of appeal within thirty days after the determination or 30 action appealed from, and upon the hearing of such appeal, the evidence, 31 if any, taken before such municipal officer, clerk or department and any 32 additional evidence may be produced and shall be considered in arriving 33 at a determination of the matters in issue, and the action of the 34 commission upon said appeal shall be binding upon such municipal offi- 35 cer, clerk or department and all parties to said appeal. 36 § 1570. Exemption from prosecution. No person, firm, partnership, 37 corporation or organization lawfully conducting, or participating in the 38 conduct of, games of chance, or permitting the conduct upon any premises 39 owned or leased by him, her or it under any license lawfully issued 40 pursuant to this title, shall be liable to prosecution or conviction for 41 violation of any provision of article two hundred twenty-five of the 42 penal law or any other law or ordinance to the extent that such conduct 43 is specifically authorized by this title, but this immunity shall not 44 extend to any person or corporation knowingly conducting or participat- 45 ing in the conduct of games of chance under any license obtained by any 46 false pretense or by any false statement made in any application for 47 license or otherwise, or permitting the conduct upon any premises owned 48 or leased by him, her or it of any game of chance conducted under any 49 license known to him, her or it to have been obtained by any such false 50 pretense or statement. 51 § 1571. Offenses; forfeiture of license; ineligibility to apply for 52 license. Any person, firm, partnership, corporation or organization who 53 or that shall: 54 1. make any material false statement in any application for any 55 license authorized to be issued under this title;S. 2009--B 69 1 2. pay or receive, for the use of any premises for conducting games of 2 chance, a rental in excess of the amount specified as the permissible 3 rent in the license provided for in subdivision three of section fifteen 4 hundred sixty-two of this title; 5 3. fail to keep such books and records as shall fully and truly record 6 all transactions connected with the conducting of games of chance or the 7 leasing of premises to be used for the conduct of games of chance; 8 4. falsify or make any false entry in any books or records so far as 9 they relate in any manner to the conduct of games of chance, to the 10 disposition of the proceeds thereof and to the application of the rents 11 received by any authorized organization; 12 5. divert or pay any portion of the net proceeds of any game of chance 13 to any person, firm, partnership, corporation, except in furtherance of 14 one or more of the lawful purposes defined in this title; shall be guil- 15 ty of a misdemeanor and shall forfeit any license issued under this 16 title and be ineligible to apply for a license under this title for at 17 least one year thereafter. 18 § 1572. Unlawful games of chance. 1. Any person, association, corpo- 19 ration or organization holding, operating or conducting a game or games 20 of chance is guilty of a misdemeanor, except when operating, holding or 21 conducting: 22 (a) in accordance with a valid license issued pursuant to this title; 23 (b) on behalf of a bona fide organization of persons sixty years of 24 age or over, commonly referred to as senior citizens, solely for the 25 purpose of amusement and recreation of its members where: 26 (1) the organization has applied for and received an identification 27 number from the commission; 28 (2) no player or other person furnishes anything of value for the 29 opportunity to participate; 30 (3) the prizes awarded or to be awarded are nominal; 31 (4) no person other than a bona fide active member of the organization 32 participates in the conduct of the games; and 33 (5) no person is paid for conducting or assisting in the conduct of 34 the game or games; or 35 (c) a raffle pursuant to section fifteen hundred fifty-nine of this 36 title. 37 2. The provisions of this section shall apply to all municipalities 38 within this state, including those municipalities where this title is 39 inoperative. 40 § 1573. Title inoperative until adopted by voters. Except as provided 41 in section fifteen hundred seventy-two of this title, the provisions of 42 this title shall remain inoperative in any municipality unless and until 43 a proposition therefor submitted at a general or special election in 44 such municipality shall be approved by a vote of the majority of the 45 qualified electors in such municipality voting thereon. 46 § 1574. Amendment and repeal of local laws and ordinances. Any such 47 local law or ordinance may be amended, from time to time, or repealed by 48 the common council or other local legislative body of the municipality 49 that enacted it, by a two-thirds vote of such legislative body and such 50 amendment or repeal, as the case may be, may be made effective and oper- 51 ative not earlier than thirty days following the effective date of the 52 local law or ordinance effecting such amendment or repeal, as the case 53 may be, and the approval of a majority of the electors of such munici- 54 pality shall not be a condition prerequisite to the taking effect of 55 such local law or ordinance.S. 2009--B 70 1 § 1575. Manufacturers of bell jars; reports and records. 1. Distrib- 2 ution; manufacturers. For business conducted in this state, manufactur- 3 ers licensed by the commission to sell bell jar tickets shall sell such 4 tickets only to distributors licensed by the commission. Manufacturers 5 of bell jar tickets, seal cards, merchandise boards and coin boards may 6 submit samples, artists' renderings or color photocopies of proposed 7 bell jar tickets, seal cards, merchandise boards, coin boards, payout 8 cards and flares for review and approval by the commission. Within thir- 9 ty days of receipt of such sample or rendering, the commission shall 10 approve or deny such bell jar tickets. Following approval of a rendering 11 of a bell jar ticket, seal card, merchandise board or coin board by the 12 commission, the manufacturer shall submit to the commission a sample of 13 the printed bell jar ticket, seal card, merchandise board, coin board, 14 payout card and flare for such game. Such sample shall be submitted 15 prior to the sale of the game to any licensed distributor for resale in 16 this state. For coin boards and merchandise boards, nothing herein shall 17 require the submittal of actual coins or merchandise as part of the 18 approval process. Any licensed manufacturer who willfully violates the 19 provisions of this section shall: 20 (a) upon such first offense, have its license suspended for a period 21 of thirty days; 22 (b) upon such second offense, participate in a hearing to be conducted 23 by the commission, and surrender its license for such period as recom- 24 mended by the commission; and 25 (c) upon such third or subsequent offense, have its license suspended 26 for a period of one year and shall be guilty of a class E felony. Any 27 unlicensed manufacturer who violates the provisions of this section 28 shall be guilty of a class E felony. 29 1-a. Approval of bell jar vending machines. No manufacturer of bell 30 jar vending machines shall sell, lease, or otherwise distribute such 31 vending machines to an authorized distributor for sale or lease to an 32 authorized organization or permit its vending machines to be sold, 33 leased, or other distributed to an authorized distributor or authorized 34 organization until such manufacturer has been issued a license by the 35 commission and until such vending machine has been approved by the 36 commission, pursuant to regulations adopted by the commission, provided 37 such vending machine contains identical functionality as the vending 38 machine approved by the commission. An application for a license or a 39 renewal of such license shall be accompanied by a fee of one thousand 40 dollars and shall be made on forms prescribed by the commission. A 41 license shall be valid for a period of one year from the date of issu- 42 ance. 43 2. Bar codes. The manufacturer shall affix to the flare of each bell 44 jar game a bar code that provides all information prescribed by the 45 commission and shall require that the bar code include the serial number 46 of the game the flare describes. A manufacturer shall also affix to the 47 outside of the container or wrapping containing a deal of bell jar tick- 48 ets a bar code providing all information prescribed by the commission 49 and containing the same information as the bar code affixed to the 50 flare. The commission may also prescribe additional bar code require- 51 ments. No person may alter the bar code that appears on the flare or on 52 the outside of the container or wrapping containing a deal of bell jar 53 tickets. Possession of a deal of bell jar tickets that has a bar code 54 different from the serial number of the deal inside the container or 55 wrapping as evidenced on the flare is prima facie evidence that the 56 possessor has altered the bar code on the container or wrapping.S. 2009--B 71 1 3. Bell jar flares. (a) A manufacturer shall not ship or cause to be 2 shipped into this state any deal of bell jar tickets that does not have 3 its own individual flare as required for that deal by rule of the 4 commission. A person other than a licensed manufacturer shall not manu- 5 facture, alter, modify or otherwise change a flare for a deal of bell 6 jar tickets except as authorized by this title or rules and regulations 7 promulgated by the commission. 8 (b) The flare for each deal of bell jar tickets sold by a manufacturer 9 in this state shall be placed inside the wrapping of the deal that the 10 flare describes. 11 (c) The bar code affixed to the flare of each bell jar game shall bear 12 the serial number of such game as prescribed by the commission. 13 (d) The flare of each bell jar game shall have affixed a bar code that 14 provides: 15 (1) the game code; 16 (2) the serial number of the game; 17 (3) the name of the manufacturer; and 18 (4) other information the commission by rule may require. 19 The serial number included on the bar code shall be the same as the 20 serial number of the tickets included in the deal. A manufacturer who 21 manufactures a deal of bell jar tickets shall affix to the outside of 22 the container or wrapping containing the bell jar tickets the same bar 23 code that is affixed to the flare for that deal. 24 (e) No person shall alter the bar code that appears on the outside of 25 a container or wrapping containing a deal of bell jar tickets. 26 Possession of a deal of bell jar tickets that has a bar code different 27 from the bar code of the deal inside the container or wrapping is prima 28 facie evidence that the possessor has altered the bar code on the box. 29 4. Reports of sales. A manufacturer who sells bell jar tickets for 30 resale in this state shall file with the commission, on a form 31 prescribed by the commission, a report of all bell jar tickets sold to 32 distributors in the state. The report shall be filed quarterly on or 33 before the twentieth day of the month succeeding the end of the quarter 34 in which the sale was made. The commission may require that the report 35 be submitted via electronic media or electronic data transfer. 36 5. Inspection. The commission may inspect the premises, books, 37 records, and inventory of a manufacturer without notice during the 38 normal business hours of the manufacturer. 39 § 1576. Distributor of bell jars; reports and records. 1. Distrib- 40 ution; distributors. Any distributor licensed in accordance with section 41 fifteen hundred fifty-five of this title to distribute bell jar tickets 42 shall purchase bell jar tickets only from licensed manufacturers and may 43 manufacture coin boards and merchandise boards only as authorized in 44 subdivision two of this section. Licensed distributors of bell jar tick- 45 ets shall sell such tickets only to not-for-profit, charitable or reli- 46 gious organizations registered by the commission. Any licensed distribu- 47 tor who willfully violates the provisions of this section shall: 48 (a) upon such first offense, have its license suspended for a period 49 of thirty days; 50 (b) upon such second offense, participate in a hearing to be conducted 51 by the commission, and surrender its license for such period as recom- 52 mended by the commission; and 53 (c) upon such third or subsequent offense, have its license suspended 54 for a period of one year and shall be guilty of a class E felony. Any 55 unlicensed distributor who violates this section shall be guilty of a 56 class E felony.S. 2009--B 72 1 2. Coin boards and merchandise boards. Distributors of bell jar tick- 2 ets may manufacture coin boards and merchandise boards only if such 3 boards have been approved by the commission and have a bar code affixed 4 to them setting forth all information required by the commission. Except 5 that for coin boards and merchandise boards, delineation of the prize or 6 prize value need not be included on the game ticket sold in conjunction 7 with a coin board or merchandise board. In lieu of such requirement, 8 the distributor shall be required to disclose the prize levels and the 9 number of winners at each level and shall print clearly on the game 10 ticket that a ticket holder may obtain the prize and prize value for 11 each prize level by referencing the flare. Such coin boards shall be 12 sold only by licensed distributors to licensed authorized organizations 13 registered by the commission in accordance with the provisions of this 14 title. 15 3. Business records. A distributor shall keep at each place of busi- 16 ness complete and accurate records for that place of business, including 17 itemized invoices of bell jar tickets held and purchased. The records 18 must show the names and addresses of purchasers, the inventory at the 19 close of each period for which a return is required, all bell jar tick- 20 ets on hand and other pertinent papers and documents relating to the 21 purchase, sale or disposition of bell jar tickets as may be required by 22 the commission. Books, records, itemized invoices and other papers and 23 documents required by this section shall be kept for a period of at 24 least four years after the date of the documents, or the date of the 25 entries appearing in the records, unless the commission authorizes in 26 writing their destruction or disposal at an earlier date. A person who 27 violates this section shall be guilty of a misdemeanor. 28 4. Sales records. A distributor shall maintain a record of all bell 29 jar tickets that it sells. The record shall include, but need not be 30 limited to: 31 (a) the identity of the manufacturer from whom the distributor 32 purchased the product; 33 (b) the serial number of the product; 34 (c) the name, address and license or exempt permit number of the 35 organization or person to which the sale was made; 36 (d) the date of the sale; 37 (e) the name of the person who ordered the product; 38 (f) the name of the person who received the product; 39 (g) the type of product; 40 (h) the serial number of the product; 41 (i) the account number identifying the sale from the manufacturer to 42 distributor and the account number identifying the sale from the 43 distributor to the licensed organization; and 44 (j) the name, form number or other identifying information for each 45 game. 46 5. Invoices. A distributor shall supply with each sale of a bell jar 47 product an itemized invoice showing: 48 (a) the distributor's name and address; 49 (b) the purchaser's name, address, and license number; 50 (c) the date of the sale; 51 (d) the account number identifying the sale from the manufacturer to 52 distributor; 53 (e) the account number identifying the sale from the distributor to 54 the licensed organization; andS. 2009--B 73 1 (f) the description of the deals, including the form number, the seri- 2 al number and the ideal gross from every deal of bell jar or similar 3 game. 4 6. Reports. A distributor shall report quarterly to the commission, on 5 a form prescribed by the commission, its sales of each type of bell jar 6 deal or tickets. This report shall be filed quarterly on or before the 7 twentieth day of the month succeeding the end of the quarter in which 8 the sale was made. The commission may require that a distributor submit 9 the quarterly report and invoices required by this section via electron- 10 ic media or electronic data transfer. 11 7. The commission may inspect the premises, books, records and inven- 12 tory of a distributor without notice during the normal business hours of 13 the distributor. 14 8. Certified physical inventory. The commission may, upon request, 15 require a distributor to furnish a certified physical inventory of all 16 bell jar tickets in stock. The inventory shall contain the information 17 requested by the commission. 18 § 1577. Transfer restrictions. Not-for-profit, charitable or religious 19 organizations authorized to sell bell jar tickets in accordance with 20 this title shall purchase bell jar tickets only from distributors 21 licensed by the commission. No not-for-profit, charitable or religious 22 organization shall sell, donate or otherwise transfer bell jar tickets 23 to any other not-for-profit, charitable or religious organization. 24 § 1578. Bell jars compliance and enforcement. 1. In the case of bell 25 jars, the licensee, upon filing financial statements of bell jar oper- 26 ations, shall also tender to the commission a sum in the amount of five 27 percent of the net proceeds from the sale of bell jar tickets, seal 28 cards, merchandise boards and coin boards, if any, for that portion of 29 license period covered by such statement. 30 2. Unsold tickets of the bell jar deal shall be kept on file by the 31 selling organization for inspection by the commission for a period of 32 one year following the date upon which the relevant financial statement 33 was received by the commission. 34 3. One-half of one percent of the fee set forth in subdivision one of 35 this section received from authorized volunteer fire companies shall be 36 paid to the New York state emergency services revolving loan account 37 established pursuant to section ninety-seven-pp of the state finance 38 law. 39 4. The commission shall submit to the director of the division of the 40 budget an annual plan that details the amount of money the commission 41 deems necessary to maintain operations, compliance and enforcement of 42 the provisions of this title and the collection of the license fee 43 authorized by this section. Contingent upon the approval of the direc- 44 tor of the division of the budget, the commission shall pay into an 45 account, to be known as the bell jar collection account, under the joint 46 custody of the comptroller and the commission, the total amount of 47 license fees collected pursuant to this section. With the approval of 48 the director of the division of the budget, monies to be used to main- 49 tain the operations necessary to enforce the provisions of this title 50 and the collection of the license fee imposed by this section shall be 51 paid out of such account on the audit and warrant of the comptroller on 52 vouchers certified or approved by the director of the division of the 53 budget or the director's duly designated official. Those monies that are 54 not used to maintain operations necessary to enforce the provisions of 55 this title and the collection of the license fee authorized by thisS. 2009--B 74 1 section shall be paid out of such amount on the audit and warrant of the 2 state comptroller and shall be credited to the general fund. 3 5. (a) Within five business days after the sale, lease, or distrib- 4 ution of a bell jar vending machine to an authorized organization, a 5 distributor shall provide the commission with a copy of the invoice 6 which shows: (i) the name and address of the authorized organization; 7 (ii) the date of sale, lease, or distribution; (iii) the serial number 8 of each such vending machine; and (iv) such other information as the 9 commission may, by regulation, direct. 10 (b) An authorized organization may only operate bell jar vending 11 machines on premises that it owns or leases. 12 (c) Each bell jar vending machine shall generate such reports and such 13 other information that the commission may direct, by regulation, which 14 allows the commission to determine that the vending machine is operating 15 in accordance with law. 16 (d) Notwithstanding the provisions of subdivision one of this section, 17 the monthly fee to be paid to the commission for operating each bell jar 18 vending machine shall be five percent of the net proceeds from each bell 19 jar vending machine during the preceding month. Net proceeds shall be 20 defined by paragraph (b) of subdivision twenty-three of section fifteen 21 hundred of this article. 22 § 3. Section 129 of the racing, pari-mutuel wagering and breeding law, 23 as added by section 1 of part A of chapter 60 of the laws of 2012, is 24 amended to read as follows: 25 § 129. Construction of other laws or provisions. Unless the context 26 [shall require] requires otherwise, the terms "division of the lottery", 27 "state quarter horse racing commission", "state racing commission", 28 "state harness racing commission", "state racing and wagering board" or 29 "board" wherever occurring in any of the provisions of this chapter or 30 of any other law, or, in any official books, records, instruments, rules 31 or papers, shall hereafter mean and refer to the state gaming commission 32 created by section one hundred two of this article. The provisions of 33 article three of this chapter shall be inapplicable to article two of 34 this chapter; and the provisions of such article two shall be inapplica- 35 ble to such article three, except that section two hundred thirty-one of 36 such article two shall apply to such article three. Unless the context 37 requires otherwise, any reference to "article 19-B of the executive law" 38 wherever occurring in any law, or, in any official books, records, 39 instruments, rules or papers, shall hereafter mean and refer to titles 40 one and two of article fifteen of this chapter. Unless the context 41 requires otherwise, any reference to "article 14-H of the general munic- 42 ipal law" wherever occurring in any law, or, in any official books, 43 records, instruments, rules or papers, shall hereafter mean and refer to 44 titles one and three of article fifteen of this chapter. Unless the 45 context requires otherwise, any reference to "article 9-A of the general 46 municipal law" wherever occurring in any law, or, in any official books, 47 records, instruments, rules or papers, shall hereafter mean and refer to 48 titles one and four of article fifteen of this chapter. 49 § 4. Paragraph (b) of subdivision 2 of section 103 of the racing, 50 pari-mutuel wagering and breeding law, as added by section 1 of part A 51 of chapter 60 of the laws of 2012, is amended as follows: 52 (b) Charitable gaming. The division of charitable gaming shall be 53 responsible for the supervision and administration of the games of 54 chance licensing law, bingo licensing law and bingo control law as 55 prescribed by [articles nine-A and fourteen-H of the general municipalS. 2009--B 75 1law and nineteen-B of the executive law] article fifteen of this 2 chapter. 3 § 5. Subdivision 1 and paragraph (b) of subdivision 3 of section 151 4 of the social services law, subdivision 1 as amended and paragraph (b) 5 of subdivision 3 as added by section 2 of part F of chapter 58 of the 6 laws of 2014, are amended to read as follows: 7 1. Unauthorized transactions. Except as otherwise provided in subdivi- 8 sion two of this section, no person, firm, establishment, entity, or 9 corporation (a) licensed under the provisions of the alcoholic beverage 10 control law to sell liquor and/or wine at retail for off-premises 11 consumption; (b) licensed to sell beer at wholesale and also authorized 12 to sell beer at retail for off-premises consumption; (c) licensed or 13 authorized to conduct pari-mutuel wagering activity under the racing, 14 pari-mutuel wagering and breeding law; (d) licensed to participate in 15 charitable gaming under [article fourteen-H of the general municipal] 16 title three of article fifteen of the racing, pari-mutuel wagering and 17 breeding law; (e) licensed to participate in the operation of a video 18 lottery facility under section one thousand six hundred seventeen-a of 19 the tax law; (f) licensed to operate a gaming facility under section 20 [one thousand three] thirteen hundred eleven of the racing, pari-mutuel 21 wagering and breeding law; or (g) providing adult-oriented entertainment 22 in which performers disrobe or perform in an unclothed state for enter- 23 tainment, or making available the venue in which performers disrobe or 24 perform in an unclothed state for entertainment, shall cash or accept 25 any public assistance check or electronic benefit transfer device issued 26 by a public welfare official or department, or agent thereof, as and for 27 public assistance. 28 (b) A violation of the provisions of subdivision one of this section 29 by any person, corporation or entity licensed to operate a gaming facil- 30 ity under section one thousand three hundred eleven of the racing, pari- 31 mutuel wagering and breeding law; licensed under section one thousand 32 six hundred seventeen-a of the tax law to participate in the operation 33 of a video lottery facility; licensed or authorized to conduct pari-mu- 34 tuel wagering under the racing, pari-mutuel wagering and breeding law; 35 or licensed to participate in charitable gaming under [article four-36teen-H of the general municipal] title three of article fifteen of the 37 racing, pari-mutuel wagering and breeding law, shall subject such 38 person, corporation or entity to disciplinary action pursuant to section 39 one hundred four of the racing, pari-mutuel wagering and breeding law 40 and section one thousand six hundred seven of the tax law, which may 41 include revocation, cancellation or suspension of such license or 42 authorization. 43 § 6. Paragraph 3 of subdivision (c) of section 290 of the tax law, as 44 amended by chapter 547 of the laws of 1987, is amended to read as 45 follows: 46 (3) Any income derived from the conduct of games of chance or from 47 rental of premises for the conduct of games of chance pursuant to a 48 license granted under title four of article [nine-A of the general49municipal] fifteen of the racing, pari-mutuel wagering and breeding law 50 shall not be subject to tax under this article. 51 § 7. This act shall take effect on the ninetieth day after it shall 52 have become a law. 53 PART NNS. 2009--B 76 1 Section 1. Subdivision 1 of section 207 of the racing, pari-mutuel 2 wagering and breeding law is REPEALED and a new subdivision 1 is added 3 to read as follows: 4 1. a. The board of directors, to be called the New York racing associ- 5 ation board, shall consist of fifteen members, eight of whom shall be 6 elected by the executive committee of the New York racing association 7 reorganization board of which at least one shall be a full time resident 8 of each of Nassau, Queens and Saratoga counties, one shall be the chief 9 executive officer of the New York racing association, two shall be 10 appointed by the governor, one shall be appointed by the temporary pres- 11 ident of the senate, one shall be appointed by the speaker of the assem- 12 bly, one shall be appointed by the New York Thoroughbred Breeders Inc. 13 provided that a current board member of the New York racing association 14 shall serve on the board of directors of the New York Thoroughbred 15 Breeders Inc., and one shall be appointed by the New York thoroughbred 16 horsemen's association (or such other entity as is certified and 17 approved pursuant to section two hundred twenty-eight of this article) 18 provided that a current board member of the New York racing association 19 shall serve on the board of directors of the New York thoroughbred 20 horsemen's association (or such other entity as is certified and 21 approved pursuant to section two hundred twenty-eight of this article). 22 (i) The governor shall nominate a member to serve as the first chair, 23 subject to confirmation by majority vote of the board of directors. All 24 members shall have equal voting rights. 25 (ii) In the event of a member vacancy occurring by death, resignation 26 or otherwise, the respective appointing officer or officers shall 27 appoint a successor who shall hold office for the unexpired portion of 28 the term. A vacancy from the members appointed from the present board of 29 the New York racing association reorganization board, shall be filled by 30 the remaining such members. 31 (iii) Each board member, other than the chief executive officer of the 32 New York racing association, shall serve a term of three years. However, 33 the first terms of five of the members elected by the executive commit- 34 tee of the New York racing association reorganization board shall expire 35 December thirty-first, two thousand eighteen; the first terms of the 36 remaining three members elected by the executive committee of the New 37 York racing association reorganization board, the member appointed by 38 the New York Thoroughbred Breeders Inc., and the member appointed by the 39 New York thoroughbred horsemen's association shall expire December thir- 40 ty-first, two thousand nineteen; and the first terms of the members 41 appointed by the governor, temporary president of the senate and speaker 42 of the assembly shall expire December thirty-first, two thousand twenty. 43 b. The franchised corporation shall establish a compensation committee 44 to fix salary guidelines, such guidelines to be consistent with an oper- 45 ation of other first class thoroughbred racing operations in the United 46 States; an equine safety committee, to review industry best practices to 47 improve the safety of horses racing at each of the three racetracks; a 48 finance committee, to review annual operating and capital budgets for 49 each of the three racetracks; a nominating committee, to nominate any 50 new directors to be designated by the franchised corporation to replace 51 its existing directors; a racing committee, to review industry best 52 practices to improve the quality of racing at the three racetracks; and 53 an executive committee. Each of the compensation, finance, nominating 54 and executive committees shall include at least one of the directors 55 appointed by the governor, and the executive committee shall include theS. 2009--B 77 1 director appointed by the temporary president of the senate and the 2 director appointed by the speaker of the assembly. 3 c. Upon the effective date of this paragraph, the structure of the 4 board of the franchised corporation shall be deemed to be incorporated 5 within and made part of the certificate of incorporation of the fran- 6 chised corporation, and no amendment to such certificate of incorpo- 7 ration shall be necessary to give effect to any such provision, and any 8 provision contained within such certificate inconsistent in any manner 9 shall be superseded by the provisions of this section. Such board shall, 10 however, make appropriate conforming changes to all governing documents 11 of the franchised corporation including but not limited to corporate 12 by-laws. Following such conforming changes, amendments to the by-laws of 13 the franchised corporation shall only be made by unanimous vote of the 14 board. 15 § 2. This act shall take effect upon the appointment of a majority of 16 board members; provided, further, that the state franchise oversight 17 board shall notify the legislative bill drafting commission upon the 18 occurrence of such appointments in order that the commission may main- 19 tain an accurate and timely effective data base of the official text of 20 the laws of the state of New York in furtherance of effectuating the 21 provisions of section 44 of the legislative law and section 70-b of the 22 public officers law. 23 PART OO 24 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 25 racing, pari-mutuel wagering and breeding law, as amended by section 1 26 of part FF of chapter 60 of the laws of 2016, is amended to read as 27 follows: 28 (a) Any racing association or corporation or regional off-track 29 betting corporation, authorized to conduct pari-mutuel wagering under 30 this chapter, desiring to display the simulcast of horse races on which 31 pari-mutuel betting shall be permitted in the manner and subject to the 32 conditions provided for in this article may apply to the commission for 33 a license so to do. Applications for licenses shall be in such form as 34 may be prescribed by the commission and shall contain such information 35 or other material or evidence as the commission may require. No license 36 shall be issued by the commission authorizing the simulcast transmission 37 of thoroughbred races from a track located in Suffolk county. The fee 38 for such licenses shall be five hundred dollars per simulcast facility 39 and for account wagering licensees that do not operate either a simul- 40 cast facility that is open to the public within the state of New York or 41 a licensed racetrack within the state, twenty thousand dollars per year 42 payable by the licensee to the commission for deposit into the general 43 fund. Except as provided in this section, the commission shall not 44 approve any application to conduct simulcasting into individual or group 45 residences, homes or other areas for the purposes of or in connection 46 with pari-mutuel wagering. The commission may approve simulcasting into 47 residences, homes or other areas to be conducted jointly by one or more 48 regional off-track betting corporations and one or more of the follow- 49 ing: a franchised corporation, thoroughbred racing corporation or a 50 harness racing corporation or association; provided (i) the simulcasting 51 consists only of those races on which pari-mutuel betting is authorized 52 by this chapter at one or more simulcast facilities for each of the 53 contracting off-track betting corporations which shall include wagers 54 made in accordance with section one thousand fifteen, one thousandS. 2009--B 78 1 sixteen and one thousand seventeen of this article; provided further 2 that the contract provisions or other simulcast arrangements for such 3 simulcast facility shall be no less favorable than those in effect on 4 January first, two thousand five; (ii) that each off-track betting 5 corporation having within its geographic boundaries such residences, 6 homes or other areas technically capable of receiving the simulcast 7 signal shall be a contracting party; (iii) the distribution of revenues 8 shall be subject to contractual agreement of the parties except that 9 statutory payments to non-contracting parties, if any, may not be 10 reduced; provided, however, that nothing herein to the contrary shall 11 prevent a track from televising its races on an irregular basis primari- 12 ly for promotional or marketing purposes as found by the commission. For 13 purposes of this paragraph, the provisions of section one thousand thir- 14 teen of this article shall not apply. Any agreement authorizing an 15 in-home simulcasting experiment commencing prior to May fifteenth, nine- 16 teen hundred ninety-five, may, and all its terms, be extended until June 17 thirtieth, two thousand [seventeen] eighteen; provided, however, that 18 any party to such agreement may elect to terminate such agreement upon 19 conveying written notice to all other parties of such agreement at least 20 forty-five days prior to the effective date of the termination, via 21 registered mail. Any party to an agreement receiving such notice of an 22 intent to terminate, may request the commission to mediate between the 23 parties new terms and conditions in a replacement agreement between the 24 parties as will permit continuation of an in-home experiment until June 25 thirtieth, two thousand [seventeen] eighteen; and (iv) no in-home simul- 26 casting in the thoroughbred special betting district shall occur without 27 the approval of the regional thoroughbred track. 28 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 29 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 30 section 2 of part FF of chapter 60 of the laws of 2016, is amended to 31 read as follows: 32 (iii) Of the sums retained by a receiving track located in Westchester 33 county on races received from a franchised corporation, for the period 34 commencing January first, two thousand eight and continuing through June 35 thirtieth, two thousand [seventeen] eighteen, the amount used exclusive- 36 ly for purses to be awarded at races conducted by such receiving track 37 shall be computed as follows: of the sums so retained, two and one-half 38 percent of the total pools. Such amount shall be increased or decreased 39 in the amount of fifty percent of the difference in total commissions 40 determined by comparing the total commissions available after July twen- 41 ty-first, nineteen hundred ninety-five to the total commissions that 42 would have been available to such track prior to July twenty-first, 43 nineteen hundred ninety-five. 44 § 3. The opening paragraph of subdivision 1 of section 1014 of the 45 racing, pari-mutuel wagering and breeding law, as amended by section 3 46 of part FF of chapter 60 of the laws of 2016, is amended to read as 47 follows: 48 The provisions of this section shall govern the simulcasting of races 49 conducted at thoroughbred tracks located in another state or country on 50 any day during which a franchised corporation is conducting a race meet- 51 ing in Saratoga county at Saratoga thoroughbred racetrack until June 52 thirtieth, two thousand [seventeen] eighteen and on any day regardless 53 of whether or not a franchised corporation is conducting a race meeting 54 in Saratoga county at Saratoga thoroughbred racetrack after June thirti- 55 eth, two thousand [seventeen] eighteen. On any day on which a fran- 56 chised corporation has not scheduled a racing program but a thoroughbredS. 2009--B 79 1 racing corporation located within the state is conducting racing, every 2 off-track betting corporation branch office and every simulcasting 3 facility licensed in accordance with section one thousand seven (that 4 have entered into a written agreement with such facility's represen- 5 tative horsemen's organization, as approved by the commission), one 6 thousand eight, or one thousand nine of this article shall be authorized 7 to accept wagers and display the live simulcast signal from thoroughbred 8 tracks located in another state or foreign country subject to the 9 following provisions: 10 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 11 and breeding law, as amended by section 4 of part FF of chapter 60 of 12 the laws of 2016, is amended to read as follows: 13 1. The provisions of this section shall govern the simulcasting of 14 races conducted at harness tracks located in another state or country 15 during the period July first, nineteen hundred ninety-four through June 16 thirtieth, two thousand [seventeen] eighteen. This section shall super- 17 sede all inconsistent provisions of this chapter. 18 § 5. The opening paragraph of subdivision 1 of section 1016 of the 19 racing, pari-mutuel wagering and breeding law, as amended by section 5 20 of part FF of chapter 60 of the laws of 2016, is amended to read as 21 follows: 22 The provisions of this section shall govern the simulcasting of races 23 conducted at thoroughbred tracks located in another state or country on 24 any day during which a franchised corporation is not conducting a race 25 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 26 thirtieth, two thousand [seventeen] eighteen. Every off-track betting 27 corporation branch office and every simulcasting facility licensed in 28 accordance with section one thousand seven that have entered into a 29 written agreement with such facility's representative horsemen's organ- 30 ization as approved by the commission, one thousand eight or one thou- 31 sand nine of this article shall be authorized to accept wagers and 32 display the live full-card simulcast signal of thoroughbred tracks 33 (which may include quarter horse or mixed meetings provided that all 34 such wagering on such races shall be construed to be thoroughbred races) 35 located in another state or foreign country, subject to the following 36 provisions; provided, however, no such written agreement shall be 37 required of a franchised corporation licensed in accordance with section 38 one thousand seven of this article: 39 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 40 wagering and breeding law, as amended by section 6 of part FF of chapter 41 60 of the laws of 2016, is amended to read as follows: 42 Notwithstanding any other provision of this chapter, for the period 43 July twenty-fifth, two thousand one through September eighth, two thou- 44 sand [sixteen] seventeen, when a franchised corporation is conducting a 45 race meeting within the state at Saratoga Race Course, every off-track 46 betting corporation branch office and every simulcasting facility 47 licensed in accordance with section one thousand seven (that has entered 48 into a written agreement with such facility's representative horsemen's 49 organization as approved by the commission), one thousand eight or one 50 thousand nine of this article shall be authorized to accept wagers and 51 display the live simulcast signal from thoroughbred tracks located in 52 another state, provided that such facility shall accept wagers on races 53 run at all in-state thoroughbred tracks which are conducting racing 54 programs subject to the following provisions; provided, however, no such 55 written agreement shall be required of a franchised corporation licensed 56 in accordance with section one thousand seven of this article.S. 2009--B 80 1 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 2 racing, pari-mutuel wagering and breeding law and other laws relating 3 to simulcasting, as amended by section 7 of part FF of chapter 60 of the 4 laws of 2016, is amended to read as follows: 5 § 32. This act shall take effect immediately and the pari-mutuel tax 6 reductions in section six of this act shall expire and be deemed 7 repealed on July 1, [2017] 2018; provided, however, that nothing 8 contained herein shall be deemed to affect the application, qualifica- 9 tion, expiration, or repeal of any provision of law amended by any 10 section of this act, and such provisions shall be applied or qualified 11 or shall expire or be deemed repealed in the same manner, to the same 12 extent and on the same date as the case may be as otherwise provided by 13 law; provided further, however, that sections twenty-three and twenty- 14 five of this act shall remain in full force and effect only until May 1, 15 1997 and at such time shall be deemed to be repealed. 16 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 17 racing, pari-mutuel wagering and breeding law and other laws relating to 18 simulcasting and the imposition of certain taxes, as amended by section 19 8 of part FF of chapter 60 of the laws of 2016, is amended to read as 20 follows: 21 § 54. This act shall take effect immediately; provided, however, 22 sections three through twelve of this act shall take effect on January 23 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 24 ing law, as added by section thirty-eight of this act, shall expire and 25 be deemed repealed on July 1, [2017] 2018; and section eighteen of this 26 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 27 two of this act shall take effect as of the same date as chapter 772 of 28 the laws of 1989 took effect. 29 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 30 pari-mutuel wagering and breeding law, as amended by section 9 of part 31 FF of chapter 60 of the laws of 2016, is amended to read as follows: 32 (a) The franchised corporation authorized under this chapter to 33 conduct pari-mutuel betting at a race meeting or races run thereat shall 34 distribute all sums deposited in any pari-mutuel pool to the holders of 35 winning tickets therein, provided such tickets be presented for payment 36 before April first of the year following the year of their purchase, 37 less an amount which shall be established and retained by such fran- 38 chised corporation of between twelve to seventeen per centum of the 39 total deposits in pools resulting from on-track regular bets, and four- 40 teen to twenty-one per centum of the total deposits in pools resulting 41 from on-track multiple bets and fifteen to twenty-five per centum of the 42 total deposits in pools resulting from on-track exotic bets and fifteen 43 to thirty-six per centum of the total deposits in pools resulting from 44 on-track super exotic bets, plus the breaks. The retention rate to be 45 established is subject to the prior approval of the gaming commission. 46 Such rate may not be changed more than once per calendar quarter to be 47 effective on the first day of the calendar quarter. "Exotic bets" and 48 "multiple bets" shall have the meanings set forth in section five 49 hundred nineteen of this chapter. "Super exotic bets" shall have the 50 meaning set forth in section three hundred one of this chapter. For 51 purposes of this section, a "pick six bet" shall mean a single bet or 52 wager on the outcomes of six races. The breaks are hereby defined as the 53 odd cents over any multiple of five for payoffs greater than one dollar 54 five cents but less than five dollars, over any multiple of ten for 55 payoffs greater than five dollars but less than twenty-five dollars, 56 over any multiple of twenty-five for payoffs greater than twenty-fiveS. 2009--B 81 1 dollars but less than two hundred fifty dollars, or over any multiple of 2 fifty for payoffs over two hundred fifty dollars. Out of the amount so 3 retained there shall be paid by such franchised corporation to the 4 commissioner of taxation and finance, as a reasonable tax by the state 5 for the privilege of conducting pari-mutuel betting on the races run at 6 the race meetings held by such franchised corporation, the following 7 percentages of the total pool for regular and multiple bets five per 8 centum of regular bets and four per centum of multiple bets plus twenty 9 per centum of the breaks; for exotic wagers seven and one-half per 10 centum plus twenty per centum of the breaks, and for super exotic bets 11 seven and one-half per centum plus fifty per centum of the breaks. For 12 the period June first, nineteen hundred ninety-five through September 13 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 14 three per centum and such tax on multiple wagers shall be two and one- 15 half per centum, plus twenty per centum of the breaks. For the period 16 September tenth, nineteen hundred ninety-nine through March thirty- 17 first, two thousand one, such tax on all wagers shall be two and six- 18 tenths per centum and for the period April first, two thousand one 19 through December thirty-first, two thousand [seventeen] eighteen, such 20 tax on all wagers shall be one and six-tenths per centum, plus, in each 21 such period, twenty per centum of the breaks. Payment to the New York 22 state thoroughbred breeding and development fund by such franchised 23 corporation shall be one-half of one per centum of total daily on-track 24 pari-mutuel pools resulting from regular, multiple and exotic bets and 25 three per centum of super exotic bets provided, however, that for the 26 period September tenth, nineteen hundred ninety-nine through March thir- 27 ty-first, two thousand one, such payment shall be six-tenths of one per 28 centum of regular, multiple and exotic pools and for the period April 29 first, two thousand one through December thirty-first, two thousand 30 [seventeen] eighteen, such payment shall be seven-tenths of one per 31 centum of such pools. 32 § 10. This act shall take effect immediately. 33 PART PP 34 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- 35 sion b of section 1612 of the tax law, as amended by section 1 of part 36 EE of chapter 60 of the laws of 2016, is amended to read as follows: 37 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- 38 agraph, when a vendor track, is located in Sullivan county and within 39 sixty miles from any gaming facility in a contiguous state such vendor 40 fee shall, for a period of [nine] ten years commencing April first, two 41 thousand eight, be at a rate of forty-one percent of the total revenue 42 wagered at the vendor track after payout for prizes pursuant to this 43 chapter, after which time such rate shall be as for all tracks in clause 44 (C) of this subparagraph. 45 § 2. This act shall take effect immediately and shall be deemed to 46 have been in full force and effect on and after April 1, 2017. 47 PART QQ 48 Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- 49 sion b of section 1612 of the tax law, as separately amended by section 50 1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016, 51 is amended to read as follows:S. 2009--B 82 1 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of 2 this subparagraph, the track operator of a vendor track and in the case 3 of Aqueduct, the video lottery terminal facility operator, shall be 4 eligible for a vendor's capital award of up to four percent of the total 5 revenue wagered at the vendor track after payout for prizes pursuant to 6 this chapter, which shall be used exclusively for capital project 7 investments to improve the facilities of the vendor track which promote 8 or encourage increased attendance at the video lottery gaming facility 9 including, but not limited to hotels, other lodging facilities, enter- 10 tainment facilities, retail facilities, dining facilities, events 11 arenas, parking garages and other improvements that enhance facility 12 amenities; provided that such capital investments shall be approved by 13 the division, in consultation with the [state racing and wagering board] 14 gaming commission, and that such vendor track demonstrates that such 15 capital expenditures will increase patronage at such vendor track's 16 facilities and increase the amount of revenue generated to support state 17 education programs. The annual amount of such vendor's capital awards 18 that a vendor track shall be eligible to receive shall be limited to two 19 million five hundred thousand dollars, except for the vendor track 20 located in Westchester county and Aqueduct racetrack, for which there 21 shall be no annual limit, provided, however, that any such capital award 22 for the Aqueduct video lottery terminal facility operator shall be one 23 percent of the total revenue wagered at the video lottery terminal 24 facility after payout for prizes pursuant to this chapter until the 25 earlier of the designation of one thousand video lottery devices as 26 hosted pursuant to paragraph four of subdivision a of section sixteen 27 hundred seventeen-a of this chapter or April first, two thousand nine- 28 teen and shall then be four percent of the total revenue wagered at the 29 video lottery terminal facility after payout for prizes pursuant to this 30 chapter, provided, further, that such capital award for the Aqueduct 31 video lottery terminal facility operator and the vendor track located in 32 Westchester county shall only be provided pursuant to an agreement with 33 the respective operator to construct an expansion of the facility, 34 hotel, and convention and exhibition space requiring a minimum capital 35 investment of three hundred million dollars for the Aqueduct video 36 lottery terminal facility and one hundred eighty million dollars for the 37 vendor track located in Westchester county. [Except for tracks having38less than one thousand one hundred video gaming machines, and except for39a vendor track located west of State Route 14 from Sodus Point to the40Pennsylvania border within New York, and except for Aqueduct racetrack41each track operator shall be required to co-invest an amount of capital42expenditure equal to its cumulative vendor's capital award.] For all 43 tracks, except for Aqueduct racetrack, the amount of any vendor's capi- 44 tal award that is not used during any one year period may be carried 45 over into subsequent years ending before April first, two thousand 46 [seventeen] eighteen. Any amount attributable to a capital expenditure 47 approved prior to April first, two thousand [seventeen] eighteen and 48 completed before April first, two thousand [nineteen] twenty; or 49 approved prior to April first, two thousand [twenty-one] twenty-two and 50 completed before April first, two thousand [twenty-three] twenty-four 51 for a vendor track located west of State Route 14 from Sodus Point to 52 the Pennsylvania border within New York, shall be eligible to receive 53 the vendor's capital award. In the event that a vendor track's capital 54 expenditures, approved by the division prior to April first, two thou- 55 sand [seventeen] eighteen and completed prior to April first, two thou- 56 sand [nineteen] twenty, exceed the vendor track's cumulative capitalS. 