Bill Text: NY S02509 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Passed) 2021-04-19 - SIGNED CHAP.59 [S02509 Detail]
Download: New_York-2021-S02509-Introduced.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); reforms and simplifies various business tax provisions (Part E); extends the empire state film production credit and the empire state film post production credit (Part F); increases penalties for failure of an employer to provide complete and correct employee withholding information (Part G); relates to taxes imposed on admission to race tracks and simulcast facilities; repeals certain provisions of law relating thereto (Part J); exempts from sales and use tax certain tangible personal property or services (Part M); increases the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); imposes liability for real estate transfer taxes on responsible persons; prohibits grantors from passing real estate transfer tax to grantees; exempts certain organizations from the LLC disclosure requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); relates to penalties for failure of tax return preparers to register; requires tax return preparers to display certain documents (Part S); relates to electronic submission of consolidated real property transfer forms (Part U); relates to the STAR credit for mobile homes (Part V); relates to the administration of real property taxes and local laws or resolutions regarding such taxes (Part W); promotes the development of renewable energy projects, including solar or wind energy systems (Part X); provides for regulation of sports wagering and mobile sports wagering; defines terms; implements a tax on sports wagering gross revenue; requires reporting; provides for civil penalties for violations (Part Y); authorizes a request from the gaming commission for information related to interest in gaming facility licenses (Part Z); relates to the frequency at which certain lottery draw games may be offered (Part BB); relates to transferring powers and duties of the office of the gaming inspector general to the office of the state inspector general (Part CC); extends certain provisions of law related to simulcasting (Part DD); extends the alternative fuels tax exemptions for five years (Part EE); extends the farm workforce retention credit (Part FF); extends the credit against income tax for persons or entities investing in low-income housing (Part GG); extends the musical and theatrical production tax credit; increases the aggregate cap on such credit (Part HH); extends the hire a vet tax credit (Part II); extends the tax credits under the economic transformation and facility redevelopment program (Part JJ); requires the implementation of the secure choice savings program by December 31, 2021 (Part KK); modifies certain racing support payments (Part LL); exempts breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); relates to applying work-location based tax credits to remote work performed during COVID-19 (Part NN); exempts certain tax underpayments from interest accumulation (Part OO); enacts the restaurant return-to-work tax credit (Subpart A); enacts the New York city musical and theatrical production tax credit; creates the New York state council on the arts cultural program fund (Subpart B)(Part PP); relates to modifying the minimum amount of personal income and corporate tax overpayment by an individual in which interest can be allowed or paid (Part QQ); provides a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation authority program established in 2020 for purposes of determining New York state taxable income (Part RR); extends sales tax exemption for certain food and drink vending machines (Part SS); enacts the environmental bond act of 2022 "restore mother nature"; authorizes state debt not exceeding $3,000,000,000 for making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change (Part TT); implements the environmental bond act of 2022 "restore mother nature" for projects including flood risk reduction, open space land conservation and recreation, climate change mitigation, water quality improvement and resilient infrastructure, and environmental justice (Part UU); establishes the COVID-19 pandemic small business recovery grant program to provide assistance to small businesses and for-profit independent arts and cultural organizations who have experienced economic hardship during the COVID-19 pandemic (Part VV); subjects certain state lands in Orange county to real property taxation (Part WW); relates to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); renames the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue -- Little Haiti station" (Part YY); relates to the minimum combined single limit amount of a bond or insurance policy for commuter vans (Part ZZ); enacts the "New York state professional policing act of 2021"; requires the inspector general and attorney general to notify the division of criminal justice services of any allegations or abuse by any police officer in a covered agency; requires the law enforcement agency accreditation council to create a mandatory certification process for agencies employing certain police officers; makes related provisions (Part BBB); relates to the rehabilitation of historic properties tax credit; provides that small projects of $2,500,000 or less are entitled to 150% of the amount of credit allowed the taxpayer under the internal revenue code (Part CCC); modifies inclusions and exclusions for certain definitions of income (Part DDD); creates the excluded worker fund to provide benefits for persons not eligible for funds under other state or federal programs or assistance and who has suffered a loss of income due to the COVID-19 pandemic (Part EEE); extends COLA provisions in the amount of one percent for the purposes of establishing rates of payments for the period beginning April 1, 2021 and ending March 31, 2022 (Part FFF); relates to aid and incentives for municipalities base level grants (Part GGG); relates to the computation of franchise tax on a business income base and capital base (Part HHH); establishes the real property tax relief credit (Part III); provides for the administration of certain funds and accounts related to the 2021-2022 budget; authorizes certain payments and transfers; relates to the issuance of bonds and notes; relates to personal income tax notes for 2022, lines of credit for the dormitory authority and the urban development corporation for 2022 and state-supported debt for 2022; makes related provisions (Part JJJ); authorizes the city of New York and the board of education of the city of New York to offer temporary retirement incentives (Subpart A); provides an age 55/25 years temporary retirement incentive for certain public employees of the city of New York and the board of education of the city of New York (Subpart B) (Part KKK); relates to the utilization of funds in the Catskill region and Capital region off-track betting corporation's capital acquisition funds (Part LLL); extends certain provisions relating to the operation and administration of the legislature (Part MMM); makes technical and clarifying changes relating to restricting the use of segregated confinement and the creation of alternative therapeutic and rehabilitative confinement options (Part NNN); relates to the taxes imposed on revenue from gaming facilities (Part OOO).
Spectrum: Committee Bill
Status: (Passed) 2021-04-19 - SIGNED CHAP.59 [S02509 Detail]
Download: New_York-2021-S02509-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 2509 A. 3009 SENATE - ASSEMBLY January 20, 2021 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to imposing a tax surcharge on wealthy taxpayers (Part A); to amend the tax law, in relation to delaying tax reductions (Part B); to amend the tax law and the state finance law, in relation to the imposition of a pass-through entity tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to reforming and simplifying various business tax provisions thereof; and to repeal certain provisions of such law related thereto (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); to amend the tax law, in relation to wage filer reporting and reconciliation (Part G); relating to consti- tuting a new chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the vehicle and traffic law, in relation to making technical changes regarding the definition of cannabis; to amend the penal law, in relation to the qualification of certain offenses involving cannabis and to exempt certain persons from prosecution for the use, consumption, display, production or distrib- ution of cannabis; to amend the tax law, in relation to providing for the levying of taxes on cannabis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the alco- holic beverage control law, the general obligations law, the social services law, the state finance law, the penal law and the vehicle and traffic law, in relation to making conforming changes; to amend chap- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-01-1S. 2509 2 A. 3009 ter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal title 5-A of arti- cle 33 of the public health law relating to medical use of marihuana; to repeal article 33-B of the public health law relating to the regu- lation of cannabinoid hemp and hemp extract; to repeal subdivision 4 of section 220.06 and subdivision 10 of section 220.09 of the penal law relating to criminal possession of a controlled substance; to repeal sections 221.10 and 221.30 of the penal law relating to the criminal possession of marihuana; and to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia (Part H); to amend the tax law, in relation to requiring vacation rental marketplace providers collect sales tax (Part I); to amend the tax law, to impose sales tax on such admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivi- sion 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); to amend the tax law, in relation to increasing the interest free period for certain sales tax refunds (Part K); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating thereto (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for regis- tration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting grantors from passing real estate transfer tax to gran- tees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail dealers whose registrations have been revoked or who have been forbidden from selling cigarettes or tobacco products (Part P); to amend the tax law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); to amend the real property tax law, in relation to providing that beginning with assessment rolls used to levy school district taxes for the 2021--2022 school year, no application for a new enhanced exemption under this section may be approved (Subpart A); to amend the real property tax law, in relation to extending the cutoff date for a STAR credit switch (Subpart B); to amend the tax law, in relation to tax returns of deceased individuals (Subpart C); to amend the real property tax law, in relation to the powers of the state board of real property tax services and the commissioner of taxation and finance; toS. 2509 3 A. 3009 amend the tax law, in relation to requiring the commissioner of taxa- tion and finance verify the income eligibility of recipients of the basic STAR exemption; and to repeal certain provisions of the real property tax law relating thereto (Subpart D); and to amend