2009--B 83 1 award during the five year period ending April first, two thousand 2 [seventeen] eighteen, the vendor shall continue to receive the capital 3 award after April first, two thousand [seventeen] eighteen until such 4 approved capital expenditures are paid to the vendor track subject to 5 any required co-investment. [In no event shall any vendor track that6receives a vendor fee pursuant to clause (F) or (G) of this subparagraph7be eligible for a vendor's capital award under this section.] Any opera- 8 tor of a vendor track which has received a vendor's capital award, 9 choosing to divest the capital improvement toward which the award was 10 applied, prior to the full depreciation of the capital improvement in 11 accordance with generally accepted accounting principles, shall reim- 12 burse the state in amounts equal to the total of any such awards. Any 13 capital award not approved for a capital expenditure at a video lottery 14 gaming facility by April first, two thousand [seventeen] eighteen shall 15 be deposited into the state lottery fund for education aid; and 16 § 2. Paragraph 2 of subdivision c of section 1612 of the tax law, as 17 amended by chapter 174 of the laws of 2013, is amended to read as 18 follows: 19 2. Of the ten percent retained by the division for administrative 20 purposes, any amounts beyond that which are necessary for the operation 21 and administration of this [pilot] program shall be [deposited in the22lottery education account] made available for vendor capital awards 23 pursuant to clause (H) of subparagraph (ii) of paragraph one of subdivi- 24 sion b of this section. 25 § 3. This act shall take effect immediately. 26 PART RR 27 Section 1. Subdivision 3 of section 99-h of the state finance law, as 28 amended by section 7 of chapter 174 of the laws of 2013, is amended to 29 read as follows: 30 3. Moneys of the account, following the segregation of appropriations 31 enacted by the legislature, shall be available for purposes including 32 but not limited to: (a) reimbursements or payments to municipal govern- 33 ments that host tribal casinos pursuant to a tribal-state compact for 34 costs incurred in connection with services provided to such casinos or 35 arising as a result thereof, for economic development opportunities and 36 job expansion programs authorized by the executive law; provided, howev- 37 er, that for any gaming facility located in the city of Buffalo, the 38 city of Buffalo shall receive a minimum of twenty-five percent of the 39 negotiated percentage of the net drop from electronic gaming devices the 40 state receives pursuant to the compact, and provided further that for 41 any gaming facility located in the city of Niagara Falls, county of 42 Niagara a minimum of twenty-five percent of the negotiated percentage of 43 the net drop from electronic gaming devices the state receives pursuant 44 to the compact shall be distributed in accordance with subdivision four 45 of this section, and provided further that for any gaming facility 46 located in the county or counties of Cattaraugus, Chautauqua or Allega- 47 ny, the municipal governments of the state hosting the facility shall 48 collectively receive a minimum of twenty-five percent of the negotiated 49 percentage of the net drop from electronic gaming devices the state 50 receives pursuant to the compact; and provided further that pursuant to 51 chapter five hundred ninety of the laws of two thousand four, a minimum 52 of twenty-five percent of the revenues received by the state pursuant to 53 the state's compact with the St. Regis Mohawk tribe shall be made avail- 54 able to the counties of Franklin and St. Lawrence, and affected towns inS. 2009--B 84 1 such counties. Each such county and its affected towns shall receive 2 fifty percent of the moneys made available by the state; and provided 3 further that the state shall annually make twenty-five percent of the 4 negotiated percentage of the net drop from all gaming devices the state 5 actually receives pursuant to the Oneida Settlement Agreement confirmed 6 by section eleven of the executive law as available to the county of 7 Oneida, and a sum of three and one-half million dollars to the county of 8 Madison. Additionally, the state shall distribute annually the sum of 9 two and one quarter million dollars to the county of Madison for the 10 impact of gaming devices located within its borders. Additionally, the 11 state shall distribute for a period of nineteen and one-quarter years, 12 an additional annual sum of two and one-half million dollars to the 13 county of Oneida. Additionally, the state shall distribute the one-time 14 eleven million dollar payment received by the state pursuant to such 15 agreement with the Oneida Nation of New York to the county of Madison by 16 wire transfer upon receipt of such payment by the state; and (b) support 17 and services of treatment programs for persons suffering from gambling 18 addictions. Moneys not segregated for such purposes shall be trans- 19 ferred to the general fund for the support of government during the 20 fiscal year in which they are received. 21 § 2. Subdivision 3 of section 99-h of the state finance law, as 22 amended by section 8 of chapter 174 of the laws of 2013, is amended to 23 read as follows: 24 3. Moneys of the account, following the segregation of appropriations 25 enacted by the legislature, shall be available for purposes including 26 but not limited to: (a) reimbursements or payments to municipal govern- 27 ments that host tribal casinos pursuant to a tribal-state compact for 28 costs incurred in connection with services provided to such casinos or 29 arising as a result thereof, for economic development opportunities and 30 job expansion programs authorized by the executive law; provided, howev- 31 er, that for any gaming facility located in the county of Erie or 32 Niagara, the municipal governments hosting the facility shall collec- 33 tively receive a minimum of twenty-five percent of the negotiated 34 percentage of the net drop from electronic gaming devices the state 35 receives pursuant to the compact and provided further that for any 36 gaming facility located in the county or counties of Cattaraugus, Chau- 37 tauqua or Allegany, the municipal governments of the state hosting the 38 facility shall collectively receive a minimum of twenty-five percent of 39 the negotiated percentage of the net drop from electronic gaming devices 40 the state receives pursuant to the compact; and provided further that 41 pursuant to chapter five hundred ninety of the laws of two thousand 42 four, a minimum of twenty-five percent of the revenues received by the 43 state pursuant to the state's compact with the St. Regis Mohawk tribe 44 shall be made available to the counties of Franklin and St. Lawrence, 45 and affected towns in such counties. Each such county and its affected 46 towns shall receive fifty percent of the moneys made available by the 47 state; and provided further that the state shall annually make twenty- 48 five percent of the negotiated percentage of the net drop from all 49 gaming devices the state actually receives pursuant to the Oneida 50 Settlement Agreement confirmed by section eleven of the executive law 51 available to the county of Oneida, and a sum of three and one-half 52 million dollars to the county of Madison. Additionally, the state shall 53 distribute annually the sum of two and one quarter million dollars to 54 the county of Madison for the impact of gaming devices located within 55 its borders. Additionally, the state shall distribute, for a period of 56 nineteen and one-quarter years, an additional annual sum of two andS. 2009--B 85 1 one-half million dollars to the county of Oneida. Additionally, the 2 state shall distribute the one-time eleven million dollar payment actu- 3 ally received by the state pursuant to the Oneida Settlement Agreement 4 to the county of Madison by wire transfer upon receipt of such payment 5 by the state; and (b) support and services of treatment programs for 6 persons suffering from gambling addictions. Moneys not segregated for 7 such purposes shall be transferred to the general fund for the support 8 of government during the fiscal year in which they are received. 9 § 3. This act shall take effect immediately and shall be deemed in 10 full force and effect on the date the state actually receives payment 11 from gaming devices located in Madison county, provided that the amend- 12 ments to subdivision 3 of section 99-h of the state finance law made by 13 section one of this act shall be subject to the expiration and reversion 14 of such section as provided in section 4 of chapter 747 of the laws of 15 2006, as amended when upon such date the provisions of section two of 16 this act shall take effect. 17 PART SS 18 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 19 section 210 of the tax law, as amended by section 12 of part A of chap- 20 ter 59 of the laws of 2014, is amended to read as follows: 21 (iv) (A) for taxable years beginning before January first, two thou- 22 sand sixteen, if the business income base is not more than two hundred 23 ninety thousand dollars the amount shall be six and one-half percent of 24 the business income base; if the business income base is more than two 25 hundred ninety thousand dollars but not over three hundred ninety thou- 26 sand dollars the amount shall be the sum of (1) eighteen thousand eight 27 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 28 the business income base over two hundred ninety thousand dollars but 29 not over three hundred ninety thousand dollars and (3) four and thirty- 30 five hundredths percent of the excess of the business income base over 31 three hundred fifty thousand dollars but not over three hundred ninety 32 thousand dollars; 33 (B) for taxable years beginning on or after January first, two thou- 34 sand eighteen, if the business income base is not more than four hundred 35 thousand dollars the amount shall be four percent of the business income 36 base; if the business income base is more than four hundred thousand 37 dollars but not over five hundred thousand dollars the amount shall be 38 the sum of (1) sixteen thousand dollars, (2) six and one-half percent of 39 the excess of the business income base over four hundred thousand 40 dollars but not over five hundred thousand dollars and (3) twenty 41 percent of the excess of the business income base over four hundred 42 fifty thousand dollars but not over five hundred thousand dollars; 43 (C) for taxable years beginning on or after January first, two thou- 44 sand nineteen, if the business income base is not more than four hundred 45 thousand dollars the amount shall be two and one-half percent of the 46 business income base; if the business income base is more than four 47 hundred thousand dollars but not over five hundred thousand dollars the 48 amount shall be the sum of (1) ten thousand dollars, (2) six and one- 49 half percent of the excess of the business income base over four hundred 50 thousand dollars but not over five hundred thousand dollars and (3) 51 thirty-two percent of the excess of the business income base over four 52 hundred fifty thousand dollars but not over five hundred thousand 53 dollars.S. 2009--B 86 1 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 2 added by section 1 of part Y of chapter 59 of the laws of 2013, is 3 amended to read as follows: 4 (39) (A) In the case of a taxpayer who is a small business or a 5 taxpayer who is a member, partner, or shareholder of a limited liability 6 company, partnership, or New York S corporation, respectively, that is a 7 small business, who or which has business income [and/or farm income] as 8 defined in the laws of the United States, an amount equal to [three] 9 five percent of the net items of income, gain, loss and deduction 10 attributable to such business [or farm] entering into federal adjusted 11 gross income, but not less than zero, for taxable years beginning after 12 two thousand [thirteen] seventeen, an amount equal to [three and three-13quarters] ten percent of the net items of income, gain, loss and 14 deduction attributable to such business [or farm] entering into federal 15 adjusted gross income, but not less than zero, for taxable years begin- 16 ning after two thousand [fourteen] eighteen, and an amount equal to 17 [five] nineteen percent of the net items of income, gain, loss and 18 deduction attributable to such business [or farm] entering into federal 19 adjusted gross income, but not less than zero, for taxable years begin- 20 ning after two thousand [fifteen] nineteen. 21 (B) In the case of a taxpayer who is a farm business or a taxpayer who 22 is a member, partner, or shareholder of a limited liability company, 23 partnership, or New York S corporation, respectively, that is a farm 24 business, who or which has farm income as defined by the laws of the 25 United States, an amount equal to twenty percent of the net items of 26 income, gain, loss and deduction attributable to such farm. The term 27 farm business shall mean a farm business that has net farm income of 28 less than five hundred thousand dollars. 29 (C) (i) For the purposes of this paragraph, the term small business 30 shall mean: (I) a sole proprietor [or a farm business who employs one or31more persons during the taxable year and] who has net business income 32 [or net farm income] of less than [two hundred fifty] five hundred thou- 33 sand dollars; or (II) a limited liability company, partnership or New 34 York S corporation that during the taxable year has New York gross busi- 35 ness income attributable to a non-farm business that is greater than 36 zero but less than one million five hundred thousand dollars or net farm 37 income attributable to a farm business that is greater than zero but 38 less than five hundred thousand dollars. (ii) For purposes of this para- 39 graph, the term New York gross business income shall mean: (I) in the 40 case of a limited liability company or a partnership, New York source 41 gross income as defined in subparagraph (B) of paragraph three of 42 subsection (c) of section six hundred fifty-eight of this article, and, 43 (II) in the case of a New York S corporation, New York receipts included 44 in the numerator of the apportionment factor determined under section 45 two hundred ten-A of article nine-A of this chapter for the taxable 46 year. 47 (D) To qualify for this modification in relation to a non-farm small 48 business that is a limited liability company, partnership or New York S 49 corporation, the taxpayer's income attributable to the net business 50 income from its ownership interests in non-farm limited liability compa- 51 nies, partnerships or New York S corporations must be less than five 52 hundred thousand dollars. 53 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 54 istrative code of the city of New York, as added by section 2 of part Y 55 of chapter 59 of the laws of 2013, is amended to read as follows:S. 2009--B 87 1 (35) (A) In the case of a taxpayer who is a small business or a 2 taxpayer who is a member, partner, or shareholder of a limited liability 3 company, partnership, or New York S corporation, respectively, that is a 4 small business, who or which has business income [and/or farm income] as 5 defined in the laws of the United States, an amount equal to [three] 6 fifteen percent of the net items of income, gain, loss and deduction 7 attributable to such business [or farm] entering into federal adjusted 8 gross income, but not less than zero[, for taxable years beginning after9two thousand thirteen, an amount equal to three and three-quarters10percent of the net items of income, gain, loss and deduction attribut-11able to such business or farm entering into federal adjusted gross12income, but not less than zero, for taxable years beginning after two13thousand fourteen, and an amount equal to five percent of the net items14of income, gain, loss and deduction attributable to such business or15farm entering into federal adjusted gross income, but not less than16zero, for taxable years beginning after two thousand fifteen]. 17 (B) In the case of a taxpayer who is a farm business or a taxpayer who 18 is a member, partner, or shareholder of a limited liability company, 19 partnership, or New York S corporation, respectively, that is a farm 20 business, who or which has farm income as defined by the laws of the 21 United States, an amount equal to twenty percent of the net items of 22 income, gain, loss and deduction attributable to such farm. The term 23 farm business shall mean a farm business that has net farm income of 24 less than five hundred thousand dollars. 25 (C) (i) For the purposes of this paragraph, the term small business 26 shall mean: (I) a sole proprietor [or a farm business who employs one or27more persons during the taxable year and] who has net business income 28 [or net farm income] of less than [two hundred fifty] five hundred thou- 29 sand dollars; or (II) a limited liability company, partnership or New 30 York S corporation that during the taxable year has New York gross busi- 31 ness income attributable to a non-farm business that is greater than 32 zero but less than one million five hundred thousand dollars or net farm 33 income attributable to a farm business that is greater than zero but 34 less than five hundred thousand dollars. (ii) For purposes of this para- 35 graph, the term New York gross business income shall mean: (I) in the 36 case of a limited liability company or a partnership, New York source 37 gross income as defined in subparagraph (B) of paragraph three of 38 subsection (c) of section six hundred fifty-eight of the tax law, and, 39 (II) in the case of a New York S corporation, New York receipts included 40 in the numerator of the apportionment factor determined under section 41 two hundred ten-A of the tax law for the taxable year. 42 (D) To qualify for this modification in relation to a non-farm small 43 business that is a limited liability company, partnership or New York S 44 corporation, the taxpayer's income attributable to the net business 45 income from its ownership interests in non-farm limited liability compa- 46 nies, partnerships or New York S corporations must be less than five 47 hundred thousand dollars. 48 § 4. This act shall take effect immediately and shall apply to taxable 49 years beginning on or after January 1, 2018. 50 PART TT 51 Section 1. Paragraph (a) of subdivision 43 of section 210-B of the tax 52 law, as added by section 17 of part A of chapter 59 of the laws of 2014, 53 is amended to read as follows:S. 2009--B 88 1 (a) A qualified New York manufacturer, as defined in subparagraph (vi) 2 of paragraph (a) of subdivision one of section two hundred ten of this 3 article, will be allowed a credit equal to [twenty] fifty percent of the 4 real property tax it paid during the taxable year for real property 5 owned by such manufacturer in New York which was principally used during 6 the taxable year for manufacturing to the extent not deducted in deter- 7 mining entire net income. This credit will not be allowed if the real 8 property taxes that are the basis for this credit are included in the 9 calculation of another credit claimed by the taxpayer. 10 § 2. Paragraph 1 of subdivision (xx) of section 606 of the tax law, as 11 amended by section 8 of part I of chapter 59 of the laws of 2015, is 12 amended to read as follows: 13 (1) A qualified New York manufacturer will be allowed a credit equal 14 to [twenty] fifty percent of the real property tax it paid during the 15 taxable year for real property owned by such manufacturer in New York 16 which was principally used during the taxable year for manufacturing to 17 the extent not deducted in computing New York adjusted gross income. 18 This credit will not be allowed if the real property taxes that are the 19 basis for this credit are included in the calculation of another credit 20 claimed by the taxpayer. 21 § 3. This act shall take effect immediately and shall apply to tax 22 years beginning on or after January 1, 2017. 23 PART UU 24 Section 1. Subdivision (e) of section 42 of the tax law, as added by 25 section 1 of part RR of chapter 60 of the laws of 2016, is amended and a 26 new subdivision (e-1) is added to read as follows: 27 (e) For taxable years beginning on or after January first, two thou- 28 sand seventeen and before January first, two thousand eighteen, the 29 amount of the credit allowed under this section shall be equal to the 30 product of the total number of eligible farm employees and [two hundred31fifty] five hundred dollars. For taxable years beginning on or after 32 January first, two thousand eighteen and before January first, two thou- 33 sand nineteen, the amount of the credit allowed under this section shall 34 be equal to the product of the total number of eligible farm employees 35 and [three] six hundred dollars. For taxable years beginning on or after 36 January first, two thousand nineteen and before January first, two thou- 37 sand twenty, the amount of the credit allowed under this section shall 38 be equal to the product of the total number of eligible farm employees 39 and [five] eight hundred dollars. For taxable years beginning on or 40 after January first, two thousand twenty and before January first, two 41 thousand twenty-one, the amount of the credit allowed under this section 42 shall be equal to the product of the total number of eligible farm 43 employees and [four hundred] one thousand dollars. For taxable years 44 beginning on or after January first, two thousand twenty-one and before 45 January first, two thousand twenty-two, the amount of the credit allowed 46 under this section shall be equal to the product of the total number of 47 eligible farm employees and [six] one thousand two hundred dollars. 48 (e-1) For taxable years beginning on or after January first, two thou- 49 sand seventeen and before January first, two thousand eighteen, if such 50 farm is located in Nassau, Suffolk, or Westchester county, the amount of 51 the credit allowed under this section shall be equal to the product of 52 the total number of eligible farm employees and six hundred dollars. For 53 taxable years beginning on or after January first, two thousand eighteen 54 and before January first, two thousand nineteen, if such farm is locatedS. 2009--B 89 1 in Nassau, Suffolk, or Westchester county, the amount of the credit 2 allowed under this section shall be equal to the product of the total 3 number of eligible farm employees and nine hundred dollars. For taxable 4 years beginning on or after January first, two thousand nineteen and 5 before January first, two thousand twenty, if such farm is located in 6 Nassau, Suffolk, or Westchester county, the amount of the credit allowed 7 under this section shall be equal to the product of the total number of 8 eligible farm employees and one thousand two hundred dollars. For taxa- 9 ble years beginning on or after January first, two thousand twenty and 10 before January first, two thousand twenty-one, if such farm is located 11 in Nassau, Suffolk, or Westchester county, the amount of the credit 12 allowed under this section shall be equal to the product of the total 13 number of eligible farm employees and one thousand five hundred dollars. 14 For taxable years beginning on or after January first, two thousand 15 twenty-one and before January first, two thousand twenty-two, if such 16 farm is located in Nassau, Suffolk, or Westchester county, the amount of 17 the credit allowed under this section shall be equal to the product of 18 the total number of eligible farm employees and one thousand five 19 hundred dollars. 20 § 2. This act shall take effect immediately. 21 PART VV 22 Section 1. Subdivision 1 of section 210-B of the tax law is amended by 23 adding a new paragraph (d-1) to read as follows: 24 (d-1) Notwithstanding any other provision of this subdivision, for 25 taxable years beginning on or after January first, two thousand seven- 26 teen, if the credit allowed under this subdivision is greater than the 27 tax due in any taxable year for a taxpayer whose primary source of 28 income is derived from operating a farm operation, such taxpayer may 29 elect to treat the amount by which such credit exceeds such tax due as 30 an overpayment of tax to be refunded in accordance with the provisions 31 of section one thousand eighty-six of this chapter. For purposes of 32 this paragraph, the term "farm operation" shall have the same meaning 33 as such term is defined in subdivision eleven of section three hundred 34 one of the agriculture and markets law. 35 § 2. Subsection (a) of section 606 of the tax law is amended by adding 36 a new paragraph 5-a to read as follows: 37 (5-a) Notwithstanding any other provision of this subsection, for 38 taxable years beginning on or after January first, two thousand seven- 39 teen, if the credit allowed under this subsection is greater than the 40 tax due in any taxable year for a taxpayer whose primary source of 41 income is derived from operating a farm operation, such taxpayer may 42 elect to treat the amount by which such credit exceeds such tax due as 43 an overpayment of tax to be refunded in accordance with the provisions 44 of section six hundred eighty-six of this article. For purposes of this 45 paragraph, the term "farm operation" shall have the same meaning as 46 such term is defined in subdivision eleven of section three hundred one 47 of the agriculture and markets law. 48 § 3. This act shall take effect immediately, and shall be deemed to 49 have been in full force and effect on and after January 1, 2017. 50 PART WW 51 Section 1. Section 606 of the tax law is amended by adding a new 52 subsection (n-2) to read as follows:S. 2009--B 90 1 (n-2) Credit for farm donations to food bank or emergency food 2 program. (1) General. In the case of a taxpayer who is an eligible farm- 3 er, there shall be allowed a credit, to be computed as hereinafter 4 provided against the tax imposed by this article for taxable years on 5 and after January first, two thousand eighteen. The amount of the credit 6 shall be twenty-five percent of the wholesale cost of the taxpayer's 7 qualified donations, as defined in paragraph three of this subsection, 8 made to any food bank or other public, charitable or not-for-profit 9 emergency food program operating within this state, up to five thousand 10 dollars per year. 11 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 12 ble farmer" means a New York state resident taxpayer whose federal gross 13 income from farming for the taxable year is at least two-thirds of 14 excess federal gross income. Excess federal gross income means the 15 amount of federal gross income from all sources for the taxable year 16 reduced by the sum (not to exceed thirty thousand dollars) of those 17 items included in federal gross income which consist of (i) earned 18 income, (ii) pension payments, including social security payments, (iii) 19 interest, and (iv) dividends. For purposes of this paragraph, the term 20 "earned income" shall mean wages, salaries, tips and other employee 21 compensation, and those items of gross income which are includible in 22 the computation of net earnings from self-employment. For the purposes 23 of this paragraph, payments from the state's farmland protection 24 program, administered by the department of agriculture and markets, 25 shall be included as federal gross income from farming for otherwise 26 eligible farmers. 27 (3) Qualified donation. For purposes of this subsection, the term 28 "qualified donation" means a donation of any fresh food item grown or 29 produced by an eligible farmer to a food bank or other emergency food 30 program operating within this state. 31 (4) Application of credit. The credit allowed under this subsection 32 for any taxable year will not reduce the tax due for such year to less 33 than the minimum tax fixed by this article. However, if the amount of 34 credit allowed under this subsection for any taxable year reduces the 35 tax to such amount, any amount of credit thus not deductible in such 36 taxable year will be treated as an overpayment of tax to be credited or 37 refunded in accordance with the provisions of section one thousand 38 eighty-six of this chapter. Provided, however, the provisions of 39 subsection (c) of section one thousand eighty-eight of this chapter 40 notwithstanding, no interest will be paid thereon. 41 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 42 of the tax law is amended by adding a new clause (xliii) to read as 43 follows: 44 (xliii) Farm donations to food Amount of credit under 45 bank or emergency food program subdivision fifty-two 46 credit under subsection (n-2) of section two hundred 47 ten-B 48 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 49 sion 52 to read as follows: 50 52. Credit for farm donations to food bank or emergency food program. 51 (a) General. In the case of a taxpayer who is an eligible farmer, there 52 shall be allowed a credit, to be computed as hereinafter provided 53 against the tax imposed by this article for taxable years beginning on 54 and after January first, two thousand eighteen. The amount of the credit 55 shall be twenty-five percent of the wholesale cost of the taxpayer's 56 qualified donations, as defined in paragraph (c) of this subdivision,S. 2009--B 91 1 made to any food bank or other public, charitable or not-for-profit 2 emergency food program operating within this state, up to five thousand 3 dollars during the taxable year. 4 (b) Eligible farmer. For purposes of this subdivision, the term 5 "eligible farmer" means a New York state resident taxpayer whose federal 6 gross income from farming for the taxable year is at least two-thirds of 7 excess federal gross income. Excess federal gross income means the 8 amount of federal gross income from all sources for the taxable year 9 reduced by the sum (not to exceed thirty thousand dollars) of those 10 items included in federal gross income which consist of (i) earned 11 income, (ii) pension payments, including social security payments, (iii) 12 interest, and (iv) dividends. For purposes of this paragraph, the term 13 "earned income" shall mean wages, salaries, tips and other employee 14 compensation, and those items of gross income which are includible in 15 the computation of net earnings from self-employment. For the purposes 16 of this paragraph, payments from the state's farmland protection 17 program, administered by the department of agriculture and markets, 18 shall be included as federal gross income from farming for otherwise 19 eligible farmers. 20 (c) Qualified donation. For purposes of this subdivision, the term 21 "qualified donation" means a donation of any fresh food item grown or 22 produced by an eligible farmer to a food bank or other emergency food 23 program operating within this state. 24 (d) Application of credit. The credit allowed under this subdivision 25 for any taxable year will not reduce the tax due for such year to less 26 than the minimum tax fixed by this article. However, if the amount of 27 credit allowed under this subdivision for any taxable year reduces the 28 tax to such amount, any amount of credit thus not deductible in such 29 taxable year will be treated as an overpayment of tax to be credited or 30 refunded in accordance with the provisions of section one thousand 31 eighty-six of this chapter. Provided, however, the provisions of 32 subsection (c) of section one thousand eighty-eight of this chapter 33 notwithstanding, no interest will be paid thereon. 34 § 4. The department of agriculture and markets, in conjunction with 35 the department of taxation and finance, shall establish an accepted 36 wholesale price of the taxpayer's qualified donations and promulgate any 37 necessary rules and regulations. 38 § 5. This act shall take effect on January 1, 2018 and shall apply to 39 taxable years beginning on or after such date. 40 PART XX 41 Section 1. Section 38 of the tax law, as added by section 1 of part EE 42 of chapter 59 of the laws of 2013, is renumbered section 43 and subdivi- 43 sions (b) and (c) are amended to read as follows: 44 (b) An eligible employer is a corporation (including a New York S 45 corporation), a sole proprietorship, a limited liability company or a 46 partnership. An eligible employee is an individual who is (i) employed 47 by an eligible employer in New York state, (ii) paid [at] a maximum of 48 $0.5 over the minimum wage rate as defined in article nineteen of the 49 labor law during the taxable year by the eligible employer, (iii) 50 between the ages of sixteen and nineteen during the period in which he 51 or she is paid at such minimum wage rate by the eligible employer, and 52 (iv) a student during the period in which he or she is paid at such 53 minimum wage rate by the taxpayer.S. 2009--B 92 1 (c) For taxable years beginning on or after January first, two thou- 2 sand fourteen and before January first, two thousand fifteen, the amount 3 of the credit allowed under this section shall be equal to the product 4 of the total number of hours worked during the taxable year by eligible 5 employees for which they were paid at the minimum wage rate as defined 6 in article nineteen of the labor law and [seventy five] seventy-five 7 cents. For taxable years beginning on or after January first, two thou- 8 sand fifteen and before January first, two thousand sixteen, the amount 9 of the credit allowed under this section shall be equal to the product 10 of the total number of hours during the taxable year worked by eligible 11 employees for which they were paid at such minimum wage rate and one 12 dollar and thirty-one cents. For taxable years beginning on or after 13 January first, two thousand sixteen and before January first, two thou- 14 sand [nineteen] twenty, the amount of the credit allowed under this 15 section shall be equal to the product of the total number of hours 16 during the taxable year worked by eligible employees for which they were 17 paid at [such] a maximum of $0.5 over the minimum wage rate and one 18 dollar and thirty-five cents. Provided, however, if the federal minimum 19 wage established by federal law pursuant to 29 U.S.C. section 206 or its 20 successors is increased above eighty-five percent of the minimum wage in 21 article nineteen of the labor law, the dollar amounts in this subdivi- 22 sion shall be reduced to the difference between the minimum wage in 23 article nineteen of the labor law and the federal minimum wage. Such 24 reduction would take effect on the date that employers are required to 25 pay such federal minimum wage. 26 § 2. This act shall take effect September 1, 2017. 27 PART YY 28 Section 1. Subdivision 3 of section 425 of the real property tax law, 29 as added by section 1 of part B of chapter 389 of the laws of 1997, 30 paragraph (a) as amended by chapter 264 of the laws of 2000, paragraph 31 (b-1) as added by section 1 of part FF of chapter 57 of the laws of 32 2010, paragraph (d) as amended by chapter 564 of the laws of 2015, para- 33 graph (e) as added by section 2 of part W of chapter 57 of the laws of 34 2008, and paragraph (f) as added by section 1 of part B of chapter 59 of 35 the laws of 2012, is amended to read as follows: 36 3. Eligibility requirements. (a) Property use. To qualify for 37 exemption pursuant to this section, the property must be a one, two or 38 three family residence, a farm dwelling, small business or residential 39 property held in condominium or cooperative form of ownership. If the 40 property is not an eligible type of property, but a portion of the prop- 41 erty is partially used by the owner as a primary residence, that portion 42 which is so used shall be entitled to the exemption provided by this 43 section; provided that in no event shall the exemption exceed the 44 assessed value attributable to that portion. 45 (b) Primary residence. The property must serve as the primary resi- 46 dence of one or more of the owners thereof, unless such property is 47 owned by a small business as defined in paragraph (g) of this subdivi- 48 sion. 49 (b-1) Income. For final assessment rolls to be used for the levy of 50 taxes for the two thousand eleven-two thousand twelve school year and 51 thereafter, the parcel's affiliated income may be no greater than five 52 hundred thousand dollars, as determined by the commissioner of taxation 53 and finance pursuant to section one hundred seventy-one-u of the tax 54 law, in order to be eligible for the basic exemption authorized by thisS. 2009--B 93 1 section. As used herein, the term "affiliated income" shall mean the 2 combined income of all of the owners of the parcel who resided primarily 3 thereon on the applicable taxable status date, and of any owners' spous- 4 es residing primarily thereon. For exemptions on final assessment rolls 5 to be used for the levy of taxes for the two thousand eleven-two thou- 6 sand twelve school year, affiliated income shall be determined based 7 upon the parties' incomes for the income tax year ending in two thousand 8 nine. In each subsequent school year, the applicable income tax year 9 shall be advanced by one year. The term "income" as used herein shall 10 have the same meaning as in subdivision four of this section. 11 (c) Trusts. If legal title to the property is held by one or more 12 trustees, the beneficial owner or owners shall be deemed to own the 13 property for purposes of this subdivision. 14 (d) Farm dwellings not owned by the resident. (i) If legal title to 15 the farm dwelling is held by an S-corporation or by a C-corporation, the 16 exemption shall be granted if the property serves as the primary resi- 17 dence of a shareholder of such corporation. 18 (ii) If the legal title to the farm dwelling is held by a partnership, 19 the exemption shall be granted if the property serves as the primary 20 residence of one or more of the partners. 21 (iii) If the legal title to the farm dwelling is held by a limited 22 liability company, the exemption shall be granted if the property serves 23 as the primary residence of one or more of the owners. 24 (iv) Any information deemed necessary to establish shareholder, part- 25 ner or owner status for eligibility purposes shall be considered confi- 26 dential and exempt from the freedom of information law. 27 (e) Dwellings owned by limited partnerships. (i) If legal title to a 28 dwelling is held by a limited partnership, the exemption shall be grant- 29 ed if the property serves as the primary residence of one or more of the 30 partners, provided that the limited partnership which holds title to the 31 property does not engage in any commercial activity, that the limited 32 partnership was lawfully created to hold title solely for estate plan- 33 ning and asset protection purposes, and that the partner or partners who 34 primarily reside thereon personally pay all of the real property taxes 35 and other costs associated with the property's ownership. 36 (ii) Any information deemed necessary to establish partner status for 37 eligibility purposes shall be considered confidential and exempt from 38 the freedom of information law. 39 (f) Compliance with state tax obligations. The property's eligibility 40 for the STAR exemption must not be suspended pursuant to section one 41 hundred seventy-one-y of the tax law due to the past-due state tax 42 liabilities of one or more of its owners. Notwithstanding any provision 43 of law to the contrary, where a property's eligibility for a STAR 44 exemption has been suspended pursuant to such section, the following 45 provisions shall be applicable: 46 (i) The property shall be ineligible for a basic or enhanced STAR 47 exemption effective with the next school year commencing after the issu- 48 ance of notice by the department of the suspension of its eligibility 49 for the STAR exemption, even if the notice was issued after the applica- 50 ble taxable status date. If a STAR exemption has been granted to such a 51 property on a tentative or final assessment roll, the assessor or other 52 person having custody of that roll is hereby authorized and directed to 53 immediately remove that STAR exemption from the roll. 54 (ii) Any challenge to the factual or legal basis behind the suspension 55 of a property's eligibility for a STAR exemption pursuant to section one 56 hundred seventy-one-y of the tax law must be presented to the departmentS. 2009--B 94 1 in the manner prescribed by such section. Neither an assessor nor a 2 board of assessment review has the authority to consider such a chal- 3 lenge. 4 (iii) The property shall remain ineligible for the STAR exemption 5 until the department notifies the assessor that the suspension of its 6 eligibility has been lifted. Once the assessor has been so notified, the 7 exemption may be resumed on a prospective basis only, provided that the 8 eligibility requirements of this section are otherwise satisfied. 9 (iv) In the case of a cooperative apartment or mobile home receiving a 10 STAR exemption pursuant to paragraph (k) or (l) of subdivision two of 11 this section, a suspension of a STAR exemption due to a taxpayer's past- 12 due state tax liabilities shall only apply to the STAR exemption on the 13 cooperative apartment or mobile home owned, or deemed to be owned, by 14 that taxpayer. 15 (g) Small businesses. (i) For the purposes of this subdivision, the 16 term "small business" shall mean a sole proprietor, a limited liability 17 company, partnership, or New York S-corporation, that during the taxable 18 year employs twenty persons or less and has a gross business income 19 and/or farm income of less than three hundred fifty thousand dollars 20 attributable to the business or a New York corporation that during the 21 taxable year employs twenty persons or less and has a business income 22 base of five hundred thousand dollars or less. 23 (ii) For purposes of this paragraph, the term New York gross business 24 income shall mean: (A) in the case of a limited liability company or a 25 partnership, New York source gross income as defined in subparagraph (B) 26 of paragraph three of subsection (c) of section six hundred fifty-eight 27 of the tax law; and (B) in the case of a New York S-corporation, New 28 York receipts included in the apportionment determined under section two 29 hundred ten-A of this chapter for the taxable year. 30 (iii) For purposes of this paragraph, the term business income base 31 shall mean in the case of a New York corporation, business income as 32 defined in subdivision eight of section two hundred eight of the tax 33 law. 34 § 2. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2 35 of section 425 of the real property tax law, as added by section 1 of 36 part D-1 of chapter 57 of the laws of 2007, is amended to read as 37 follows: 38 (B) The base figure for the basic STAR exemption shall be thirty thou- 39 sand dollars. In the case of a small business as defined in paragraph 40 (g) of subdivision three of this section, the base figure for the basic 41 STAR exemption shall be: (I) ten thousand dollars in the two thousand 42 eighteen--two thousand nineteen school year; (II) twenty thousand 43 dollars in the two thousand nineteen--two thousand twenty school year; 44 and (III) thirty thousand dollars in the two thousand twenty--two thou- 45 sand twenty-one school year and thereafter. 46 § 3. This act shall take effect immediately and shall apply to all 47 taxable years beginning on and after January 1, 2018. 48 PART ZZ 49 Section 1. Section 208 of the tax law is amended by adding a new 50 subdivision 13 to read as follows: 51 13. The term "fulfillment services" shall mean any of the following 52 services performed by an entity on its premises on behalf of a purchas- 53 er:S. 2009--B 95 1 (a) the acceptance of orders electronically or by mail, telephone, 2 telefax or internet; 3 (b) responses to consumer correspondence or inquires electronically or 4 by mail, telephone, telefax or internet; 5 (c) billing and collection activities; or 6 (d) the shipment of orders from an inventory of products offered for 7 sale by the purchaser. 8 § 2. Subdivision 2 of section 209 of the tax law, as amended by 9 section 5 of part A of chapter 59 of the laws of 2014, is amended to 10 read as follows: 11 2. A foreign corporation shall not be deemed to be doing business, 12 employing capital, owning or leasing property, or maintaining an office 13 in this state, or deriving receipts from activity in this state, for the 14 purposes of this article, by reason of (a) the maintenance of cash 15 balances with banks or trust companies in this state, or (b) the owner- 16 ship of shares of stock or securities kept in this state, if kept in a 17 safe deposit box, safe, vault or other receptacle rented for the 18 purpose, or if pledged as collateral security, or if deposited with one 19 or more banks or trust companies, or brokers who are members of a recog- 20 nized security exchange, in safekeeping or custody accounts, or (c) the 21 taking of any action by any such bank or trust company or broker, which 22 is incidental to the rendering of safekeeping or custodian service to 23 such corporation, or (d) the maintenance of an office in this state by 24 one or more officers or directors of the corporation who are not employ- 25 ees of the corporation if the corporation otherwise is not doing busi- 26 ness in this state, and does not employ capital or own or lease property 27 in this state, or (e) the keeping of books or records of a corporation 28 in this state if such books or records are not kept by employees of such 29 corporation and such corporation does not otherwise do business, employ 30 capital, own or lease property or maintain an office in this state, or 31 (f) the use of fulfillment services, provided receipts, including 32 receipts pursuant to such services, do not exceed the threshold set by 33 paragraph (b) of subdivision one of this section, of a person other than 34 an affiliated person and the ownership of property stored on the prem- 35 ises of such person in conjunction with such services, or (g) any combi- 36 nation of the foregoing activities. For purposes of this subdivision, 37 persons are affiliated persons with respect to each other where one of 38 such persons has an ownership interest of more than five percent, wheth- 39 er direct or indirect, in the other, or where an ownership interest of 40 more than five percent, whether direct or indirect, in the other, or 41 where an ownership interest of more than five percent, whether direct or 42 indirect, is held in each of such persons by another person or by a 43 group of other persons which are affiliated persons with respect to each 44 other. The term "person" in the preceding sentence and in paragraph (f) 45 of this subdivision shall have the meaning ascribed thereto by subdivi- 46 sion (a) of section eleven hundred one of this chapter. 47 § 3. This act shall take effect January 1, 2018 and shall apply to 48 taxable years commencing on or after such date. 49 PART AAA 50 Section 1. The opening paragraph of paragraph (a) of subdivision 5 of 51 section 210-A of the tax law, as amended by section 4 of part P of chap- 52 ter 60 of the laws of 2016, is amended to read as follows: 53 A financial instrument is a "nonqualified financial instrument" if it 54 is not a qualified financial instrument. A qualified financial instru-S. 2009--B 96 1 ment means a financial instrument that is of a type described in any of 2 clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this 3 paragraph and that has been marked to market in the taxable year by the 4 taxpayer under section 475 or section 1256 of the internal revenue code. 5 Further, if the taxpayer has in the taxable year marked to market a 6 financial instrument of the type described in any of the clauses (A), 7 (B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph, 8 then any financial instrument within that type described in the above 9 specified clause or clauses that has not been marked to market by the 10 taxpayer under section 475 or section 1256 of the internal revenue code 11 is a qualified financial instrument in the taxable year. Notwithstanding 12 the two preceding sentences, (i) a loan secured by real property shall 13 not be a qualified financial instrument, (ii) if the only loans that are 14 marked to market by the taxpayer under section 475 or section 1256 of 15 the internal revenue code are loans secured by real property, then no 16 loans shall be qualified financial instruments, (iii) stock that is 17 investment capital as defined in paragraph (a) of subdivision five of 18 section two hundred eight of this article shall not be a qualified 19 financial instrument, and (iv) stock that generates other exempt income 20 as defined in subdivision six-a of section two hundred eight of this 21 article and that is not marked to market under section 475 or section 22 1256 of the internal revenue code shall not constitute a qualified 23 financial instrument with respect to the income from that stock that is 24 described in such subdivision six-a. If a corporation is included in a 25 combined report, the definition of qualified financial instrument shall 26 be determined on a combined basis. In the case of a RIC or a REIT that 27 is not a captive RIC or a captive REIT, a qualified financial instrument 28 means a financial instrument that is of a type described in any of 29 clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this 30 paragraph, other than (i) a loan secured by real property, (ii) stock 31 that is investment capital as defined in paragraph (a) of subdivision 32 five of section two hundred eight of this article, and (iii) stock that 33 generates other exempt income as defined in subdivision six-a of section 34 two hundred eight of this article with respect to the income from that 35 stock that is described in such subdivision six-a. 36 § 2. Clause (D) of subparagraph 1 of paragraph (d) of subdivision 1 of 37 section 210 of the tax law, as amended by section 19 of part T of chap- 38 ter 59 of the laws of 2015, is amended to read as follows: 39 (D) Otherwise, for all other taxpayers not covered by clauses (A), (B) 40 [and], (C) and (D-1) of this subparagraph, the amount prescribed by this 41 paragraph will be determined in accordance with the following table: 42 If New York receipts are: The fixed dollar minimum tax is: 43 not more than $100,000 $ 25 44 more than $100,000 but not over $250,000 $ 75 45 more than $250,000 but not over $500,000 $ 175 46 more than $500,000 but not over $1,000,000 $ 500 47 more than $1,000,000 but not over $5,000,000 $1,500 48 more than $5,000,000 but not over $25,000,000 $3,500 49 more than $25,000,000 but not over $50,000,000 $5,000 50 more than $50,000,000 but not over $100,000,000 $10,000 51 more than $100,000,000 but not over $250,000,000 $20,000 52 more than $250,000,000 but not over $500,000,000 $50,000 53 more than $500,000,000 but not over $1,000,000,000 $100,000 54 Over $1,000,000,000 $200,000S. 2009--B 97 1 § 3. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210 2 of the tax law is amended by adding a new clause (D-1) to read as 3 follows: 4 (D-1) In the case of a REIT or a RIC that is not a captive REIT or 5 captive RIC, the amount prescribed by this paragraph will be determined 6 in accordance with the following table: 7 If New York receipts are: The fixed dollar minimum tax is: 8 not more than $100,000 $ 25 9 more than $100,000 but not over $250,000 $ 75 10 more than $250,000 but not over $500,000 $ 175 11 more than $500,000 $ 500 12 § 4. The opening paragraph of paragraph (a) of subdivision 5 of 13 section 11-654.2 of the administrative code of the city of New York, as 14 amended by section 16 of part P of chapter 60 of the laws of 2016, is 15 amended to read as follows: 16 A financial instrument is a "nonqualified financial instrument" if it 17 is not a qualified financial instrument. A qualified financial instru- 18 ment means a financial instrument that is of a type described in any of 19 [clause] clauses (i), (ii), (iii), (iv), (vii), (viii) or (ix) of 20 subparagraph two of this paragraph and that has been marked to market in 21 the taxable year by the taxpayer under section 475 or section 1256 of 22 the internal revenue code. Further, if the taxpayer has in the taxable 23 year marked to market a financial instrument of the type described in 24 any of [clause] clauses (i), (ii), (iii), (iv), (vii), (viii) or (ix) of 25 subparagraph two of this paragraph, then any financial instrument within 26 that type described in the above specified clause or clauses that has 27 not been marked to market by the taxpayer under section 475 or section 28 1256 of the internal revenue code is a qualified financial instrument in 29 the taxable year. Notwithstanding the two preceding sentences, (i) a 30 loan secured by real property shall not be a qualified financial instru- 31 ment, (ii) if the only loans that are marked to market by the taxpayer 32 under section 475 or section 1256 of the internal revenue code are loans 33 secured by real property, then no loans shall be qualified financial 34 instruments, (iii) stock that is investment capital as defined in para- 35 graph (a) of subdivision four of section 11-652 of this subchapter shall 36 not be a qualified financial instrument, and (iv) stock that generates 37 other exempt income as defined in subdivision five-a of section 11-652 38 of this subchapter and that is not marked to market under section 475 or 39 section 1256 of the internal revenue code shall not constitute a quali- 40 fied financial instrument with respect to the income from that stock 41 that is described in such subdivision five-a. If a corporation is 42 included in a combined report, the definition of qualified financial 43 instrument shall be determined on a combined basis. In the case of a 44 RIC or a REIT that is not a captive RIC or a captive REIT, a qualified 45 financial instrument means a financial instrument that is of a type 46 described in any of clauses (i), (ii), (iii), (iv), (vii), (viii) or 47 (ix) of subparagraph two of this paragraph, other than (i) a loan 48 secured by real property, (ii) stock that is investment capital as 49 defined in paragraph (a) of subdivision four of section 11-652 of this 50 subchapter, and (iii) stock that generates other exempt income as 51 defined in subdivision five-a of section 11-652 of this subchapter with 52 respect to the income from that stock that is described in such subdivi- 53 sion five-a.S. 2009--B 98 1 § 5. Clause (iv) of subparagraph 1 of paragraph (e) of subdivision 1 2 of section 11-654 of the administrative code of the city of New York, as 3 added by section 1 of part D of chapter 60 of the laws of 2015, is 4 amended to read as follows: 5 (iv) If New York city receipts are: Fixed dollar minimum 6 tax is: 7 Not more than $100,000 $25 8 More than $100,000 but not over $250,000 $75 9 More than $250,000 but not over $500,000 $175 10 More than $500,000 but not over $1,000,000 $500 11 More than $1,000,000 but not over $5,000,000 $1,500 12 More than $5,000,000 but not over $25,000,000 $3,500 13 More than $25,000,000 but not over $50,000,000 $5,000 14 More than $50,000,000 but not over $100,000,000 $10,000 15 More than $100,000,000 but not over $250,000,000 $20,000 16 More than $250,000,000 but not over $500,000,000 $50,000 17 More than $500,000,000 but not over $1,000,000,000 $100,000 18 Over $1,000,000,000 $200,000 19 For purposes of this clause, New York city receipts are the receipts 20 computed in accordance with section 11-654.2 of this subchapter for the 21 taxable year. If the taxable year is less than twelve months, the amount 22 prescribed by this clause shall be reduced by twenty-five percent if the 23 period for which the taxpayer is subject to tax is more than six months 24 but not more than nine months and by fifty percent if the period for 25 which the taxpayer is subject to tax is not more than six months. If the 26 taxable year is less than twelve months, the amount of New York city 27 receipts for purposes of this clause is determined by dividing the 28 amount of the receipts for the taxable year by the number of months in 29 the taxable year and multiplying the result by twelve. 30 Provided however, in the case of a REIT or RIC that is not a captive 31 REIT or a captive RIC, the following schedule shall apply: 32 If New York city receipts are: Fixed dollar minimum 33 tax is: 34 Not more than $100,000 $25 35 More than $100,000 but not over $250,000 $75 36 More than $250,000 but not over $500,000 $175 37 More than $500,000 $500 38 § 6. This act shall take effect immediately; provided however that 39 sections one, two and three of this act shall be deemed to have been in 40 full force and effect on the same date and in the same manner as part A 41 of chapter 59 of the laws of 2014, took effect; and provided further 42 that sections four and five of this act shall be deemed to have been in 43 full force and effect on the same date and in the same manner as part D 44 of chapter 60 of the laws of 2015, took effect. 45 PART BBB 46 Section 1. Paragraph (a) of subdivision 7 of section 208 of the tax 47 law, as amended by section 4 of part A of chapter 59 of the laws of 48 2014, is amended to read as follows: 49 (a) The term "business capital" means all assets, other than invest- 50 ment capital and stock issued by the taxpayer, less liabilities not 51 deducted from investment capital. Business capital shall include only 52 those assets the income, loss or expense of which are properly reflected 53 (or would have been properly reflected if not fully depreciated orS. 2009--B 99 1 expensed or depreciated or expensed to a nominal amount) in the computa- 2 tion of entire net income for the taxable year, except business capital 3 shall not include those assets the dividends from which are, or would 4 be, "exempt unitary corporation dividends" under paragraph (c) of subdi- 5 vision six-a of this section (such as stock in corporations taxable 6 under the franchise tax imposed by article thirty-three of this 7 chapter). 8 § 2. This act shall take effect immediately. 9 PART CCC 10 Section 1. Paragraph 2 of subdivision (f) of section 1137 of the tax 11 law, as amended by section 1 of part H of chapter 62 of the laws of 12 2006, is amended to read as follows: 13 (2) The amount of the credit authorized by paragraph one of this 14 subdivision shall be five percent of the amount of taxes and fees (but 15 not including any penalty or interest thereon) required to be reported 16 on, and paid or paid over with, the return but only if the return is 17 filed on or before the filing due date, but not more than [two] four 18 hundred dollars, for each quarterly or longer period, except that, with 19 respect to returns required to be filed for quarterly or longer periods 20 ending on or before the last day of February, two thousand seven, the 21 amount of the credit shall be not more than one hundred seventy-five 22 dollars for each such quarterly or longer period. 23 § 2. This act shall take effect immediately and shall apply to returns 24 filed for the quarter beginning March 1, 2018 and thereafter. 25 PART DDD 26 Section 1. The tax law is amended by adding a new section 43 to read 27 as follows: 28 § 43. Empire state music production credit. (a) Allowance of credit. 29 (1) A taxpayer which is a music production entity engaged in qualified 30 music production, or who is a sole proprietor of or a member of a part- 31 nership, which is a music production entity engaged in qualified music 32 production, and is subject to tax under article nine-A or twenty-two of 33 this chapter, shall be allowed a credit against such tax to be computed 34 as provided herein. 35 (2) The amount of the credit shall be the product (or pro rata share 36 of the product, in the case of a member of a partnership or limited 37 liability company) of twenty-five percent and the eligible production 38 costs of one or more qualified music productions. 39 (3) Eligible production costs for a qualified music production 40 incurred and paid in this state but outside such metropolitan commuter 41 transportation district shall be eligible for a credit of ten percent of 42 such eligible production costs in addition to the credit specified in 43 paragraph two of this subdivision. 44 (4) Eligible production costs shall not include those costs used by 45 the taxpayer or another taxpayer as the basis calculation of any other 46 tax credit allowed under this chapter or allowed in any other state. 47 (b) Allocation of credit. The aggregate amount of tax credits allowed 48 under this section, subdivision fifty-two of section two hundred ten-B 49 and subsection (hhh) of section six hundred six of this chapter in any 50 taxable year shall be twenty-five million dollars. The aggregate amount 51 of credits for any taxable year shall be distributed on a regional basis 52 as follows: fifty percent of the aggregate amount of credits shall beS. 2009--B 100 1 available for qualified music productions that incur at least sixty 2 percent of eligible production costs for a qualified music production in 3 region one; twenty percent of the aggregate amount of credits shall be 4 available for qualified music productions that incur at least sixty 5 percent of eligible production costs for a qualified music production in 6 region two; and thirty percent of the aggregate amount of credits shall 7 be available for qualified music productions that incur at least sixty 8 percent of eligible production costs for a qualified music production in 9 region three. If such regional distribution is not fully allocated in 10 any taxable year, the remainder of such credits shall be available for 11 allocation to any region in the subsequent tax year. For the purposes 12 of this section region one shall contain the city of New York; region 13 two shall contain the counties of Westchester, Rockland, Nassau and 14 Suffolk; and region three shall contain any county not contained in 15 regions one and two. Such credit shall be allocated by the empire state 16 development corporation among taxpayers in order of priority based upon 17 the date of filing an application for allocation of music production 18 credits with such office. If the total amount of allocated credits 19 applied for in any particular year exceeds the aggregate amount of tax 20 credits allowed for such year under this section, such excess shall be 21 treated as having been applied for on the first day of the subsequent 22 taxable year. 23 (c) Definitions. As used in this section: 24 (1) "Music production" means the creation of a sound recording and any 25 related music video, either of which is intended for commercial release. 26 A "music production" does not include recordings that are primarily 27 spoken word or wildlife or nature sounds, or produced for instructional 28 use or advertising or promotional purposes. 29 (2) "Qualified music production" is a music production in which eligi- 30 ble production costs equal to or are in excess of seven thousand five 31 hundred dollars if incurred and paid in this state in the twelve months 32 preceding the date on which the credit is claimed. Provided, however, if 33 such production costs are incurred and paid outside the metropolitan 34 commuter transportation district in this state, such production costs 35 shall be equal to or in excess of three thousand seven hundred fifty 36 dollars to be a qualified music production for the purposes of this 37 paragraph. 38 (3) (A) "Eligible production costs for a qualified music production" 39 are costs incurred and paid in this state for tangible property and 40 services used in the production of qualified music production, as deter- 41 mined by the department of economic development, including, but not 42 limited to: (i) studio rental fees and related costs, (ii) instrument 43 and equipment rental fees, (iii) production session fees for musicians, 44 programmers, engineers, and technicians and (iv) mixing and mastering 45 services. 46 (B) Eligible production costs shall not include: (i) costs for tangi- 47 ble property or services used or performed outside of this state, (ii) 48 performance fees for featured artists or featured guest artists receiv- 49 ing royalties or advances on royalties or special performance fees 50 (other than those that would normally be collected by a performing 51 rights organization) pursuant to an agreement directly with the producer 52 or employer, (iii) salaries or related compensation for producers or 53 songwriters, (iv) composer, artist or producer residual royalties or 54 advances, (v) licensing fees for samples, (vi) interpolations or other 55 music clearance costs, (vii) mastering or post-production expenditures 56 for projects that were not principally tracked and recorded in thisS. 2009--B 101 1 state, (viii) any costs associated with manufacturing, duplication, 2 packaging, distribution, promotion, marketing or touring not specif- 3 ically outlined in this subparagraph, or (ix) local transportation 4 expenditures directly related to music production and provided at or to 5 the site of such music production. With respect to the production of a 6 music video, eligible production costs are those defined in paragraph 7 two of subdivision (b) of section twenty-four of this article. Such 8 total production costs incurred and paid in this state shall be equal to 9 or exceed seventy-five percent of total cost of an eligible production 10 incurred and paid within and without this state. 11 (d) Cross-references. For applications of the credit provided for in 12 this section, see the following provisions of this chapter: 13 (1) Article nine-A: section two hundred ten-B, subdivision fifty-two. 14 (2) Article twenty-two: section six hundred six, subsection (i), para- 15 graph one, subparagraph (B), clause (xliii). 16 (3) Article twenty-two: section six hundred six, subsection (hhh). 17 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 18 sion 52 to read as follows: 19 52. Empire state music production credit. (a) Allowance of credit. A 20 taxpayer who is eligible pursuant to section forty-three of this chapter 21 shall be allowed a credit to be computed as provided in such section 22 forty-three against the tax imposed by this article. 23 (b) Application of credit. The credit allowed under this subdivision 24 for any taxable year shall not reduce the tax due for such year to less 25 than the amount prescribed in paragraph (d) of subdivision one of 26 section two hundred ten of this article. Provided, however, that if the 27 amount of the credit allowable under this subdivision for any taxable 28 year reduces the tax to such amount, the excess shall be treated as an 29 overpayment of tax to be credited or refunded in accordance with the 30 provisions of section one thousand eighty-six of this chapter, provided, 31 however, no interest shall be paid thereon. 32 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 33 of the tax law is amended by adding a new clause (xliii) to read as 34 follows: 35 (xliii) Empire state music Amount of credit 36 production credit under under subdivision 37 subsection (hhh) fifty-two of section two hundred 38 ten-B 39 § 4. Section 606 of the tax law is amended by adding a new subsection 40 (hhh) to read as follows: 41 (hhh) Empire state music production credit. (1) Allowance of credit. A 42 taxpayer who is eligible pursuant to section forty-three of this chapter 43 shall be allowed a credit to be computed as provided in such section 44 forty-three against the tax imposed by this article. 45 (2) Application of credit. If the amount of the credit allowable under 46 this subsection for any taxable year exceeds the taxpayer's tax for such 47 year, the excess shall be treated as an overpayment of tax to be credit- 48 ed or refunded as provided in section six hundred eighty-six of this 49 article, provided, however, that no interest shall be paid thereon. 50 § 5. The tax law is amended by adding a new section 44 to read as 51 follows: 52 § 44. Empire state digital gaming media production credit. (a) Allow- 53 ance of credit. (1) A taxpayer which is a digital gaming media 54 production entity engaged in qualified digital gaming media production,S. 2009--B 102 1 or who is a sole proprietor of or a member of a partnership, which is a 2 digital gaming media production entity engaged in qualified digital 3 gaming media production, and is subject to tax under article nine-A or 4 twenty-two of this chapter, shall be allowed a credit against such tax 5 to be computed as provided herein. 6 (2) The amount of the credit shall be the product (or pro rata share 7 of the product, in the case of a member of a partnership or limited 8 liability company) of twenty-five percent and the eligible production 9 costs of one or more qualified digital gaming media productions. 10 (3) Eligible digital gaming media production costs for a qualified 11 digital gaming media production incurred and paid in this state but 12 outside such metropolitan commuter transportation district shall be 13 eligible for a credit of ten percent of such eligible production costs 14 in addition to the credit specified in paragraph two of this subdivi- 15 sion. 16 (4) Eligible production costs shall not include those costs used by 17 the taxpayer or another taxpayer as the basis calculation of any other 18 tax credit allowed under this chapter or allowed in any other state. 19 (b) Allocation of credit. The aggregate amount of tax credits allowed 20 under this section, subdivision fifty-three of section two hundred ten-B 21 and subsection (iii) of section six hundred six of this chapter in any 22 taxable year shall be twenty-five million dollars. The aggregate amount 23 of credits for any taxable year must be distributed on a regional basis 24 as follows: fifty percent of the aggregate amount of credits shall be 25 available for qualified digital gaming media productions that incur at 26 least sixty percent of eligible production costs for a qualified digital 27 gaming media production in region one; twenty percent of the aggregate 28 amount of credits shall be available for qualified digital gaming media 29 productions that incur at least sixty percent of eligible production 30 costs for a qualified digital gaming media production in region two; and 31 thirty percent of the aggregate amount of credits shall be available for 32 qualified digital gaming media productions that incur at least sixty 33 percent of eligible production costs for a qualified digital gaming 34 media production in region three. If such regional distribution is not 35 fully allocated in any taxable year, the remainder of such credits shall 36 be available for allocation to any region in the subsequent tax year. 37 For the purposes of this section region one shall contain the city of 38 New York; region two shall contain the counties of Westchester, Rock- 39 land, Nassau and Suffolk; and region three shall contain any county not 40 contained in regions one and two. Such credit shall be allocated by the 41 empire state development corporation among taxpayers in order of priori- 42 ty based upon the date of filing an application for allocation of 43 digital gaming media production credit with such office. If the total 44 amount of allocated credits applied for in any particular year exceeds 45 the aggregate amount of tax credits allowed for such year under this 46 section, such excess shall be treated as having been applied for on the 47 first day of the subsequent taxable year. 48 (c) Definitions. As used in this section: 49 (1) "Qualified digital gaming media production" means: (i) a website, 50 the digital media production costs of which are paid or incurred predo- 51 minately in connection with (A) video simulation, animation, text, 52 audio, graphics or similar gaming related property embodied in digital 53 format, and (B) interactive features of digital gaming (e.g., links, 54 message boards, communities or content manipulation); (ii) video or 55 interactive games produced primarily for distribution over the internet, 56 wireless network or successors thereto; (iii) animation, simulation orS. 2009--B 103 1 embedded graphics digital gaming related software intended for commer- 2 cial distribution regardless of medium; and (iv) a digital gaming media 3 production in which qualified digital gaming media production costs 4 equal to or are in excess of seven thousand five hundred dollars if 5 incurred and paid in this state in twelve months preceding the date on 6 which the credit is claimed. Provided, however, if such a production 7 costs are incurred and paid outside the metropolitan commuter transpor- 8 tation district in this state, such production costs shall be equal to 9 or in excess of three thousand seven hundred fifty dollars to be a qual- 10 ified digital gaming media production for purposes of this paragraph. A 11 qualified digital gaming media production does not include a website, 12 video, interactive game or software that is used predominately for: 13 electronic commerce (retail or wholesale purposes other than the sale of 14 video or interactive games), gambling (including activities regulated by 15 a New York gaming agency), exclusive local consumption for entities not 16 accessible by the general public including industrial or other private 17 purposes, and political advocacy purposes. 18 (2) "Digital gaming media production costs" means any costs for prop- 19 erty used and wages or salaries paid to individuals directly employed 20 for services performed by those individuals directly and predominately 21 in the creation of a digital gaming media production or productions. 22 Digital gaming media production costs include but shall not be limited 23 to to payments for property used and services performed directly and 24 predominately in the development (including concept creation), design, 25 production (including concept creation), design, production (including 26 testing), editing (including encoding) and compositing (including the 27 integration of digital files for interaction by end users) of digital 28 gaming media. Digital gaming media production costs shall not include 29 expenses incurred for the distribution, marketing, promotion, or adver- 30 tising content generated by end-users or other costs not directly and 31 predominately related to the creation, production or modification of 32 digital gaming media. In addition, salaries or other income distribution 33 related to the creation of digital gaming media for any person who 34 serves in the role of chief executive officer, chief financial officer, 35 president, treasurer or similar position shall not be included as 36 digital gaming media production costs. Furthermore, any income or other 37 distribution to any individual who holds an ownership interest in a 38 digital gaming media production entity shall not be included as digital 39 gaming media production costs. 40 (3) "Qualified digital gaming media production costs" means digital 41 gaming media production costs only to the extent such costs are attrib- 42 utable to the use of property or the performance of services by any 43 persons within the state directly and predominantly in the creation, 44 production or modification of digital gaming related media. Such total 45 production costs incurred and paid in this state shall be equal to or 46 exceed seventy-five percent of total cost of an eligible production 47 incurred and paid within and without this state. 48 (d) Cross-references. For application of the credit provided for in 49 this section, see the following provisions of this chapter: 50 (1) Article nine-A: section two hundred ten-B, subdivision fifty- 51 three. 52 (2) Article twenty-two: section six hundred six, subsection (i), para- 53 graph one, subparagraph (B), clause (xliv). 54 (3) Article twenty-two: section six hundred six, subsection (iii). 55 § 6. Section 210-B of the tax law is amended by adding a new subdivi- 56 sion 53 to read as follows:S. 2009--B 104 1 53. Empire state digital gaming media production credit. (a) Allowance 2 of credit. A taxpayer who is eligible pursuant to section forty-four of 3 this chapter shall be allowed a credit to be computed as provided in 4 such section forty-four against the tax imposed by this article. 5 (b) Application of credit. The credit allowed under this subdivision 6 for any taxable year shall not reduce the tax due for such year to less 7 than the amount prescribed in paragraph (d) of subdivision one of 8 section two hundred ten of this article. Provided, however, that if the 9 amount of the credit allowable under this subdivision for any taxable 10 year reduces the tax to such amount, the excess shall be treated as an 11 overpayment of tax to be credited or refunded in accordance with the 12 provisions of section one thousand eighty-six of this chapter, provided, 13 however, no interest shall be paid thereon. 14 § 7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 15 of the tax law is amended by adding a new clause (xliv) to read as 16 follows: 17 (xliv) Empire state digital Amount of credit 18 gaming media production under subdivision 19 credit under subsection (iii) fifty-three of section 20 two hundred ten-B 21 § 8. Section 606 of the tax law is amended by adding a new subsection 22 (iii) to read as follows: 23 (iii) Empire state digital gaming media production credit. (1) Allow- 24 ance of credit. A taxpayer who is eligible pursuant to section forty- 25 four of this chapter shall be allowed a credit to be computed as 26 provided in such section forty-four against the tax imposed by this 27 article. 28 (2) Application of credit. If the amount of the credit allowable under 29 this subsection for any taxable year exceeds the taxpayer's tax for such 30 year, the excess shall be treated as an overpayment of tax to be credit- 31 ed or refunded as provided in section six hundred eighty-six of this 32 article, provided, however, that no interest shall be paid thereon. 33 § 9. The state commissioner of economic development, after consulting 34 with the state commissioner of taxation and finance, shall promulgate 35 regulations by December 31, 2017 to establish procedures for the allo- 36 cation of tax credits as required by subdivision (a) of section 43 and 37 subdivision (a) of section 44 of the tax law. Such rules and regulations 38 shall include provisions describing the application process, the due 39 dates for such applications, the standards which shall be used to evalu- 40 ate the applications, the documentation that will be provided to taxpay- 41 ers substantiate to the New York state department of taxation and 42 finance the amount of tax credits allocated to such taxpayers, under 43 what conditions all or a portion of this tax credit may be revoked, and 44 such other provisions as deemed necessary and appropriate. Notwithstand- 45 ing any other provisions to the contrary in the state administrative 46 procedure act, such rules and regulations may be adopted on an emergency 47 basis if necessary to meet such December 31, 2017 deadline. 48 § 10. Subdivision 11 of section 352 of the economic development law is 49 REPEALED. 50 § 11. Subdivisions 1, 3 and 5 of section 353 of the economic develop- 51 ment law, as amended by section 2 of part K of chapter 59 of the laws of 52 2015, are amended to read as follows: 53 1. To be a participant in the excelsior jobs program, a business enti- 54 ty shall operate in New York state predominantly:S. 2009--B 105 1 (a) as a financial services data center or a financial services back 2 office operation; 3 (b) in manufacturing; 4 (c) in software development and new media; 5 (d) in scientific research and development; 6 (e) in agriculture; 7 (f) in the creation or expansion of back office operations in the 8 state; 9 (g) in a distribution center; 10 (h) in an industry with significant potential for private-sector 11 economic growth and development in this state as established by the 12 commissioner in regulations promulgated pursuant to this article. In 13 promulgating such regulations the commissioner shall include job and 14 investment criteria; or 15 (i) as an entertainment company[; or16(j) in music production]. 17 3. For the purposes of this article, in order to participate in the 18 excelsior jobs program, a business entity operating predominantly in 19 manufacturing must create at least ten net new jobs; a business entity 20 operating predominately in agriculture must create at least five net new 21 jobs; a business entity operating predominantly as a financial service 22 data center or financial services customer back office operation must 23 create at least fifty net new jobs; a business entity operating predomi- 24 nantly in scientific research and development must create at least five 25 net new jobs; a business entity operating predominantly in software 26 development must create at least five net new jobs; a business entity 27 creating or expanding back office operations must create at least fifty 28 net new jobs; [a business entity operating predominately in music29production must create at least five net new jobs;] a business entity 30 operating predominantly as an entertainment company must create or 31 obtain at least one hundred net new jobs; or a business entity operating 32 predominantly as a distribution center in the state must create at least 33 seventy-five net new jobs, notwithstanding subdivision five of this 34 section; or a business entity must be a regionally significant project 35 as defined in this article; or 36 5. A not-for-profit business entity, a business entity whose primary 37 function is the provision of services including personal services, busi- 38 ness services, or the provision of utilities, and a business entity 39 engaged predominantly in the retail or entertainment industry, other 40 than a business operating as an entertainment company as defined in this 41 article [and other than a business entity engaged in music production], 42 and a company engaged in the generation or distribution of electricity, 43 the distribution of natural gas, or the production of steam associated 44 with the generation of electricity are not eligible to receive the tax 45 credit described in this article. 46 § 12. Subdivision 21 of section 352 of the economic development law, 47 as amended by section 1 of part K of chapter 59 of the laws of 2015, is 48 amended to read as follows: 49 21. "Software development" means the creation of coded computer 50 instructions [or production or post-production of video games, as51defined in subdivision one-a of section six hundred eleven of the gener-52al business law, other than those embedded and used exclusively in53advertising, promotional websites or microsites,] and [also] includes 54 new media as defined by the commissioner in regulations. 55 § 13. The economic development law is amended by adding a new section 56 243 to read as follows:S. 2009--B 106 1 § 243. Reports on the music and digital gaming industries in New York. 2 1. The empire state development corporation shall file a report on a 3 biannual basis with the director of the division of the budget and the 4 chairpersons of the assembly ways and means committee and senate finance 5 committee. The report shall be filed no later than thirty days before 6 the mid-point and the end of the state fiscal year. The first report 7 shall cover the calendar half year that begins on January first, two 8 thousand nineteen. Each report must contain the following information 9 for the covered calendar half year: 10 (a) the total dollar amount of credits allocated pursuant to sections 11 forty-three and forty-four of the tax law during the half year, broken 12 down by month; 13 (b) the number of music and digital gaming projects, which have been 14 allocated tax credits of less than one million dollars per project, and 15 the total dollar amount of credits allocated to those projects distrib- 16 uted by region pursuant to subdivision (b) of sections forty-three and 17 forty-four of the tax law; 18 (c) the number of music and digital gaming projects, which have been 19 allocated tax credits of more than one million dollars, and the total 20 dollar amount of credits allocated to those projects distributed by 21 region pursuant to subdivision (b) of sections forty-three and forty- 22 four of the tax law; 23 (d) a list of each eligible music and digital gaming project, which 24 has been allocated a tax credit enumerated by region pursuant to subdi- 25 vision (b) of sections forty-three and forty-four of the tax law, and 26 for each of those projects, (i) the estimated number of employees asso- 27 ciated with the project, (ii) the estimated qualifying costs for the 28 projects, (iii) the estimated total costs of the project, (iv) the cred- 29 it eligible employee hours for each project, and (v) total wages for 30 such credit eligible employee hours for each project; and 31 (e) (i) the name of each taxpayer allocated a tax credit for each 32 project and the county of residence or incorporation of such taxpayer 33 or, if the taxpayer does not reside or is not incorporated in New York, 34 the state of residence or incorporation; however, if the taxpayer claims 35 a tax credit because the taxpayer is a member of a limited liability 36 company, a partner in a partnership or a shareholder in a subchapter S 37 corporation, the name of each limited liability company, partnership or 38 subchapter S corporation earning any of those tax credits must be 39 included in the report instead of information about the taxpayer claim- 40 ing the tax credit, (ii) the amount of tax credit allocated to each 41 taxpayer; provided however, if the taxpayer claims a tax credit because 42 the taxpayer is a member of a limited liability company, a partner in a 43 partnership or a shareholder in a subchapter S corporation, the amount 44 of tax credit earned by each entity must be included in the report 45 instead of information about the taxpayer claiming the tax credit, and 46 (iii) information identifying the project associated with each taxpayer 47 for which a tax credit was claimed under section forty-three or forty- 48 four of the tax law. 49 2. The empire state development corporation shall file a report on a 50 triennial basis with the director of the division of the budget and the 51 chairpersons of the assembly ways and means committee and senate finance 52 committee. The first report shall be filed no later than March first, 53 two thousand twenty-one. The report must be prepared by an independent 54 third party auditor and include: (a) information regarding the empire 55 state music production credit and the empire state digital gaming 56 production credit programs including the efficiency of operations, reli-S. 2009--B 107 1 ability of financial reporting, compliance with laws and regulations and 2 distribution of assets and funds; (b) and economic impact study prepared 3 by an independent third party of the program with special emphasis on 4 the regional impact by region and the total dollar amount of credits 5 allocated to those projects distributed by region pursuant to subdivi- 6 sion (b) of sections forty-three and forty-four of the tax law; and (c) 7 any other information or statistical information that the commissioner 8 of economic development deems to be useful in analyzing the effects of 9 the programs. 10 § 14. This act shall take effect immediately and shall apply to taxa- 11 ble years beginning on January 1, 2018 and before January 1, 2023; 12 provided that sections one through eight of this act shall expire and be 13 deemed repealed December 31, 2022. 14 PART EEE 15 Section 1. Article 2-A of the public housing law, as added by section 16 1 of part CC of chapter 63 of the laws of 2000, subdivision 4 of section 17 22 as amended by section 1 of part H of chapter 60 of the laws of 2016, 18 is amended to read as follows: 19 ARTICLE 2-A 20 NEW YORK STATE LOW INCOME AND MIDDLE INCOME 21 HOUSING TAX CREDIT PROGRAM 22 Section 21. Definitions. 23 22. Allowance of credit, amount and limitations. 24 23. Project monitoring. 25 24. Credit recapture. 26 25. Regulations, coordination with federal low-income housing 27 credit provisions. 28 § 21. Definitions. 1. (a) "Applicable percentage" means, for the 29 purposes of an eligible low-income building, the appropriate percentage 30 (depending on whether a building is new, existing, or federally subsi- 31 dized) prescribed by the secretary of the treasury for purposes of 32 section 42 of the internal revenue code and, for the purposes of an 33 eligible middle-income building, thirty percent of the qualified basis 34 of the building as determined pursuant to section 42 of the internal 35 revenue code, for the month which is the earlier of: 36 (i) the month in which the eligible low-income building or the eligi- 37 ble middle-income building is placed in service, or 38 (ii) at the election of the taxpayer, 39 (A) the month in which the taxpayer and the commissioner enter into an 40 agreement with respect to such building (which is binding on the commis- 41 sioner, the taxpayer, and all successors in interest) as to the housing 42 credit dollar amount to be allocated to such building, or 43 (B) in the case of any building to which subsection (h)(4)(B) of such 44 section 42 applies, the month in which the tax-exempt obligations are 45 issued. 46 (b) A month may be elected under subparagraph (ii) of paragraph (a) of 47 this subdivision only if the election is made not later than the fifth 48 day after the close of such month. Such election, once made, shall be 49 irrevocable. 50 (c) If, as of the close of any taxable year in the credit period, the 51 qualified basis of an eligible low-income building or an eligible 52 middle-income building exceeds such basis as of the close of the first 53 year of the credit period, the applicable percentage which shall applyS. 2009--B 108 1 to such excess shall be two-thirds of the applicable percentage 2 originally ascribed to such building. 3 2. "Compliance period" means, with respect to any building, the period 4 of fifteen taxable years beginning with the first taxable year of the 5 credit period with respect to such building. 6 3. "Credit period" means, with respect to any eligible low-income 7 building or eligible middle-income building, the period of ten taxable 8 years beginning with 9 (a) the taxable year in which the building is placed in service, or 10 (b) at the election of the taxpayer, the succeeding taxable year, 11 but only if the building is an eligible low-income building as of the 12 close of the first year of such period. The election under this para- 13 graph [(b) of this subdivision], once made, shall be irrevocable. 14 4. "Eligibility statement" means a statement issued by the commission- 15 er certifying that a building is an eligible low-income building or an 16 eligible middle-income building. Such statement shall set forth the 17 taxable year in which such building is placed in service, the dollar 18 amount of low-income housing credit or middle-income housing credit 19 allocated by the commissioner to such building as provided in subdivi- 20 sion five of section twenty-two of this article, the applicable percent- 21 age and maximum qualified basis with respect to such building taken into 22 account in determining such dollar amount, sufficient information to 23 identify each such building and the taxpayer or taxpayers with respect 24 to each such building, and such other information as the commissioner, 25 in consultation with the commissioner of taxation and finance, shall 26 prescribe. Such statement shall be first issued following the close of 27 the first taxable year in the credit period, and thereafter, to the 28 extent required by the commissioner of taxation and finance, following 29 the close of each taxable year of the compliance period. 30 5. "Eligible low-income building" means a building located in this 31 state which either 32 (a) is a qualified low-income building as defined in section 42(c) of 33 the internal revenue code, or 34 (b) would be a qualified low-income building under such section if the 35 20-50 test specified in subsection (g)(1) of such section were disre- 36 garded and the 40-60 test specified in such subsection (requiring that 37 at least forty percent of residential units be both rent-restricted and 38 occupied by individuals whose income is sixty percent or less of area 39 median gross income) were a 40-90 test. 40 5-a. "Eligible middle-income building" means a building located in 41 this state which is composed of multiple residential units which will, 42 upon completion, be affordable by eligible middle-income households. 43 5-b. "Eligible middle-income household" means (a) in cities having a 44 population of one million or more, a person or family residing in a 45 residential unit whose income does not exceed one hundred thirty percent 46 of the median income for the metropolitan statistical area in which an 47 eligible middle-income building is located; or (b) in any portion of the 48 state outside of a city having a population of one million or more and 49 (i) within a metropolitan statistical area, a person or family residing 50 in a residential unit whose income does not exceed one hundred thirty 51 percent of the median income for the metropolitan statistical area in 52 which an eligible middle-income building is located, or one hundred 53 thirty percent of the statewide median income, whichever shall be less, 54 or (ii) outside of metropolitan statistical area, a person or family 55 residing in a residential unit whose income does not exceed one hundred 56 thirty percent of the median income for the county in which an eligibleS. 2009--B 109 1 middle-income building is located, or one hundred thirty percent of the 2 statewide median income, whichever shall be less. 3 6. "Qualified basis" of an eligible low-income building or an eligible 4 middle-income building means the qualified basis of such building deter- 5 mined under section 42(c) of the internal revenue code, or, for an 6 eligible low-income building, which would be determined under such 7 section if the 40-90 test specified in paragraph (b) of subdivision five 8 of this section applied under such section 42 to determine if such 9 building were part of a qualified low-income housing project. 10 7. References in this article to section 42 of the internal revenue 11 code shall mean such section as amended from time to time. 12 § 22. Allowance of credit, amount and limitations. 1. A taxpayer 13 subject to tax under article nine-A, twenty-two, [thirty-two] or thir- 14 ty-three of the tax law which owns an interest in one or more eligible 15 low-income buildings or eligible middle-income buildings shall be 16 allowed a credit against such tax for the amount of low-income housing 17 credit or for the amount of the middle-income housing credit, as the 18 case may be, allocated by the commissioner to each such building. Except 19 as provided in subdivision two of this section, the credit amount so 20 allocated shall be allowed as a credit against the tax for the ten taxa- 21 ble years in the credit period. 22 2. Adjustment of first-year credit allowed in eleventh year. The cred- 23 it allowable for the first taxable year of the credit period with 24 respect to any building shall be adjusted using the rules of section 25 42(f)(2) of the internal revenue code (relating to first-year adjustment 26 of qualified basis by the weighted average of low-income to total resi- 27 dential units, or by the weighted average of middle-income to total 28 residential units, as the case may be), and any reduction in first-year 29 credit by reason of such adjustment shall be allowable for the first 30 taxable year following the credit period. 31 3. Amount of credit. Except as provided in subdivisions four and five 32 of this section, the amount of low-income housing credit and middle-in- 33 come housing credit shall be the applicable percentage of the qualified 34 basis of each eligible low-income building or of each eligible middle- 35 income building. 36 4. Statewide limitation. The aggregate dollar amount of credit which 37 the commissioner may allocate to eligible low-income buildings under 38 this article shall be seventy-two million dollars. The aggregate dollar 39 amount of credit which the commissioner may allocate to eligible 40 middle-income buildings under this article shall be twenty-five million 41 dollars. The limitation provided by this subdivision applies only to 42 allocation of the aggregate dollar amount of credit by the commissioner, 43 and does not apply to allowance to a taxpayer of the credit with respect 44 to an eligible low-income building or an eligible middle-income building 45 for each year of the credit period. 46 5. Building limitation. The dollar amount of credit allocated to any 47 building shall not exceed the amount the commissioner determines is 48 necessary for the financial feasibility of the project and the viability 49 of the building as an eligible low-income building or as an eligible 50 middle-income building throughout the credit period. In allocating a 51 dollar amount of credit to any building, the commissioner shall specify 52 the applicable percentage and the maximum qualified basis which may be 53 taken into account under this article with respect to such building. The 54 applicable percentage and the maximum qualified basis with respect to a 55 building shall not exceed the amounts determined in subdivisions one and 56 six, respectively, of section twenty-one of this article.S. 2009--B 110 1 6. Long-term commitment to low-income or middle-income housing 2 required. (a) No credit shall be allowed under this article with respect 3 to [a] an eligible low-income building for the taxable year unless an 4 extended low-income housing commitment is in effect as of the end of 5 such taxable year. For purposes of this [subdivision] paragraph, the 6 term "extended low-income housing commitment" means an agreement between 7 the taxpayer and the commissioner substantially similar to the agreement 8 specified in section 42(h)(6)(B) of the internal revenue code. 9 (b) No credit shall be allowed under this article with respect to an 10 eligible middle-income building for the taxable year unless an extended 11 middle-income housing commitment is in effect as of the end of such 12 taxable year. For the purposes of this paragraph, the term "extended 13 middle-income housing commitment" means an agreement between the taxpay- 14 er and the commissioner which has been determined by the commissioner to 15 be similar to the agreement specified in section 42(h)(6)(B) of the 16 internal revenue code. 17 7. Credit to successor owner. If a credit is allowed under subdivision 18 one of this section with respect to an eligible low-income building or 19 an eligible middle-income building, and such building (or an interest 20 therein) is sold during the credit period, the credit for the period 21 after the sale which would have been allowable under such subdivision 22 one to the prior owner had the building not been sold shall be allowable 23 to the new owner. Credit for the year of sale shall be allocated between 24 the parties on the basis of the number of days during such year that the 25 building or interest was held by each. 26 § 23. Project monitoring. The commissioner shall establish such proce- 27 dures as he or she deems necessary for monitoring compliance of an 28 eligible low-income building or an eligible middle-income building with 29 the provisions of this article, and for notifying the commissioner of 30 taxation and finance of any such noncompliance of which he or she 31 becomes aware. 32 § 24. Credit recapture. If, as of the close of any taxable year in the 33 compliance period, the amount of the qualified basis of any building 34 with respect to the taxpayer is less than the amount of such basis as of 35 the close of the preceding taxable year, the credit under this article 36 may be recaptured as provided in section eighteen or eighteen-a of the 37 tax law. 38 § 25. Regulations, coordination with federal low-income housing credit 39 provisions. 1. The commissioner shall promulgate rules and regulations 40 necessary to administer the provisions of this act. 41 2. The provisions of section 42 of the internal revenue code shall 42 apply to the credit under this article, provided however, to the extent 43 such provisions are inconsistent with this article, the provisions of 44 this article shall control. 45 § 2. Subdivision 4 of section 22 of the public housing law, as amended 46 by section 2 of part H of chapter 60 of the laws of 2016, is amended to 47 read as follows: 48 4. Statewide limitation. The aggregate dollar amount of credit which 49 the commissioner may allocate to eligible low-income buildings under 50 this article shall be eighty million dollars. The aggregate dollar 51 amount of credit which the commissioner may allocate to eligible 52 middle-income buildings under this article shall be twenty-five million 53 dollars. The limitation provided by this subdivision applies only to 54 allocation of the aggregate dollar amount of credit by the commissioner, 55 and does not apply to allowance to a taxpayer of the credit with respectS. 2009--B 111 1 to an eligible low-income building or an eligible middle-income building 2 for each year of the credit period. 3 § 3. Subdivision 4 of section 22 of the public housing law, as amended 4 by section 3 of part H of chapter 60 of the laws of 2016, is amended to 5 read as follows: 6 4. Statewide limitation. The aggregate dollar amount of credit which 7 the commissioner may allocate to eligible low-income buildings under 8 this article shall be eighty-eight million dollars. The aggregate 9 dollar amount of credit which the commissioner may allocate to eligible 10 middle-income buildings under this article shall be twenty-five million 11 dollars. The limitation provided by this subdivision applies only to 12 allocation of the aggregate dollar amount of credit by the commissioner, 13 and does not apply to allowance to a taxpayer of the credit with respect 14 to an eligible low-income building or an eligible middle-income building 15 for each year of the credit period. 16 § 4. Subdivision 4 of section 22 of the public housing law, as amended 17 by section 4 of part H of chapter 60 of the laws of 2016, is amended to 18 read as follows: 19 4. Statewide limitation. The aggregate dollar amount of credit which 20 the commissioner may allocate to eligible low-income buildings under 21 this article shall be ninety-six million dollars. The aggregate dollar 22 amount of credit which the commissioner may allocate to eligible 23 middle-income buildings under this article shall be twenty-five million 24 dollars. The limitation provided by this subdivision applies only to 25 allocation of the aggregate dollar amount of credit by the commissioner, 26 and does not apply to allowance to a taxpayer of the credit with respect 27 to an eligible low-income building or an eligible middle-income building 28 for each year of the credit period. 29 § 5. Subdivision 4 of section 22 of the public housing law, as amended 30 by section 5 of part H of chapter 60 of the laws of 2016, is amended to 31 read as follows: 32 4. Statewide limitation. The aggregate dollar amount of credit which 33 the commissioner may allocate to eligible low-income buildings under 34 this article shall be one hundred four million dollars. The aggregate 35 dollar amount of credit which the commissioner may allocate to eligible 36 middle-income buildings under this article shall be twenty-five million 37 dollars. The limitation provided by this subdivision applies only to 38 allocation of the aggregate dollar amount of credit by the commissioner, 39 and does not apply to allowance to a taxpayer of the credit with respect 40 to an eligible low-income building or an eligible middle-income building 41 for each year of the credit period. 42 § 6. The tax law is amended by adding a new section 18-a to read as 43 follows: 44 § 18-a. Middle-income housing credit. (a) Allowance of credit. A 45 taxpayer subject to tax under article nine-A, twenty-two, or thirty- 46 three of this chapter shall be allowed a credit against such tax, pursu- 47 ant to the provisions referenced in subdivision (d) of this section, 48 with respect to the ownership of eligible middle-income buildings for 49 which an eligibility statement has been issued by the commissioner of 50 housing and community renewal. The amount of the credit shall be the 51 credit amount for each such building allocated by such commissioner as 52 provided in article two-A of the public housing law. The credit amount 53 shall be allowed for each of the ten taxable years in the credit period, 54 and any reduction in first-year credit as provided in subdivision two of 55 section twenty-two of such law shall be allowed in the eleventh taxable 56 year.S. 2009--B 112 1 (b) Credit recapture. (1) General. If, as of the close of any taxable 2 year in the compliance period, the amount of the qualified basis of any 3 building with respect to the taxpayer is less than the amount of such 4 basis as of the close of the preceding taxable year, then the credit 5 recapture amount must be added back for the taxable year. 6 (2) Credit recapture amount. The credit recapture amount is an amount 7 equal to the sum of 8 (A) the aggregate decrease in the credits allowed to the taxpayer 9 under this section for all prior taxable years which would have resulted 10 if the accelerated portion of the credit allowable by reason of this 11 section were not allowed for all prior taxable years with respect to the 12 excess of the amount described in subparagraph (B) of paragraph one of 13 this subdivision over the amount described in subparagraph (A) of such 14 paragraph, plus 15 (B) interest at the overpayment rate established under section one 16 thousand ninety-six of this chapter on the amount determined under 17 subparagraph (A) of this paragraph for each prior taxable year for the 18 period beginning on the due date for filing the report for the prior 19 taxable year involved. 