the real property law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of such law relating thereto (Subpart E)(Part V); to amend the real property tax law, in relation to facilitating the adminis- tration of the real property tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to authorizing mobile sports wagering; and providing for the repeal of certain provisions of such law relating thereto (Part Y); authorizing a request for information related to gaming facility licenses (Part Z); to amend the tax law, in relation to a keno style lottery game (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simul- cast, 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-mu- tuel wagering and breeding law and other laws relating to simulcasting and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm work- force retention credit, in relation to extending the provisions of such credit through tax year 2024 (Part FF); to amend the public hous- ing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effec- tiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an addi- tional year (Part II); to amend chapter 61 of the laws of 2011 amend- ing the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and providing tax benefits under that program and to amend the economic development law, in relation to extending the tax credits under the economic transformation and facil- ity redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choiceS. 2509 4 A. 3009 program by a certain date (Part KK); and in relation to temporarily suspending certain racing support payments (Part LL) 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 2021-2022 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through LL. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Section 1. The tax law is amended by adding a new section 602 to read 14 as follows: 15 § 602. (a) Surcharge. In addition to the taxes imposed under section 16 six hundred one of this part, an income tax surcharge is hereby imposed 17 on individuals for the taxable years two thousand twenty-one through two 18 thousand twenty-three on the taxpayer's New York taxable income, at the 19 following rates: 20 If the taxpayer's New York The surcharge rate is: 21 taxable income is: 22 Over $5,000,000 but not over $10,000,000 0.5 percent 23 Over $10,000,000 but not over $25,000,000 1.0 percent 24 Over $25,000,000 but not over $50,000,000 1.5 percent 25 Over $50,000,000 but not over $100,000,000 1.75 percent 26 Over $100,000,000 2.0 percent 27 (b) Method of payment. A taxpayer shall pay the tax surcharge when the 28 taxpayer files his or her personal income tax return required to be 29 filed pursuant to section six hundred fifty-one of this article. A 30 taxpayer may also pre-pay in taxable year two thousand twenty-one all or 31 a portion of the tax surcharge for taxable year two thousand twenty-two 32 and/or two thousand twenty-three that the taxpayer estimates will be 33 owed under this section in the manner the commissioner of taxation and 34 finance shall prescribe. The commissioner shall prescribe a method of 35 recording and applying the payment of pre-paid tax surcharge amounts 36 made pursuant to this to this subsection, with the pre-payment reducing 37 the taxpayer's surcharge liability first for taxable year two thousand 38 twenty-two, with the remainder applied to reduce the taxpayer's 39 surcharge liability in taxable year two thousand twenty-three and any 40 excess in taxable year two thousand twenty-three treated as a tax over- 41 payment to be refunded or credited against tax otherwise owed under this 42 article; provided however, that no interest will be paid thereon. The 43 surcharge imposed by this section shall be included for purposes of 44 computing and remitting estimated tax pursuant to section six hundredS. 2509 5 A. 3009 1 eighty-five of this article. The credits allowed under this article may 2 not be used to reduce the surcharge imposed by this section. 3 § 2. Subsection (c) of section 612 of the tax law is amended by adding 4 a new paragraph 43 to read as follows: 5 (43) Taxpayers who pre-pay the tax surcharge imposed under subsection 6 (a) of section six hundred two of this article in taxable year two thou- 7 sand twenty-one shall be allowed a deduction as computed in this para- 8 graph beginning in taxable year two thousand twenty-four. In taxable 9 year two thousand twenty-four, the deduction shall be equal to the less- 10 er of (i) the sum of the taxpayer's interest, dividends and capital 11 gains taxable in this state or (ii) the product of fifty percent and the 12 pre-payment income equivalent. For purposes of this paragraph, the pre- 13 payment income equivalent is the quotient of the amount of the tax 14 surcharge pre-payment the taxpayer made pursuant to subsection (b) of 15 section six hundred two of this article and eight and eighty-two 16 hundredths percent. The deduction allowed in taxable year two thousand 17 twenty-five and thereafter shall be equal to the lesser of (i) the sum 18 of the taxpayer's interest, dividends and capital gains taxable in this 19 state or (ii) the remaining amount of the taxpayer's pre-payment income 20 equivalent. The taxpayer shall continue to be allowed this deduction 21 until all of the taxpayer's pre-payment income equivalent is used up in 22 calculating this deduction. 