20 (3) Accelerated portion of credit. For purposes of paragraph two of 21 this subdivision, the accelerated portion of the credit for the prior 22 taxable years with respect to any amount of basis is the excess of 23 (A) the aggregate credit allowed by reason of this section (without 24 regard to this subdivision) for such years with respect to such basis, 25 over 26 (B) the aggregate credit which would be allowable by reason of this 27 section for such years with respect to such basis if the aggregate cred- 28 it which would (but for this subdivision) have been allowed for the 29 entire compliance period were allowable ratably over fifteen years. 30 (4) Special rules. For purposes of this subdivision, the rules of 31 section 42 (j)(4)(B) and (C) of the internal revenue code shall apply in 32 determining the credit recapture amount. 33 (5) Exceptions to recapture. Recapture under this subdivision shall 34 not apply to a reduction in qualified basis 35 (A) by reason of a casualty loss, if the commissioner, in consultation 36 with the commissioner of housing and community renewal, determines that 37 such loss is restored by reconstruction or replacement within a reason- 38 able period, or 39 (B) by reason of a change in floor space devoted to middle-income 40 units in a building, if such building remains an eligible middle-income 41 building after such change, and if the commissioner, in consultation 42 with the commissioner of housing and community renewal, determines that 43 such change is de minimis, or 44 (C) by reason of error in complying with middle-income eligibility 45 tests referred to in subdivision five of section twenty-one of the 46 public housing law, if the commissioner, in consultation with the 47 commissioner of housing and community renewal, determines that such 48 error is de minimis. 49 (6) Recapture by partners of a partnership. In the case of ownership 50 of a building or interest therein by a partnership which has thirty-five 51 or more partners, the provisions of section 42(j)(5) of the internal 52 revenue code shall apply to any recapture under this subdivision unless 53 the partnership elects not to have such provisions apply. 54 (7) (A) The credit recapture required under this subdivision will not 55 apply solely by reason of the disposition of a building or an interest 56 therein if it is reasonably expected that such building will continue toS. 2009--B 113 1 be operated as an eligible middle-income building for the remaining 2 compliance period with respect to such building. 3 (B) Statute of limitations. If a building (or an interest therein) is 4 disposed of during any taxable year and there is any reduction in the 5 qualified basis of such building which results in an increase in tax 6 under this section for such taxable or any subsequent taxable year, then 7 (i) the statutory period for the assessment of any deficiency with 8 respect to such increase in tax will not expire before the expiration of 9 three years from the date the commissioner of housing and community 10 renewal is notified by the taxpayer (in such manner as the commissioner 11 of housing and community renewal may prescribe) of such reduction in 12 qualified basis, and 13 (ii) such deficiency may be assessed before the expiration of such 14 three-year period notwithstanding the provisions of any other law or 15 rule of law which would otherwise prevent such assessment. 16 (c) Construction with public housing law; definitions. The provisions 17 of this section shall be construed in conjunction with the provisions of 18 article two-A of the public housing law. For definitions relating to the 19 middle-income housing credit, see section twenty-one of such law. 20 (d) Cross-references. For application of the credit provided for in 21 this section, see the following provisions of this chapter: 22 (1) Article 9-A: Section 210-B: subdivision 15-a, 23 (2) Article 22: Section 606: subsections (i) and (x-1), 24 (3) Article 33: Section 1511: subdivision (n-1). 25 § 7. Section 210-B of the tax law is amended by adding a new subdivi- 26 sion 15-a to read as follows: 27 15-a. Middle-income housing credit. (a) Allowance of credit. A taxpay- 28 er shall be allowed a credit against the tax imposed by this article 29 with respect to the ownership of eligible middle-income buildings, 30 computed as provided in section eighteen-a of this chapter. 31 (b) Application of credit. The credit allowed under this subdivision 32 for any taxable year shall not, in the aggregate, reduce the tax due for 33 such year to less than the higher of the amounts prescribed in para- 34 graphs (c) and (d) of subdivision one of this section. However, if the 35 amount of credit allowed under this subdivision for any taxable year 36 reduces the tax to such amount, any amount of credit thus not deductible 37 in such taxable year shall be treated as an overpayment of tax to be 38 credited or refunded in accordance with the provisions of section two 39 hundred eighty-six of this chapter. Provided, however, the provisions of 40 subsection (c) of section one thousand eighty-eight of this chapter 41 notwithstanding, no interest shall be paid thereon. 42 (c) Credit recapture. For provisions requiring recapture of credit, 43 see subdivision (b) of section eighteen-a of this chapter. 44 § 8. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 45 of the tax law is amended by adding a new clause (xiii-a) to read as 46 follows: 47 (xiii-a) Middle-income housing Credit amount under subdivision 48 credit under subsection (x-l) fifteen-a of section two 49 hundred ten-B 50 § 9. Section 606 of the tax law is amended by adding a new subsection 51 (x-1) to read as follows: 52 (x-1) Middle-income housing credit. (1) Allowance of credit. A taxpay- 53 er shall be allowed a credit against the tax imposed by this articleS. 2009--B 114 1 with respect to the ownership of eligible middle-income buildings, 2 computed as provided in section eighteen-a of this chapter. 3 (2) Application of credit. If the amount of credit allowable under 4 this subsection for any taxable year shall exceed the taxpayer's tax for 5 such year, the excess shall be treated as an overpayment of tax to be 6 credited or refunded in accordance with the provisions of section six 7 hundred eighty-six of this article, provided, however, that no interest 8 shall be paid thereon. 9 (3) Credit recapture. For provisions requiring recapture of credit, 10 see subdivision (b) of section eighteen-a of this chapter. 11 § 10. Section 1511 of the tax law is amended by adding a new subdivi- 12 sion (n-1) to read as follows: 13 (n-1) Middle-income housing credit. (1) Allowance of credit. A taxpay- 14 er shall be allowed a credit against the tax imposed by this article 15 with respect to the ownership of eligible middle-income buildings, 16 computed as provided in section eighteen-a of this chapter. 17 (2) Application of credit. The credit allowed under this subdivision 18 for any taxable year shall not, in the aggregate, reduce the tax due for 19 such year to less than the minimum tax fixed by paragraph four of subdi- 20 vision (a) of section fifteen hundred two of this article or by section 21 fifteen hundred two-a of this article, whichever is applicable. Howev- 22 er, if the amount of credit allowed under this subdivision for any taxa- 23 ble year reduces the tax to such amount, then any amount of credit thus 24 not deductible in such taxable year shall be treated as an overpayment 25 of tax to be credited or refunded in accordance with the provisions of 26 section one thousand eighty-six of this chapter. Provided, however, the 27 provisions of subsection (c) of section one thousand eighty-eight of 28 this chapter notwithstanding, no interest shall be paid thereon. 29 (3) Credit recapture. For provisions requiring recapture of credit, 30 see subdivision (b) of section eighteen-a of this chapter. 31 § 11. This act shall take effect immediately; provided that: 32 (a) section two of this act shall take effect on the same date and in 33 the same manner as section 2 of part H of chapter 60 of the laws of 2016 34 takes effect; 35 (b) section three of this act shall take effect on the same date and 36 in the same manner as section 3 of part H of chapter 60 of the laws of 37 2016 takes effect; 38 (c) section four of this act shall take effect on the same date and in 39 the same manner as section 4 of part H of chapter 60 of the laws of 2016 40 takes effect; and 41 (d) section five of this act shall take effect on the same date and in 42 the same manner as section 5 of part H of chapter 60 of the laws of 2016 43 takes effect. 44 PART FFF 45 Section 1. Section 606 of the tax law is amended by adding a new 46 subsection (ccc) to read as follows: 47 (ccc) Credit for rehabilitation of distressed commercial properties. 48 (1) For taxable years beginning on or after January first, two thousand 49 seventeen, a taxpayer shall be allowed a credit as hereinafter provided, 50 against the tax imposed by this article, in an amount equal to thirty 51 percent of the qualified rehabilitation expenditures made by the taxpay- 52 er with respect to a qualified distressed commercial property. Provided, 53 however, the credit shall not exceed one hundred thousand dollars.S. 2009--B 115 1 (2) Tax credits allowed pursuant to this subsection shall be allowed 2 in the taxable year in which the property is deemed a certified rehabil- 3 itation. 4 (3) If the amount of the credit allowable under this subsection for 5 any taxable year shall exceed the taxpayer's tax for such year, the 6 excess may be carried over to the following year or years, and may be 7 applied against the taxpayer's tax for such year or years, but shall not 8 exceed twenty-five thousand dollars. 9 (4) (A) The term "qualified rehabilitation expenditure" means, for 10 purposes of this subsection, any amount properly chargeable to a capital 11 account: 12 (i) in connection with the certified rehabilitation of a qualified 13 distressed commercial property, and 14 (ii) for property for which depreciation would be allowable under 15 section 168 of the internal revenue code. 16 (B) Such term shall not include (i) the cost of acquiring any building 17 or interest therein, (ii) any expenditure attributable to the enlarge- 18 ment of an existing building, or (iii) any expenditure made prior to 19 January first, two thousand seventeen or after December thirty-first, 20 two thousand twenty-two. 21 (5) The term "certified rehabilitation" means, for purposes of this 22 subsection, any rehabilitation of a certified distressed commercial 23 property which has been approved and certified by a local government as 24 being completed, with a certificate of occupancy issued, and that the 25 costs are consistent with the work completed. Such certification shall 26 be acceptable as proof that the expenditures related to such rehabili- 27 tation qualify as qualified rehabilitation expenditures for purposes of 28 the credit allowed under paragraph one of this subsection. 29 (6) (A) The term "qualified distressed commercial property" means, for 30 purposes of this subsection, a distressed commercial property located 31 within New York state: 32 (i) which has been substantially rehabilitated, 33 (ii) which is owned by the taxpayer, and 34 (iii) which is located within a distressed commercial area, as identi- 35 fied by each locality through local law, that is deemed an area in need 36 of community renewal due to dilapidation and vacancies. 37 (B) If the distressed commercial property is rental property, such 38 property shall have been more than thirty percent vacant for twelve 39 months while actively marketed for lease. 40 (C) A building shall be treated as having been "substantially rehabil- 41 itated" if the qualified rehabilitation expenditures in relation to such 42 building total ten thousand dollars or more. 43 (7) (A) If the taxpayer disposes of such taxpayer's interest in the 44 qualified distressed commercial property, or such property ceases to be 45 used as a commercial property of the taxpayer within five years of 46 receiving the credit under this subsection, the taxpayer's tax imposed 47 by this article for the taxable year in which such disposition or cessa- 48 tion occurs shall be increased by the recapture portion of the credit 49 allowed under this subsection for all prior taxable years with respect 50 to such rehabilitation. 51 (B) For purposes of subparagraph (A) of this paragraph, the recapture 52 portion shall be the product of the amount of credit claimed by the 53 taxpayer multiplied by a ratio, the numerator of which is equal to sixty 54 less the number of months the building is owned or used as commercial 55 property by the taxpayer and the denominator of which is sixty.S. 2009--B 116 1 (8) Any expenditure for which a credit is claimed under this 2 subsection shall not be eligible for any other credit under this chap- 3 ter. 4 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 5 of the tax law is amended by adding a new clause (xliii) to read as 6 follows: 7 (xliii) Credit for rehabilitation Amount of credit under 8 of distressed commercial properties subdivision forty-nine 9 under subsection (ccc) of section two hundred ten-B 10 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 11 sion 49 to read as follows: 12 49. Credit for rehabilitation of distressed commercial properties. (1) 13 For taxable years beginning on or after January first, two thousand 14 seventeen, a taxpayer shall be allowed a credit as hereinafter provided, 15 against the tax imposed by this article, in an amount equal to thirty 16 percent of the qualified rehabilitation expenditures made by the taxpay- 17 er with respect to a qualified distressed commercial property. Provided, 18 however, the credit shall not exceed one hundred thousand dollars. 19 (2) Tax credits allowed pursuant to this subdivision shall be allowed 20 in the taxable year in which the property is deemed a certified rehabil- 21 itation. 22 (3) If the amount of the credit allowable under this subdivision for 23 any taxable year shall exceed the taxpayer's tax for such year, the 24 excess may be carried over to the following year or years, and may be 25 applied against the taxpayer's tax for such year or years, but shall not 26 exceed twenty-five thousand dollars. 27 (4) (A) The term "qualified rehabilitation expenditure" means, for 28 purposes of this subdivision, any amount properly chargeable to a capi- 29 tal account: 30 (i) in connection with the certified rehabilitation of a qualified 31 commercial property, and 32 (ii) for property for which depreciation would be allowable under 33 section 168 of the internal revenue code. 34 (B) Such term shall not include (i) the cost of acquiring any building 35 or interest therein, (ii) any expenditure attributable to the enlarge- 36 ment of an existing building, or (iii) any expenditure made prior to 37 January first, two thousand seventeen or after December thirty-first, 38 two thousand twenty-two. 39 (5) The term "certified rehabilitation" means, for purposes of this 40 subdivision, any rehabilitation of a certified distressed commercial 41 property which has been approved and certified by a local government as 42 being completed, with a certificate of occupancy issued, and that the 43 costs are consistent with the work completed. Such certification shall 44 be acceptable as proof that the expenditures related to such rehabili- 45 tation qualify as qualified rehabilitation expenditures for purposes of 46 the credit allowed under paragraph one of this subdivision. 47 (6) (A) The term "qualified distressed commercial property" means, for 48 purposes of this subdivision, a distressed commercial property located 49 within New York state: 50 (i) which has been substantially rehabilitated, 51 (ii) which is owned by the taxpayer, and 52 (iii) which is located within a distressed commercial area, as identi- 53 fied by each locality through local law, that is deemed an area in need 54 of community renewal due to dilapidation and vacancies.S. 2009--B 117 1 (B) If the distressed commercial property is rental property, such 2 property shall have been more than thirty percent vacant for twelve 3 months while actively marketed for lease. 4 (C) A building shall be treated as having been "substantially rehabil- 5 itated" if the qualified rehabilitation expenditures in relation to such 6 building total ten thousand dollars or more. 7 (7) (A) If the taxpayer disposes of such taxpayer's interest in the 8 qualified distressed commercial property, or such property ceases to be 9 used as a commercial property of the taxpayer within five years of 10 receiving the credit under this subdivision, the taxpayer's tax imposed 11 by this article for the taxable year in which such disposition or cessa- 12 tion occurs shall be increased by the recapture portion of the credit 13 allowed under this subdivision for all prior taxable years with respect 14 to such rehabilitation. 15 (B) For purposes of subparagraph (A) of this paragraph, the recapture 16 portion shall be the product of the amount of credit claimed by the 17 taxpayer multiplied by a ratio, the numerator of which is equal to sixty 18 less the number of months the building is owned or used as commercial 19 property by the taxpayer and the denominator of which is sixty. 20 (8) Any expenditure for which a credit is claimed under this subdivi- 21 sion shall not be eligible for any other credit under this chapter. 22 § 4. This act shall take effect immediately and shall apply to taxable 23 years beginning on or after January 1, 2018. 24 PART GGG 25 Section 1. Section 606 of the tax law is amended by adding a new 26 subsection (ccc) to read as follows: 27 (ccc) Universal visitability tax credit. 1. For taxable years begin- 28 ning on or after January first, two thousand eighteen, until December 29 thirty-first, two thousand twenty-two, a taxpayer shall be allowed a 30 credit against the tax imposed by this article for a portion of the 31 total purchase price paid by such taxpayer for a principal residence 32 attributable to universal visitability or the total amount expended by a 33 taxpayer to retrofit an existing principal residence to achieve 34 universal visitability provided that the principal residence or the 35 retrofitting of the existing principal residence is located within this 36 state and designed to provide universal visitability as defined through 37 the eligibility requirements established by guidelines developed by the 38 division of code enforcement and administration within the department of 39 state. For the purpose of this subsection, principal residence shall 40 mean such residence pursuant to section one hundred twenty-one of the 41 internal revenue code. 42 2. The credit shall be allowed for the taxable year in which the resi- 43 dence has been purchased or constructed, or the retrofitting or reno- 44 vation of the residence or residential unit has been completed. The 45 credit allowed under this section shall not exceed (i) twenty-seven 46 hundred fifty dollars for the purchase of a new residence, or (ii) fifty 47 percent of the total amount expended, but not to exceed twenty-seven 48 hundred fifty dollars for the retrofitting or renovation of each exist- 49 ing residence or unit. 50 3. No credit shall be allowed under this section for the purchase, 51 retrofitting or renovation of residential rental property. 52 4. If the amount of the credit allowable under this subsection shall 53 exceed the taxpayer's tax for such year, the excess may be carried overS. 2009--B 118 1 to the following year or years and may be deducted from the taxpayer's 2 tax for such year or years. 3 5. Eligible taxpayers shall apply for the credit by making application 4 to the division of code enforcement and administration within the 5 department of state. The division of code enforcement and administration 6 within the department of state shall issue a certification for an 7 approved application to the taxpayer. The taxpayer shall submit the 8 certification together with their personal income return. 9 6. (A) The aggregate amount of tax credits allowed pursuant to the 10 authority of this subsection shall be one million dollars each year 11 during the period two thousand eighteen through two thousand twenty-two. 12 Such aggregate amounts of credits shall be allocated by the department 13 of state among taxpayers in order of priority based upon the date of 14 filing an application for allocation of credit with the division of code 15 enforcement and administration. If the total amount of allocated credits 16 applied for in any particular year exceeds the aggregate amount of tax 17 credits allowed for such year under this section, such excess shall be 18 treated as having been applied for on the first day of the subsequent 19 year. 20 (B) The secretary of state, after consulting with the commissioner, 21 shall promulgate regulations by October thirty-first, two thousand 22 seventeen to establish procedures for the allocation of tax credits as 23 required by this subparagraph. Such rules and regulations shall include 24 provisions describing the application process, the due days for such 25 applications, the standards which shall be used to evaluate the applica- 26 tions, the documentation that will be provided to taxpayers to substan- 27 tiate to the department the amount of tax credits allocated to such 28 taxpayers, and such other provisions as deemed necessary and appropri- 29 ate. Notwithstanding any other provisions to the contrary in the state 30 administrative procedure act, such rules and regulations may be adopted 31 on an emergency basis if necessary to meet such October thirty-first, 32 two thousand seventeen deadline. 33 7. The department of state shall submit to the governor, the temporary 34 president of the senate, and the speaker of the assembly, an annual 35 report to be submitted by February first of each year evaluating the 36 effectiveness of the universal visitability tax credit provided by this 37 section. Such report shall be based on data available from the applica- 38 tion filed with the division of code enforcement and administration for 39 universal visitability credits. Notwithstanding any provision of law to 40 the contrary, the information contained in the report shall be public 41 information. The report may also include any recommendations of changes 42 in the calculation or administration of the credit, and any other recom- 43 mendation of the commissioner of the department of state or the division 44 of code enforcement and administration regarding continuing modifica- 45 tion, repeal of such act, and such other information regarding the act 46 as the division may feel useful and appropriate. 47 § 2. This act shall take effect immediately and shall expire and be 48 deemed repealed December 31, 2022. 49 PART HHH 50 Section 1. Subsection (a) of section 801 of the tax law, as amended by 51 section 1 of part N of chapter 59 of the laws of 2012, is amended to 52 read as follows: 53 (a) For the sole purpose of providing an additional stable and reli- 54 able dedicated funding source for the metropolitan transportationS. 2009--B 119 1 authority and its subsidiaries and affiliates to preserve, operate and 2 improve essential transit and transportation services in the metropol- 3 itan commuter transportation district, a tax is hereby imposed on 4 employers and individuals as follows: (1) For employers who engage in 5 business within the MCTD, the tax is imposed at a rate of (A) eleven 6 hundredths (.11) percent of the payroll expense for employers with 7 payroll expense no greater than three hundred seventy-five thousand 8 dollars in any calendar quarter, (B) twenty-three hundredths (.23) 9 percent of the payroll expense for employers with payroll expense great- 10 er than three hundred seventy-five thousand dollars and no greater than 11 four hundred thirty-seven thousand five hundred dollars in any calendar 12 quarter, and (C) thirty-four hundredths (.34) percent of the payroll 13 expense for employers with payroll expense in excess of four hundred 14 thirty-seven thousand five hundred dollars in any calendar quarter. If 15 the employer is a professional employer organization, as defined in 16 section nine hundred sixteen of the labor law, the employer's tax shall 17 be calculated by determining the payroll expense attributable to each 18 client who has entered into a professional employer agreement with such 19 organization and the payroll expense attributable to such organization 20 itself, multiplying each of those payroll expense amounts by the appli- 21 cable rate set forth in this paragraph and adding those products togeth- 22 er. (2) For individuals, the tax is imposed at a rate of thirty-four 23 hundredths (.34) percent of the net earnings from self-employment of 24 individuals that are attributable to the MCTD if such earnings attribut- 25 able to the MCTD exceed two hundred fifty thousand dollars for the tax 26 year. 27 § 2. This act shall take effect immediately and shall apply to taxable 28 years beginning on or after January 1, 2018. 29 PART III 30 Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the 31 tax law, paragraph 3 as amended by section 1 of part B of chapter 56 of 32 the laws of 2011, paragraph 4 as amended by section 1 of part YY of 33 chapter 59 of the laws of 2015, are amended and a new paragraph 5 is 34 added to read as follows: 35 (3) an interstate agency or public corporation created pursuant to an 36 agreement or compact with another state or the Dominion of Canada; [or] 37 (4) Any eligible educational institution. An "eligible educational 38 institution" shall mean any public school district, a board of cooper- 39 ative educational services, a public elementary or secondary school, a 40 school approved pursuant to article eighty-five or eighty-nine of the 41 education law to serve students with disabilities of school age, or a 42 nonpublic elementary or secondary school that provides instruction in 43 grade one or above, all public library systems as defined in subdivision 44 one of section two hundred seventy-two of the education law, and all 45 public and free association libraries as such terms are defined in 46 subdivision two of section two hundred fifty-three of the education 47 law[.]; or 48 (5) any agency or instrumentality of the state of New York. 49 § 2. This act shall take effect immediately. 50 PART JJJS. 2009--B 120 1 Section 1. Paragraph (f) of subdivision 1 of section 209-B of the tax 2 law, as added by section 7 of part A of chapter 59 of the laws of 2014, 3 is amended to read as follows: 4 (f) The commissioner shall determine the rate of tax for taxable years 5 beginning on or after January first, two thousand sixteen by adjusting 6 the rate for taxable years beginning on or after January first, two 7 thousand fifteen and before January first, two thousand sixteen as 8 necessary to ensure that the receipts attributable to such surcharge, as 9 impacted by the chapter of the laws of two thousand fourteen which added 10 this paragraph, will meet and not exceed the financial projections for 11 state fiscal year two thousand sixteen-two thousand seventeen, as 12 reflected in state fiscal year two thousand fifteen-two thousand sixteen 13 enacted budget. The commissioner shall annually determine the rate ther- 14 eafter using the financial projections for the state fiscal year that 15 commences in the year for which the rate is to be set as reflected in 16 the enacted budget for the fiscal year commencing on the previous April 17 first. Provided however, no increase in the rate shall occur in taxable 18 years beginning after two thousand twenty-one. 19 § 2. This act shall take effect immediately. 20 PART KKK 21 Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax 22 law, as amended by section 3 of part I of chapter 59 of the laws of 23 2015, is amended to read as follows: 24 (3-a) Pensions and annuities received by an individual who has 25 attained the age of fifty-nine and one-half, not otherwise excluded 26 pursuant to paragraph three of this subsection, to the extent includible 27 in gross income for federal income tax purposes, but not in excess of 28 [twenty] twenty-seven thousand dollars for any taxable year beginning on 29 or after January first, two thousand seventeen, thirty-four thousand 30 dollars for any taxable year beginning on or after January first, two 31 thousand eighteen, and forty thousand dollars in each subsequent year, 32 which are periodic payments attributable to personal services performed 33 by such individual prior to his retirement from employment, which arise 34 (i) from an employer-employee relationship or (ii) from contributions to 35 a retirement plan which are deductible for federal income tax purposes. 36 Provided, however, the pension and annuities by a married couple who 37 file joint tax returns shall be double the limitations set forth in this 38 paragraph. However, the term "pensions and annuities" shall also include 39 distributions received by an individual who has attained the age of 40 fifty-nine and one-half from an individual retirement account or an 41 individual retirement annuity, as defined in section four hundred eight 42 of the internal revenue code, and distributions received by an individ- 43 ual who has attained the age of fifty-nine and one-half from self-em- 44 ployed individual and owner-employee retirement plans which qualify 45 under section four hundred one of the internal revenue code, whether or 46 not the payments are periodic in nature. Nevertheless, the term 47 "pensions and annuities" shall not include any lump sum distribution, as 48 defined in subparagraph (D) of paragraph four of subsection (e) of 49 section four hundred two of the internal revenue code and taxed under 50 section six hundred three of this article. Where a husband and wife file 51 a joint state personal income tax return, the modification provided for 52 in this paragraph shall be computed as if they were filing separate 53 state personal income tax returns. Where a payment would otherwise come 54 within the meaning of the term "pensions and annuities" as set forth inS. 2009--B 121 1 this paragraph, except that such individual is deceased, such payment 2 shall, nevertheless, be treated as a pension or annuity for purposes of 3 this paragraph if such payment is received by such individual's benefi- 4 ciary. 5 § 2. This act shall take effect immediately and shall be deemed to 6 have been in full force and effect on and after the first of January of 7 the year in which it shall have become a law. 8 PART LLL 9 Section 1. Subdivision 1 of section 190 of the tax law, as amended by 10 section 102 of part A of chapter 59 of the laws of 2014, is amended to 11 read as follows: 12 1. General. A taxpayer shall be allowed a credit against the tax 13 imposed by this article equal to twenty percent of the premium paid 14 during the taxable year for long-term care insurance or for a policy 15 rider to a life insurance policy issued pursuant to subparagraph (C), 16 (D), (E) or (F) of paragraph one of subsection (a) of section one thou- 17 sand one hundred thirteen of the insurance law; provided, however, that 18 for taxable years commencing on or after January first, two thousand 19 seventeen and before January first, two thousand twenty-one, such credit 20 shall be forty percent of the premium paid during the taxable year for 21 long-term care insurance. In order to qualify for such credit, the 22 taxpayer's premium payment must be for the purchase of or for continuing 23 coverage under a long-term care insurance policy that qualifies for such 24 credit pursuant to section one thousand one hundred seventeen of the 25 insurance law. 26 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, 27 as added by section 17 of part A of chapter 59 of the laws of 2014, is 28 amended to read as follows: 29 (a) General. A taxpayer shall be allowed a credit against the tax 30 imposed by this article equal to twenty percent of the premium paid 31 during the taxable year for long-term care insurance or for a policy 32 rider to a life insurance policy issued pursuant to subparagraph (C), 33 (D), (E) or (F) of paragraph one of subsection (a) of section one thou- 34 sand one hundred thirteen of the insurance law; provided, however, that 35 for taxable years commencing on or after January first, two thousand 36 seventeen and before January first, two thousand twenty-one, such credit 37 shall be forty percent of the premium paid during the taxable year for 38 long-term care insurance. In order to qualify for such credit, the 39 taxpayer's premium payment must be for the purchase of or for continuing 40 coverage under a long-term care insurance policy that qualifies for such 41 credit pursuant to section one thousand one hundred seventeen of the 42 insurance law. 43 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as 44 amended by section 1 of part P of chapter 61 of the laws of 2005, is 45 amended to read as follows: 46 (1) Residents. A taxpayer shall be allowed a credit against the tax 47 imposed by this article equal to twenty percent of the premium paid 48 during the taxable year for long-term care insurance or for a policy 49 rider to a life insurance policy issued pursuant to subparagraph (C), 50 (D), (E) or (F) of paragraph one of subsection (a) of section one thou- 51 sand one hundred thirteen of the insurance law; provided, however, that 52 for taxable years commencing on or after January first, two thousand 53 seventeen and before January first, two thousand twenty-one, such credit 54 shall be forty percent of the premium paid during the taxable year forS. 2009--B 122 1 long-term care insurance. In order to qualify for such credit, the 2 taxpayer's premium payment must be for the purchase of or for continuing 3 coverage under a long-term care insurance policy that qualifies for such 4 credit pursuant to section one thousand one hundred seventeen of the 5 insurance law. If the amount of the credit allowable under this 6 subsection for any taxable year shall exceed the taxpayer's tax for such 7 year, the excess may be carried over to the following year or years and 8 may be deducted from the taxpayer's tax for such year or years. 9 § 4. Paragraph 1 of subsection (m) of section 1511 of the tax law, as 10 amended by section 21 of part B of chapter 58 of the laws of 2004, is 11 amended to read as follows: 12 (1) A taxpayer shall be allowed a credit against the tax imposed by 13 this article equal to twenty percent of the premium paid during the 14 taxable year for long-term care insurance or for a policy rider to a 15 life insurance policy issued pursuant to subparagraph (C), (D), (E) or 16 (F) of paragraph one of subsection (a) of section one thousand one 17 hundred thirteen of the insurance law; provided, however, that for taxa- 18 ble years commencing on or after January first, two thousand seventeen 19 and before January first, two thousand twenty-one, such credit shall be 20 forty percent of the premium paid during the taxable year for long-term 21 care insurance. In order to qualify for such credit, the taxpayer's 22 premium payment must be for the purchase of or for continuing coverage 23 under a long-term care insurance policy that qualifies for such credit 24 pursuant to section one thousand one hundred seventeen of the insurance 25 law. 26 § 5. Paragraphs 1 and 2 of subsection (g) of section 1117 of the 27 insurance law, paragraph 1 as amended by chapter 417 of the laws of 28 2001, paragraph 2 as amended by section 12 of part E of chapter 63 of 29 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended 30 by chapter 311 of the laws of 2002, are amended to read as follows: 31 (1) Except for certain group contracts described in paragraph four of 32 this subsection, in order for premium payments for long-term care insur- 33 ance, or for a policy rider to a life insurance policy issued pursuant 34 to subparagraph (C), (D), (E) or (F) of paragraph one of subsection (a) 35 of section one thousand one hundred thirteen of this article, to qualify 36 for purposes of section one hundred ninety, subdivision [twenty-five-a] 37 fourteen of section two hundred [ten] ten-B, subsection (aa) of section 38 six hundred six[, subsection (k) of section one thousand four hundred39fifty-six] and subsection (m) of section one thousand five hundred elev- 40 en of the tax law, the long-term care insurance or such policy rider 41 must be approved by the superintendent pursuant to this subsection. 42 Prior to approving any such insurance or policy rider, the superinten- 43 dent shall conclude that it meets minimum standards, including minimum 44 loss ratio standards under this section or section three thousand two 45 hundred twenty-nine of this chapter and is a qualified long-term care 46 insurance contract as defined in section 7702B of the internal revenue 47 code. 48 (2) (A) No insurer, agent, broker, person, business or corporation 49 doing business in or into this state shall in any manner state, adver- 50 tise or claim that a long-term care insurance policy, or a policy rider 51 to a life insurance policy issued pursuant to subparagraph (C), (D), (E) 52 or (F) of paragraph one of subsection (a) of section one thousand one 53 hundred thirteen of this article, qualifies for purposes of the above- 54 referenced provisions of the tax law unless either: (i) the superinten- 55 dent has issued a letter or other written instrument to the insurer 56 stating that the policy or policy rider has been determined to qualifyS. 2009--B 123 1 under this subsection, or (ii) the policy or policy rider qualifies 2 under paragraph four of this subsection without the need for approval by 3 the superintendent. 4 (B) Any policy or policy rider which is held out or purported to be a 5 long-term care insurance policy by any insurer, agent, broker, person, 6 business or corporation doing business in or into this state which has 7 not been determined by the superintendent to qualify and which does not 8 qualify under paragraph four of this subsection for purposes of the 9 above referenced provisions of the tax law shall so state clearly, legi- 10 bly and in close physical proximity to any description of the policy or 11 policy rider as a long-term care insurance policy that it does not so 12 qualify. This subsection shall also be deemed to cover any statement, 13 advertisement or claim concerning such policy by any insurer, agent, 14 broker, person, business or corporation doing business in or into this 15 state. 16 (C) Violation of this paragraph shall be considered a misrepresen- 17 tation under section [twenty-one] two thousand one hundred twenty-three 18 of this chapter. 19 § 6. This act shall take effect immediately and shall be deemed to 20 have been in full force and effect on and after January 1, 2017. 21 PART MMM 22 Section 1. Subsection (d) of section 615 of the tax law is amended by 23 adding a new paragraph 5 to read as follows: 24 (5) an amount equal to ten thousand dollars for the adoption of a 25 child with special needs. The amount allowed by this paragraph may be 26 used by a taxpayer to increase his or her deduction in each year that 27 the taxpayer is the legal parent of a child with special needs. 28 For purposes of this paragraph, a child with special needs shall mean 29 any child who is under the age of twenty-one and who possesses a specif- 30 ic physical, mental, or emotional condition or disability of such sever- 31 ity or kind that, in the opinion of the office of children and family 32 services, would constitute a significant obstacle to the child's 33 adoption. 34 § 2. This act shall take effect immediately and shall apply to taxable 35 years commencing on and after January 1, 2017. 36 PART NNN 37 Section 1. Subsection (a) of section 601-a of the tax law, as amended 38 by section 10 of part FF of chapter 59 of the laws of 2013, is amended 39 to read as follows: 40 (a) For tax year two thousand thirteen, the commissioner, not later 41 than September first, two thousand twelve, shall multiply the amounts 42 specified in subsection (b) of this section for tax year two thousand 43 twelve by one plus the cost of living adjustment described in subsection 44 (c) of this section. For tax year two thousand fourteen, the commission- 45 er, not later than September first, two thousand thirteen, shall multi- 46 ply the amounts specified in subsection (b) of this section for tax year 47 two thousand thirteen by one plus the cost of living adjustment. For 48 each succeeding tax year after tax year two thousand fourteen [and49before tax year two thousand eighteen], the commissioner, not later than 50 September first of such tax year, shall multiply the amounts specified 51 in subsection (b) of this section for such tax year by one plus the costS. 2009--B 124 1 of living adjustment described in subsection (c) of this section for 2 such tax year. 3 § 2. This act shall take effect immediately. 4 PART OOO 5 Section 1. Paragraph 1 of subsection (a) of section 651 of the tax 6 law, as amended by section 6 of part J of chapter 59 of the laws of 7 2014, is amended to read as follows: 8 (1) every resident individual (A) required to file a federal income 9 tax return for the taxable year, or (B) having federal adjusted gross 10 income for the taxable year, increased by the modifications under 11 subsection (b) of section six hundred twelve of this article, in excess 12 of [four thousand dollars, or in excess of] his or her New York standard 13 deduction, [if lower,] or (C) subject to tax under former section six 14 hundred two of this article, or (D) having received during the taxable 15 year a lump sum distribution any portion of which is subject to tax 16 under section six hundred three of this article; 17 § 2. This act shall take effect immediately and apply to taxable years 18 beginning on or after January 1, 2017. 19 PART PPP 20 Section 1. Subdivision (c) of section 3013 of the tax law, as added by 21 chapter 479 of the laws of 2011, is amended to read as follows: 22 (c) (1) In the event that the commissioner elects to implement a 23 program providing for payment of personal income tax refunds by prepaid 24 debit card or direct deposit to [a] designated [account] accounts of the 25 taxpayer, the department shall amend the forms used to file personal 26 income tax returns to reflect, in the area designated for selection of 27 options for processing of refunds, that the taxpayer has the option of 28 receiving his or her tax refund by personal check and shall provide a 29 box which the taxpayer may check to select that option. 30 (2) Designated accounts include but are not limited to, up to three 31 accounts with financial institutions that have routing and account 32 numbers and are held in the names of the taxpayer's spouse or joint 33 account. Designated accounts held in one spouse's name may receive 34 personal income tax refunds from a married filing joint return. 35 § 2. This act shall take effect immediately, provided, however, that 36 the amendments to subdivision (c) of section 3013 of the tax law made by 37 section one of this act shall not affect the repeal of such section and 38 shall be deemed repealed therewith. 39 PART QQQ 40 Section 1. Paragraph (a) of subdivision 6 of section 425 of the real 41 property tax law, as amended by section 1 of part A of chapter 60 of the 42 laws of 2016, is amended to read as follows: 43 (a) Generally. All owners of the property who primarily reside thereon 44 [and who are not subject to the provisions of subdivision sixteen of45this section] must jointly file an application for exemption with the 46 assessor on or before the appropriate taxable status date. Such applica- 47 tion may be filed by mail if it is enclosed in a postpaid envelope prop- 48 erly addressed to the appropriate assessor, deposited in a post office 49 or official depository under the exclusive care of the United States 50 postal service, and postmarked by the United States postal service on orS. 2009--B 125 1 before the applicable taxable status date. Each such application shall 2 be made on a form prescribed by the commissioner, which shall require 3 the applicant or applicants to agree to notify the assessor if their 4 primary residence changes while their property is receiving the 5 exemption. The assessor may request that proof of residency be submitted 6 with the application. If the applicant requests a receipt from the 7 assessor as proof of submission of the application, the assessor shall 8 provide such receipt. If such request is made by other than personal 9 request, the applicant shall provide the assessor with a self-addressed 10 postpaid envelope in which to mail the receipt. 11 § 2. Subdivision 16 of section 425 of the real property tax law is 12 REPEALED. 13 § 3. Subdivision 2 of section 496 of the real property tax law, as 14 amended by section 3 of part A of chapter 60 of the laws of 2016, is 15 amended to read as follows: 16 2. An application to renounce an exemption shall be made on a form 17 prescribed by the commissioner and shall be filed with the county direc- 18 tor of real property tax services no later than ten years after the levy 19 of taxes upon the assessment roll on which the renounced exemption 20 appears. The county director, after consulting with the assessor as 21 appropriate, shall compute the total amount owed on account of the 22 renounced exemption as follows: 23 (a) For each assessment roll on which the renounced exemption appears, 24 the assessed value that was exempted shall be multiplied by the tax rate 25 or rates that were applied to that assessment roll. Interest shall then 26 be added to each such product at the rate prescribed by section nine 27 hundred twenty-four-a of this chapter or such other law as may be appli- 28 cable for each month or portion thereon since the levy of taxes upon 29 such assessment roll. 30 (b) The sum of the calculations made pursuant to paragraph (a) of this 31 subdivision with respect to all of the assessment rolls in question 32 shall be determined. 33 (c) A processing fee of five hundred dollars shall be added to the sum 34 determined pursuant to paragraph (b) of this subdivision[, unless the35provisions of paragraph (d) of this subdivision are applicable.36(d) If the applicant is renouncing a STAR exemption in order to quali-37fy for the personal income tax credit authorized by subsection (eee) of38section six hundred six of the tax law, and no other exemptions are39being renounced on the same application, no processing fee shall be40applicable]. 41 § 4. Subdivision 6 of section 1306-a of the real property tax law is 42 REPEALED. 43 § 5. Subparagraph (A) of paragraph 3 of subsection (eee) of section 44 606 of the tax law, as amended by section 8 of part A of chapter 73 of 45 the laws of 2016, is amended to read as follows: 46 (A) [Beginning with] For taxable years [after] two thousand [fifteen] 47 sixteen and seventeen, a basic STAR credit shall be available to a qual- 48 ified taxpayer if the affiliated income of the parcel that serves as the 49 taxpayer's primary residence is less than or equal to five hundred thou- 50 sand dollars. 51 § 6. The opening paragraph of subparagraph (A) of paragraph 4 of 52 subsection (eee) of section 606 of the tax law, as amended by section 8 53 of part A of chapter 73 of the laws of 2016, is amended to read as 54 follows:S. 2009--B 126 1 [Beginning with] For taxable years [after] two thousand [fifteen] 2 sixteen and seventeen, an enhanced STAR credit shall be available to a 3 qualified taxpayer where both of the following conditions are satisfied: 4 § 7. Clause (iii) of subparagraph (A) of paragraph 10 of subsection 5 (eee) of section 606 of the tax law is REPEALED. 6 § 8. Paragraph (c) of subdivision 11 of section 425 of the real prop- 7 erty tax law, as amended by section 3 of part A of chapter 73 of the 8 laws of 2016, is amended to read as follows: 9 (c) Transfers of title. When the assessor has received a report pursu- 10 ant to section five hundred seventy-four of this chapter of a transfer 11 of title to real property which is exempt pursuant to this section, the 12 assessor shall [discontinue the exemption as required by subdivision13sixteen of this section] send the new owner or owners as shown thereon 14 an application for the exemption authorized by this section. The asses- 15 sor shall not implement the provisions of section five hundred twenty of 16 this chapter upon such a transfer, except to the extent that the proper- 17 ty may also be receiving one or more other exemptions. 18 § 9. Paragraph (c) of subdivision 6 of section 425 of the real proper- 19 ty tax law, as amended by section 4 of part A of chapter 73 of the laws 20 of 2016, is amended to read as follows: 21 (c) Senior citizens exemption. When property is eligible for the 22 senior citizens exemption authorized by section four hundred sixty-seven 23 of this article, it shall also be deemed to be eligible for the enhanced 24 exemption authorized by this section for certain senior citizens, 25 provided, where applicable, that the age requirement established by a 26 municipal corporation pursuant to subdivision five of section four 27 hundred sixty-seven of this article is satisfied, and no separate appli- 28 cation need be filed therefor. [Provided, however, that the provisions29of this paragraph shall only apply where at least one of the applicants30held title to the property on the taxable status date of the assessment31roll that was used to levy school district taxes for the two thousand32fifteen--two thousand sixteen school year and the property was granted33an exemption pursuant to this section on such assessment roll.] 34 § 10. Implementation for the 2018--2019 school year. The commissioner 35 of taxation and finance shall assist localities in notifying the public 36 of the provisions of this act and any action required by taxpayers to 37 receive a STAR exemption for the 2018--2019 school year. Notwithstand- 38 ing subdivision 6 of section 425 of the real property tax law, for 39 assessment rolls used to levy school district taxes for the 2018--2019 40 school year, an application for an exemption under section 425 of the 41 real property tax law shall be filed with the local assessor by the last 42 date on which a petition with respect to complaints of assessment may be 43 filed or not later than the sixtieth day after the effective date of 44 this act, whichever is later. The assessor shall approve or deny such 45 application as if it had been filed on or before the taxable status 46 date. If the assessor determines that the property is eligible for the 47 exemption, the assessor shall thereupon be authorized and directed to 48 correct the assessment roll accordingly, or, if another person has 49 custody or control of the assessment roll, to direct that person to make 50 the appropriate corrections. If the correction is not made before school 51 taxes are levied, the failure to take the exemption into account in the 52 computation of the tax shall be deemed a "clerical error" for purposes 53 of title 3 of article 5 of the real property tax law, or any comparable 54 laws governing the correction of administrative errors on assessment 55 rolls and tax rolls, and shall be corrected accordingly.S. 2009--B 127 1 Notwithstanding any other provision of law to the contrary, the 2 commissioner of taxation and finance shall no later than December 31, 3 2017 notify local assessors of the name and address of any taxpayer 4 within their assessing unit who qualified for the school tax relief 5 (STAR) credit pursuant to subsection (eee) of section 606 of the tax law 6 for taxable year 2017, or has applied for a credit for taxable year 2018 7 and any additional information available that would assist the assessor 8 in accurately determining the property's eligibility for the STAR 9 exemption pursuant to section 425 of the real property tax law. To the 10 extent possible, the local assessor shall determine the eligibility of 11 the property for the 2018--2019 school year using information provided 12 by the commissioner of taxation and finance. Taxpayers who received the 13 STAR credit for the 2017--2018 school year, shall not be required to 14 file an application for an exemption in order to receive an exemption on 15 the same property for the 2018--2019 school year; however, if a proper- 16 ty's eligibility cannot be determined by using information supplied by 17 the department of taxation and finance, the assessor may seek additional 18 documentation from the taxpayer to prove his or her eligibility. Such 19 taxpayer shall have until the last date on which a petition, with 20 respect to complaints of assessment may be filed, to supply proof of 21 eligibility, or thirty days of such request, whichever is later. The 22 assessor shall mail notice of his or her determination to such owner. If 23 the assessor determines that the property is eligible for the exemption, 24 the assessor shall thereupon be authorized and directed to correct the 25 assessment roll accordingly, or, if another person has custody or 26 control of the assessment roll, to direct that person to make the appro- 27 priate corrections. If the correction is not made before school taxes 28 are levied, the failure to take the exemption into account in the compu- 29 tation of the tax shall be deemed a "clerical error" for purposes of 30 title 3 of article 5 of the real property tax law, or any comparable 31 laws governing the correction of administrative errors on assessment 32 rolls and tax rolls, and shall be corrected accordingly. Nothing within 33 this act shall preclude a taxpayer from seeking administrative and judi- 34 cial review of an assessor's denial of the exemption. 35 § 11. This act shall take effect immediately. 36 PART RRR 37 Section 1. Subparagraphs (B) and (C) of paragraph 10 of subsection 38 (eee) of section 606 of the tax law, as amended by section 8 of part A 39 of chapter 73 of the laws of 2016, are amended to read as follows: 40 (B) On or before September [fifteenth] first of each year, or as soon 41 thereafter as practicable, the commissioner shall determine the eligi- 42 bility of taxpayers for this credit utilizing the information available 43 to him or her as obtained from the applications submitted on or before 44 July first of that year, or such later date as may have been prescribed 45 by the commissioner for that purpose, and from such other sources as the 46 commissioner deems reliable and appropriate. For those taxpayers whom 47 the commissioner has determined eligible for this credit, the commis- 48 sioner shall advance a payment in the amount specified in paragraph 49 three, four or six of this subsection, whichever is applicable. Such 50 payment shall be issued by September [thirtieth] fifteenth of the year 51 the credit is allowed, or as soon thereafter as is practicable. Nothing 52 contained herein shall be deemed to preclude the commissioner from issu- 53 ing payments after September thirtieth to qualified taxpayers whose 54 applications were made after July first of that year, or such later dateS. 2009--B 128 1 as may have been prescribed by the commissioner for such purpose. 2 Provided, however, for a qualified taxpayer that has applied for the 3 advanced payment by July first of the tax year or is already eligible to 4 receive an advanced payment prior to July first, if the advanced payment 5 is not postmarked by the fifteenth of September or the amount of the 6 advanced payment that is postmarked by the fifteenth of September is 7 less than the amount due the taxpayer then the qualified taxpayer shall 8 receive an amount equal to the interest and penalty payment imposed by 9 the school district for late payment of the school tax bill plus inter- 10 est pursuant to paragraph (i) of section six hundred eighty-eight of 11 this article. 12 (C) A taxpayer who has failed to receive an advance payment that he or 13 she believes was due to him or her, or who has received an advance 14 payment that he or she believes is less than the amount that was due to 15 him or her, or who did not receive the advance payment by the date 16 prescribed in subparagraph (B) of this paragraph may request payment of 17 the claimed deficiency plus the amount of interest and penalty payment 18 imposed by the school district for late payment of the school tax bill 19 and interest pursuant to paragraph (i) of section six hundred eighty- 20 eight of this article in a manner prescribed by the commissioner. 21 Provided, however, if a taxpayer receives an advanced payment on or 22 after October first, the taxpayer is not eligible for any interest or 23 penalty imposed by the school district that is incurred five business 24 days after the postmark of the advanced payment. 25 § 2. Section 688 of the tax law is amended by adding a new paragraph 26 (i) to read as follows: 27 (i) Notwithstanding any other provisions in this section, interest 28 will be allowed on any advance payment allowed pursuant to paragraph 29 (eee) of section six hundred six of this article that is not postmarked 30 by the fifteenth of September or is less than the amount due the taxpay- 31 er for qualified taxpayers that has applied for the advance payment 32 prior to July first of that tax year or is already eligible to receive 33 an advance payment prior to July first. 34 § 3. This act shall take effect immediately. 35 PART SSS 36 Section 1. Subdivision (a) of section 1115 of the tax law is amended 37 by adding a new paragraph 44 to read as follows: 38 (44) monuments as that term is defined in subdivision (f) of section 39 fifteen hundred two of the not-for-profit corporation law. 40 § 2. This act shall take effect on the first day of a sales tax quar- 41 terly period, as described in subdivision (b) of section 1136 of the tax 42 law, beginning at least ninety days after the date this act shall have 43 become a law and shall apply to sales made on or after such date. 44 PART TTT 45 Section 1. Subdivision (a) of section 1115 of the tax law is amended 46 by adding a new paragraph 7-a to read as follows: 47 (7-a) Tangible personal property and services sold by a cemetery for 48 the exclusive use on the grounds and in the buildings of the cemetery 49 corporation including but not limited to the additional services 50 provided by a cemetery as defined in paragraph (b) of section fifteen 51 hundred nine of the not-for-profit corporation law and for the mainte- 52 nance and preservation of lots, plots and parts thereof.S. 2009--B 129 1 § 2. Subdivision (a) of section 1116 of the tax law is amended by 2 adding a new paragraph 10 to read as follows: 3 (10) A cemetery corporation, as defined in paragraph (a) of section 4 fifteen hundred two of the not-for-profit corporation law, including but 5 not limited to those cemeteries regulated by the religious corporations 6 law where it is the purchaser, user, or consumer, or where it is the 7 vendor of services or property exclusively to be used on the grounds or 8 buildings of the corporation. 9 § 3. The tax law is amended by adding a new section 1149 to read as 10 follows: 11 § 1149. Amnesty program. (a) Notwithstanding the provisions of any 12 other law to the contrary, there is hereby established an amnesty 13 program as described herein, to be administered by the commissioner, to 14 be effective for the period of April first, two thousand seventeen to 15 March fifteenth, two thousand eighteen for all eligible taxpayers as 16 described herein, owing any tax or surcharge imposed or formerly imposed 17 by sections eleven hundred five and eleven hundred ten of this article, 18 and administered by such commissioner. 19 (b) Such amnesty program shall apply to tax liabilities for the taxes 20 set forth in sections eleven hundred five and eleven hundred ten of this 21 article for taxable periods ending or transactions or uses occurring on 22 or before December thirty first, two thousand seventeen. 23 (c) For purposes of the amnesty program established under this 24 section, an eligible taxpayer is a cemetery corporation as defined by 25 paragraph (a) of section fifteen hundred two of the not-for-profit 26 corporation law who or which has a tax liability with regard to one or 27 more of the designated taxes for the period of time described in subdi- 28 vision (b) of this section. 29 (d) The amnesty program established herein shall provide, that upon 30 application, including applicable returns, which application and returns 31 shall be in such form and submitted in such manner as prescribed by the 32 commissioner of taxation and finance, by an eligible taxpayer, and upon 33 payment in such form and in such manner as prescribed by such commis- 34 sioner, which payment shall either accompany such application or be made 35 within the time stated on a bill issued by such commissioner to such 36 taxpayer, of the amount of a tax liability under one or more of the 37 designated taxes with respect to which amnesty is sought, such commis- 38 sioner shall waive any applicable penalties and interest (including the 39 additional rate of interest prescribed under section eleven hundred 40 forty-five of this part). In addition, no civil, administrative or crim- 41 inal action or proceeding shall be brought against such an eligible 42 taxpayer relating to the tax liability covered by such waiver. Failure 43 to pay all such taxes by the later of March fifteenth, two thousand 44 eighteen, or the date prescribed therefor on a bill issued by such 45 commissioner, shall invalidate any amnesty granted pursuant to the 46 amnesty program established under this section. 47 (e) Amnesty tax return forms shall be in a form, contain such informa- 48 tion and be submitted as prescribed by the commissioner and shall 49 provide for specifications by the applicant of the tax liability with 50 respect to which amnesty is sought. The applicant must also provide such 51 additional information as is required by such commissioner. Amnesty 52 shall be granted only with respect to the tax liabilities specified by 53 the taxpayer on such forms. Any return or report filed under the amnesty 54 program established herein is subject to verification and assessment as 55 provided by statute. If the applicant files a false or fraudulent taxS. 2009--B 130 1 return or report, or attempts in any manner to defeat or evade a tax 2 under the amnesty program, amnesty shall be denied or rescinded. 3 (f) With respect to any existing installment payment agreement of an 4 eligible taxpayer, where such agreement applies to a tax liability with 5 respect to which amnesty is sought by such taxpayer, notwithstanding any 6 terms of such agreement to the contrary, such taxpayer, as a condition 7 of receiving amnesty, must pay any such liability in full by the later 8 of the last day of the prescribed amnesty period, or the date prescribed 9 therefor on a bill issued by the commissioner. 10 (g) The commissioner may promulgate regulations, issue forms and 11 instructions and take any and all other actions necessary to implement 12 the provisions of the amnesty program established under this section. 13 Such commissioner shall publicize the amnesty program provided for in 14 this section so as to maximize public awareness of and participation in 15 such program. 16 § 4. On or before February 28, 2020, the commissioner of taxation and 17 finance shall submit a report to the chairperson of the assembly ways 18 and means committee, the ranking minority member of the assembly ways 19 and means committee, the chairperson of the senate finance committee, 20 the ranking minority member of the senate finance committee and the 21 director of the budget regarding the amnesty program established pursu- 22 ant to this act. The report shall contain the following information as 23 of the report cutoff date: (i) the gross revenue collected under each 24 tax and the year or other applicable period for or during which the 25 liability was incurred; (ii) the amount of money spent on advertising, 26 notification, and outreach activities, by each activity, and a 27 description of the form and content of such activities, by each activ- 28 ity; (iii) the amount paid by the department of taxation and finance for 29 services and expenses related to the establishment of the amnesty 30 program; and (iv) an estimate of the net revenue generated from the 31 amnesty program. 32 § 5. This act shall take effect on the first day of the sales tax 33 quarterly period, as described in subdivision (b) of section 1136 of the 34 tax law beginning on or after December 1, 2017. 35 PART UUU 36 Section 1. Subdivision (a) of section 1115 of the tax law is amended 37 by adding a new paragraph 44 to read as follows: 38 (44) Energy efficient tangible personal property of whatever nature 39 for use or consumption directly and exclusively: (i) in the production 40 of snow; (ii) in the uphill transportation of skiers; or (iii) in the 41 grooming and maintenance of snow by any person engaged in the business 42 of operating a recreational facility for skiing. 43 § 2. Section 1115 of the tax law is amended by adding a new subdivi- 44 sion (ll) to read as follows: 45 (ll) Fuel, gas, electricity and refrigeration, and gas, electric and 46 refrigeration service of whatever nature for use or consumption directly 47 and exclusively in the production of snow by any person engaged in the 48 business of operating a recreational facility for skiing, shall be 49 exempt from the taxes imposed under subdivisions (a) and (b) of section 50 eleven hundred five and the compensating use tax imposed under section 51 eleven hundred ten of this article. 52 § 3. This act shall take effect on the first of July next succeeding 53 the date on which it shall have become a law.S. 2009--B 131 1 PART VVV 2 Section 1. Subdivision 13 of section 1118 of the tax law, as added by 3 section 7 of part V of chapter 60 of the laws of 2016, is amended to 4 read as follows: 5 [(13)] (14) In respect to the use of the following items at a tasting 6 held by a licensed producer of alcoholic beverages in accordance with 7 the alcoholic beverage control law: (i) the alcoholic beverage or bever- 8 ages authorized by the alcoholic beverage control law to be furnished 9 [at no charge] to a customer or prospective customer at such tasting for 10 consumption at such tasting; and (ii) bottles, corks, caps and labels 11 used to package such alcoholic beverages. 12 § 2. Paragraph 33 of subdivision (a) of section 1115 of the tax law, 13 as amended by section 1 of part U of chapter 59 of the laws of 2015, is 14 amended to read as follows: 15 (33) Wine or wine product, beer or beer product, cider or cider prod- 16 uct, liquor or liquor product, and the kegs, cans, bottles, growlers, 17 corks, caps, and labels used to package such [wine or wine] alcoholic 18 product, furnished by the official agent of a farm winery, winery, brew- 19 ery, farm brewery, cider producer, farm cidery, distillery, farm distil- 20 lery, wholesaler, or importer at a wine, beer, cider or liquor tasting 21 held in accordance with the alcoholic beverage control law to a customer 22 or prospective customer who consumes such wine, beer, cider or liquor at 23 such [wine] tasting. 24 § 3. This act shall take effect on the first day of the sales tax 25 quarterly period, as described in subdivision (b) of section 1136 of the 26 tax law, beginning at least ninety days after the date this act shall 27 have become a law, and shall apply in accordance with the applicable 28 transitional provisions of sections 1106 and 1217 of the tax law. 29 PART WWW 30 Section 1. Paragraph 2 of subdivision (e) of section 1111 of the tax 31 law is amended by adding a new subparagraph (iv) to read as follows: 32 (iv) Provided, however, when the commissioner determines that the 33 price of motor fuel or Diesel motor fuel results in the payment of sales 34 tax refunds based on the amount of the prepayment provided for in this 35 section, the commissioner, based on such determination, is authorized 36 and empowered to prescribe at the beginning of each sales tax quarter 37 the amount of tax prepayment provided by this subdivision for each 38 region to be collected upon each gallon of motor fuel and Diesel motor 39 fuel sold at retail. Such calculation by the commissioner shall be based 40 on the average retail sales price for motor fuel and Diesel motor fuel 41 within each respective region, calculated by the commissioner. The 42 commissioner shall determine a prepayment rate which is approximately 43 equal to the percentage of the prepayment rate otherwise applicable 44 without causing refunds, based on the amount of tax prepayment, consid- 45 ering the regional average retail sales prices of such fuel within each 46 respective region. Such amended schedules, with reference to the tax 47 required to be prepaid on motor fuel or Diesel motor fuel, may fix the 48 rate per gallon in multiples of one-tenth of one cent. Such authori- 49 zation and empowerment provided within this subparagraph shall expire 50 January first, two thousand twenty-three. 51 § 2. This act shall take effect April 1, 2017, and shall expire and be 52 deemed repealed January 1, 2023.S. 2009--B 132 1 PART XXX 2 Section 1. Subparagraph (A) of paragraph 7 of subdivision (ee) of 3 section 1115 of the tax law, as amended by section 33 of part A of chap- 4 ter 20 of the laws of 2015, is amended to read as follows: 5 (A) "Tenant" means a person who, as lessee, enters into a space lease 6 with a landlord for a term of ten years or more commencing on or after 7 September first, two thousand five, but not later than, in the case of a 8 space lease with respect to leased premises located in eligible areas as 9 defined in clause (i) of subparagraph (D) of this paragraph, September 10 first, two thousand [seventeen] twenty-one and, in the case of a space 11 lease with respect to leased premises located in eligible areas as 12 defined in clause (ii) of subparagraph (D) of this paragraph not later 13 than September first, two thousand [nineteen] twenty-one, of premises 14 for use as commercial office space in buildings located or to be located 15 in the eligible areas. A person who currently occupies premises for use 16 as commercial office space under an existing lease in a building in the 17 eligible areas shall not be eligible for exemption under this subdivi- 18 sion unless such existing lease, in the case of a space lease with 19 respect to leased premises located in eligible areas as defined in 20 clause (i) of subparagraph (D) of this paragraph expires according to 21 its terms before September first, two thousand [seventeen] twenty-one or 22 such existing lease, in the case of a space lease with respect to leased 23 premises located in eligible areas as defined in clause (ii) of subpara- 24 graph (D) of this paragraph and such person enters into a space lease, 25 for a term of ten years or more commencing on or after September first, 26 two thousand five, of premises for use as commercial office space in a 27 building located or to be located in the eligible areas, provided that 28 such space lease with respect to leased premises located in eligible 29 areas as defined in clause (i) of subparagraph (D) of this paragraph 30 commences no later than September first, two thousand [seventeen] twen- 31 ty-one, and provided that such space lease with respect to leased prem- 32 ises located in eligible areas as defined in clause (ii) of subparagraph 33 (D) of this paragraph commences no later than September first, two thou- 34 sand [nineteen] twenty-one and provided, further, that such space lease 35 shall expire no earlier than ten years after the expiration of the 36 original lease. 37 § 2. Section 2 of part C of chapter 2 of the laws of 2005 amending the 38 tax law relating to exemptions from sales and use taxes, as amended by 39 section 34 of part A of chapter 20 of the laws of 2015, is amended to 40 read as follows: 41 § 2. This act shall take effect September 1, 2005 and shall expire and 42 be deemed repealed on December 1, [2020] 2022, and shall apply to sales 43 made, uses occurring and services rendered on or after such effective 44 date, in accordance with the applicable transitional provisions of 45 sections 1106 and 1217 of the tax law; except that clause (i) of subpar- 46 agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the 47 tax law, as added by section one of this act, shall expire and be deemed 48 repealed December 1, [2018] 2022. 49 § 3. Subdivision (b) of section 25-z of the general city law, as 50 amended by section 35 of part A of chapter 20 of the laws of 2015, is 51 amended to read as follows: 52 (b) No eligible business shall be authorized to receive a credit under 53 any local law enacted pursuant to this article until the premises with 54 respect to which it is claiming the credit meet the requirements in the 55 definition of eligible premises and until it has obtained a certif-S. 2009--B 133 1 ication of eligibility from the mayor of such city or an agency desig- 2 nated by such mayor, and an annual certification from such mayor or an 3 agency designated by such mayor as to the number of eligible aggregate 4 employment shares maintained by such eligible business that may qualify 5 for obtaining a tax credit for the eligible business' taxable year. Any 6 written documentation submitted to such mayor or such agency or agencies 7 in order to obtain any such certification shall be deemed a written 8 instrument for purposes of section 175.00 of the penal law. Such local 9 law may provide for application fees to be determined by such mayor or 10 such agency or agencies. No such certification of eligibility shall be 11 issued under any local law enacted pursuant to this article to an eligi- 12 ble business on or after July first, two thousand [seventeen] twenty-one 13 unless: 14 (1) prior to such date such business has purchased, leased or entered 15 into a contract to purchase or lease particular premises or a parcel on 16 which will be constructed such premises or already owned such premises 17 or parcel; 18 (2) prior to such date improvements have been commenced on such prem- 19 ises or parcel, which improvements will meet the requirements of subdi- 20 vision (e) of section twenty-five-y of this article relating to expendi- 21 tures for improvements; 22 (3) prior to such date such business submits a preliminary application 23 for a certification of eligibility to such mayor or such agency or agen- 24 cies with respect to a proposed relocation to such particular premises; 25 and 26 (4) such business relocates to such particular premises not later than 27 thirty-six months or, in a case in which the expenditures made for the 28 improvements specified in paragraph two of this subdivision are in 29 excess of fifty million dollars within seventy-two months from the date 30 of submission of such preliminary application. 31 § 4. Subdivision (b) of section 25-ee of the general city law, as 32 amended by section 36 of part A of chapter 20 of the laws of 2015, is 33 amended to read as follows: 34 (b) No eligible business or special eligible business shall be author- 35 ized to receive a credit against tax under any local law enacted pursu- 36 ant to this article until the premises with respect to which it is 37 claiming the credit meet the requirements in the definition of eligible 38 premises and until it has obtained a certification of eligibility from 39 the mayor of such city or any agency designated by such mayor, and an 40 annual certification from such mayor or an agency designated by such 41 mayor as to the number of eligible aggregate employment shares main- 42 tained by such eligible business or such special eligible business that 43 may qualify for obtaining a tax credit for the eligible business' taxa- 44 ble year. No special eligible business shall be authorized to receive a 45 credit against tax under the provisions of this article unless the 46 number of relocated employee base shares calculated pursuant to subdivi- 47 sion (o) of section twenty-five-dd of this article is equal to or great- 48 er than the lesser of twenty-five percent of the number of New York city 49 base shares calculated pursuant to subdivision (p) of such section and 50 two hundred fifty employment shares. Any written documentation submitted 51 to such mayor or such agency or agencies in order to obtain any such 52 certification shall be deemed a written instrument for purposes of 53 section 175.00 of the penal law. Such local law may provide for applica- 54 tion fees to be determined by such mayor or such agency or agencies. No 55 certification of eligibility shall be issued under any local law enactedS. 2009--B 134 1 pursuant to this article to an eligible business on or after July first, 2 two thousand [seventeen] twenty-one unless: 3 (1) prior to such date such business has purchased, leased or entered 4 into a contract to purchase or lease premises in the eligible Lower 5 Manhattan area or a parcel on which will be constructed such premises; 6 (2) prior to such date improvements have been commenced on such prem- 7 ises or parcel, which improvements will meet the requirements of subdi- 8 vision (e) of section twenty-five-dd of this article relating to expend- 9 itures for improvements; 10 (3) prior to such date such business submits a preliminary application 11 for a certification of eligibility to such mayor or such agency or agen- 12 cies with respect to a proposed relocation to such premises; and 13 (4) such business relocates to such premises as provided in subdivi- 14 sion (j) of section twenty-five-dd of this article not later than thir- 15 ty-six months or, in a case in which the expenditures made for the 16 improvements specified in paragraph two of this subdivision are in 17 excess of fifty million dollars within seventy-two months from the date 18 of submission of such preliminary application. 19 § 5. Subdivision (b) of section 22-622 of the administrative code of 20 the city of New York, as amended by section 37 of part A of chapter 20 21 of the laws of 2015, is amended to read as follows: 22 (b) No eligible business shall be authorized to receive a credit 23 against tax or a reduction in base rent subject to tax under the 24 provisions of this chapter, and of title eleven of the code as described 25 in subdivision (a) of this section, until the premises with respect to 26 which it is claiming the credit meet the requirements in the definition 27 of eligible premises and until it has obtained a certification of eligi- 28 bility from the mayor or an agency designated by the mayor, and an annu- 29 al certification from the mayor or an agency designated by the mayor as 30 to the number of eligible aggregate employment shares maintained by such 31 eligible business that may qualify for obtaining a tax credit for the 32 eligible business' taxable year. Any written documentation submitted to 33 the mayor or such agency or agencies in order to obtain any such certif- 34 ication shall be deemed a written instrument for purposes of section 35 175.00 of the penal law. Application fees for such certifications shall 36 be determined by the mayor or such agency or agencies. No certification 37 of eligibility shall be issued to an eligible business on or after July 38 first, two thousand [seventeen] twenty-one unless: 39 (1) prior to such date such business has purchased, leased or entered 40 into a contract to purchase or lease particular premises or a parcel on 41 which will be constructed such premises or already owned such premises 42 or parcel; 43 (2) prior to such date improvements have been commenced on such prem- 44 ises or parcel which improvements will meet the requirements of subdivi- 45 sion (e) of section 22-621 of this chapter relating to expenditures for 46 improvements; 47 (3) prior to such date such business submits a preliminary application 48 for a certification of eligibility to such mayor or such agency or agen- 49 cies with respect to a proposed relocation to such particular premises; 50 and 51 (4) such business relocates to such particular premises not later than 52 thirty-six months or, in a case in which the expenditures made for 53 improvements specified in paragraph two of this subdivision are in 54 excess of fifty million dollars within seventy-two months from the date 55 of submission of such preliminary application.S. 2009--B 135 1 § 6. Subdivision (b) of section 22-624 of the administrative code of 2 the city of New York, as amended by section 38 of part A of chapter 20 3 of the laws of 2015, is amended to read as follows: 4 (b) No eligible business or special eligible business shall be author- 5 ized to receive a credit against tax under the provisions of this chap- 6 ter, and of title eleven of the code as described in subdivision (a) of 7 this section, until the premises with respect to which it is claiming 8 the credit meet the requirements in the definition of eligible premises 9 and until it has obtained a certification of eligibility from the mayor 10 or an agency designated by the mayor, and an annual certification from 11 the mayor or an agency designated by the mayor as to the number of 12 eligible aggregate employment shares maintained by such eligible busi- 13 ness or special eligible business that may qualify for obtaining a tax 14 credit for the eligible business' taxable year. No special eligible 15 business shall be authorized to receive a credit against tax under the 16 provisions of this chapter and of title eleven of the code unless the 17 number of relocated employee base shares calculated pursuant to subdivi- 18 sion (o) of section 22-623 of this chapter is equal to or greater than 19 the lesser of twenty-five percent of the number of New York city base 20 shares calculated pursuant to subdivision (p) of such section 22-623, 21 and two hundred fifty employment shares. Any written documentation 22 submitted to the mayor or such agency or agencies in order to obtain any 23 such certification shall be deemed a written instrument for purposes of 24 section 175.00 of the penal law. Application fees for such certif- 25 ications shall be determined by the mayor or such agency or agencies. No 26 certification of eligibility shall be issued to an eligible business on 27 or after July first, two thousand [seventeen] twenty-one unless: 28 (1) prior to such date such business has purchased, leased or entered 29 into a contract to purchase or lease premises in the eligible Lower 30 Manhattan area or a parcel on which will be constructed such premises; 31 (2) prior to such date improvements have been commenced on such prem- 32 ises or parcel, which improvements will meet the requirements of subdi- 33 vision (e) of section 22-623 of this chapter relating to expenditures 34 for improvements; 35 (3) prior to such date such business submits a preliminary application 36 for a certification of eligibility to such mayor or such agency or agen- 37 cies with respect to a proposed relocation to such premises; and 38 (4) such business relocates to such premises not later than thirty-six 39 months or, in a case in which the expenditures made for the improvements 40 specified in paragraph two of this subdivision are in excess of fifty 41 million dollars within seventy-two months from the date of submission of 42 such preliminary application. 43 § 7. Paragraph 1 of subdivision (b) of section 25-s of the general 44 city law, as amended by section 39 of part A of chapter 20 of the laws 45 of 2015, is amended to read as follows: 46 (1) non-residential premises that are wholly contained in property 47 that is eligible to obtain benefits under title two-D or two-F of arti- 48 cle four of the real property tax law, or would be eligible to receive 49 benefits under such article except that such property is exempt from 50 real property taxation and the requirements of paragraph (b) of subdivi- 51 sion seven of section four hundred eighty-nine-dddd of such title two-D, 52 or the requirements of subparagraph (ii) of paragraph (b) of subdivision 53 five of section four hundred eighty-nine-cccccc of such title two-F, 54 whichever is applicable, have not been satisfied, provided that applica- 55 tion for such benefits was made after May third, nineteen hundred eight- 56 y-five and prior to July first, two thousand [seventeen] twenty-one,S. 2009--B 136 1 that construction or renovation of such premises was described in such 2 application, that such premises have been substantially improved by such 3 construction or renovation so described, that the minimum required 4 expenditure as defined in such title two-D or two-F, whichever is appli- 5 cable, has been made, and that such real property is located in an 6 eligible area; or 7 § 8. Paragraph 3 of subdivision (b) of section 25-s of the general 8 city law, as amended by section 40 of part A of chapter 20 of the laws 9 of 2015, is amended to read as follows: 10 (3) non-residential premises that are wholly contained in real proper- 11 ty that has obtained approval after October thirty-first, two thousand 12 and prior to July first, two thousand [seventeen] twenty-one for financ- 13 ing by an industrial development agency established pursuant to article 14 eighteen-A of the general municipal law, provided that such financing 15 has been used in whole or in part to substantially improve such premises 16 (by construction or renovation), and that expenditures have been made 17 for improvements to such real property in excess of ten per centum of 18 the value at which such real property was assessed for tax purposes for 19 the tax year in which such improvements commenced, that such expendi- 20 tures have been made within thirty-six months after the earlier of (i) 21 the issuance by such agency of bonds for such financing, or (ii) the 22 conveyance of title to such property to such agency, and that such real 23 property is located in an eligible area; or 24 § 9. Paragraph 5 of subdivision (b) of section 25-s of the general 25 city law, as amended by section 41 of part A of chapter 20 of the laws 26 of 2015, is amended to read as follows: 27 (5) non-residential premises that are wholly contained in real proper- 28 ty owned by such city or the New York state urban development corpo- 29 ration, or a subsidiary thereof, a lease for which was approved in 30 accordance with the applicable provisions of the charter of such city or 31 by the board of directors of such corporation, and such approval was 32 obtained after October thirty-first, two thousand and prior to July 33 first, two thousand [seventeen] twenty-one, provided, however, that such 34 premises were constructed or renovated subsequent to such approval, that 35 expenditures have been made subsequent to such approval for improvements 36 to such real property (by construction or renovation) in excess of ten 37 per centum of the value at which such real property was assessed for tax 38 purposes for the tax year in which such improvements commenced, that 39 such expenditures have been made within thirty-six months after the 40 effective date of such lease, and that such real property is located in 41 an eligible area; or 42 § 10. Paragraph 2 of subdivision (c) of section 25-t of the general 43 city law, as amended by section 42 of part A of chapter 20 of the laws 44 of 2015, is amended to read as follows: 45 (2) No eligible energy user, qualified eligible energy user, on-site 46 cogenerator, or clean on-site cogenerator shall receive a rebate pursu- 47 ant to this article until it has obtained a certification from the 48 appropriate city agency in accordance with a local law enacted pursuant 49 to this section. No such certification for a qualified eligible energy 50 user shall be issued on or after November first, two thousand. No such 51 certification of any other eligible energy user, on-site cogenerator, or 52 clean on-site cogenerator shall be issued on or after July first, two 53 thousand [seventeen] twenty-one. 54 § 11. Paragraph 1 of subdivision (a) of section 25-aa of the general 55 city law, as amended by section 43 of part A of chapter 20 of the laws 56 of 2015, is amended to read as follows:S. 2009--B 137 1 (1) is eligible to obtain benefits under title two-D or two-F of arti- 2 cle four of the real property tax law, or would be eligible to receive 3 benefits under such title except that such property is exempt from real 4 property taxation and the requirements of paragraph (b) of subdivision 5 seven of section four hundred eighty-nine-dddd of such title two-D, or 6 the requirements of subparagraph (ii) of paragraph (b) of subdivision 7 five of section four hundred eighty-nine-cccccc of such title two-F, 8 whichever is applicable, of the real property tax law have not been 9 satisfied, provided that application for such benefits was made after 10 the thirtieth day of June, nineteen hundred ninety-five and before the 11 first day of July, two thousand [seventeen] twenty-one, that 12 construction or renovation of such building or structure was described 13 in such application, that such building or structure has been substan- 14 tially improved by such construction or renovation, and (i) that the 15 minimum required expenditure as defined in such title has been made, or 16 (ii) where there is no applicable minimum required expenditure, the 17 building was constructed within such period or periods of time estab- 18 lished by title two-D or two-F, whichever is applicable, of article four 19 of the real property tax law for construction of a new building or 20 structure; or 21 § 12. Paragraphs 2 and 3 of subdivision (a) of section 25-aa of the 22 general city law, as amended by section 44 of part A of chapter 20 of 23 the laws of 2015, are amended to read as follows: 24 (2) has obtained approval after the thirtieth day of June, nineteen 25 hundred ninety-five and before the first day of July, two thousand 26 [seventeen] twenty-one, for financing by an industrial development agen- 27 cy established pursuant to article eighteen-A of the general municipal 28 law, provided that such financing has been used in whole or in part to 29 substantially improve such building or structure by construction or 30 renovation, that expenditures have been made for improvements to such 31 real property in excess of twenty per centum of the value at which such 32 real property was assessed for tax purposes for the tax year in which 33 such improvements commenced, and that such expenditures have been made 34 within thirty-six months after the earlier of (i) the issuance by such 35 agency of bonds for such financing, or (ii) the conveyance of title to 36 such building or structure to such agency; or 37 (3) is owned by the city of New York or the New York state urban 38 development corporation, or a subsidiary corporation thereof, a lease 39 for which was approved in accordance with the applicable provisions of 40 the charter of such city or by the board of directors of such corpo- 41 ration, as the case may be, and such approval was obtained after the 42 thirtieth day of June, nineteen hundred ninety-five and before the first 43 day of July, two thousand [seventeen] twenty-one, provided that expendi- 44 tures have been made for improvements to such real property in excess of 45 twenty per centum of the value at which such real property was assessed 46 for tax purposes for the tax year in which such improvements commenced, 47 and that such expenditures have been made within thirty-six months after 48 the effective date of such lease; or 49 § 13. Subdivision (f) of section 25-bb of the general city law, as 50 amended by section 45 of part A of chapter 20 of the laws of 2015, is 51 amended to read as follows: 52 (f) Application and certification. An owner or lessee of a building or 53 structure located in an eligible revitalization area, or an agent of 54 such owner or lessee, may apply to such department of small business 55 services for certification that such building or structure is an eligi- 56 ble building or targeted eligible building meeting the criteria ofS. 2009--B 138 1 subdivision (a) or (q) of section twenty-five-aa of this article. 2 Application for such certification must be filed after the thirtieth day 3 of June, nineteen hundred ninety-five and before a building permit is 4 issued for the construction or renovation required by such subdivisions 5 and before the first day of July, two thousand [seventeen] twenty-one, 6 provided that no certification for a targeted eligible building shall be 7 issued after October thirty-first, two thousand. Such application shall 8 identify expenditures to be made that will affect eligibility under such 9 subdivision (a) or (q). Upon completion of such expenditures, an appli- 10 cant shall supplement such application to provide information (i) estab- 11 lishing that the criteria of such subdivision (a) or (q) have been met; 12 (ii) establishing a basis for determining the amount of special rebates, 13 including a basis for an allocation of the special rebate among eligible 14 revitalization area energy users purchasing or otherwise receiving ener- 15 gy services from an eligible redistributor of energy or a qualified 16 eligible redistributor of energy; and (iii) supporting an allocation of 17 charges for energy services between eligible charges and other charges. 18 Such department shall certify a building or structure as an eligible 19 building or targeted eligible building after receipt and review of such 20 information and upon a determination that such information establishes 21 that the building or structure qualifies as an eligible building or 22 targeted eligible building. Such department shall mail such certif- 23 ication or notice thereof to the applicant upon issuance. Such certif- 24 ication shall remain in effect provided the eligible redistributor of 25 energy or qualified eligible redistributor of energy reports any changes 26 that materially affect the amount of the special rebates to which it is 27 entitled or the amount of reduction required by subdivision (c) of this 28 section in an energy services bill of an eligible revitalization area 29 energy user and otherwise complies with the requirements of this arti- 30 cle. Such department shall notify the private utility or public utility 31 service required to make a special rebate to such redistributor of the 32 amount of such special rebate established at the time of certification 33 and any changes in such amount and any suspension or termination by such 34 department of certification under this subdivision. Such department may 35 require some or all of the information required as part of an applica- 36 tion or other report be provided by a licensed engineer. 37 § 14. Paragraph 1 of subdivision (i) of section 22-601 of the adminis- 38 trative code of the city of New York, as amended by section 46 of part A 39 of chapter 20 of the laws of 2015, is amended to read as follows: 40 (1) Non-residential premises that are wholly contained in property 41 that is eligible to obtain benefits under part four or part five of 42 subchapter two of chapter two of title eleven of this code, or would be 43 eligible to receive benefits under such chapter except that such proper- 44 ty is exempt from real property taxation and the requirements of para- 45 graph two of subdivision g of section 11-259 of this code, or the 46 requirements of subparagraph (b) of paragraph two of subdivision e of 47 section 11-270 of this code, whichever is applicable, have not been 48 satisfied, provided that application for such benefits was made after 49 May third, nineteen hundred eighty-five and prior to July first, two 50 thousand [seventeen] twenty-one, that construction or renovation of such 51 premises was described in such application, that such premises have been 52 substantially improved by such construction or renovation so described, 53 that the minimum required expenditure as defined in such part four or 54 part five, whichever is applicable, has been made, and that such real 55 property is located in an eligible area; orS. 2009--B 139 1 § 15. Paragraph 3 of subdivision (i) of section 22-601 of the adminis- 2 trative code of the city of New York, as amended by section 47 of part A 3 of chapter 20 of the laws of 2015, is amended to read as follows: 4 (3) non-residential premises that are wholly contained in real proper- 5 ty that has obtained approval after October thirty-first, two thousand 6 and prior to July first, two thousand [seventeen] twenty-one for financ- 7 ing by an industrial development agency established pursuant to article 8 eighteen-A of the general municipal law, provided that such financing 9 has been used in whole or in part to substantially improve such premises 10 (by construction or renovation), and that expenditures have been made 11 for improvements to such real property in excess of ten per centum of 12 the value at which such real property was assessed for tax purposes for 13 the tax year in which such improvements commenced, that such expendi- 14 tures have been made within thirty-six months after the earlier of (i) 15 the issuance by such agency of bonds for such financing, or (ii) the 16 conveyance of title to such property to such agency, and that such real 17 property is located in an eligible area; or 18 § 16. Paragraph 5 of subdivision (i) of section 22-601 of the adminis- 19 trative code of the city of New York, as amended by section 48 of part A 20 of chapter 20 of the laws of 2015, is amended to read as follows: 21 (5) non-residential premises that are wholly contained in real proper- 22 ty owned by such city or the New York state urban development corpo- 23 ration, or a subsidiary thereof, a lease for which was approved in 24 accordance with the applicable provisions of the charter of such city or 25 by the board of directors of such corporation, and such approval was 26 obtained after October thirty-first, two thousand and prior to July 27 first, two thousand [seventeen] twenty-one, provided, however, that such 28 premises were constructed or renovated subsequent to such approval, that 29 expenditures have been made subsequent to such approval for improvements 30 to such real property (by construction or renovation) in excess of ten 31 per centum of the value at which such real property was assessed for tax 32 purposes for the tax year in which such improvements commenced, that 33 such expenditures have been made within thirty-six months after the 34 effective date of such lease, and that such real property is located in 35 an eligible area; or 36 § 17. Paragraph 1 of subdivision (c) of section 22-602 of the adminis- 37 trative code of the city of New York, as amended by section 49 of part A 38 of chapter 20 of the laws of 2015, is amended to read as follows: 39 (1) No eligible energy user, qualified eligible energy user, on-site 40 cogenerator, clean on-site cogenerator or special eligible energy user 41 shall receive a rebate pursuant to this chapter until it has obtained a 42 certification as an eligible energy user, qualified eligible energy 43 user, on-site cogenerator, clean on-site cogenerator or special eligible 44 energy user, respectively, from the commissioner of small business 45 services. No such certification for a qualified eligible energy user 46 shall be issued on or after July first, two thousand three. No such 47 certification of any other eligible energy user, on-site cogenerator or 48 clean on-site cogenerator shall be issued on or after July first, two 49 thousand [seventeen] twenty-one. The commissioner of small business 50 services, after notice and hearing, may revoke a certification issued 51 pursuant to this subdivision where it is found that eligibility criteria 52 have not been met or that compliance with conditions for continued 53 eligibility has not been maintained. The corporation counsel may main- 54 tain a civil action to recover an amount equal to any benefits improper- 55 ly obtained.S. 2009--B 140 1 § 18. Subparagraph (b-2) of paragraph 2 of subdivision i of section 2 11-704 of the administrative code of the city of New York, as amended by 3 section 50 of part A of chapter 20 of the laws of 2015, is amended to 4 read as follows: 5 (b-2) The amount of the special reduction allowed by this subdivision 6 with respect to a lease other than a sublease commencing between July 7 first, two thousand five and June thirtieth, two thousand [seventeen] 8 twenty-one with an initial or renewal lease term of at least five years 9 shall be determined as follows: 10 (i) For the base year the amount of such special reduction shall be 11 equal to the base rent for the base year. 12 (ii) For the first, second, third and fourth twelve-month periods 13 following the base year the amount of such special reduction shall be 14 equal to the lesser of (A) the base rent for each such twelve-month 15 period or (B) the base rent for the base year. 16 § 19. Subdivision 9 of section 499-aa of the real property tax law, as 17 amended by section 51 of part A of chapter 20 of the laws of 2015, is 18 amended to read as follows: 19 9. "Eligibility period." The period commencing April first, nineteen 20 hundred ninety-five and terminating March thirty-first, two thousand 21 one, provided, however, that with respect to eligible premises defined 22 in subparagraph (i) of paragraph (b) of subdivision ten of this section, 23 the period commencing July first, two thousand and terminating June 24 thirtieth, two thousand [eighteen] twenty-one, and provided, further, 25 however, that with respect to eligible premises defined in subparagraph 26 (ii) of paragraph (b) or paragraph (c) of subdivision ten of this 27 section, the period commencing July first, two thousand five and termi- 28 nating June thirtieth, two thousand [eighteen] twenty-one. 29 § 20. Subparagraph (iii) of paragraph (a) of subdivision 3 of section 30 499-cc of the real property tax law, as amended by section 52 of part A 31 of chapter 20 of the laws of 2015, is amended to read as follows: 32 (iii) With respect to the eligible premises defined in subparagraph 33 (ii) of paragraph (b) or paragraph (c) of subdivision ten of section 34 four hundred ninety-nine-aa of this title and for purposes of determin- 35 ing whether the amount of expenditures required by subdivision one of 36 this section have been satisfied, expenditures on improvements to the 37 common areas of an eligible building shall be included only if work on 38 such improvements commenced and the expenditures are made on or after 39 July first, two thousand five and on or before December thirty-first, 40 two thousand [eighteen] twenty-one; provided, however, that expenditures 41 on improvements to the common areas of an eligible building made prior 42 to three years before the lease commencement date shall not be included. 43 § 21. Subdivisions 5 and 9 of section 499-a of the real property tax 44 law, as amended by section 53 of part A of chapter 20 of the laws of 45 2015, are amended to read as follows: 46 5. "Benefit period." The period commencing with the first day of the 47 month immediately following the rent commencement date and terminating 48 no later than sixty months thereafter, provided, however, that with 49 respect to a lease commencing on or after April first, nineteen hundred 50 ninety-seven with an initial lease term of less than five years, but not 51 less than three years, the period commencing with the first day of the 52 month immediately following the rent commencement date and terminating 53 no later than thirty-six months thereafter. Notwithstanding the forego- 54 ing sentence, a benefit period shall expire no later than March thirty- 55 first, two thousand [twenty-four] twenty-seven.S. 2009--B 141 1 9. "Eligibility period." The period commencing April first, nineteen 2 hundred ninety-five and terminating March thirty-first, two thousand 3 [eighteen] twenty-one. 4 § 22. paragraph (a) of subdivision 3 of section 449-c of the real 5 property tax law, as amended by section 54 of part A of chapter 20 of 6 the laws of 2015, is amended to read as follows: 7 (a) For purposes of determining whether the amount of expenditures 8 required by subdivision one of this section have been satisfied, expend- 9 itures on improvements to the common areas of an eligible building shall 10 be included only if work on such improvements commenced and the expendi- 11 tures are made on or after April first, nineteen hundred ninety-five and 12 on or before September thirtieth, two thousand [eighteen] twenty-one; 13 provided, however, that expenditures on improvements to the common areas 14 of an eligible building made prior to three years before the lease 15 commencement date shall not be included. 16 § 23. Subdivision 8 of section 499-d of the real property tax law, as 17 amended by section 55 of part A of chapter 20 of the laws of 2015, is 18 amended to read as follows: 19 8. Leases commencing on or after April first, nineteen hundred nine- 20 ty-seven shall be subject to the provisions of this title as amended by 21 chapter six hundred twenty-nine of the laws of nineteen hundred ninety- 22 seven, chapter one hundred eighteen of the laws of two thousand one, 23 chapter four hundred forty of the laws of two thousand three, chapter 24 sixty of the laws of two thousand seven, chapter twenty-two of the laws 25 of two thousand ten, chapter fifty-nine of the laws of two thousand 26 fourteen, chapter twenty of the laws of two thousand fifteen and the 27 chapter of the laws of two thousand [fifteen] seventeen that added this 28 phrase. Notwithstanding any other provision of law to the contrary, with 29 respect to leases commencing on or after April first, nineteen hundred 30 ninety-seven, an application for a certificate of abatement shall be 31 considered timely filed if filed within one hundred eighty days follow- 32 ing the lease commencement date or within sixty days following the date 33 chapter six hundred twenty-nine of the laws of nineteen hundred ninety- 34 seven became a law, whichever is later. 