23 § 3. Section 606 of the tax law is amended by adding a new subsection 24 (www) to read as follows: 25 (www) Taxpayers who pre-pay the tax surcharge imposed under section 26 six hundred two of this article but die before the remainder of its 27 pre-payment income equivalent is used up as provided in paragraph 28 forty-three of subsection (c) of section six hundred twelve of this 29 article, will be allowed a tax credit on the taxpayer's final return 30 equal to the remaining amount of tax surcharge pre-payment the taxpayer 31 has available for use that corresponds to the remaining pre-payment 32 income equivalent referred to in paragraph forty-three of subsection (c) 33 of section six hundred twelve of this article. If the amount of credit 34 allowable under this subsection for any taxable year shall exceed the 35 taxpayer's tax for such year, the excess shall be treated as an overpay- 36 ment to be refunded in accordance with the provisions of section six 37 hundred eighty-six of this article, provided however, that no interest 38 shall be paid thereon. 39 § 4. Notwithstanding any provision of law to the contrary, the method 40 of determining the amount to be deducted and withheld from wages on 41 account of taxes imposed by or pursuant to the authority of article 22 42 of the tax law in connection with the implementation of the provisions 43 of this act shall be prescribed by the commissioner of taxation and 44 finance with due consideration to the effect such withholding tables and 45 methods would have on the receipt and amount of revenue. The commission- 46 er of taxation and finance shall adjust such withholding tables and 47 methods in regard to taxable years beginning in 2021 and after in such 48 manner as to result, so far as practicable, in withholding from an 49 employee's wages an amount substantially equivalent to the tax reason- 50 ably estimated to be due for such taxable years as a result of the 51 provisions of this act. Any such changes in withholding tables and meth- 52 ods for tax year 2021 shall be adopted and effective as soon as practi- 53 cable. The commissioner of taxation and finance may make similar changes 54 to withholding tables and methods. The withholding tables and methods 55 for tax year 2021 shall not be prescribed by regulation, notwithstanding 56 any provision of the state administrative procedure act to the contrary.S. 2509 6 A. 3009 1 § 5. The additions to tax imposed by subsection (c) of section 685 of 2 the tax law shall not apply to any installments of estimated tax due on 3 or before September fifteenth, two thousand twenty-one if the underpay- 4 ment is the result of the enactment of the tax surcharge for the tax 5 year two thousand twenty-one prescribed by this act. 6 § 6. Severability. The powers granted and the duties imposed by this 7 act and the applicability thereof to any taxpayers shall be construed to 8 be independent and severable and if any one or more sections, 9 subsections, clauses, sentences or parts of this act, or the applicabil- 10 ity thereof to any taxpayers shall be adjudged unconstitutional or 11 invalid, such judgment shall not affect, impair or invalidate the 12 remaining provisions thereof or the applicability thereof to other 13 taxpayers, but shall be confined in its operation to the specific 14 provisions so held unconstitutional and invalid and to the taxpayers 15 affected thereby. If any provisions under section two or three of this 16 act shall be adjudged unconstitutional or invalid, then the entire 17 affected section of this act shall be deemed void. 18 § 7. This act shall take effect immediately. 19 PART B 20 Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of 21 subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the 22 tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 23 1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added 24 by section 1 of part R of chapter 59 of the laws of 2017, are amended to 25 read as follows: 26 (iii) For taxable years beginning in two thousand twenty and two thou- 27 sand twenty-one the following rates shall apply: 28 If the New York taxable income is: The tax is: 29 Not over $17,150 4% of the New York taxable income 30 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 31 $17,150 32 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 33 $23,600 34 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 35 $27,900 36 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 37 $43,000 38 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 39 $161,550 40 Over $323,200 but not over $19,674 plus 6.85% of excess 41 $2,155,350 $323,200 over 42 Over $2,155,350 $145,177 plus 8.82% of excess over 43 $2,155,350 44 (iv) For taxable years beginning in two thousand [twenty-one] twenty- 45 two the following rates shall apply: 46 If the New York taxable income is: The tax is: 47 Not over $17,150 4% of the New York taxable income 48 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 49 $17,150 50 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 51 $23,600 52 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 53 $27,900 54 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess overS. 2509 7 A. 3009 1 $43,000 2 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 3 $161,550 4 Over $323,200 but not over $19,403 plus 6.85% of excess 5 $2,155,350 over $323,200 6 Over $2,155,350 $144,905 plus 8.82% of excess over 7 $2,155,350 8 (v) For taxable years beginning in two thousand [twenty-two] twenty- 9 three the following rates shall apply: 10 If the New York taxable income is: The tax is: 11 Not over $17,150 4% of the New York taxable income 12 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 13 $17,150 14 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 15 $23,600 16 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 17 $27,900 18 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 19 $161,550 20 Over $323,200 but not over $2,155,350 $19,124 plus 21 6.85% of excess over $323,200 22 Over $2,155,350 $144,626 plus 8.82% of excess over 23 $2,155,350 24 (vi) For taxable years beginning in two thousand [twenty-three] twen- 25 ty-four the following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $17,150 4% of the New York taxable income 28 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 29 $17,150 30 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 31 $23,600 32 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 33 $27,900 34 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 35 $161,550 36 Over $323,200 but not over $18,834 plus 6.85% of 37 $2,155,350 excess over $323,200 38 Over $2,155,350 $144,336 plus 8.82% of excess over 39 $2,155,350 40 (vii) For taxable years beginning in two thousand [twenty-four] twen- 41 ty-five the following rates shall apply: 42 If the New York taxable income is: The tax is: 43 Not over $17,150 4% of the New York taxable income 44 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 45 $17,150 46 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 47 $23,600 48 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 49 $27,900 50 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 51 $161,550 52 Over $323,200 but not over $18,544 plus 6.85% of 53 $2,155,350 excess over $323,200 54 Over $2,155,350 $144,047 plus 8.82% of excess over 55 $2,155,350S. 2509 8 A. 3009 1 (viii) For taxable years beginning after two thousand [twenty-four] 2 twenty-five the following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $17,150 4% of the New York taxable income 5 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 6 $17,150 7 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 8 $23,600 9 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 10 $27,900 11 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 12 $161,550 13 Over $323,200 $18,252 plus 6.85% of excess over 14 $323,200 15 § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph 16 (B) of paragraph 1 of subsection (b) of section 601 of the tax law, 17 clauses (iii), (iv), (v), (vi) and (vii) as amended by section 2 of part 18 P of chapter 59 of the laws of 2019 and clause (viii) as added by 19 section 2 of part R of chapter 59 of the laws of 2017, are amended to 20 read as follows: 21 (iii) For taxable years beginning in two thousand twenty and two thou- 22 sand twenty-one the following rates shall apply: 23 If the New York taxable income is: The tax is: 24 Not over $12,800 4% of the New York taxable income 25 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 26 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 27 $17,650 28 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 29 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 30 $32,200 31 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 32 $107,650 33 Over $269,300 but not over $16,524 plus 6.85% of 34 $1,616,450 excess over $269,300 35 Over $1,616,450 $108,804 plus 8.82% of excess over 36 $1,616,450 37 (iv) For taxable years beginning in two thousand [twenty-one] twenty- 38 two the following rates shall apply: 39 If the New York taxable income is: The tax is: 40 Not over $12,800 4% of the New York taxable income 41 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 42 $12,800 43 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 44 $17,650 45 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 46 $20,900 47 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 48 $32,200 49 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 50 $107,650 51 Over $269,300 but not over $16,304 plus 6.85% of 52 $1,616,450 excess over $269,300 53 Over $1,616,450 $108,584 plus 8.82% of excess over 54 $1,616,450 55 (v) For taxable years beginning in two thousand [twenty-two] twenty- 56 three the following rates shall apply:S. 2509 9 A. 3009 1 If the New York taxable income is: The tax is: 2 Not over $12,800 4% of the New York taxable income 3 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 4 $12,800 5 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 6 $17,650 7 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 8 $20,900 9 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 10 $107,650 11 Over $269,300 but not over $16,079 plus 6.85% of excess 12 $1,616,450 over $269,300 13 Over $1,616,450 $108,359 plus 8.82% of excess over 14 $1,616,450 15 (vi) For taxable years beginning in two thousand [twenty-three] twen- 16 ty-four the following rates shall apply: 17 If the New York taxable income is: The tax is: 18 Not over $12,800 4% of the New York taxable income 19 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 20 $12,800 21 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 22 $17,650 23 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 24 $20,900 25 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 26 $107,650 27 Over $269,300 but not over $15,845 plus 6.85% of excess 28 $1,616,450 over $269,300 29 Over $1,616,450 $108,125 plus 8.82% of excess over 30 $1,616,450 31 (vii) For taxable years beginning in two thousand [twenty-four] twen- 32 ty-five the following rates shall apply: 33 If the New York taxable income is: The tax is: 34 Not over $12,800 4% of the New York taxable income 35 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 36 $12,800 37 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 38 $17,650 39 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 40 $20,900 41 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 42 $107,650 43 Over $269,300 but not over $15,612 plus 6.85% of excess 44 $1,616,450 over $269,300 45 Over $1,616,450 $107,892 plus 8.82% of excess over 46 $1,616,450 47 (viii) For taxable years beginning after two thousand [twenty-four] 48 twenty-five the following rates shall apply: 49 If the New York taxable income is: The tax is: 50 Not over $12,800 4% of the New York taxable income 51 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 52 $12,800 53 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 54 $17,650 55 Over $20,900 but not over $107,650 $901 plus 5.5% of excess overS. 