35 § 24. Subparagraph (a) of paragraph 2 of subdivision i of section 36 11-704 of the administrative code of the city of New York, as amended by 37 section 56 of part A of chapter 20 of the laws of 2015, is amended to 38 read as follows: 39 (a) An eligible tenant of eligible taxable premises shall be allowed a 40 special reduction in determining the taxable base rent for such eligible 41 taxable premises. Such special reduction shall be allowed with respect 42 to the rent for such eligible taxable premises for a period not exceed- 43 ing sixty months or, with respect to a lease commencing on or after 44 April first, nineteen hundred ninety-seven with an initial lease term of 45 less than five years, but not less than three years, for a period not 46 exceeding thirty-six months, commencing on the rent commencement date 47 applicable to such eligible taxable premises, provided, however, that in 48 no event shall any special reduction be allowed for any period beginning 49 after March thirty-first, two thousand [twenty-four] twenty-seven. For 50 purposes of applying such special reduction, the base rent for the base 51 year shall, where necessary to determine the amount of the special 52 reduction allowable with respect to any number of months falling within 53 a tax period, be prorated by dividing the base rent for the base year by 54 twelve and multiplying the result by such number of months.S. 2009--B 142 1 § 25. Paragraph (a) of subdivision 1 of section 489-dddddd of the real 2 property tax law, as amended by section 57 of part A of chapter 20 of 3 the laws of 2015, is amended to read as follows: 4 (a) Application for benefits pursuant to this title may be made imme- 5 diately following the effective date of a local law enacted pursuant to 6 this title and continuing until March first, two thousand [nineteen] 7 twenty-one. 8 § 26. Subdivision 3 of section 489-dddddd of the real property tax 9 law, as amended by section 58 of part A of chapter 20 of the laws of 10 2015, is amended to read as follows: 11 3. (a) No benefits pursuant to this title shall be granted for 12 construction work performed pursuant to a building permit issued after 13 April first, two thousand [nineteen] twenty-one. 14 (b) If no building permit was required, then no benefits pursuant to 15 this title shall be granted for construction work that is commenced 16 after April first, two thousand [nineteen] twenty-one. 17 § 27. Paragraph 1 of subdivision a of section 11-271 of the adminis- 18 trative code of the city of New York, as amended by section 59 of part A 19 of chapter 20 of the laws of 2015, is amended to read as follows: 20 (1) Application for benefits pursuant to this part may be made imme- 21 diately following the effective date of the local law that added this 22 section and continuing until March first, two thousand [nineteen] twen- 23 ty-one. 24 § 28. Subdivision c of section 11-271 of the administrative code of 25 the city of New York, as amended by section 60 of part A of chapter 20 26 of the laws of 2015, is amended to read as follows: 27 c. (1) No benefits pursuant to this part shall be granted for 28 construction work performed pursuant to a building permit issued after 29 April first, two thousand [nineteen] twenty-one. 30 (2) If no building permit was required, then no benefits pursuant to 31 this part shall be granted for construction work that is commenced after 32 April first, two thousand [nineteen] twenty-one. 33 § 28-a. Subparagraph (A) of paragraph 2 of subdivision (f) of section 34 11-1706 of the administrative code of the city of New York, as amended 35 by section 60-a of part A of chapter 20 of the laws of 2015, is amended 36 to read as follows: 37 (A) Subject to the limitations set forth in subparagraphs (B) and (C) 38 of this paragraph, the credit allowed to a taxpayer for a taxable year 39 under this subdivision shall be determined as follows: 40 (i) For taxable years beginning on or after January first, two thou- 41 sand fourteen and before July first, two thousand [nineteen] twenty-one: 42 (I) If the city taxable income is thirty-five thousand dollars or 43 less, the amount of the credit shall be one hundred percent of the 44 amount determined in paragraph three of this subdivision. 45 (II) If the city taxable income is greater than thirty-five thousand 46 dollars but less than one hundred thousand dollars, the amount of the 47 credit shall be a percentage of the amount determined in paragraph three 48 of this subdivision, such percentage to be determined by subtracting 49 from one hundred percent, a percentage determined by subtracting thir- 50 ty-five thousand dollars from city taxable income, dividing the result 51 by sixty-five thousand dollars and multiplying by one hundred percent. 52 (III) If the city taxable income is one hundred thousand dollars or 53 greater, no credit shall be allowed. 54 (IV) Provided further that for any taxable year of a taxpayer for 55 which this credit is effective that encompasses days occurring after 56 June thirtieth, two thousand [nineteen] twenty-one, the amount of theS. 2009--B 143 1 credit determined in item (I) or (II) of this clause shall be multiplied 2 by a fraction, the numerator of which is the number of days in the 3 taxpayer's taxable year occurring on or before June thirtieth, two thou- 4 sand [nineteen] twenty-one, and the denominator of which is the number 5 of days in the taxpayer's taxable year. 6 § 29. The opening paragraph of subparagraph (B) of paragraph 2 of 7 subdivision (b) of section 1402 of the tax law, as amended by chapter 8 500 of the laws of 2014, is amended to read as follows: 9 For purposes of this subdivision, the phrase "real estate investment 10 trust transfer" shall mean any conveyance of real property or an inter- 11 est therein to a REIT, or to a partnership or corporation in which a 12 REIT owns a controlling interest immediately following the conveyance, 13 which conveyance (I) occurs in connection with the initial formation of 14 the REIT, provided that the conditions set forth in clauses (i) and (ii) 15 of this subparagraph are satisfied, or (II) in the case of any real 16 estate investment trust transfer occurring on or after July thirteenth, 17 nineteen hundred ninety-six and before September first, two thousand 18 [seventeen] twenty-one, is described in the last sentence of this 19 subparagraph. 20 § 29-a. Subparagraph 2 of paragraph (xi) of subdivision (b) of section 21 1201 of the tax law, as amended by chapter 500 of the laws of 2014, is 22 amended to read as follows: 23 (2) any issuance or transfer of an interest in a REIT, or in a part- 24 nership or corporation in which a REIT owns a controlling interest imme- 25 diately following the issuance or transfer, in connection with a trans- 26 action described in subparagraph one of this paragraph. Notwithstanding 27 the foregoing, a transaction described in the preceding sentence shall 28 not constitute a real estate investment trust transfer unless (A) it 29 occurs in connection with the initial formation of the REIT and the 30 conditions described in subparagraphs three and four of this paragraph 31 are satisfied, or (B) in the case of any real estate investment trust 32 transfer occurring on or after July thirteenth, nineteen hundred nine- 33 ty-six and before September first, two thousand [seventeen] twenty-one, 34 the transaction is described in subparagraph five of this paragraph in 35 which case the provisions of such subparagraph shall apply. 36 § 29-b. Subparagraph (B) of paragraph 2 of subdivision e of section 37 11-2102 of the administrative code of the city of New York, as amended 38 by chapter 500 of the laws of 2014, is amended to read as follows: 39 (B) any issuance or transfer of an interest in a REIT, or in a part- 40 nership or corporation in which a REIT owns a controlling interest imme- 41 diately following the issuance or transfer in connection with a trans- 42 action described in subparagraph (A) of this paragraph. Notwithstanding 43 the foregoing, a transaction described in the preceding sentence shall 44 not constitute a real estate investment trust transfer unless (i) it 45 occurs in connection with the initial formation of the REIT and the 46 conditions described in subparagraphs (C) and (D) of this paragraph are 47 satisfied, or (ii) in the case of any real estate investment trust 48 transfer occurring on or after July thirteenth, nineteen hundred nine- 49 ty-six and before September first, two thousand [seventeen] twenty-one, 50 the transaction is described in subparagraph (E) of this paragraph in 51 which case the provision of such subparagraph shall apply. 52 § 30. This act shall take effect immediately. 53 PART YYYS. 2009--B 144 1 Section 1. Short title. This act shall be known and may be cited as 2 the "education affordability act". 3 § 2. The tax law is amended by adding a new section 43 to read as 4 follows: 5 § 43. Education affordability tax credit. (a) Definitions. For the 6 purposes of this section, the following terms shall have the same defi- 7 nition as provided for in article twenty-five of the education law: 8 "Authorized contribution"; 9 "Contribution"; 10 "Educational program"; 11 "Educational scholarship organization"; 12 "Eligible pupil"; 13 "Local education fund"; 14 "Nonpublic school"; 15 "Public education entity"; 16 "Public school"; 17 "Qualified contribution"; 18 "Qualified educator"; 19 "Qualified school"; 20 "Scholarship"; and 21 "School improvement organization". 22 (b) Allowance of credit. A taxpayer subject to tax under article 23 nine-A or twenty-two of this chapter shall be allowed credit against 24 such tax, pursuant to the provisions referenced in subdivision (l) of 25 this section, with respect to qualified contributions made during the 26 taxable year. 27 (c) Amount of credit. For taxpayers whose federal adjusted gross 28 income is less than three hundred thousand dollars for the taxable year 29 during which such taxpayer made at least one qualified contribution, the 30 amount of the credit shall be ninety percent of the taxpayer's total 31 qualified contributions, capped at eight hundred seventy-five thousand 32 dollars. For taxpayers whose federal adjusted gross income is greater 33 than or equal to three hundred thousand dollars for the taxable year 34 during which such taxpayer made at least one qualified contribution, the 35 amount of credit shall be seventy-five percent of the taxpayer's total 36 qualified contributions, capped at eight hundred seventy-five thousand 37 dollars. A taxpayer that is a partner in a partnership, member of a 38 limited liability company or shareholder in an S corporation shall be 39 allowed to claim its pro rata share of the credit earned by the partner- 40 ship, limited liability company or S corporation, provided that such a 41 taxpayer shall not claim credit in excess of eight hundred seventy-five 42 thousand dollars. 43 (d) Information to be posted on the department's website. The commis- 44 sioner shall maintain on the department's website a running total of the 45 amount of available credit for which taxpayers may apply pursuant to 46 this section. Such running total shall be updated on a daily basis. 47 Additionally, the commissioner shall maintain on the department's 48 website a list of the school improvement organizations, local education 49 funds and educational scholarship organizations approved to issue 50 certificates of receipt pursuant to article twenty-five of the education 51 law. The commissioner shall also maintain on the department's website a 52 list of public education entities, school improvement organizations, 53 local education funds and educational scholarship organizations whose 54 approval to issue certificates of receipt has been revoked along with 55 the date of revocation.S. 2009--B 145 1 (e) Applications for contribution authorization certificates. Prior to 2 making a contribution to a public education entity, school improvement 3 organization, local education fund, or educational scholarship organiza- 4 tion, the taxpayer shall apply to the department for a contribution 5 authorization certificate for such contribution. Such application shall 6 be in the form and manner prescribed by the department. The department 7 may allow taxpayers to make multiple applications on the same form, 8 provided that each contribution listed on such application shall be 9 treated as a separate application and that the department shall issue 10 separate contribution authorization certificates for each such applica- 11 tion. 12 (f) Contribution authorization certificates. 1. Issuance of certif- 13 icates. The commissioner shall issue contribution authorization certif- 14 icates in two phases. In phase one, which begins on the first day of 15 January and ends on the thirty-first day of January, the commissioner 16 shall accept applications for contribution authorization certificates. 17 Commencing after the fifth day of February, the commissioner shall issue 18 contribution authorization certificates for applications received during 19 phase one, provided that if the aggregate total of the contributions for 20 which applications have been received during phase one exceeds the 21 amount of the credit cap in subdivision (h) of this section, then phase 22 one of the credit cap application shall be allocated in two steps. In 23 step one, the allocation shall equal the contribution cap divided by the 24 total number of applications for contributions, rounded down to the 25 nearest cent. Each application requesting an amount which is less than 26 or equal to the allocation in step one shall receive the amount on their 27 application for contribution and the difference, which shall be referred 28 to as "excess distributions" for the purposes of this subdivision, shall 29 be available for allocation in step two. Each application requesting an 30 amount which exceeds the allocation in step one shall be allocated cred- 31 its in step two. In step two, if excess distributions equal zero then 32 each application shall receive the allocation amount from step one, 33 otherwise each application shall receive an amount equal to the sum of 34 the (i) the allocation amount in step one and (ii) a pro rata share of 35 aggregate excess distributions based on the difference between the 36 amount on their application for contribution and the allocation in step 37 one. For the purposes of this subdivision, multiple applications by the 38 same taxpayer shall be treated as one application. If the credit cap is 39 not exceeded, phase two commences on February twentieth and ends on 40 October thirty-first. During phase two the commissioner shall issue 41 contribution authorization certificates on a first-come first serve 42 basis based upon the date the department received the taxpayer's appli- 43 cation for such certificate. Contribution authorization certificates 44 for applications received during phase one shall be mailed no later than 45 the twentieth day of February. Contribution authorization certificates 46 for applications received during phase two shall be mailed within five 47 days of receipt of such applications. 48 2. Contribution authorization certificate contents. Each contribution 49 authorization certificate shall state (i) the date such certificate was 50 issued, (ii) the date by which the authorized contribution listed on the 51 certificate must be made, which shall be no later than December thirty- 52 first of the year for which the contribution authorization certificate 53 was issued, (iii) the amount of authorized contribution, (iv) the 54 certificate number, (v) the taxpayer's name and address, (vi) the name 55 and address of the public education entity, school improvement organiza- 56 tion, local education fund or educational scholarship organization toS. 2009--B 146 1 which the taxpayer may make the authorized contribution, and (vii) any 2 other information that the commissioner deems necessary. 3 3. Notification of the issuance of a contribution authorization 4 certificate. Upon the issuance of a contribution authorization certif- 5 icate to a taxpayer, the commissioner shall notify the public education 6 entity, school improvement organization, local education fund or educa- 7 tional scholarship organization of the issuance of such contribution 8 authorization certificate. Such notification shall include (i) the 9 taxpayer's name and address, (ii) the date such certificate was issued, 10 (iii) the date by which the authorized contribution listed in the 11 notification must be made by the taxpayer, (iv) the amount of the 12 authorized contribution, (v) the contribution authorization certif- 13 icate's certificate number, and (vi) any other information that the 14 commissioner deems necessary. 15 (g) Certificate of receipt. 1. In general. No public education entity, 16 school improvement organization, local education fund, or educational 17 scholarship organization shall issue a certificate of receipt for any 18 contribution made by a taxpayer unless such public education entity, 19 school improvement organization, local education fund, or educational 20 scholarship organization has been approved to issue certificates of 21 receipt pursuant to article twenty-five of the education law. No public 22 education entity, school improvement organization, local education fund, 23 or educational scholarship organization shall issue a certificate of 24 receipt for a contribution made by a taxpayer unless such public educa- 25 tion entity, school improvement organization, local education fund, or 26 educational scholarship organization has received notice from the 27 department that the department issued a contribution authorization 28 certificate to the taxpayer for such contribution. 29 2. Timely contribution. If a taxpayer makes an authorized contribution 30 to the public education entity, school improvement organization, local 31 education fund, or educational scholarship organization set forth on the 32 contribution authorization certificate issued to the taxpayer no later 33 than the date by which such authorized contribution is required to be 34 made, such public education entity, school improvement organization, 35 local education fund, or educational scholarship organization shall, 36 within thirty days of receipt of the authorized contribution, issue to 37 the taxpayer a certificate of receipt; provided, however, that if the 38 taxpayer contributes an amount that is less than the amount listed on 39 the taxpayer's contribution authorization certificate, the taxpayer 40 shall not be issued a certificate of receipt for such contribution. 41 3. Certificate of receipt contents. Each certificate of receipt shall 42 state (i) the name and address of the issuing public education entity, 43 school improvement organization, local education fund, or educational 44 scholarship organization, (ii) the taxpayer's name and address, (iii) 45 the date for each contribution, (iv) the amount of each contribution and 46 the corresponding contribution authorization certificate number, (v) the 47 total amount of contributions, (vi) certificate of receipt number and 48 (vii) any other information that the commissioner may deem necessary. 49 4. Notification to the department for the issuance of a certificate of 50 receipt. Upon the issuance of a certificate of receipt, the issuing 51 public education entity, school improvement organization, local educa- 52 tion fund, or educational scholarship organization shall, within thirty 53 days of issuing the certificate of receipt, provide the department with 54 notification of the issuance of such certificate in the form and manner 55 prescribed by the department.S. 2009--B 147 1 5. Notification to the department of the non-issuance of a certificate 2 of receipt. Each public education entity, school improvement organiza- 3 tion, local education fund, or educational scholarship organization that 4 received notification from the department pursuant to subdivision (f) of 5 this section regarding the issuance of a contribution authorization 6 certificate to a taxpayer shall, within thirty days of the expiration 7 date for such authorized contribution, provide notification to the 8 department for each taxpayer that failed to make the authorized contrib- 9 ution to such public education entity, school improvement organization, 10 local education fund, or educational scholarship organization in the 11 form and manner prescribed by the department. 12 6. Failure to notify the department. Within thirty days of the discov- 13 ery of the failure of any public education entity, school improvement 14 program, local education fund, or educational scholarship organization 15 to comply with the notification requirements prescribed by paragraphs 16 four and five of this subdivision, the commissioner shall issue a notice 17 of compliance failure to such entity, program, fund, or organization. 18 Such entity, program, fund, or organization shall have thirty days from 19 the date of such notice to make the notifications prescribed by para- 20 graphs four and five of this subdivision. Such period may be extended 21 for an additional thirty days upon the request of the entity, program, 22 fund, or organization. Upon the expiration of period for compliance set 23 forth in the notice prescribed by this paragraph, the commissioner shall 24 notify the commissioner of education that such entity, program, fund, or 25 organization failed to make the notifications prescribed by paragraphs 26 four and five of this subdivision. 27 (h) Credit cap. The maximum permitted credits under this section 28 available to all taxpayers for qualified contributions for calendar year 29 two thousand eighteen shall be one hundred fifty million dollars. In 30 calendar year two thousand nineteen, the maximum permitted credits under 31 this section available to all taxpayers shall be two hundred twenty-five 32 million dollars plus any amounts that are required to be added to the 33 cap pursuant to subdivision (i) of this section. For calendar year two 34 thousand twenty and each calendar year thereafter, the maximum permitted 35 credits available to all taxpayers shall be three hundred million 36 dollars plus any amounts that are required to be added to the cap pursu- 37 ant to subdivision (i) of this section. The maximum permitted credits 38 under this section for qualified contributions shall be allocated fifty 39 percent to public education entities, school improvement organizations, 40 and local education funds and fifty percent to educational scholarship 41 organizations. 42 (i) Additions to credit cap. Unissued certificates of receipt. Any 43 amounts for which the department receives notification of non-issuance 44 of a certificate of receipt shall be added to the cap prescribed in 45 subdivision (h) of this section for the immediately following year. 46 (j) Regulations. The commissioner is hereby authorized to promulgate 47 and adopt on an emergency basis regulations necessary for the implemen- 48 tation of this section. 49 (k) Written report. On or before the last day of June for each calen- 50 dar year, for the immediately preceding year, the commissioner and the 51 commissioner of education shall jointly submit a written report to the 52 governor, the temporary president of the senate, the speaker of the 53 assembly, the chairman of the senate finance committee and the chairman 54 of the assembly ways and means committee regarding the education afford- 55 ability tax credit. Such report shall contain information for articles 56 nine-A and twenty-two, respectively, regarding: (i) the number of appli-S. 2009--B 148 1 cations received; (ii) the number of and aggregate value of the contrib- 2 ution authorization certificates issued for contributions to public 3 education entities, school improvement organizations, local education 4 funds, and scholarship organizations, respectively; (iii) the geograph- 5 ical distribution by county of (A) the applications for contribution 6 authorization certificates, distribution by county of (B) the public 7 education entities, school improvement organizations, local education 8 funds, and educational scholarship organizations listed on the issued 9 contribution authorization certificates; and (iv) information, including 10 geographical distribution by county, of the number of eligible pupils 11 that received scholarships, the number of qualified schools attended by 12 eligible pupils that received such scholarships, and the average value 13 of scholarships received by such eligible pupils. The commissioner and 14 designated employees of the department, the commissioner of education 15 and designated employees of the state education department, shall be 16 allowed and are directed to share and exchange information regarding the 17 school improvement organizations, local education funds and educational 18 scholarship organizations that applied for approval to be authorized to 19 receive qualified contributions; and the public education entities, 20 school improvement organizations, local education funds, and educational 21 scholarship organizations authorized to issue certificates of receipt, 22 including information contained in or derived from application forms and 23 reports submitted to the commissioner of education. 24 (l) Cross references. For application of the credit provided for in 25 this section, see the following provisions of this chapter: 26 1. Article 9-A: section 210-B; subdivision 49; 27 2. Article 22: section 606; subsections (i) and (ccc). 28 § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is 29 amended by adding a new subparagraph 22 to read as follows: 30 (22) The amount of any deduction allowed pursuant to section one 31 hundred seventy of the internal revenue code for which a credit is 32 claimed pursuant to subdivision forty-nine of section two hundred ten-B 33 of this article. 34 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 35 sion 49 to read as follows: 36 49. Education affordability tax credit. (a) Allowance of credit. A 37 taxpayer shall be allowed a credit, to be computed as provided in 38 section forty-two of this chapter, against the tax imposed by this arti- 39 cle. 40 (b) Application of credit. The credit allowed under this subdivision 41 for any taxable year shall not reduce the tax due for that year to less 42 than the higher of the amounts prescribed in paragraphs (c) or (d) of 43 subdivision one of section two hundred ten of this article. However, if 44 the amount of credit allowed under this subdivision for qualified 45 contributions for any taxable year reduces the tax to such amount, any 46 amount of credit not deductible in such taxable year may be carried over 47 to the succeeding five years and may be deducted from the taxpayer's tax 48 for such year or years. 49 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 50 of the tax law is amended by adding a new clause (xliii) to read as 51 follows: 52 (xliii) Education affordability Amount of credit under 53 tax credit under subsection (ccc) subdivision forty-nine of section 54 two hundred ten-B 55 § 6. Section 606 of the tax law is amended by adding two new 56 subsections (w) and (w-1) to read as follows:S. 2009--B 149 1 (w) Home-based instructional materials credit. (1) For taxable years 2 beginning on or after January first, two thousand eighteen, a taxpayer 3 shall be allowed a credit against the tax imposed by this article for 4 the purchase of instructional materials approved by the education 5 department for use in non-public home-based educational programs; 6 provided, that the amount of credit claimed does not exceed the lesser 7 of two hundred dollars or one hundred percent of the cost of such 8 purchases made by the taxpayer during the taxable year. 9 (2) A husband and wife who file separate returns for a taxable year in 10 which they could have filed a joint return may each claim only one-half 11 of the tax credit that would have been allowed for a joint return. 12 (3) If the amount of the credit allowed under this subsection for any 13 taxable year shall exceed the taxpayer's tax for such year, the excess 14 shall be treated as an overpayment of tax to be credited or refunded in 15 accordance with the provisions of section six hundred eighty-six of this 16 article, provided, however, that no interest shall be paid thereon. 17 (w-1) Instructional materials and supplies credit. (1) For taxable 18 years beginning on and after January first, two thousand eighteen, a 19 taxpayer shall be allowed a credit equal to the lesser of the amount 20 paid by the taxpayer during the taxable year for instructional materials 21 and supplies, or two hundred dollars; provided that the taxpayer is a 22 teacher or instructor in a qualified school, as defined in section 23 forty-three of this chapter, for at least nine hundred hours during a 24 school year. For purposes of this subsection, the term "materials and 25 supplies" means instructional materials or supplies that are used in the 26 classroom in any qualified school. 27 (2) A husband and wife who file separate returns for a taxable year in 28 which they could have filed a joint return may each claim only one-half 29 of the tax credit that would have been allowed for a joint return. 30 (3) If the amount of the credit allowed under this subsection for any 31 taxable year shall exceed the taxpayer's tax for such year, the excess 32 shall be treated as an overpayment of tax to be credited or refunded in 33 accordance with the provisions of section six hundred eighty-six of this 34 article, provided, however, that no interest shall be paid thereon. 35 § 7. Section 606 of the tax law is amended by adding a new subsection 36 (ccc) to read as follows: 37 (ccc) Education affordability tax credit. (1) Allowance of credit. A 38 taxpayer shall be allowed a credit to be computed as provided in section 39 forty-three of this chapter, against the tax imposed by this article. 40 (2) Application of credit. If the amount of the credit allowed under 41 this subsection for any qualified contributions for any taxable year 42 exceeds the taxpayer's tax for such year, the excess may be carried over 43 to the succeeding five years and may be deducted from the taxpayer's tax 44 for such year or years. 45 § 8. Subsection (c) of section 615 of the tax law is amended by adding 46 a new paragraph 9 to read as follows: 47 (9) The amount of any federal deduction for contributions made for 48 which a taxpayer claims a credit under subsection (ccc) of section six 49 hundred six of this article. 50 § 9. Section 606 of the tax law is amended by adding a new subsection 51 (hhh) to read as follows: 52 (hhh) Helping open opportunities to learn tax credit. (1) General. A 53 resident low and middle income taxpayer shall be allowed a credit, to be 54 computed as provided in paragraph three of this subsection, against the 55 tax imposed by this article for the qualified primary or secondary 56 education tuition expenses paid by the taxpayer during the taxable year.S. 2009--B 150 1 (2) Definitions. For purposes of this subsection, the following terms 2 shall have the following meanings: 3 (A) "Resident low and middle income taxpayer" shall mean a taxpayer 4 who is a full-year resident of this state and whose federal taxable 5 income is equal to or less than seven hundred twenty percent of the 6 federal poverty guidelines, as promulgated annually by the United States 7 department of health and human services, for the taxable year for which 8 this credit is claimed. 9 (B) "Qualified primary or secondary education tuition expenses" shall 10 mean the tuition required for the enrollment or attendance of an eligi- 11 ble student at a qualified school, as defined in section forty-three of 12 this chapter. Provided, however, that any tuition payments made for such 13 eligible student pursuant to the receipt of financial aid or one or more 14 scholarships shall be excluded from the definition of the term "quali- 15 fied primary or secondary education tuition expenses" for such eligible 16 student. 17 (C) "Eligible student" shall mean any dependent of the taxpayer with 18 respect to whom the taxpayer is allowed an exemption under section six 19 hundred sixteen of this article for the taxable year who is enrolled in, 20 and for whom qualified primary and secondary education tuition expenses 21 have been paid for, kindergarten or grade one through twelve in a quali- 22 fied school. 23 (3) Amount of credit. The amount of credit that a resident low or 24 middle income taxpayer may claim for the qualified primary or secondary 25 education tuition expenses paid for each eligible student shall equal 26 the lesser of fifteen percent of the qualified primary or secondary 27 education tuition expenses paid by the taxpayer during the taxable year 28 for such eligible student, or six hundred dollars. 29 (4) Application of credit. If the amount of the credit allowed under 30 this subsection for any taxable year shall exceed the taxpayer's tax for 31 such year, the excess shall be treated as an overpayment of tax to be 32 credited or refunded in accordance with the provisions of section six 33 hundred eighty-six of this article, provided, however, that no interest 34 shall be paid thereon. 35 (5) Husband and wife. In the case of a husband and wife who file a 36 joint federal return, but who are required to determine their New York 37 taxes separately, the credit allowed pursuant to this subsection may be 38 applied against the tax imposed of either or divided between them as 39 they may elect. 40 § 10. The education law is amended by adding a new article 25 to read 41 as follows: 42 ARTICLE 25 43 EDUCATION AFFORDABILITY PROGRAM 44 Section 1209. Short title. 45 1210. Definitions. 46 1211. Approval to issue certificates of receipt. 47 1212. Applications for approval to issue certificates of 48 receipt. 49 1213. Application approval. 50 1214. Revocation of approval to issue certificates of receipt. 51 1215. Recordkeeping. 52 1216. Joint annual report. 53 1217. Commissioner; powers. 54 § 1209. Short title. This article shall be known and may be cited as 55 the "education affordability program".S. 2009--B 151 1 § 1210. Definitions. As used in this article, the following terms 2 shall have the following meanings: 3 1. "Authorized contribution" means the contribution amount listed on 4 the contribution authorization certificate issued to a taxpayer. 5 2. "Contribution" means a donation paid by cash, check, electronic 6 funds transfer, debit card or credit card made by the taxpayer during 7 the tax year. 8 3. "Educational program" means an academic program of a public school 9 that enhances the curriculum, or provides or expands a pre-kindergarten 10 program or an after-school program to the public school. For purposes of 11 this definition, the instruction, materials, programs or other activ- 12 ities offered by or through an educational program may include, but are 13 not limited to, the following features: (a) instruction or materials 14 promoting health, physical education, and family and consumer sciences; 15 literary, performing and visual arts; mathematics, social studies, tech- 16 nology and scientific achievement; (b) instruction or programming to 17 meet the education needs of at-risk students or students with disabili- 18 ties, including tutoring or counseling; or (c) use of specialized 19 instructional materials, instructors or instruction not provided by a 20 public school. 21 4. "Educational scholarship organization" means a not-for-profit enti- 22 ty which (a) is exempt from taxation under paragraph three of subsection 23 (c) of section five hundred one of the internal revenue code, (b) 24 commits for the expenditure of at least ninety percent of the revenue 25 from qualified contributions received during the calendar year and any 26 income derived from qualified contributions for scholarships, (c) depos- 27 its and holds qualified contributions and any income derived from quali- 28 fied contributions in an account that is separate from the organiza- 29 tion's operating or other funds until such qualified contributions or 30 income are withdrawn for use, and (d) provides scholarships to eligible 31 pupils for use at no fewer than three qualified schools. 32 5. "Eligible pupil" means a child who (a) is a resident of this state, 33 (b) is school age in accordance with subdivision one of section thirty- 34 two hundred two of this chapter or who is four years of age on or before 35 December first of the year in which they are enrolled in a pre-kinder- 36 garten program, (c) attends or is about to attend a qualified school, 37 and (d) resides in a household that has a federal adjusted gross income 38 of five hundred thousand dollars or less, provided however, for house- 39 holds with three or more dependent children, such income level shall be 40 increased by ten thousand dollars per dependent child in excess of two, 41 not to exceed five hundred fifty thousand dollars. 42 6. "Local education fund" means a not-for-profit entity which (a) is 43 exempt from taxation under paragraph three of subsection (c) of section 44 five hundred one of the internal revenue code, (b) is established for 45 the purpose of supporting an educational program in at least one public 46 school, or public school district, (c) uses at least ninety percent of 47 the qualified contributions received during the calendar year and any 48 income derived from qualified contributions to support the public school 49 or schools or public school district or districts that such fund has 50 been established to support, and (d) deposits and holds qualified 51 contributions and any income derived from qualified contributions in an 52 account that is separate from the fund's operating or other funds until 53 such qualified contributions or income are withdrawn for use. 54 7. "Nonpublic school" means any not-for-profit pre-kindergarten 55 program or elementary, secondary sectarian or nonsectarian school 56 located in this state, other than a public school, that is providingS. 2009--B 152 1 instruction at one or more locations to a student in accordance with 2 subdivision two of section thirty-two hundred four of this chapter. 3 8. "Public education entity" means a public school or a public school 4 district, provided that such public school, or public school district 5 deposits and holds qualified contributions and any income derived from 6 qualified contributions in an account that is separate from the public 7 school or public school district's operating or other funds until such 8 qualified contributions or income are withdrawn for use, and is approved 9 to issue certificates of receipt pursuant to this article. 10 9. "Public school" means any free elementary or secondary school in 11 this state guaranteed by article eleven of the constitution or charter 12 school authorized by article fifty-six of this chapter. 13 10. "Qualified contribution" means the authorized contribution made by 14 a taxpayer to the public education entity, school improvement organiza- 15 tion, local education fund, or educational scholarship organization that 16 is listed on the contribution authorization certificate issued to the 17 taxpayer and for which the taxpayer has received a certificate of 18 receipt from such entity, fund, or organization. A contribution does 19 not qualify if the taxpayer designates the taxpayer's contribution to an 20 entity or organization for the direct benefit of any particular or spec- 21 ified student. 22 11. "Qualified educator" means an individual who is a teacher or 23 instructor in a qualified school for at least nine hundred hours during 24 a school year. 25 12. "Qualified school" means a public school or nonpublic school. 26 13. "Scholarship" means an educational scholarship which provides a 27 tuition grant awarded to an eligible pupil to attend a qualified school 28 in an amount not to exceed the tuition charged to attend such school 29 less any other educational scholarship received by such eligible pupil 30 or his or her parent, parents or guardian for such eligible pupil's 31 tuition; provided, however, in the case of an eligible pupil attending a 32 public school in a public school district of which such pupil is not a 33 resident, the amount of the educational scholarship awarded may not 34 exceed the tuition charged by the public school pursuant to paragraph d 35 of subdivision four of section thirty-two hundred two of this chapter 36 less any other educational scholarship received by such eligible pupil 37 or his or her parent, parents or guardian for such eligible pupil's 38 tuition, but only if the public school district of which such pupil is a 39 resident is not required to pay for such tuition. 40 14. "School improvement organization" means a not-for-profit entity 41 which (i) is exempt from taxation under paragraph three of subsection 42 (c) of section five hundred one of the internal revenue code, (ii) uses 43 at least ninety percent of the qualified contributions received during 44 the calendar year and any income derived from such qualified contrib- 45 utions to assist public schools or public school districts located in 46 this state in their provision of educational programs, either by making 47 contributions to one or more public schools or public school districts 48 located in this state or providing educational programs to, or in 49 conjunction with, one or more public schools or public school districts 50 located in this state, (iii) deposits and holds qualified contributions 51 and any income derived from such qualified contributions in an account 52 that is separate from the organization's operating or other funds until 53 such qualified contributions or income are withdrawn for use, and (iv) 54 is approved to issue certificates of receipt pursuant to this article. 55 Such entity may allow the taxpayer to choose to donate to a program,S. 2009--B 153 1 project or initiative identified by a qualified educator for use in a 2 public school. 3 § 1211. Approval to issue certificates of receipt. 1. Public schools 4 and public school districts. All public schools and public school 5 districts shall be approved to issue certificates of receipt provided, 6 that a public school or public school district shall not be approved if 7 either (a) the public school or public school district fails to deposit 8 and hold qualified contributions and any income derived from qualified 9 contributions in an account that is separate from the school or school 10 district's operating or other funds until such qualified contributions 11 or income are withdrawn for use, or (b) the commissioner has revoked 12 such approval for such public school or public school district pursuant 13 to section twelve hundred fourteen of this article. 14 2. School improvement organizations, educational scholarship organiza- 15 tions and local education funds. No school improvement organization, 16 educational scholarship organization or local education fund shall issue 17 any certificates of receipt without filing an application pursuant to 18 section twelve hundred twelve of this article and receiving approval 19 pursuant to section twelve hundred thirteen of this article. 20 § 1212. Applications for approval to issue certificates of receipt. 21 Each school improvement organization, educational scholarship organiza- 22 tion, and local education fund shall submit an application to the 23 commissioner for approval to issue certificates of receipt in the form 24 and manner prescribed by the commissioner; provided that such applica- 25 tion shall include: (a) submission of documentation that such school 26 improvement organization, local education fund or educational scholar- 27 ship organization has been granted exemption from taxation under para- 28 graph three of subsection (c) of section five hundred one of the inter- 29 nal revenue code; (b) the most recent annual financial audit, which 30 shall be completed by an independent certified public accountant and a 31 list of names and addresses of all members of the governing board of the 32 school improvement organization, local education fund or educational 33 scholarship organization; and (c) an educational scholarship organiza- 34 tion shall provide criteria for the awarding of scholarships to eligible 35 students. Neither the commissioner or the department shall require any 36 other information for such application except as authorized in this 37 article or by section forty-three of the tax law. 38 § 1213. Application approval. The commissioner shall review each 39 application to issue certificates of receipt pursuant to this article. 40 Approval or denial of an application shall be made within sixty days of 41 receipt of such application. 42 § 1214. Revocation of approval to issue certificates of receipt. The 43 commissioner, in consultation with the commissioner of taxation and 44 finance, may revoke the approval of a school improvement organization, 45 educational scholarship organization, local education fund, public 46 school or public school district to issue certificates of receipt upon a 47 finding that such organization, fund, school or school district has 48 violated this article or section forty-three of the tax law. These 49 violations shall include, but not be limited to, any of the following: 50 (a) failure to meet the requirements of this article or section forty- 51 three of the tax law, (b) the failure to maintain full and adequate 52 records with respect to the receipt of qualified contributions, (c) the 53 failure to supply such records to the commissioner or the department of 54 taxation and finance when requested by the department or the department 55 of taxation and finance, or (d) the failure to provide notice to the 56 department of taxation and finance of the issuance or nonissuance ofS. 2009--B 154 1 certificates of receipt pursuant to section forty-three of the tax law; 2 provided however, that the commissioner shall not revoke approval pursu- 3 ant to this section based upon a violation of the tax law unless the 4 commissioner of taxation and finance agrees that revocation is 5 warranted; and provided further that the commissioner shall not revoke 6 approval pursuant to this section when the failure to comply is due to 7 clerical error and not negligence or intentional disregard for the law. 8 Within five days of the determination revoking approval, the commission- 9 er shall provide notice of such revocation to the educational scholar- 10 ship organization, school improvement organization, local education 11 fund, public school, or public school district and to the department of 12 taxation and finance. 13 § 1215. Recordkeeping. Each school improvement organization, educa- 14 tional scholarship organization, local education fund, public school and 15 public school district that issued at least one certificate of receipt 16 shall maintain records including (a) notifications received from the 17 department of taxation and finance, (b) notifications made to the 18 department of taxation and finance, (c) copies of qualified contrib- 19 utions received, (d) copies of the deposit of such qualified contrib- 20 utions, (e) copies of issued certificates of receipt, (f) annual finan- 21 cial statements, (g) in the case of school improvement organizations, 22 educational scholarship organizations and local education funds, the 23 application submitted pursuant to section twelve hundred twelve of this 24 article and the approval issued by the commissioner, and (h) any other 25 information as prescribed by regulation promulgated by the commissioner. 26 § 1216. Joint annual report. On or before the last day of June for 27 each calendar year, the commissioner of taxation and finance and the 28 commissioner, jointly, shall submit a written report as provided in 29 subdivision (k) of section forty-three of the tax law. 30 § 1217. Commissioner; powers. The commissioner shall promulgate on an 31 emergency basis regulations necessary for the implementation of this 32 section. The commissioner shall make any application required to be 33 filed pursuant to this article available to applicants within sixty days 34 of the effective date of this article. 35 § 11. The education law is amended by adding a new section 1503-a to 36 read as follows: 37 § 1503-a. Power to accept and solicit gifts and donations. 1. All 38 school districts organized by special laws or pursuant to the provisions 39 of a general law are hereby authorized and empowered to accept gifts, 40 donations, and contributions to the district and to solicit the same. 41 2. Notwithstanding any other provision of this chapter or of any other 42 general or special law to the contrary, the receipt of such gifts, 43 donations, contributions and other funds, and any income derived there- 44 from, shall be disregarded for the purposes of all apportionments, 45 computations, and determinations of state aid. 46 § 12. Severability. If any provision of this section or the applica- 47 tion thereof to any person or circumstances is held invalid, such inva- 48 lidity shall not affect other provisions or applications of the section 49 which can be given effect without the invalid provision or application, 50 and to this end the provisions of this section are declared to be sever- 51 able. 52 § 13. This act shall take effect immediately and shall apply to taxa- 53 ble years beginning after December 31, 2017. 54 PART ZZZS. 2009--B 155 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (ccc) to read as follows: 3 (ccc) Green building credit. (1) Allowance of credit. A taxpayer shall 4 be allowed a credit against the tax imposed by this article provided 5 that such taxpayer constructs or rehabilitates qualifying residential 6 real property in conformity with energy efficiency standards established 7 by the National Association of Home Builders or the Leadership in Energy 8 and Environmental Design rating system developed by the United States 9 green building council and fashions proof thereof in accordance with 10 rules and regulations promulgated by the commissioner of the department 11 of environmental conservation in conjunction with the commissioner. 12 (2) Amount of credit. The amount of the credit shall be equal to fifty 13 percent of the allowable costs paid or incurred by the taxpayer, if the 14 owner, for either the construction or rehabilitation of qualifying resi- 15 dential real property in conformity with energy efficiency standards 16 established by the National Association of Home Builders or the Leader- 17 ship in Energy and Environmental Design rating system developed by the 18 United States green building council; provided, however, that such cred- 19 it shall not exceed seven thousand five hundred dollars and shall not be 20 awarded more than once in a period of ten years. 21 (3) For the purpose of this subsection, "allowable costs" means 22 amounts properly chargeable to an account (other than for land), which 23 are paid or incurred on or after January first, two thousand seventeen, 24 for: construction or rehabilitation; commissioning costs; interest 25 paid; architectural, engineering and other professional fees allocable 26 to construction or rehabilitation; site costs (such as temporary elec- 27 tric wiring, scaffolding, demolition costs, and fencing and security 28 facilities); and lighting systems permanently affixed to the structure, 29 plumbing, electrical wiring necessary to accommodate new energy effi- 30 cient systems, ventilation, insulation, windows and new heating systems; 31 provided that such costs shall not include the cost of telephone systems 32 and computers (other than electrical wiring costs) and shall not include 33 the cost of fuel cells or photovoltaic modules (including installation) 34 or the cost of new air conditioning equipment using an EPA-approved 35 non-ozone depleting refrigerant or other EPA-approved refrigerant 36 approved by the commissioner of environmental conservation (excluding 37 installation). 38 (4) For the purposes of this subsection "qualifying residential real 39 property" shall mean the principal place of residence of an individual 40 taxpayer who claims a credit pursuant to this subsection. In the event 41 that such place of residence is a multiple dwelling, as defined by 42 subdivision seven of section four of the multiple dwelling law, allow- 43 able costs shall only constitute those costs incurred due to 44 construction or rehabilitation undertaken on the portion of the dwelling 45 that constitutes an individual taxpayer's unit. 46 (5) If the amount of the credit allowed under this subsection for any 47 taxable year shall exceed the taxpayer's tax for such year, the excess 48 may be carried over to the following year or years for up to five years 49 and may be deducted from the taxpayer's tax for such year or years. 