2509 10 A. 3009 1 $20,900 2 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 3 $107,650 4 Over $269,300 $15,371 plus 6.85% of excess over 5 $269,300 6 § 3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph 7 (B) of paragraph 1 of subsection (c) of section 601 of the tax law, 8 clauses (iii), (iv), (v), (vi) and (vii) as amended by section 3 of part 9 P of chapter 59 of the laws of 2019 and clause (viii) as added by 10 section 3 of part R of chapter 59 of the laws of 2017, are amended to 11 read as follows: 12 (iii) For taxable years beginning in two thousand twenty and two thou- 13 sand twenty-one the following rates shall apply: 14 If the New York taxable income is: The tax is: 15 Not over $8,500 4% of the New York taxable income 16 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 17 $8,500 18 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 19 $11,700 20 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 21 $13,900 22 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 23 $21,400 24 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 25 $80,650 26 Over $215,400 but not over $13,288 plus 6.85% of excess 27 $1,077,550 over $215,400 28 Over $1,077,550 $72,345 plus 8.82% of excess over 29 $1,077,550 30 (iv) For taxable years beginning in two thousand [twenty-one] twenty- 31 two the following rates shall apply: 32 If the New York taxable income is: The tax is: 33 Not over $8,500 4% of the New York taxable income 34 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 35 $8,500 36 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 37 $11,700 38 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 39 $13,900 40 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 41 $21,400 42 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 43 $80,650 44 Over $215,400 but not over $13,109 plus 6.85% of excess 45 $1,077,550 over $215,400 46 Over $1,077,550 $72,166 plus 8.82% of excess over 47 $1,077,550 48 (v) For taxable years beginning in two thousand [twenty-two] twenty- 49 three the following rates shall apply: 50 If the New York taxable income is: The tax is: 51 Not over $8,500 4% of the New York taxable income 52 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 53 $8,500 54 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 55 $11,700 56 Over $13,900 but not over $80,650 $600 plus 5.85% of excess overS. 2509 11 A. 3009 1 $13,900 2 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 3 $80,650 4 Over $215,400 but not over $12,926 plus 6.85% of excess 5 $1,077,550 over $215,400 6 Over $1,077,550 $71,984 plus 8.82% of excess over 7 $1,077,550 8 (vi) For taxable years beginning in two thousand [twenty-three] twen- 9 ty-four the following rates shall apply: 10 If the New York taxable income is: The tax is: 11 Not over $8,500 4% of the New York taxable income 12 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 13 $8,500 14 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 15 $11,700 16 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 17 $13,900 18 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 19 $80,650 20 Over $215,400 but not over $12,738 plus 6.85% of excess 21 $1,077,550 over $215,400 22 Over $1,077,550 $71,796 plus 8.82% of excess over 23 $1,077,550 24 (vii) For taxable years beginning in two thousand [twenty-four] twen- 25 ty-five the following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $8,500 4% of the New York taxable income 28 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 29 $8,500 30 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 31 $11,700 32 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 33 $13,900 34 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 35 $80,650 36 Over $215,400 but not over $12,550 plus 6.85% of excess 37 $1,077,550 over $215,400 38 Over $1,077,550 $71,608 plus 8.82% of excess over 39 $1,077,550 40 (viii) For taxable years beginning after two thousand [twenty-four] 41 twenty-five the following rates shall apply: 42 If the New York taxable income is: The tax is: 43 Not over $8,500 4% of the New York taxable income 44 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 45 $8,500 46 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 47 $11,700 48 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 49 $13,900 50 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 51 $80,650 52 Over $215,400 $12,356 plus 6.85% of excess over 53 $215,400 54 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 55 601 of the tax law, as amended by section 4 of part P of chapter 59 of 56 the laws of 2019, is amended to read as follows:S. 2509 12 A. 3009 1 (D) The tax table benefit is the difference between (i) the amount of 2 taxable income set forth in the tax table in paragraph one of subsection 3 (a) of this section not subject to the 8.82 percent rate of tax for the 4 taxable year multiplied by such rate and (ii) the dollar denominated tax 5 for such amount of taxable income set forth in the tax table applicable 6 to the taxable year in paragraph one of subsection (a) of this section 7 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 8 of this paragraph. The fraction for this subparagraph is computed as 9 follows: the numerator is the lesser of fifty thousand dollars or the 10 excess of New York adjusted gross income for the taxable year over two 11 million dollars and the denominator is fifty thousand dollars. This 12 subparagraph shall apply only to taxable years beginning on or after 13 January first, two thousand twelve and before January first, two thou- 14 sand [twenty-five] twenty-six. 15 § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 16 601 of the tax law, as amended by section 5 of part P of chapter 59 of 17 the laws of 2019, is amended to read as follows: 18 (C) The tax table benefit is the difference between (i) the amount of 19 taxable income set forth in the tax table in paragraph one of subsection 20 (b) of this section not subject to the 8.82 percent rate of tax for the 21 taxable year multiplied by such rate and (ii) the dollar denominated tax 22 for such amount of taxable income set forth in the tax table applicable 23 to the taxable year in paragraph one of subsection (b) of this section 24 less the sum of the tax table benefits in subparagraphs (A) and (B) of 25 this paragraph. The fraction for this subparagraph is computed as 26 follows: the numerator is the lesser of fifty thousand dollars or the 27 excess of New York adjusted gross income for the taxable year over one 28 million five hundred thousand dollars and the denominator is fifty thou- 29 sand dollars. This subparagraph shall apply only to taxable years begin- 30 ning on or after January first, two thousand twelve and before January 31 first, two thousand [twenty-five] twenty-six. 32 § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 33 601 of the tax law, as amended by section 6 of part P of chapter 59 of 34 the laws of 2019, is amended to read as follows: 35 (C) The tax table benefit is the difference between (i) the amount of 36 taxable income set forth in the tax table in paragraph one of subsection 37 (c) of this section not subject to the 8.82 percent rate of tax for the 38 taxable year multiplied by such rate and (ii) the dollar denominated tax 39 for such amount of taxable income set forth in the tax table applicable 40 to the taxable year in paragraph one of subsection (c) of this section 41 less the sum of the tax table benefits in subparagraphs (A) and (B) of 42 this paragraph. The fraction for this subparagraph is computed as 43 follows: the numerator is the lesser of fifty thousand dollars or the 44 excess of New York adjusted gross income for the taxable year over one 45 million dollars and the denominator is fifty thousand dollars. This 46 subparagraph shall apply only to taxable years beginning on or after 47 January first, two thousand twelve and before January first, two thou- 48 sand [twenty-five] twenty-six. 49 § 7. Notwithstanding any provision of law to the contrary, the method 50 of determining the amount to be deducted and withheld from wages on 51 account of taxes imposed by or pursuant to the authority of article 22 52 of the tax law in connection with the implementation of the provisions 53 of this act shall be prescribed by the commissioner of taxation and 54 finance with due consideration to the effect such withholding tables and 55 methods would have on the receipt and amount of revenue. The commission- 56 er of taxation and finance shall adjust such withholding tables andS. 2509 13 A. 3009 1 methods in regard to taxable years beginning in 2021 and after in such 2 manner as to result, so far as practicable, in withholding from an 3 employee's wages an amount substantially equivalent to the tax reason- 4 ably estimated to be due for such taxable years as a result of the 5 provisions of this act. Any such changes in withholding tables and meth- 6 ods for tax year 2021 shall be adopted and effective as soon as practi- 7 cable. The commissioner of taxation and finance may make similar changes 8 to withholding tables and methods. The withholding tables and methods 9 for tax year 2021 shall not be prescribed by regulation, notwithstanding 10 any provision of the state administrative procedure act to the contrary. 11 § 8. The additions to tax imposed by subsection (c) of section 685 of 12 the tax law shall not apply to any installments of estimated tax due on 13 or before September fifteenth, two thousand twenty-one if the underpay- 14 ment is the result of the enactment of the tax rates for the tax year 15 two thousand twenty-one prescribed by this act. 16 § 9. This act shall take effect immediately. 17 PART C 18 Section 1. The tax law is amended by adding a new article 24-A to read 19 as follows: 20 ARTICLE 24-A 21 PASS-THROUGH ENTITY TAX 22 Section 860. Definitions. 23 861. Pass-through entity tax election. 24 862. Imposition and rate of tax. 25 863. Pass-through entity tax credit. 26 864. Payment of estimated tax. 27 865. Filing of return and payment of tax. 28 866. Accounting periods and methods. 29 867. Procedural provisions. 30 § 860. Definitions. For purposes of this article: 31 (a) Eligible partnership. Eligible partnership means any partnership 32 as provided for in section 7701(a)(2) of the Internal Revenue Code that 33 consists solely of partners who are individuals. An eligible partner- 34 ship includes any limited liability company treated as a partnership for 35 federal income tax purposes that otherwise meets the requirements of 36 this subdivision. 37 (b) Eligible S corporation. Eligible S corporation means any New York 38 S corporation as defined pursuant to this chapter that consists solely 39 of shareholders who are individuals. An eligible S corporation includes 40 any limited liability company treated as an S corporation for federal 41 income tax purposes that otherwise meets the requirements of this subdi- 42 vision. 43 (c) Electing partnership. Electing partnership means any eligible 44 partnership that made a valid, timely election pursuant to section eight 45 hundred sixty-one of this article. 46 (d) Electing S corporation. Electing S corporation means any eligible 47 S corporation that made a valid, timely election pursuant to section 48 eight hundred sixty-one of this article. 