50 (6) The commissioner of the department of environmental conservation, 51 in conjunction with the commissioner, shall promulgate such rules and 52 regulations as may be necessary for the distribution of the credit 53 established by this subsection. 54 § 2. This act shall take effect immediately and shall apply to taxable 55 years beginning on and after January 1, 2017.S. 2009--B 156 1 PART AAAA 2 Section 1. Section 606 of the tax law is amended by adding a new 3 subsection (ccc) to read as follows: 4 (ccc) Forestry stewardship and habitat conservation credit. (1) In the 5 case of a taxpayer who owns land that is subject to an agreement with 6 the department of environmental conservation, by which such land is 7 committed to forestry stewardship, or habitat conservation, or both, 8 there shall be allowed a credit for twenty-five percent of the real 9 property taxes paid on such land. In no event shall the credit allowed 10 under this subsection in combination with any other credit for such real 11 property taxes under this section exceed the total amount of such taxes 12 paid during the taxable year. 13 (2) For the purposes of this subsection: 14 (a) "Eligible tract" shall mean a tract of land of at least twenty- 15 five contiguous acres that has been inspected by the department of envi- 16 ronmental conservation, a wildlife biologist certified by The Wildlife 17 Society, or a fisheries biologist certified by the American Fisheries 18 Society, and based on such inspection is determined by the department of 19 environmental conservation to be: valuable habitat for wildlife, fish, 20 shellfish or crustacea; or safe and suitable for fish or wildlife-relat- 21 ed recreation, including fishing, hunting, trapping and wildlife obser- 22 vation; or both. Land divided only by federal, state, county or town 23 roads, easements or rights-of-way, or energy transmission corridors or 24 similar facilities shall be considered contiguous for purposes of this 25 section. 26 (b) "Agreement" shall mean a written agreement between the department 27 of environmental conservation and the owner of an eligible tract, 28 executed by both parties, by which the eligible tract is committed to 29 habitat conservation, or forestry stewardship, or both, for a period of 30 not less than five years. 31 (c) "Approved habitat conservation plan" shall mean a plan, approved 32 by the department of environmental conservation, for the management of 33 an eligible tract which shall contain requirements and standards with 34 which the owner of the eligible tract must comply in order to conserve 35 the value of the land as wildlife, fish, shellfish, or crustacea habi- 36 tat. 37 (d) "Forestry stewardship" shall mean participation in a forest 38 certification program (such as Forest Stewardship Council certification, 39 Sustainable Forestry Initiative, American Tree Farm Program, etc.) 40 recognized in the regulations of the department of environmental conser- 41 vation. 42 (3) There is hereby created a New York state forestry stewardship and 43 habitat conservation program for the purpose of providing forested lands 44 in the state and conserving the value of land in the state as wildlife, 45 fish, shellfish or crustacea habitat. 46 (4) A landowner may make application to the department of environ- 47 mental conservation, on forms prescribed by such department, to have 48 land included in the New York state habitat conservation and forestry 49 stewardship program. If, based on an inspection of the land by the 50 department of environmental conservation, or a wildlife biologist certi- 51 fied by The Wildlife Society, or a fisheries biologist certified by the 52 American Fisheries Society, the department of environmental conservation 53 determines that such land is an eligible tract, it shall notify the 54 landowner that the land is eligible for inclusion in the New York state 55 habitat conservation and forestry stewardship program.S. 2009--B 157 1 (5) The department of environmental conservation may, in its 2 discretion, enter into agreements with owners of eligible tracts for 3 purposes of forestry stewardship, or habitat conservation, or both. Such 4 agreements shall be for a minimum duration of five years, and shall 5 contain a description of the property that is the subject of the agree- 6 ment, and such terms and conditions as the department deems appropriate, 7 including, but not limited to: 8 (a) for forestry stewardship agreements, a description of the partic- 9 ipation in a forest certification program for a period of not less than 10 five years; 11 (b) for habitat conservation agreements, a requirement that the land- 12 owner develop a habitat conservation plan and implement the plan for a 13 period of not less than five years; 14 (c) for habitat conservation and forestry stewardship agreements, a 15 requirement that the landowner develop a habitat conservation plan and 16 implement the plan for a period of not less than five years; and a 17 description of participation in a forest certification program for a 18 period of not less than five years; 19 (d) a requirement that the landowner's obligations concerning the land 20 under the terms of the agreement, as well as any benefits, shall pass to 21 any successor in interest to such land for the duration of the term of 22 the agreement; and 23 (e) a requirement that a copy of the agreement shall be duly recorded 24 and indexed as such in the office of the recording officer for the coun- 25 ty or counties where the land is situate in the manner prescribed by 26 article nine of the real property law; and that any subsequent instru- 27 ment of conveyance relating to the property encumbered by the agreement 28 shall reference, by book and page number, the agreement; and that such 29 instrument shall also specify that the property is subject to the 30 restrictions contained in the agreement; and that an instrument for the 31 purpose of creating, conveying, modifying or terminating the agreement 32 shall not be effective unless recorded. 33 (6) The amount of the credit that may be claimed by a taxpayer pursu- 34 ant to this subsection shall not exceed ten thousand dollars in any 35 given year. 36 (7) If the amount of the credit under this subsection for any taxable 37 year shall exceed the taxpayer's tax for such year, the excess shall be 38 treated as an overpayment of tax to be credited or refunded in accord- 39 ance with the provisions of section six hundred eighty-six of this arti- 40 cle, provided, however, that no interest shall be paid thereon. 41 § 2. Paragraph 4 of subsection (n) of section 606 of the tax law, as 42 amended by section 2 of part F of chapter 62 of the laws of 2006, is 43 amended to read as follows: 44 (4) Qualified agricultural property. For purposes of this subsection, 45 the term "qualified agricultural property" means land located in this 46 state which is used in agricultural production, and land improvements, 47 structures and buildings (excluding buildings used for the taxpayer's 48 residential purpose) located on such land which are used or occupied to 49 carry out such production. Qualified agricultural property also includes 50 land set aside or retired under a federal supply management or soil 51 conservation program or land that at the time it becomes subject to a 52 conservation easement, as defined under subsection (kk) of this section, 53 met the requirements under this paragraph, and land that at the time it 54 becomes subject to an agreement as defined in subsection (ccc) of this 55 section met the requirements under this paragraph.S. 2009--B 158 1 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 2 sion 49 to read as follows: 3 49. Forestry stewardship and habitat conservation credit. (1) In the 4 case of a taxpayer who owns land that is subject to an agreement with 5 the department of environmental conservation, by which such land is 6 committed to forestry stewardship, or habitat conservation, or both, 7 there shall be allowed a credit for twenty-five percent of the real 8 property taxes paid on such land. In no event shall the credit allowed 9 under this subdivision in combination with any other credit for such 10 real property taxes under this section exceed the total amount of such 11 taxes paid during the taxable year. 12 (2) For the purposes of this subdivision: 13 (a) "Eligible tract" shall mean a tract of land of at least twenty- 14 five contiguous acres that has been inspected by the department of envi- 15 ronmental conservation, a wildlife biologist certified by The Wildlife 16 Society, or a fisheries biologist certified by the American Fisheries 17 Society, and based on such inspection is determined by the department of 18 environmental conservation to be: valuable habitat for wildlife, fish, 19 shellfish or crustacea; or safe and suitable for fish or wildlife-relat- 20 ed recreation, including fishing, hunting, trapping and wildlife obser- 21 vation; or both. Land divided only by federal, state, county or town 22 roads, easements or rights-of-way, or energy transmission corridors or 23 similar facilities shall be considered contiguous for purposes of this 24 section. 25 (b) "Agreement" shall mean a written agreement between the department 26 of environmental conservation and the owner of an eligible tract, 27 executed by both parties, by which the eligible tract is committed to 28 habitat conservation, or forestry stewardship, or both, for a period of 29 not less than five years. 30 (c) "Approved habitat conservation plan" shall mean a plan, approved 31 by the department of environmental conservation, for the management of 32 an eligible tract which shall contain requirements and standards with 33 which the owner of the eligible tract must comply in order to conserve 34 the value of the land as wildlife, fish, shellfish, or crustacea habi- 35 tat. 36 (d) "Forestry stewardship" shall mean participation in a forest 37 certification program (such as Forest Stewardship Council certification, 38 Sustainable Forestry Initiative, American Tree Farm Program, etc.) 39 recognized in the regulations of the department of environmental conser- 40 vation. 41 (3) There is hereby created a New York state forestry stewardship and 42 habitat conservation program for the purpose of providing forested lands 43 in the state and conserving the value of land in the state as wildlife, 44 fish, shellfish or crustacea habitat. 45 (4) A landowner may make application to the department of environ- 46 mental conservation, on forms prescribed by such department, to have 47 land included in the New York state habitat conservation and forestry 48 stewardship program. If, based on an inspection of the land by the 49 department of environmental conservation, or a wildlife biologist certi- 50 fied by The Wildlife Society, or a fisheries biologist certified by the 51 American Fisheries Society, the department of environmental conservation 52 determines that such land is an eligible tract, it shall notify the 53 landowner that the land is eligible for inclusion in the New York state 54 habitat conservation and forestry stewardship program. 55 (5) The department of environmental conservation may, in its 56 discretion, enter into agreements with owners of eligible tracts forS. 2009--B 159 1 purposes of habitat conservation, or forestry stewardship, or both. Such 2 agreements shall be for a minimum duration of five years, and shall 3 contain a description of the property that is the subject of the agree- 4 ment, and such terms and conditions as the department deems appropriate, 5 including, but not limited to: 6 (a) for forestry stewardship agreements, a description of the partic- 7 ipation in a forest certification program for a period of not less than 8 five years; 9 (b) for habitat conservation agreements, a requirement that the land- 10 owner develop a habitat conservation plan and implement the plan for a 11 period of not less than five years; 12 (c) for habitat conservation and forestry stewardship agreements, a 13 requirement that the landowner develop a habitat conservation plan and 14 implement the plan for a period of not less than five years; and a 15 description of participation in a forest certification program for a 16 period of not less than five years; 17 (d) a requirement that the landowner's obligations concerning the land 18 under the terms of the agreement, as well as any benefits, shall pass to 19 any successor in interest to such land for the duration of the term of 20 the agreement; and 21 (e) a requirement that a copy of the agreement shall be duly recorded 22 and indexed as such in the office of the recording officer for the coun- 23 ty or counties where the land is situate in the manner prescribed by 24 article nine of the real property law; and that any subsequent instru- 25 ment of conveyance relating to the property encumbered by the agreement 26 shall reference, by book and page number, the agreement; and that such 27 instrument shall also specify that the property is subject to the 28 restrictions contained in the agreement; and that an instrument for the 29 purpose of creating, conveying, modifying or terminating the agreement 30 shall not be effective unless recorded. 31 (6) The amount of the credit that may be claimed by a taxpayer pursu- 32 ant to this subdivision shall not exceed ten thousand dollars in any 33 given year. 34 (7) If the amount of the credit under this subdivision for any taxable 35 year shall exceed the taxpayer's tax for such year, the excess shall be 36 treated as an overpayment of tax to be credited or refunded in accord- 37 ance with the provisions of section one thousand eighty-six of this 38 chapter, provided, however, that no interest shall be paid thereon. 39 § 4. Paragraph (d) of subdivision 11 of section 210-B of the tax law, 40 as added by section 17 of part A of chapter 59 of the laws of 2014, is 41 amended to read as follows: 42 (d) Qualified agricultural property. For purposes of this subdivision, 43 the term "qualified agricultural property" means land located in this 44 state which is used in agricultural production, and land improvements, 45 structures and buildings (excluding buildings used for the taxpayer's 46 residential purpose) located on such land which are used or occupied to 47 carry out such production. Qualified agricultural property also includes 48 land set aside or retired under a federal supply management or soil 49 conservation program [or], land that at the time it becomes subject to a 50 conservation easement met the requirements under this paragraph and land 51 that at the time it becomes subject to an agreement as defined under 52 subdivision forty-nine of this section, met the requirements under this 53 paragraph. 54 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (xliii) to read as 56 follows:S. 2009--B 160 1 (xliii) Forest stewardship and Amount of credit under 2 habitat conservation subdivision forty-nine of 3 credit under subsection (ccc) section two hundred ten-B 4 § 6. This act shall take effect immediately. 5 PART BBBB 6 Section 1. Section 13 of part A of chapter 97 of the laws of 2011, 7 amending the general municipal law and the education law relating to 8 establishing limits upon school district and local government tax 9 levies, as amended by section 18 of part A of chapter 20 of the laws of 10 2015, is amended to read as follows: 11 § 13. This act shall take effect immediately; provided, however, that 12 sections two through eleven of this act shall take effect July 1, 2011 13 and shall first apply to school district budgets and the budget adoption 14 process for the 2012-13 school year; and shall continue to apply to 15 school district budgets and the budget adoption process for any school 16 year beginning in any calendar year during which this act is in effect; 17 provided further, that if section 26 of part A of chapter 58 of the laws 18 of 2011 shall not have taken effect on or before such date then section 19 ten of this act shall take effect on the same date and in the same 20 manner as such chapter of the laws of 2011, takes effect; provided 21 further, that section one of this act shall first apply to the levy of 22 taxes by local governments for the fiscal year that begins in 2012 and 23 shall continue to apply to the levy of taxes by local governments for 24 any fiscal year beginning in any calendar year during which this act is 25 in effect[; provided, further, that this act shall remain in full force26and effect at a minimum until and including June 15, 2020 and shall27remain in effect thereafter only so long as the public emergency requir-28ing the regulation and control of residential rents and evictions and29all such laws providing for such regulation and control continue as30provided in subdivision 3 of section 1 of the local emergency rent31control act, sections 26-501, 26-502 and 26-520 of the administrative32code of the city of New York, section 17 of chapter 576 of the laws of331974 and subdivision 2 of section 1 of chapter 274 of the laws of 194634constituting the emergency housing rent control law, and section 10 of35chapter 555 of the laws of 1982, amending the general business law and36the administrative code of the city of New York relating to conversions37of residential property to cooperative or condominium ownership in the38city of New York as such laws are continued by chapter 93 of the laws of392011 and as such sections are amended from time to time]. 40 § 2. This act shall take effect immediately. 41 PART CCCC 42 Section 1. Subdivision 3 of section 16-v of section 1 of chapter 174 43 of the laws of 1968, constituting the New York state urban development 44 corporation act, is amended by adding a new paragraph (e) to read as 45 follows: 46 (e) Notwithstanding any other provision of law to the contrary, a 47 qualified entity that has previously been designated as a New York state 48 incubator and has not fully disbursed any grants awarded pursuant to 49 this section, shall continue being designated as such by the corporation 50 for an additional three years. 51 § 2. This act shall take effect immediately.S. 2009--B 161 1 PART DDDD 2 Section 1. Subclauses (i) and (ii) of clause (E) of subparagraph 5 of 3 paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel 4 wagering and breeding law, as amended by chapter 18 of the laws of 2008, 5 are amended to read as follows: 6 (i) Such licensed regional harness track shall receive in lieu of any 7 other payments on wagers placed at off-track betting facilities outside 8 the special betting district on races conducted by an in-state thorough- 9 bred racing corporation, two and eight-tenths percent on regular and 10 multiple bets made prior to January first, two thousand eighteen, and 11 one and four-tenths percent on such bets made on and after January 12 first, two thousand eighteen during a regional meeting and one and nine- 13 tenths percent of such bets made prior to January first, two thousand 14 eighteen, and four-tenths percent on such bets made on and after January 15 first, two thousand eighteen if there is no regional meeting and four 16 and eight-tenths percent on exotic bets made prior to January first, two 17 thousand eighteen, and two and four-tenths percent on such bets made on 18 and after January first, two thousand eighteen on days on which there is 19 a regional meeting and three and four-tenths percent of such bets made 20 prior to January first, two thousand eighteen, and one and seven-tenths 21 percent on such bets made on and after January first, two thousand eigh- 22 teen if there is no regional meeting. 23 (ii) [Such] A licensed regional harness track shall receive one and 24 one-half per centum on total regional handle on races conducted at out- 25 of-state or out-of-country thoroughbred tracks prior to January first, 26 two thousand eighteen, and three-quarters of one per centum on such 27 handle realized on and after January first, two thousand eighteen. 28 § 2. Clause (G) of subparagraph 6 of paragraph b of subdivision 1 of 29 section 1016 of the racing, pari-mutuel wagering and breeding law, as 30 amended by chapter 18 of the laws of 2008, is amended to read as 31 follows: 32 (G) Of the sums retained by a licensed harness facility, prior to 33 January first, two thousand eighteen, fifty percent shall be used exclu- 34 sively for purses awarded in races conducted by such licensed facility 35 and the remaining fifty percent shall be retained by such licensed 36 facility for its general purposes, and on and after January first, two 37 thousand eighteen one hundred percent shall be used exclusively for 38 purses awarded in races conducted by such licensed facility provided, 39 however, that in a harness special betting district the portion of the 40 sums retained by a licensed harness facility to be used for purses or 41 the methodology for calculating the amount to be used for purses may be 42 specified in a written contract between a harness racing association or 43 corporation and its representative horsemen's association. 44 § 3. Paragraph a of subdivision 2 of section 1017 of the racing, pari- 45 mutuel wagering and breeding law, as amended by chapter 174 of the laws 46 of 2013, is amended to read as follows: 47 a. Maintenance of effort. Any off-track betting corporation which 48 engages in accepting wagers on the simulcasts of thoroughbred races from 49 out-of-state or out-of-country as permitted under subdivision one of 50 this section shall submit to the commission, for its approval, a sched- 51 ule of payments to be made in any year or portion thereof, that such 52 off-track corporation engages in nighttime thoroughbred simulcasting. In 53 order to be approved by the commission, prior to January first, two 54 thousand eighteen, the payment schedule shall be identical to the actual 55 payments and distributions of such payments to tracks and purses made byS. 2009--B 162 1 such off-track corporation pursuant to the provisions of section one 2 thousand fifteen of this article during the year two thousand two, as 3 derived from out-of-state harness races displayed after 6:00 P.M. On and 4 after January first, two thousand eighteen no such payments and distrib- 5 utions of payments shall be made to tracks. If approved by the commis- 6 sion, such scheduled payments shall be made from revenues derived from 7 any simulcasting conducted pursuant to this section and section one 8 thousand fifteen of this article. 9 § 4. Clause (D) of subparagraph (ii) of paragraph 1 of subdivision b 10 of section 1612 of the tax law, as amended by chapter 174 of the laws of 11 2013, is amended to read as follows: 12 (D) notwithstanding clauses (A), (B) and (C) of this subparagraph, 13 when the vendor track is located within [fifteen] forty miles of a 14 Native American class III gaming facility at a rate of forty-one percent 15 of the total revenue wagered at the vendor track after payout for prizes 16 pursuant to this chapter; 17 § 5. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 18 of the tax law is amended buy adding a new clause (G-3) to read as 19 follows: 20 (G-3) Notwithstanding any provision to the contrary, when a vendor 21 track is located within region four of development zone two as defined 22 by section thirteen hundred ten of the racing, pari-mutuel wagering and 23 breeding law and is located within Oneida county, such vendor track 24 shall receive an additional commission at a rate equal to the percentage 25 of revenue wagered at the vendor track after payout for prizes pursuant 26 to this chapter, which percentage shall be one hundred, less the sum of 27 the percentages of net revenue wagered at the vendor track retained by 28 the commission for operation, administration, and procurement purposes; 29 and the vendor's fee, marketing allowance and capital award paid to the 30 vendor track pursuant to this chapter; and the effective tax rate paid 31 on all gross gaming revenue paid by a gaming facility within Seneca or 32 Wayne counties pursuant to section thirteen hundred fifty-one of the 33 racing, pari-mutuel wagering and breeding law, provided, however, such 34 additional commission shall be applied to revenue wagered at the vendor 35 track after payout for prizes only while a gaming facility in Seneca or 36 Wayne counties is open and operational pursuant to an operation certif- 37 icate issued pursuant to section thirteen hundred thirty-one of the 38 racing, pari-mutuel wagering and breeding law. The additional commission 39 set forth in this clause shall be paid to the vendor track within sixty 40 days after the conclusion of the state fiscal year based on the calcu- 41 lated percentage during the previous fiscal year. 42 § 6. Clause (B) of subparagraph (ii) of paragraph 1 of subdivision b 43 of section 1612 of the tax law, as amended by chapter 174 of the laws of 44 2013, is amended to read as follows: 45 (B) having one thousand one hundred or more video gaming machines, at 46 a rate of thirty-one percent of the total revenue wagered at the vendor 47 track after payout for prizes pursuant to this chapter, except for such 48 facility located in the county of Westchester, in which case the rate 49 shall be [thirty percent until March thirty-first, two thousand twelve] 50 thirty-one percent. 51 Notwithstanding the foregoing, not later than April first, two thou- 52 sand [twelve] seventeen, the vendor fee shall become [thirty-one] thir- 53 ty-two percent and remain at that level thereafter; and except for Aque- 54 duct racetrack, in which case the vendor fee shall be thirty-eight 55 percent of the total revenue wagered at the vendor track after payout 56 for prizes pursuant to this chapter;S. 2009--B 163 1 § 7. Subdivision f-1 of section 1612 of the tax law, as amended by 2 chapter 175 of the laws of 2013, is amended to read as follows: 3 f-1. As consideration for operation of video lottery gaming facility 4 located in the county of Nassau or Suffolk and operated by a corporation 5 established pursuant to section five hundred two of the racing, pari-mu- 6 tuel wagering and breeding law, the division shall cause the investment 7 in the racing industry of the following percentages of the vendor fee to 8 be deposited or paid as follows: 9 1. Two and three tenths percent of the total wagered after payout of 10 prizes for the purpose of enhancing purses at Aqueduct racetrack, 11 Belmont Park racetrack and Saratoga race course[, provided, however,12that any amount that is in excess of the amount necessary to maintain13purse support from video lottery gaming at Aqueduct racetrack, Belmont14Park racetrack and Saratoga race course at the same level realized in15two thousand thirteen, to be adjusted by the consumer price index for16all urban consumers, as published annually by the United States depart-17ment of labor, bureau of labor statistics, shall instead be returned to18the commission]. 19 2. five tenths percent of the total wagered after payout of prizes for 20 the appropriate breeding fund for the manner of racing at Aqueduct race- 21 track, Belmont Park racetrack and Saratoga race course[, provided,22however, that any amount that is in excess of the amount necessary to23maintain payments from video lottery gaming at Aqueduct racetrack at the24same level realized in two thousand thirteen, to be adjusted by the25consumer price index for all urban consumers, as published annually by26the United States department of labor, bureau of labor statistics, shall27instead be returned to the commission]. 28 3. one and three tenths percent of the total revenue wagered after 29 payout of prizes to be deposited into an account of the franchised 30 corporation established pursuant to section two hundred six of the 31 racing, pari-mutuel wagering and breeding law to be used for capital 32 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont 33 Park racetrack and Saratoga race course[, provided, however, that any34amount that is in excess of the amount necessary to maintain payments35for capital expenditures from video lottery gaming at Aqueduct racetrack36at the same level realized in two thousand thirteen, to be adjusted by37the consumer price index for all urban consumers, as published annually38by the United States department of labor, bureau of labor statistics,39shall instead be returned to the commission]. 40 4. Nine tenths percent of the total revenue wagered after payout for 41 prizes to be deposited into an account of the franchised corporation 42 established pursuant to section two hundred six of the racing, pari-mu- 43 tuel wagering and breeding law to be used for general thoroughbred 44 racing operations at Aqueduct racetrack, Belmont Park racetrack and 45 Saratoga race course[, provided, however, that any amount that is in46excess of the amount necessary to maintain payments for general47thoroughbred racing operations from video lottery gaming at Aqueduct48racetrack at the same level realized in two thousand thirteen, to be49adjusted by the consumer price index for all urban consumers, as50published annually by the United States department of labor, bureau of51labor statistics, shall instead be returned to the commission]. 52 § 8. This act shall take effect immediately; provided, however, that 53 the amendments to subdivision f-1 of section 1612 of the tax law made by 54 section seven of this act shall expire and be deemed repealed on and 55 after March 31, 2018.S. 2009--B 164 1 PART EEEE 2 Section 1. Subdivision 6 of section 221 of the racing, pari-mutuel 3 wagering and breeding law, as amended by chapter 325 of the laws of 2004 4 and such section as renumbered by chapter 18 of the laws of 2008, is 5 amended to read as follows: 6 6. (a) The fund shall secure workers' compensation insurance coverage 7 on a blanket basis for the benefit of all jockeys, apprentice jockeys 8 and exercise persons licensed pursuant to this article or article four 9 of this chapter who are employees under section two of the workers' 10 compensation law, and may elect, with the approval of the gaming commis- 11 sion, to secure workers' compensation insurance for employees of 12 licensed trainers or owners. In the event the fund elects, with the 13 approval of the gaming commission, to secure workers' compensation 14 insurance for employees of licensed trainers or owners, the fund may 15 discontinue to secure workers' compensation insurance for employees of 16 licensed trainers or owners only upon prior approval of the gaming 17 commission. 18 (b) The fund may elect, with the approval of the gaming commission, to 19 secure workers' compensation insurance coverage through a form of self- 20 insurance, provided that the fund has met the requirements of the New 21 York state department of financial services and workers' compensation 22 board, including, without limitation, subdivision three of section fifty 23 of the workers' compensation law. 24 § 2. Subdivision 7 of section 221 of the racing, pari-mutuel wagering 25 and breeding law, as amended by chapter 18 of the laws of 2008 and the 26 opening paragraph as amended by section 1 of part PP of chapter 60 of 27 the laws of 2016, is amended to read as follows: 28 7. In order to pay the costs of the insurance required by this section 29 and by the workers' compensation law and to carry out its other powers 30 and duties and to pay for any of its liabilities under section four- 31 teen-a of the workers' compensation law, the New York Jockey Injury 32 Compensation Fund, Inc. shall ascertain the total funding necessary and 33 establish the sums that are to be paid by all owners and trainers 34 licensed or required to be licensed under section two hundred twenty of 35 this article, to obtain the total funding amount required annually. In 36 order to provide that any sum required to be paid by an owner or trainer 37 is equitable, the fund shall establish payment schedules which reflect 38 such factors as are appropriate, including where applicable, the 39 geographic location of the racing corporation at which the owner or 40 trainer participates, the duration of such participation, the amount of 41 any purse earnings, the number of horses involved, or such other factors 42 as the fund shall determine to be fair, equitable and in the best inter- 43 ests of racing. In no event shall the amount deducted from an owner's 44 share of purses exceed two per centum; provided, however, for two thou- 45 sand [sixteen] seventeen the New York Jockey Injury Compensation Fund, 46 Inc. may use up to two million dollars from the account established 47 pursuant to subdivision nine of section two hundred eight of this arti- 48 cle to pay the annual costs required by this section and the funds from 49 such account shall not count against the two per centum of purses 50 deducted from an owner's share of purses. The amount deducted from an 51 owner's share of purses shall not exceed one per centum after April 52 first, two thousand [seventeen] twenty. In the cases of multiple owner- 53 ships and limited racing appearances, the fund shall equitably adjust 54 the sum required.S. 2009--B 165 1 The [state racing and wagering board] gaming commission shall, as a 2 condition of racing, require any racing corporation or any quarterhorse 3 racing association or corporation authorized under this chapter to 4 conduct pari-mutuel betting at a race meeting or races run thereat, to 5 require that each trainer utilizing the facilities of such association 6 or corporation and each owner racing a horse shall place or have placed 7 on deposit with the horsemen's bookkeeper of such racing association or 8 corporation, an amount to be established and paid in a manner to be 9 determined by the fund. 10 Should the fund determine that the amount which has been collected in 11 the manner prescribed is inadequate to pay the annual costs required by 12 this section, it shall notify the [state racing and wagering board] 13 gaming commission of the deficiency and the amount of the additional sum 14 or sums necessary to be paid by each owner and/or trainer in order to 15 cover such deficiency. The [state racing and wagering board] gaming 16 commission shall, as an additional condition of racing, direct any 17 racing corporation or any quarterhorse racing association or corporation 18 authorized under this chapter to conduct pari-mutuel betting at a race 19 meeting or races run thereat, to require each trainer and owner to place 20 such additional sum or sums on deposit with the respective horsemen's 21 bookkeeper. 22 All amounts collected by a horsemen's bookkeeper pursuant to this 23 section shall be transferred to the fund created under this section and 24 shall be used by the fund to purchase workers' compensation insurance 25 for jockeys, apprentice jockeys and exercise persons licensed pursuant 26 to this article or article four of this chapter who are employees under 27 section two of the workers' compensation law, and at the election of the 28 fund, with the approval of the gaming commission, to secure workers' 29 compensation insurance for employees of licensed trainers or owners to 30 pay for any of its liabilities under section fourteen-a of the workers' 31 compensation law and to administer the workers' compensation program for 32 such jockeys, apprentice jockeys and exercise persons and, if approved 33 by the gaming commission, employees of licensed trainers or owners 34 required by this section and the workers' compensation law. 35 In the event the fund elects, with the approval of the gaming commis- 36 sion, to secure workers' compensation insurance for employees of 37 licensed trainers or owners, the fund may elect to have the sum required 38 to be paid by an owner or trainer pursuant to this section be subject to 39 an examination of workers' compensation claims attributable under the 40 fund to each such owner or trainer, including the frequency and severity 41 of accidents and injuries. 42 § 3. Subdivision 12 of section 221 of the racing, pari-mutuel wagering 43 and breeding law, as amended by chapter 325 of the laws of 2004 and such 44 section as renumbered by chapter 18 of the laws of 2008, is amended and 45 two new subdivisions 13 and 14 are added to read as follows: 46 12. [The fund and the state racing and wagering board shall have such47power as is necessary to implement the provisions of this section.] For 48 purposes of this section, the term "employees of licensed trainers or 49 owners" shall have the same meaning as subdivision twenty-four of 50 section two of the workers' compensation law. 51 13. a. There is created a racing safety committee to review the risk 52 management report submitted to the commission by the fund on or about 53 September thirtieth, two thousand sixteen and to make non-binding recom- 54 mendations for the implementation of the safety proposals and initi- 55 atives set forth in such report. Such committee shall consist of sevenS. 2009--B 166 1 members, each to serve a term of three years, with one member each 2 appointed by: 3 (i) the fund; 4 (ii) the gaming commission; 5 (iii) the franchised corporation; 6 (iv) the racing association or corporation licensed pursuant to this 7 article or article four of this chapter to operate the racing and train- 8 ing facilities at Finger Lakes racetrack; 9 (v) the horsemen's organization representing at least fifty-one 10 percent of the owners and trainers using the facilities of the fran- 11 chised corporation; 12 (vi) the horsemen's organization representing at least fifty-one 13 percent of the owners and trainers using the facilities of the Finger 14 Lakes racetrack; and 15 (vii) the Jockeys' Guild. 16 The member of the racing safety committee appointed by the fund shall 17 serve as chairperson and the member of the racing safety committee 18 appointed by the commission shall serve as vice-chairperson. Members of 19 the racing safety committee shall have equal voting rights. 20 b. The racing safety committee shall meet within ninety days following 21 the effective date of this subdivision to review and discuss the imple- 22 mentation of the recommendations contained in the risk management report 23 submitted to the gaming commission by the fund on or about September 24 thirtieth, two thousand sixteen. The racing safety committee shall meet 25 on or after July first, two thousand seventeen, and at least annually 26 thereafter, to review the workers' compensation loss information and the 27 status of safety-related findings and recommendations and to develop an 28 annual strategic plan to address identified safety issues. 29 c. The members appointed pursuant to subparagraph (iii) and (iv) of 30 paragraph a of this subdivision, in consultation with the other members 31 of the racing safety committee, shall: 32 (i) Within one hundred eighty days following the effective date of 33 this subdivision, for each track, develop safety rules for training 34 activities to be documented and communicated, in both English and Span- 35 ish, to jockeys, apprentice jockeys, and exercise persons licensed 36 pursuant to this article or article four of this chapter who are employ- 37 ees under section two of the workers' compensation law, and at the 38 election of the fund, with the approval of the gaming commission, 39 employees of licensed trainers or owners. Such safety rules shall 40 include, but not be limited to, proper usage of personal protective 41 equipment, required response to loose horses, prohibition of cell phone 42 use while mounted on a horse, general requirements for jogging, gallop- 43 ing, breezing, ponying a horse, and starting gate safety protocols. 44 Refresher training related to such safety rules shall be required at the 45 start of each meet. 46 (ii) Prior to the start of each meet, following the effective date of 47 this subdivision, meet with trainers or their representatives to discuss 48 and address identified safety issues. 49 (iii) Within one hundred eighty days following the effective date of 50 this subdivision, for each track, develop a written, documented emergen- 51 cy response plan to address response protocols to on-track accidents and 52 incidents, which, at a minimum, shall include detailed information 53 regarding roles and responsibilities for individuals who are responsible 54 for track-related accidents and incidents, including, but not limited 55 to, outriders, emergency medical technicians/paramedics, ambulance driv- 56 ers, security, and veterinary staff and clockers.S. 2009--B 167 1 (iv) Within two hundred ten days following the effective date of this 2 subdivision, communicate the emergency response plan to all on-track 3 personnel as part of new hire orientation and job assignment. 4 (v) Within two hundred ten days following the effective date of this 5 subdivision, and at least once annually thereafter, for each track, 6 conduct a mock emergency response drill for on-track accidents prior to 7 the opening of each race meet. Such emergency response drill shall be 8 filmed and used for education and training purposes for personnel, 9 including in new hire orientation, and to assess the performance of 10 individuals involved in the emergency response. 11 (vi) Within one hundred eighty days following the effective date of 12 this subdivision, upgrade the current level of emergency medical respon- 13 ders from emergency medical technicians to paramedics. 14 14. The fund and the gaming commission shall have such power as is 15 necessary to implement the provisions of this section. 16 § 4. Section 2 of the workers' compensation law is amended by adding a 17 new subdivision 24 to read as follows: 18 24. "Employees of licensed trainers or owners" means assistant train- 19 ers, foremen, watchmen and stable employees, including grooms and hot- 20 walkers, employed by a trainer or owner licensed pursuant to article two 21 or four of the racing, pari-mutuel wagering and breeding law. 22 § 5. The second undesignated paragraph of subdivision 3 of section 2 23 of the workers' compensation law, as amended by chapter 392 of the laws 24 of 2008, is amended to read as follows: 25 Notwithstanding any other provision of this chapter and for purposes 26 of this chapter only, "employer" shall mean, with respect to a jockey, 27 apprentice jockey or exercise person licensed under article two or four 28 of the racing, pari-mutuel wagering and breeding law, and at the 29 election of the New York Jockey Injury Compensation Fund, Inc., with the 30 approval of the New York state gaming commission, employees of licensed 31 trainers or owners, performing services for an owner or trainer in 32 connection with the training or racing of a horse at a facility of a 33 racing association or corporation subject to article two or four of the 34 racing, pari-mutuel wagering and breeding law and subject to the juris- 35 diction of the New York state [racing and wagering board] gaming commis- 36 sion, The New York Jockey Injury Compensation Fund, Inc. and all owners 37 and trainers who are licensed or required to be licensed under article 38 two or four of the racing, pari-mutuel wagering and breeding law at the 39 time of any occurrence for which benefits are payable pursuant to this 40 chapter in respect to the injury or death of such jockey, apprentice 41 jockey [or], exercise person or, if approved by the New York state 42 gaming commission, employee of a licensed trainer or owner. 43 § 6. The fifth undesignated paragraph of subdivision 4 of section 2 of 44 the workers' compensation law, as amended by chapter 169 of the laws of 45 2007, is amended to read as follows: 46 Notwithstanding any other provision of this chapter, and for purposes 47 of this chapter only, a jockey, apprentice jockey or exercise person 48 licensed under article two or four of the racing, pari-mutuel wagering 49 and breeding law, and at the election of the New York Jockey Injury 50 Compensation Fund, Inc., with the approval of the New York state gaming 51 commission, employees of licensed trainers or owners, performing 52 services for an owner or trainer in connection with the training or 53 racing of a horse at a facility of a racing association or corporation 54 subject to article two or four of the racing, pari-mutuel wagering and 55 breeding law and subject to the jurisdiction of the New York state 56 [racing and wagering board] gaming commission shall be regarded as theS. 2009--B 168 1 "employee" not solely of such owner or trainer, but shall instead be 2 conclusively presumed to be the "employee" of The New York Jockey Injury 3 Compensation Fund, Inc. and also of all owners and trainers who are 4 licensed or required to be licensed under article two or four of the 5 racing, pari-mutuel wagering and breeding law at the time of any occur- 6 rence for which benefits are payable pursuant to this chapter in respect 7 of the injury or death of such jockey, apprentice jockey [or], exercise 8 person or, if approved by the New York state gaming commission, employee 9 of a licensed trainer or owner. 10 § 7. The third undesignated paragraph of subdivision 5 of section 2 of 11 the workers' compensation law, as amended by chapter 392 of the laws of 12 2008, is amended to read as follows: 13 Notwithstanding any other provision of this chapter, and for purposes 14 of this chapter only, a jockey, apprentice jockey or exercise person 15 licensed under article two or four of the racing, pari-mutuel wagering 16 and breeding law, and at the election of the New York Jockey Injury 17 Compensation Fund, Inc., with the approval of the New York state gaming 18 commission, employees of licensed trainers or owners, performing 19 services for an owner or trainer in connection with the training or 20 racing of a horse at a facility of a racing association or corporation 21 subject to article two or four of the racing, pari-mutuel wagering and 22 breeding law and subject to the jurisdiction of the New York state 23 [racing and wagering board] gaming commission shall be regarded as in 24 the "employment" not solely of such owner and trainer, but shall instead 25 be conclusively presumed to be in the "employment" of The New York Jock- 26 ey Injury Compensation Fund, Inc. and of all owners and trainers who are 27 licensed or required to be licensed under article two or four of the 28 racing, pari-mutuel wagering and breeding law, at the time of any occur- 29 rence for which benefits are payable pursuant to this chapter in respect 30 of the injury or death of such jockey, apprentice jockey [or], exercise 31 person or, if approved by the New York state gaming commission, employee 32 of a licensed trainer or owner. For the purpose of this chapter only, 33 whether a livery driver's performance of covered services, as those 34 terms are defined in article six-G of the executive law, constitutes 35 "employment" shall be determined in accordance with section eighteen-c 36 of this chapter. 37 § 8. The opening paragraph of section 11 of the workers' compensation 38 law, as amended by chapter 169 of the laws of 2007, is amended to read 39 as follows: 40 The liability of an employer prescribed by the last preceding section 41 shall be exclusive and in place of any other liability whatsoever, to 42 such employee, his or her personal representatives, spouse, parents, 43 dependents, distributees, or any person otherwise entitled to recover 44 damages, contribution or indemnity, at common law or otherwise, on 45 account of such injury or death or liability arising therefrom, except 46 that if an employer fails to secure the payment of compensation for his 47 or her injured employees and their dependents as provided in section 48 fifty of this chapter, an injured employee, or his or her legal repre- 49 sentative in case of death results from the injury, may, at his or her 50 option, elect to claim compensation under this chapter, or to maintain 51 an action in the courts for damages on account of such injury; and in 52 such an action it shall not be necessary to plead or prove freedom from 53 contributory negligence nor may the defendant plead as a defense that 54 the injury was caused by the negligence of a fellow servant nor that the 55 employee assumed the risk of his or her employment, nor that the injury 56 was due to the contributory negligence of the employee. The liabilityS. 2009--B 169 1 under this chapter of The New York Jockey Injury Compensation Fund, Inc. 2 created under section two hundred [thirteen-a] twenty-one of the racing, 3 pari-mutuel wagering and breeding law shall be limited to the provision 4 of workers' compensation coverage to jockeys, apprentice jockeys [and], 5 exercise persons, and at the election of the New York Jockey Injury 6 Compensation Fund, Inc., with the approval of the New York state gaming 7 commission, employees of licensed trainers or owners licensed under 8 article two or four of the racing, pari-mutuel wagering and breeding law 9 and any statutory penalties resulting from the failure to provide such 10 coverage. 11 § 9. Subdivision 4 of section 14-a of the workers' compensation law, 12 as amended by chapter 169 of the laws of 2007, is amended to read as 13 follows: 14 4. With respect to a jockey, apprentice jockey or exercise person 15 licensed under article two or four of the racing, pari-mutuel wagering 16 and breeding law, and at the election of the New York Jockey Injury 17 Compensation Fund, Inc., with the approval of the New York state gaming 18 commission, an employee of a licensed trainer or owner, who, pursuant to 19 section two of this chapter, is an employee of all owners and trainers 20 licensed or required to be licensed under article two or four of the 21 racing, pari-mutuel wagering and breeding law and The New York Jockey 22 Injury Compensation Fund, Inc., the owner or trainer for whom such jock- 23 ey, apprentice jockey [or], exercise person or, if approved by the New 24 York state gaming commission, employee of a licensed trainer or owner 25 was performing services at the time of the accident shall be solely 26 responsible for the double payments described in subdivision one of this 27 section, to the extent that such payments exceed any amounts otherwise 28 payable with respect to such jockey, apprentice jockey [or], exercise 29 person or, if approved by the New York state gaming commission, employee 30 of a licensed trainer or owner under any other section of this chapter, 31 and the New York Jockey Injury Compensation Fund, Inc. shall have no 32 responsibility for such excess payments, unless there shall be a failure 33 of the responsible owner or trainer to pay such award within the time 34 provided under this chapter. In the event of such failure to pay and the 35 board requires the fund to pay the award on behalf of such owner or 36 trainer who has been found to have violated this section, the fund shall 37 be entitled to an award against such owner or trainer for the amount so 38 paid which shall be collected in the same manner as an award of compen- 39 sation. 40 § 10. Section 18-a of the workers' compensation law, as amended by 41 chapter 169 of the laws of 2007, is amended to read as follows: 42 § 18-a. Notice: The New York Jockey Injury Compensation Fund, Inc. 43 Wherever in this chapter it shall be required that notice be given to an 44 employer, except for claims involving section fourteen-a of the workers' 45 compensation law such notice requirement shall be deemed satisfied by 46 giving notice to the New York Jockey Injury Compensation Fund, Inc., in 47 connection with an injury to a jockey, apprentice jockey or exercise 48 person licensed under article two or four of the racing, pari-mutuel 49 wagering and breeding law, and at the election of the New York Jockey 50 Injury Compensation Fund, Inc., with the approval of the New York state 51 gaming commission, an employee of a licensed trainer or owner, who, 52 pursuant to section two of this chapter, is an employee of all owners 53 and trainers licensed or required to be licensed under article two or 54 four of the racing, pari-mutuel wagering and breeding law and of the 55 fund. In a claim involving section fourteen-a of the workers' compen-S. 2009--B 170 1 sation law such required notice shall be given to the employing owner 2 and/or trainer of the fund. 3 § 11. Subdivision 8 of section 50 of the workers' compensation law, as 4 amended by chapter 169 of the laws of 2007, is amended to read as 5 follows: 6 8. The requirements of section ten of this chapter regarding the 7 provision of workers' compensation insurance as to owners and trainers 8 governed by the racing, pari-mutuel wagering and breeding law who are 9 employers under section two of this chapter are satisfied in full by 10 compliance with the requirements imposed upon owners and trainers by 11 section two hundred [thirteen-a] twenty-one of the racing, pari-mutuel 12 wagering and breeding law, provided that in the event double compen- 13 sation, death benefits, or awards are payable with respect to an injured 14 employee under section fourteen-a of this chapter, the owner or trainer 15 for whom the injured jockey, apprentice jockey or exercise person 16 licensed under article two or four of the racing, pari-mutuel wagering 17 and breeding law, and at the election of the New York Jockey Injury 18 Compensation Fund, Inc., with the approval of the New York state gaming 19 commission, employee of a licensed trainer or owner, is performing 20 services as a jockey, apprentice jockey or exercise person so licensed 21 at the time of the accident or, if approved by the New York state gaming 22 commission, an employee of a licensed trainer or owner shall bear the 23 sole responsibility for the amount payable pursuant to such section 24 fourteen-a in excess of the amount otherwise payable under this chapter, 25 unless there shall be a failure of the responsible owner or trainer to 26 pay such award within the time provided under this chapter. In the event 27 of such failure to pay and the board requires the fund to pay the award 28 on behalf of such owner or trainer who has been found to have violated 29 section fourteen-a of this chapter, the fund shall be entitled to an 30 award against such owner or trainer for the amount so paid which shall 31 be collected in the same manner as an award of compensation. Coverage 32 directly procured by any owner or trainer for the purpose of satisfying 33 the requirements of this chapter with respect to employees of the owner 34 or trainer shall not include coverage on any jockey, apprentice jockey 35 or exercise person licensed under article two or four of the racing, 36 pari-mutuel wagering and breeding law, and at the election of the New 37 York Jockey Injury Compensation Fund, Inc., with the approval of the New 38 York state gaming commission, any employee of a licensed trainer or 39 owner, to the extent that such jockey, apprentice jockey [or], exercise 40 person or, if approved by the New York state gaming commission, employee 41 of a licensed trainer or owner is also covered under coverage procured 42 by The New York Jockey Injury Compensation Fund, Inc. pursuant to the 43 requirements of section two hundred [thirteen-a] twenty-one of the 44 racing, pari-mutuel wagering and breeding law, and to that extent, 45 coverage procured by the fund pursuant to the requirements of the 46 racing, pari-mutuel wagering and breeding law shall be considered prima- 47 ry. 48 § 12. This act shall take effect immediately. 49 PART FFFF 50 Section 1. The racing, pari-mutuel wagering and breeding law is 51 amended by adding a new article 15 to read as follows: 52 ARTICLE 15 53 INTERACTIVE GAMING 54 Section 1500. Legislative findings and purpose.S. 2009--B 171 1 1501. Definitions. 2 1502. Authorization. 3 1503. Required safeguards/minimum standards. 4 1504. Scope of licensing review. 5 1505. State tax. 6 1506. Disposition of taxes. 7 § 1500. Legislative findings and purpose. The legislature hereby finds 8 and declares that: 1. Under the New York penal law a person engages in 9 gambling when he or she stakes or risks something of value upon the 10 outcome of a contest of chance or a future contingent event not under 11 his or her control or influence, upon an agreement or understanding that 12 he or she will receive something of value in the event of a certain 13 outcome. 14 2. A contest of chance is defined as any contest, game, gaming scheme 15 or gaming device in which the outcome depends in a material degree upon 16 an element of chance, notwithstanding that skill of the contestants may 17 also be a factor therein. (Subdivision 1 of section 225.00 of the penal 18 law). Thus, games of chance may involve some skill, but in those games 19 the level of skill does not determine the outcome regardless of the 20 degree of skill employed. See People v. Turner, 165 Misc. 2d 222, 224, 21 629 N.Y.S.2d 661, 662 (Crim. Ct. 1995). On the other hand, where a 22 contest pits the skill levels of the players against each other, New 23 York courts have found a game to be one of skill rather than chance. See 24 People v. Hunt, 162 Misc. 2d 70, 72, 616 N.Y.S.2d 168, 170 (Crim. Ct. 25 1994) ("Played fairly, skill rather than chance is the material compo- 26 nent of three-card monte."); 27 3. Poker in many instances has been defined as a game of skill and a 28 New York federal court in U.S. v. DiCristina, 886 F. Supp. 2d 164, 224, 29 assessed that under federal law poker was predominantly a game of skill; 30 4. New York courts have interpreted New York law to apply a more 31 rigorous test in identifying a "contest of chance" than is applied by 32 most states in this nation and the courts have found that where a 33 contest pits the skill levels of the players against each other, those 34 games are games of skill and not games of chance. Furthermore, the 35 courts have not limited the legislature's ability to determine that 36 certain forms of poker should fall outside the general definition of 37 gambling since those games are games of skill; 38 5. Texas Hold'em poker involves two cards dealt face down to each 39 player and then five community cards placed face-up by the dealer, a 40 series of three, then two additional single cards, with players deter- 41 mining whether to check, bet, raise or fold after each deal. Omaha 42 Hold'em poker is a similar game, in which each player is dealt four 43 cards and makes his or her best hand using exactly two of them, plus 44 exactly three of the five community cards. These games are considered to 45 be complex forms of poker which involve player strategy and decision- 46 making and which pit the skill levels of the players against each other. 47 As games of skill, these forms of poker do not fall under the definition 48 of gambling as prohibited by the penal law; and 49 6. The legislature further finds that as the internet has become an 50 integral part of society, and internet poker a major form of enter- 51 tainment for many consumers, any interactive gaming enforcement and 52 regulatory structure must begin from the bedrock premise that partic- 53 ipation in a lawful and licensed gaming industry is a privilege and not 54 a right, and that regulatory oversight is intended to safeguard the 55 integrity of the games and participants and to ensure accountability and 56 the public trust.S. 2009--B 172 1 § 1501. Definitions. As used in this article, the following terms 2 shall have the following meanings: 3 1. "Authorized game" means Omaha Hold'em and Texas Hold'em poker, as 4 well as any other poker game that the commission determines is the mate- 5 rial equivalent of either of those, whether in a cash game or tourna- 6 ment. 7 2. "Authorized participants" means persons who are either physically 8 present in this state when placing a wager or who otherwise are permit- 9 ted by applicable law, as determined by the commission, to place a 10 wager. The intermediate routing of electronic data in connection with 11 interactive gaming shall not determine the location or locations in 12 which a wager is initiated, received or otherwise made. 13 3. "Core function" means any of the following: (a) the management, 14 administration or control of wagers on interactive gaming; (b) the 15 management, administration or control of the games with which those 16 wagers are associated; or (c) the development, maintenance, provision or 17 operation of an interactive gaming platform. 18 4. "Commission" means the New York state gaming commission. 19 5. "Division" means the division of gaming, established under para- 20 graph (c) of subdivision two of section one hundred three of this chap- 21 ter. 22 6. "Interactive gaming" means the conduct of games through the use of 23 the internet or other communications technology that allows a person, 24 utilizing money, checks, electronic checks, electronic transfers of 25 money, credit cards, debit cards or any other instrumentality, to trans- 26 mit to a computer information to assist in the placing of a wager and 27 corresponding information related to the display of the game, game 28 outcomes or other similar information. The term does not include the 29 conduct of (a) non-gambling games that do not otherwise require a 30 license under state or federal law; or (b) games that occur entirely 31 among participants who are located on a licensed casino premises. For 32 purposes of this provision, "communications technology" means any method 33 used and the components employed by an establishment to facilitate the 34 transmission of information, including, without limitation, transmission 35 and reception by systems based on wire, cable, radio, microwave, light, 36 optics or computer data networks, including, without limitation, the 37 internet and intranets. 38 7. "Interactive gaming gross revenue" means the total of all sums paid 39 to a licensee from interactive gaming involving authorized participants, 40 less only the total of all sums paid out as winnings to patrons and 41 promotional gaming credits; provided, however, that the cash equivalent 42 value of any merchandise or other non-cash thing of value included in a 43 contest or tournament shall not be included in the total of all sums 44 paid out as winnings to players for purposes of determining interactive 45 gaming gross revenue. 46 (a) Neither amounts deposited with a licensee for purposes of interac- 47 tive gaming nor amounts taken in fraudulent acts perpetrated against a 48 licensee for which the licensee is not reimbursed shall be considered to 49 have been "paid" to the licensee for purposes of calculating interactive 50 gaming gross revenue. 51 (b) "Promotional gaming credit" includes bonuses, promotions and any 52 amount received by a licensee from a patron for which the licensee can 53 demonstrate that it or its affiliate has not received cash. 54 8. "Interactive gaming platform" means the combination of hardware, 55 software and data networks used to manage, administer or control wagersS. 2009--B 173 1 on interactive gaming or the games with which those wagers are associ- 2 ated. 3 9. "Internet" means a computer network of interoperable packet- 4 switched data networks. 5 10. "Licensee" means a person who is licensed by the commission to 6 offer interactive gaming, using an interactive gaming platform to 7 authorized participants. A licensee may utilize multiple interactive 8 gaming platforms provided that each platform is approved by the commis- 9 sion. 10 11. "Omaha Hold'em poker" means the poker game marketed as Omaha 11 Hold'em poker or Omaha poker in which each player is dealt four cards 12 and must make his or her best hand using exactly two of them, plus 13 exactly three of the five community cards. 14 12. "Significant vendor" means any person who offers or who proposes 15 to offer any of the following services with respect to interactive 16 gaming: (a) a core function; (b) sale, licensing or other receipt of 17 compensation for selling or licensing a database or customer list of 18 individuals residing in the United States selected in whole or in part 19 because they placed wagers or participated in gambling games with or 20 through an internet website or operator (or any derivative of such a 21 database or customer list); (c) provision of any trademark, tradename, 22 service mark or similar intellectual property under which a licensee or 23 significant vendor identifies interactive games to customers; or (d) 24 provision of any product, service or asset to a licensee or significant 25 vendor in return for a percentage of interactive gaming revenue (not 26 including fees to financial institutions and payment providers for 27 facilitating a deposit or withdrawal by an authorized participant). The 28 term "significant vendor" shall not include a provider of goods or 29 services to a licensee that are not specifically designed for use and 30 not principally used in connection with interactive gaming. 31 13. "Texas Hold'em poker" means the type of poker marketed as Texas 32 Hold'em poker that involves two cards being dealt face down to each 33 player and then five community cards being placed face-up by the dealer, 34 a series of three then two additional single cards, with players having 35 the option to check, bet, raise or fold after each deal. 36 § 1502. Authorization. 1. The commission shall, within one hundred 37 eighty days of the date this article becomes law, promulgate regulations 38 to implement interactive gaming in this state and shall authorize up to 39 eleven licenses to operate interactive gaming involving authorized 40 participants, subject to the provisions of this article and other appli- 41 cable provisions of law. 42 2. Applicants eligible to apply for a license pursuant to this article 43 shall be those entities: 44 (a) licensed by the state pursuant to section sixteen hundred seven- 45 teen-a of the tax law to operate video lottery gaming and has experience 46 in the operation of interactive gaming by being licensed in a state with 47 comparable licensing requirements or guarantees acquisition of adequate 48 business competence and experience in the operation of interactive 49 gaming; or 50 (b) licensed by the state to operate a class III gaming facility 51 pursuant to article thirteen of this chapter and has experience in the 52 operation of interactive gaming by being licensed in a state with compa- 53 rable licensing requirements or guarantees acquisition of adequate busi- 54 ness competence and experience in the operation of interactive gaming. 55 3. The commission shall, to the extent practicable, issue licenses to 56 multiple applicants no sooner than one hundred eighty days after theS. 2009--B 174 1 promulgation of regulations in order to ensure a robust and competitive 2 market for consumers and to prevent early licensees from gaining an 3 unfair competitive advantage. 4 4. No person may operate, manage or make available an interactive 5 gaming platform or act as a significant vendor with respect to interac- 6 tive gaming that is offered to persons located in this state unless 7 licensed by the commission pursuant to this article and only those games 8 authorized by the commission shall be permitted. 9 5. License applicants may form a partnership, joint venture or other 10 contractual arrangement in order to facilitate the purposes of this 11 article. 12 6. Any person found suitable by the commission may be issued a license 13 as an operator or significant vendor pursuant to this article. In deter- 14 mining suitability, the commission shall consider those factors it deems 15 relevant in its discretion, including but not limited to: 16 (a) Whether the applicant is a person of good character, honesty and 17 integrity; 18 (b) Whether the applicant is person whose prior activities, criminal 19 record, if any, reputation, habits and associations do not: 20 (i) pose a threat to the public interest or to the effective regu- 21 lation and control of interactive gaming; or 22 (ii) create or enhance the dangers of unsuitable, unfair or illegal 23 practices, methods and activities in the conduct of interactive gaming 24 or in the carrying on of the business and financial arrangements inci- 25 dental to such gaming; 26 (c) Whether the applicant is capable of and likely to conduct the 27 activities for which the applicant is licensed in accordance with the 28 provisions of this article, any regulations prescribed under this arti- 29 cle and all other applicable laws; 30 (d) Whether the applicant has or guarantees acquisition of adequate 31 business competence and experience in the operation of licensed gaming 32 or of interactive gaming in this state or in a state with comparable 33 licensing requirements; and 34 (e) Whether the applicant has or will obtain sufficient financing for 35 the nature of the proposed operation and from a suitable source. 36 7. The commission further shall develop standards by which to evaluate 37 and approve interactive gaming platforms for use with interactive 38 gaming. Interactive gaming platforms must be approved by the commission 39 before being used by a licensee or significant vendor to conduct inter- 40 active gaming in this state. 41 8. The commission shall require all licensees to pay a one-time fee of 42 ten million dollars. Such fee paid by each licensee shall be applied to 43 satisfy, in whole or in part, as applicable, that licensee's tax obli- 44 gation pursuant to section fifteen hundred five of this article in sixty 45 equal monthly installments, allocated to each of the first sixty months 46 of tax owed after the licensee has begun operating interactive gaming 47 pursuant to this article. No amounts not required to be used to satisfy 48 such tax obligation during that period shall be allocated to payment of 49 such tax obligation after that period. 50 9. Licenses issued by the commission shall remain in effect for ten 51 years. 52 10. The commission, by regulation, may authorize and promulgate any 53 rules necessary to implement agreements with other states, or authorized 54 agencies thereof (a) to enable patrons in those states to participate in 55 interactive gaming offered by licensees under this article or (b) to 56 enable patrons in this state to participate in interactive gamingS. 2009--B 175 1 offered by licensees under the laws of those other states, provided that 2 such other state or authorized agency applies suitability standards and 3 review materially consistent with the provisions of this article. 4 11. Any regulations adopted pursuant to subdivision ten of this 5 section must set forth provisions that address: 6 (a) Any arrangements to share revenue between New York and any other 7 state or agency within another state; and 8 (b) Arrangements to ensure the integrity of interactive gaming offered 9 pursuant to any such agreement and the protection of patrons located in 10 this state. 11 12. The commission may delegate its responsibilities to administer the 12 provisions of this article to the division, as it sees fit, except for 13 its responsibilities to approve licenses. 14 § 1503. Required safeguards/minimum standards. The commission shall 15 require licensees to implement measures to meet the standards set out in 16 this section, along with such other standards that the commission in its 17 discretion may choose to require. 18 (a) Appropriate safeguards to ensure, to a reasonable degree of 19 certainty, that participants in interactive gaming are not younger than 20 twenty-one years of age. 21 (b) Appropriate safeguards to ensure, to a reasonable degree of 22 certainty, that participants in interactive gaming are physically 23 located within the state or such other jurisdiction that the commission 24 has determined to be permissible. 25 (c) Appropriate safeguards to protect, to a reasonable degree of 26 certainty, the privacy and online security of participants in interac- 27 tive gaming. 28 (d) Appropriate safeguards to ensure, to a reasonable degree of 29 certainty, that the interactive gaming is fair and honest and that 30 appropriate measures are in place to deter, detect and, to the extent 31 reasonably possible, to prevent cheating, including collusion, and use 32 of cheating devices, including use of software programs (sometimes 33 referred to as "bots") that make bets or wagers according to algorithms. 34 (e) Appropriate safeguards to minimize compulsive gaming and to 35 provide notice to participants of resources to help problem gamblers. 36 (f) Appropriate safeguards to ensure participants' funds are held in 37 accounts segregated from the funds of licensees and otherwise are 38 protected from corporate insolvency, financial risk or criminal or civil 39 actions against the licensee. 40 § 1504. Scope of licensing review. 1. In connection with any license 41 issued pursuant to this article, the licensee, significant vendor or 42 applicant shall identify and the commission shall review the suitability 43 of such licensee's, significant vendor's or applicant's owner, chief 44 executive officer, chief financial officer and any other officer or 45 employee who the commission deems is significantly involved in the 46 management or control of the licensee, significant vendor or applicant 47 or of the interactive gaming platform. "Owner" for purposes of this 48 provision means any person who directly or indirectly holds any benefi- 49 cial or ownership interest in the applicant of five percent or greater 50 or any amount of ownership that the commission determines to be signif- 51 icant ownership of the licensee, significant vendor, or applicant. 52 2. Institutional investors are subject to the provisions set out in 53 this section. 54 (a) An institutional investor holding under twenty-five percent of the 55 equity securities of a licensee's or significant vendor's (or appli- 56 cant's) holding or intermediary companies, shall be granted a waiver ofS. 2009--B 176 1 any investigation of suitability or other requirement if such securities 2 are those of a corporation, whether publicly traded or privately held, 3 and its holdings of such securities were purchased for investment 4 purposes only and it files a certified statement to the effect that it 5 has no intention of influencing or affecting the affairs of the issuer, 6 the licensee (or significant vendor or applicant, as applicable) or its 7 holding or intermediary companies; provided, however, that it shall be 8 permitted to vote on matters put to the vote of the outstanding security 9 holders. The commission may grant such a waiver to an institutional 10 investor holding a higher percentage of such securities upon a showing 11 of good cause and if the conditions specified above are met. Any insti- 12 tutional investor granted a waiver under this paragraph which subse- 13 quently determines to influence or affect the affairs of the issuer 14 shall provide not less than thirty days' notice of such intent and shall 15 file with the commission a request for determination of suitability 16 before taking any action that may influence or affect the affairs of the 17 issuer; provided, however, that it shall be permitted to vote on matters 18 put to the vote of the outstanding security holders. If an institutional 19 investor changes its investment intent, or if the commission finds 20 reasonable cause to believe that the institutional investor may be found 21 unsuitable, no action other than divestiture shall be taken by such 22 investor with respect to its security holdings until there has been 23 compliance with any requirements established by the commission, which 24 may include the execution of a trust agreement. The licensee (or signif- 25 icant vendor or applicant, as applicable) and its relevant holding, 26 intermediary or subsidiary company shall notify the commission imme- 27 diately of any information about, or actions of, an institutional inves- 28 tor holding its equity securities where such information or action may 29 impact upon the eligibility of such institutional investor for a waiver 30 pursuant to this paragraph. 31 (b) If at any time the commission finds that an institutional investor 32 holding any security of a holding or intermediary company of a licensee 33 or significant vendor or applicant, or, where relevant, of another 34 subsidiary company of a holding or intermediary company of a licensee or 35 significant vendor or applicant which is related in any way to the 36 financing of the licensee or significant vendor or applicant, fails to 37 comply with the terms of paragraph (a) of this section, or if at any 38 time the commission finds that, by reason of the extent or nature of its 39 holdings, an institutional investor is in a position to exercise such a 40 substantial impact upon the controlling interests of a licensee or 41 significant vendor or applicant that investigation and determination of 42 suitability of the institutional investor is necessary to protect the 43 public interest, the commission may take any necessary action otherwise 44 authorized under this article to protect the public interest. 45 (c) For purposes of this section, an "institutional investor" shall 46 mean any retirement fund administered by a public agency for the exclu- 47 sive benefit of federal, state, or local public employees; investment 48 company registered under the Investment Company Act of 1940 (15 U.S.C. § 49 80a-1 et seq.); collective investment trust organized by banks under 50 Part Nine of the Rules of the Comptroller of the Currency; closed end 51 investment trust; chartered or licensed life insurance company or prop- 52 erty and casualty insurance company; banking and other chartered or 53 licensed lending institution; investment advisor registered under The 54 Investment Advisors Act of 1940 (15 U.S.C. § 80b-1 et seq.); and such 55 other persons as the commission may determine for reasons consistent 56 with the public interest.S. 2009--B 177 1 § 1505. State tax. Licensees engaged in the business of conducting 2 interactive gaming pursuant to this article shall pay a privilege tax 3 based on the licensee's interactive gaming gross revenue at a fifteen 4 percent rate. 5 § 1506. Disposition of taxes. The state shall use the revenue gener- 6 ated from all taxes imposed by this article; any interest and penalties 7 imposed by the commission relating to those taxes; all penalties levied 8 and collected by the commission; and the appropriate funds, case or 9 prizes forfeited from interactive gaming, to pay for state assistance to 10 eligible cities and eligible municipalities in which a video lottery 11 gaming facility is located pursuant to section fifty-four-l of the state 12 finance law. The commission shall pay into the state lottery fund any 13 remaining funds generated by taxes imposed by this article; any interest 14 and penalties imposed by the commission relating to those taxes; all 15 penalties levied and collected by the commission; and the appropriate 16 funds, cash or prizes forfeited from interactive gaming. 17 § 2. Subdivision 1 of section 225.00 of the penal law is amended to 18 read as follows: 19 1. "Contest of chance" means any contest, game, gaming scheme or 20 gaming device in which the outcome depends [in a material degree] 21 predominantly upon an element of chance, notwithstanding that skill of 22 the contestants may also be a factor therein. 23 § 3. The penal law is amended by adding a new section 225.36 to read 24 as follows: 25 § 225.36 Interactive gaming offenses and exceptions. 26 1. The knowing and willful offering of unlicensed interactive gaming 27 to persons in this state, or the knowing and willful provision of 28 services with respect thereto, shall constitute a gambling offense under 29 this article. 30 2. Licensed interactive gaming activities under section fifteen 31 hundred two of the racing, pari-mutuel wagering and breeding law shall 32 not be a gambling offense under this article. 33 3. A person offering unlicensed interactive gaming to persons in this 34 state shall be liable for all taxes set forth in section fifteen hundred 35 five of the racing, pari-mutuel wagering and breeding law in the same 36 manner and amounts as if such person were a licensee. Timely payment of 37 such taxes shall not constitute a defense to any prosecution or other 38 proceeding in connection with the interactive gaming except for a prose- 39 cution or proceeding alleging failure to make such payment. 40 § 4. Severability clause. If any provision of this act or application 41 thereof shall for any reason be adjudged by any court of competent 42 jurisdiction to be invalid, such judgment shall not affect, impair, or 43 invalidate the remainder of the act, but shall be confined in its opera- 44 tion to the provision thereof directly involved in the controversy in 45 which the judgment shall have been rendered. 46 § 5. This act shall take effect on the one hundred eightieth day after 47 it shall have become a law. 48 PART GGGG 49 Section 1. The racing, pari-mutuel wagering and breeding law is 50 amended by adding a new section 103-a to read as follows: 51 § 103-a. Racing fan advisory council. There is hereby established a 52 racing fan advisory council within the commission which will operate as 53 follows:S. 2009--B 178 1 1. The council shall be composed of five members. None of the members 2 of the council shall be employees or officers of the commission or be 3 paid employees, lobbyists, or officers of any licensed or franchised 4 racetrack or off-track betting corporation or any nonprofit corporation 5 which represents breeders or horsemen. Members shall be selected based 6 on their long-term involvement and interest in, knowledge of, and 7 devotion to the sport of horse racing as fans of the sport. Five persons 8 shall be appointed by the executive director of the commission. One 9 person shall be appointed upon the recommendation of the chairperson of 10 the senate committee on racing, gaming and wagering, and one person 11 shall be appointed upon the recommendation of the chairperson of the 12 assembly committee on racing and wagering. 13 2. The chairperson of the council shall be selected by the executive 14 director of the commission. The deputy chairperson shall be selected by 15 a majority vote of the council from among the persons appointed at the 16 recommendation of the chairpersons of the designated legislative commit- 17 tees. 18 3. The members of the council shall serve for a period of five years 19 with all terms beginning September first, two thousand sixteen. In the 20 event of a vacancy occurring during a term of appointment by reason of 21 death, resignation, disqualification or otherwise, such vacancy shall be 22 filled for the unexpired term in the same manner as the original 23 appointment. 24 4. The racing fan advisory council shall request and shall receive the 25 assistance and cooperation of the commission in regard to receipt of 26 information relating to horse racing and wagering in this state. 27 5. The racing fan advisory council shall: 28 (a) have as its mission the growth of the fan base related to the 29 sport of horse racing; 30 (b) recommend procedures to ensure that the opinion of the fan is a 31 central part of the regulation of horse racing; 32 (c) prepare an annual report, and any other reports it deems neces- 33 sary, to the commission regarding the operation of the state's thorough- 34 bred and harness racetracks and the state's off-track betting corpo- 35 rations; 36 (d) advise the commission on appropriate actions to encourage fan 37 attendance and wagering at the state's thoroughbred and harness race- 38 tracks and the state's off-track betting corporations; 39 (e) be authorized by the commission to enter upon the racetracks and 40 their facilities regulated or controlled by the board during race times, 41 and during periods of horse workouts, and during hours when members of 42 the media are permitted to be present at the facilities; 43 (f) recommend changes to the rules of the commission and to the laws 44 affecting horse racing; 45 (g) perform such other duties as may be increased by order of the 46 commission; 47 (h) engage New York state's racing fan population on how to make the 48 sport more appealing; 49 (i) recommend to the commission further procedures to make steward and 50 presiding judge actions that impact the betting public more transparent; 51 and 52 (j) work with relevant component industries to better educate the 53 casual fan as to significant industry topics. 54 § 2. This act shall take effect immediately; provided, however, that 55 the members of the racing fan advisory council as created by resolution 56 of the New York State Gaming Commission dated September 1, 2016, shallS. 2009--B 179 1 be the initial members of the racing fan advisory council as established 2 by section one of this act. 3 PART HHHH 4 Section 1. Subparagraph (iii) of paragraph 1 of subdivision b of 5 section 1612 of the tax law, as separately amended by chapters 174 and 6 175 of the laws of 2013, is amended to read as follows: 7 (iii) less an additional vendor's marketing allowance at a rate of 8 [ten] twelve percent for the first one hundred million dollars annually 9 and [eight] ten percent thereafter of the total revenue wagered at the 10 vendor track after payout for prizes to be used by the vendor track for 11 the marketing and promotion and associated costs of its video lottery 12 gaming operations and pari-mutuel horse racing operations, as long as 13 any such costs associated with pari-mutuel horse racing operations 14 simultaneously encourage increased attendance at such vendor's video 15 lottery gaming facilities, consistent with the customary manner of 16 marketing comparable operations in the industry and subject to the over- 17 all supervision of the division; provided, however, that the additional 18 vendor's marketing allowance shall not exceed [eight] ten percent in any 19 year for any operator of a racetrack located in the county of Westches- 20 ter or Queens; provided, however, a vendor track that receives a vendor 21 fee pursuant to clause (G) of subparagraph (ii) of this paragraph shall 22 not receive the additional vendor's marketing allowance; provided, 23 however, except for a vendor track located west of State Route 14 from 24 Sodus Point to the Pennsylvania border within New York shall continue to 25 receive a marketing allowance of [ten] twelve percent on total revenue 26 wagered at the vendor track after payout for prizes in excess of one 27 hundred million dollars annually provided, however, a vendor that 28 receives a vendor fee pursuant to clause (G-1) of subparagraph (ii) of 29 this paragraph shall receive an additional marketing allowance at a rate 30 of [ten] twelve percent of the total revenue wagered at the video 31 lottery gaming facility after payout for prizes. In establishing the 32 vendor fee, 33 § 2. This act shall take effect immediately. 34 PART IIII 35 Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of 36 section 606 of the tax law, as amended by section 1 of part N of chapter 37 85 of the laws of 2002, is amended to read as follows: 38 (A) The term "allowable college tuition expenses" shall mean the 39 amount of qualified college tuition expenses of eligible students paid 40 by the taxpayer during the taxable year, limited to ten thousand dollars 41 for each such student for taxable years beginning before two thousand 42 seventeen. The amount of allowable college tuition expenses shall 43 increase by an additional four thousand dollars from the previous taxa- 44 ble year, for each student, for each taxable year beginning on or after 45 two thousand seventeen until taxable years beginning on and after two 46 thousand twenty-seven when the amount of allowable college tuition 47 expenses shall equal the amount from the previous taxable year; 48 § 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as 49 added by section 1 of part DD of chapter 63 of the laws of 2000, is 50 amended to read as follows: 51 (4) Amount of credit. [If] For taxable years beginning before two 52 thousand seventeen, if allowable college tuition expenses are less thanS. 2009--B 180 1 five thousand dollars, the amount of the credit provided under this 2 subsection shall be equal to the applicable percentage of the lesser of 3 allowable college tuition expenses or two hundred dollars. [If] For 4 taxable years beginning before two thousand seventeen, if allowable 5 college tuition expenses are five thousand dollars or more, the amount 6 of the credit provided under this subsection shall be equal to the 7 applicable percentage of the allowable college tuition expenses multi- 8 plied by four percent. For taxable years beginning on or after two 9 thousand seventeen, the amount of the credit provided under this 10 subsection shall be equal to the applicable percentage of the allowable 11 college tuition expenses multiplied by five percent. Such applicable 12 percentage shall be twenty-five percent for taxable years beginning in 13 two thousand one, fifty percent for taxable years beginning in two thou- 14 sand two, seventy-five percent for taxable years beginning in two thou- 15 sand three and one hundred percent for taxable years beginning after two 16 thousand three. 17 § 3. This act shall take effect immediately. 18 PART JJJJ 19 Section 1. The education law is amended by adding a new section 682 to 20 read as follows: 21 § 682. College debt freedom account program. 1. There is hereby estab- 22 lished the college debt freedom account program. Such program shall 23 permit employees to deposit a portion of their pre-tax income pursuant 24 to paragraph forty-two of subsection (c) of section six hundred twelve 25 of the tax law, into an account solely intended for undergraduate 26 student loan repayments. Employers may elect to participate in the 27 program and receive a tax credit by contributing matching funds to an 28 employee's student loan repayment account established pursuant to this 29 section. Such contribution shall be minimally fifty percent of the 30 employee's deposit and a maximum one hundred percent of the employee's 31 deposit, up to twenty-five hundred dollars annually, per employee 32 account. 33 2. For the purposes of this section, "student loan" shall mean the 34 cumulative total of the annual student loans covering the cost of 35 attendance at an undergraduate college or university, and any interest 36 thereon. 37 3. Employee student loan repayment accounts shall be established by an 38 employee for deposit of funds to be used solely for repayment of student 39 loans. Such accounts shall be managed by the higher education services 40 corporation. All enrollees and participating employers shall provide the 41 corporation with all necessary information in order to implement the 42 provisions of this section. 43 4. Moneys in a student loan repayment account shall be available only 44 for repayments of student loans as defined in this section. Any with- 45 drawal or distribution from a student loan repayment account which 46 violated the provisions of this subdivision shall be subject to a penal- 47 ty of ten percent on any such withdrawal or distribution. 48 5. The commissioner and the commissioner of taxation and finance shall 49 jointly promulgate rules and regulations necessary to implement the 50 provisions of this section. 51 § 2. Subsection (c) of section 612 of the tax law is amended by adding 52 a new paragraph 42 to read as follows: 53 (42) Payment not in excess of twenty-five hundred dollars actually 54 paid by an eligible borrower for student loan repayment, to the extentS. 2009--B 181 1 not deductible in determining federal adjusted gross income and not 2 reimbursed. For the purposes of this paragraph, the following terms 3 shall have the following meanings: 4 (A) "Student loans" shall mean any indebtedness incurred by the 5 taxpayer for an undergraduate education loan in accordance with section 6 221 of the internal revenue code. 7 (B) "Eligible borrower" shall mean a taxpayer who has incurred indebt- 8 edness on student loans as defined in subparagraph (A) of this para- 9 graph. 10 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 11 sion 49 to read as follows: 12 49. College debt freedom account program tax credit. (a) General. An 13 employer who contributes matching funds towards an employee's undergrad- 14 uate student loan repayments, shall be allowed a credit, to be computed 15 as provided in this subdivision, against the tax imposed by this arti- 16 cle, for contributions the employer deposits annually, up to twenty-five 17 hundred dollars per employee per year. 18 (b) Amount of credit. The credit authorized by this section shall be 19 equal to the amount of the employer's contribution; provided that such 20 contribution shall be a minimum of fifty percent and a maximum of one 21 hundred percent of the employee's deposit to a student loan repayment 22 account subject to the limits set forth in this subdivision. 23 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 24 of the tax law is amended by adding a new clause (xliii) to read as 25 follows: 26 (xliii) College debt Amount of credit 27 freedom account under subdivision forty-nine 28 program tax credit under of section two hundred ten-B 29 subsection (ccc) 30 § 5. Section 606 of the tax law is amended by adding a new subsection 31 (ccc) to read as follows: 32 (ccc) College debt freedom account program tax credit. (a) General. An 33 employer who contributes matching funds towards an employee's undergrad- 34 uate student loan repayments, shall be allowed a credit, to be computed 35 as provided in this subsection, against the tax imposed by this article, 36 for contributions the employer deposits annually, up to twenty-five 37 hundred dollars per employee per year. 38 (b) Amount of credit. The credit authorized by this section shall be 39 equal to the amount of the employer contribution; provided that such 40 contribution shall be a minimum of fifty percent and a maximum of one 41 hundred percent of the employee's deposit to a student loan repayment 42 account subject to the limits set forth in this subsection. 43 § 6. Section 1511 of the tax law is amended by adding a new subdivi- 44 sion (dd) to read as follows: 45 (dd) College debt freedom account program tax credit. (1) General. An 46 employer who contributes matching funds towards an employee's undergrad- 47 uate student loan repayments, shall be allowed a credit, to be computed 48 as provided in this subdivision, against the tax imposed by this arti- 49 cle, for contributions the employer deposits annually, up to twenty-five 50 hundred dollars per employee per year. 51 (2) Amount of credit. The credit authorized by this section shall be 52 equal to the amount of the employer's contribution; provided that such 53 contribution shall be a minimum of fifty percent and a maximum of one 54 hundred percent of the employee's deposit to a student loan repayment 55 account subject to the limits set forth in this subdivision.S. 2009--B 182 1 § 7. This act shall take effect on the sixtieth day after it shall 2 have become a law. 3 PART KKKK 4 Section 1. The state finance law is amended by adding a new article 17 5 to read as follows: 6 ARTICLE 17 7 ANNUAL SPENDING GROWTH CAP ACT 8 Section 244. Definitions. 9 245. Establishment of annual spending growth cap. 10 246. Provisions regarding declaration of emergency. 11 § 244. Definitions. As used in this article, the following terms shall 12 have the following meanings, unless otherwise specified: 13 1. "Annual spending growth cap" shall mean a percentage determined by 14 adding the inflation rates from each of the three calendar years imme- 15 diately prior to the commencement of a given fiscal year and then divid- 16 ing that sum by three. 17 2. "State operating funds spending" shall mean annual disbursements of 18 all governmental fund types included in the cash-basis financial plan of 19 the state, excluding disbursements from federal funds and capital 20 project funds. 21 3. "Inflation rate" shall mean the percentage change in the twelve- 22 month average of the consumer price index for all urban consumers as 23 published by the United States department of labor, bureau of labor 24 statistics or any successor agency for a given calendar year compared to 25 the prior calendar year. 26 4. "Executive budget" shall mean the budget submitted annually by the 27 governor pursuant to section one of article VII of the state constitu- 28 tion. 29 5. "State budget as enacted" shall mean the budget acted upon by the 30 legislature in a given fiscal year, as subject to section four of arti- 31 cle VII of the state constitution and section seven of article IV of the 32 state constitution. 33 6. "Emergency" shall mean an extraordinary, unforeseen, or unexpected 34 occurrence, or combination of circumstances, including but not limited 35 to a natural disaster, invasion, terrorist attack, or economic calamity. 36 § 245. Establishment of annual spending growth cap. 1. There is here- 37 by established an annual spending growth cap. 38 2. The governor shall not submit, and the legislature shall not act 39 upon, a budget that contains a percentage increase over the prior fiscal 40 year in state operating funds spending which exceeds the annual spending 41 growth cap. 42 3. The governor shall certify in writing that state operating funds 43 spending in the executive budget does not exceed the annual spending 44 growth cap. If final inflation rate data for the prior calendar year is 45 not yet available at the time the governor submits his or her executive 46 budget, he or she shall furnish a reasonable estimate of such prior 47 calendar year inflation rate. 48 4. The comptroller shall provide, within five days of action by the 49 legislature upon the budget, a determination as to whether the state 50 operating funds spending as set forth in the state budget as enacted 51 exceeds the annual spending growth cap. 52 5. If the comptroller finds that state operating funds spending as set 53 forth in the state budget as enacted exceeds the annual spending growthS. 2009--B 183 1 cap, the governor shall take corrective action to ensure that funding is 2 limited to the amount of the annual spending cap. 3 § 246. Provisions regarding declaration of emergency. 1. Upon a find- 4 ing of an emergency by the governor, he or she may declare an emergency 5 by an executive order which shall set forth the reasons for such decla- 6 ration. 7 2. Based upon such declaration, the governor may submit, and the 8 legislature may authorize, by a two-thirds supermajority, a budget 9 containing a percentage increase over the prior fiscal year in state 10 operating funds spending that exceeds the annual spending growth cap. 11 § 2. Subdivision 2 of section 92-cc of the state finance law, as 12 amended by section 12-a of part I of chapter 60 of the laws of 2015, is 13 amended to read as follows: 14 2. Such fund shall have a maximum balance not to exceed [five] ten per 15 centum of the aggregate amount projected to be disbursed from the gener- 16 al fund during the fiscal year immediately following the then-current 17 fiscal year. At the request of the director of the budget, the state 18 comptroller shall transfer monies to the rainy day reserve fund up to 19 and including an amount equivalent to seventy-five one-hundredths of one 20 per centum of the aggregate amount projected to be disbursed from the 21 general fund during the then-current fiscal year, unless such transfer 22 would increase the rainy day reserve fund to an amount in excess of five 23 per centum of the aggregate amount projected to be disbursed from the 24 general fund during the fiscal year immediately following the then-cur- 25 rent fiscal year, in which event such transfer shall be limited to such 26 amount as will increase the rainy day reserve fund to such five per 27 centum limitation. 28 § 3. This act shall take effect on the thirtieth day after it shall 29 have become a law. 30 PART LLLL 31 Section 1. Section 1325 of the racing, pari-mutuel wagering and breed- 32 ing law, as added by chapter 174 of the laws of 2013, is amended to read 33 as follows: 34 § 1325. Approval, denial and renewal of employee licenses and regis- 35 trations. 1. Upon the filing of an application for a casino key employee 36 license or gaming employee registration required by this article and 37 after submission of such supplemental information as the commission may 38 require, the commission shall request the division of state police to 39 conduct [or cause to be conducted such] an investigation into the quali- 40 fication of the applicant, and the commission shall conduct such hear- 41 ings concerning the qualification of the applicant, in accordance with 42 its regulations, as may be necessary to determine qualification for such 43 license. 44 1-a. The cost of any such investigation shall be borne by the gaming 45 facility that initially employs or extends employment to a licensee 46 pursuant to this title after the approval or renewal of a license pursu- 47 ant to this title and shall be paid in a time and manner determined by 48 the commission. 49 2. After such investigation, the commission may either deny the appli- 50 cation or grant a license to an applicant whom it determines to be qual- 51 ified to hold such license. 52 3. The commission shall have the authority to deny any application 53 pursuant to the provisions of this article following notice and opportu- 54 nity for hearing.S. 2009--B 184 1 4. When the commission grants an application, the commission may limit 2 or place such restrictions thereupon as it may deem necessary in the 3 public interest. 4 5. After an application for a casino key employee license is submit- 5 ted, final action of the commission shall be taken within ninety days 6 after completion of all hearings and investigations and the receipt of 7 all information required by the commission. 8 6. Licenses and registrations of casino key employees and gaming 9 employees issued pursuant to this article shall remain valid for five 10 years unless suspended, revoked or voided pursuant to law. Such licenses 11 and registrations may be renewed by the holder thereof upon application, 12 on a form prescribed by the commission, and payment of the applicable 13 fee. Notwithstanding the forgoing, if a gaming employee registrant has 14 not been employed in any position within a gaming facility for a period 15 of three years, the registration of that gaming employee shall lapse. 16 [8] 7. The commission shall establish by regulation appropriate fees 17 to be paid upon the filing of the required applications. Such fees shall 18 be deposited into the commercial gaming revenue fund. 19 § 2. This act shall take effect immediately. 20 PART MMMM 21 Section 1. Section 1604 of the tax law is amended by adding four new 22 subdivisions d, e, f and g to read as follows: 23 d. The division may contract with one or more persons to allow the 24 placement of advertising or promotional material on available media 25 related to any online lottery game or to sponsor individual draws in any 26 online lottery game. If the division enters into a contract under this 27 subdivision, the division shall allow at least one minute between draws 28 of online lottery games during which one or more advertisements may be 29 exhibited. 30 e. A contract entered into under subdivision d of this section shall 31 provide that any advertisements exhibited between draws of online 32 lottery games shall comply with content regulations for televised broad- 33 cast adopted by the Federal Communications Commission, with the excep- 34 tion that the advertising under subdivision d of this section may 35 include advertisements for alcoholic beverages with restrictions imposed 36 only by the division. 37 f. The division shall solicit bids from responsible persons for adver- 38 tising or promotional contracts under subdivision d of this section. The 39 division shall select from among the bids received so as to produce the 40 maximum amount of net revenue for the state consistent with the general 41 welfare of the citizens of the state. In deciding whether to enter into 42 a contract under subdivision d of this section, the division shall 43 consider whether the terms of the contract are comparable to the terms 44 of similar advertising or promotional contracts relating to lottery or 45 other gaming in other states. 46 g. The division, subject to applicable laws relating to public 47 contracts, may enter into contracts with one or more persons to allow 48 the placement of advertising or promotional material, including but not 49 limited to, the placement of discount coupons for retail goods, on 50 lottery tickets, shares, and other available media under the control of 51 the division. However, except for advertising that promotes responsible 52 consumption of alcoholic beverages, the division shall not allow the 53 placement of advertising for the promotion of the consumption of alco-S. 2009--B 185 1 holic beverages or tobacco products on lottery tickets under the control 2 of the division. 3 § 2. This act shall take effect immediately. 4 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 5 sion, section or part of this act shall be adjudged by any court of 6 competent jurisdiction to be invalid, such judgment shall not affect, 7 impair, or invalidate the remainder thereof, but shall be confined in 8 its operation to the clause, sentence, paragraph, subdivision, section 9 or part thereof directly involved in the controversy in which such judg- 10 ment shall have been rendered. It is hereby declared to be the intent of 11 the legislature that this act would have been enacted even if such 12 invalid provisions had not been included herein. 13 § 3. This act shall take effect immediately provided, however, that 14 the applicable effective date of Parts A through MMMM of this act shall 15 be as specifically set forth in the last section of such Parts.