49 (e) Taxpayer. Taxpayer means any electing partnership or electing S 50 corporation. 51 (f) Pass-through entity tax. Pass-through entity tax means the total 52 tax imposed by this article on electing partnerships and electing S 53 corporations.S. 2509 14 A. 3009 1 (g) Pass-through adjusted net income (not less than zero). Pass- 2 through adjusted net income (not less than zero) means: 3 (1) In the case of an electing partnership, the sum of (i) federal 4 taxable income (not less than zero), as described in section 702(a)(8) 5 of the Internal Revenue Code, to the extent earned directly by such 6 partnership; (ii) taxes paid or incurred during the taxable year pursu- 7 ant to this article by a partnership to the extent deducted in computing 8 federal taxable income; (iii) taxes substantially similar to the tax 9 imposed pursuant to this article paid or incurred during the taxable 10 year to another state of the United States, a political subdivision of 11 such state, or the District of Columbia to the extent deducted in 12 computing federal taxable income; and (iv) guaranteed payments paid by 13 the partnership to its partners as described in section 707(c) of the 14 Internal Revenue Code. 15 (2) In the case of an electing S corporation, the sum of (i) federal 16 nonseparately computed income (not less than zero), as described in 17 section 1366(a)(2) of the Internal Revenue Code, whether earned by such 18 S corporation or by a partnership of which the S corporation is a part- 19 ner; (ii) taxes paid or incurred during the taxable year pursuant to 20 this article by an S corporation to the extent deducted in computing 21 federal ordinary income; and (iii) taxes substantially similar to the 22 tax imposed pursuant to this article paid or incurred during the taxable 23 year to another state of the United States, a political subdivision of 24 such state, or the District of Columbia to the extent deducted in 25 computing federal taxable income. 26 (h) Partnership taxable income. Partnership taxable income of an 27 electing partnership means the sum of (1) the electing partnership's 28 pass-through adjusted net income (not less than zero), allocated to New 29 York State pursuant to subdivision (b) of section eight hundred sixty- 30 two of this article; and (2) the electing partnership's proportionate 31 share of any pass-through adjusted net income (not less than zero) from 32 a partnership of which it is a partner to the extent it was sourced to 33 New York by such partnership pursuant to the principles of article twen- 34 ty-two of this chapter. 35 (i) S corporation taxable income. S corporation taxable income of an 36 electing S corporation means the electing S corporation's pass-through 37 adjusted net income (not less than zero) allocated to New York State 38 pursuant to subdivision (c) of section eight hundred sixty-two of this 39 article. 40 § 861. Pass-through entity tax election. (a) Any eligible partnership 41 or eligible S corporation doing business within this state shall be 42 allowed to make an annual election to be taxed pursuant to this article. 43 (b) In order to be effective, the annual election must be made (1) if 44 the entity is an S corporation, by any officer, manager or shareholder 45 of the S corporation who is authorized under the law of the state where 46 the corporation is incorporated or under the S corporation's organiza- 47 tional documents to make the election and who represents to having such 48 authorization under penalty of perjury; or (2) if the entity is not an S 49 corporation, by any member, partner, owner, or other individual with 50 authority to bind the entity or sign returns pursuant to section six 51 hundred fifty-three of this chapter. 52 (c) If the eligible partnership or eligible S corporation reports on a 53 calendar year basis, the annual election must be made by December first 54 of each calendar year and will take effect for the immediately succeed- 55 ing calendar year. If an election is made after December first of aS. 2509 15 A. 3009 1 calendar year, it will first take effect in the second succeeding calen- 2 dar year. 3 (d) If the eligible partnership or eligible S corporation reports on a 4 fiscal year basis, the annual election must be made by the first day of 5 the last full month prior to the start of the fiscal year and will take 6 effect for the immediately succeeding fiscal year. If an election is 7 made after such date, it will first take effect in the second succeeding 8 fiscal year. 9 (e) (1) Termination of election. An election pursuant to subdivision 10 (a) of this section shall be terminated whenever, at any time during the 11 taxable year, the taxpayer ceases to be an eligible partnership or 12 eligible S corporation. 13 (2) Effective date of termination. The termination of an election is 14 effective immediately upon the taxpayer ceasing to be an eligible part- 15 nership or eligible S corporation and no tax will be due pursuant to 16 this article for the taxable year. 17 (3) Abatement of penalties. If a termination occurs pursuant to this 18 subdivision solely because a partner, member or shareholder of an other- 19 wise eligible partnership or eligible S corporation died during the 20 taxable year and the successor to the decedent's interest in the part- 21 nership or S corporation is not an individual, no addition to tax will 22 be imposed pursuant to subsection (c) of section six hundred eighty-five 23 of this chapter on the partners, members and shareholders of such part- 24 nership or S corporation solely for underpayment of estimated personal 25 income tax as a result of the termination of the election made pursuant 26 to this article. 27 § 862. Imposition and rate of tax. (a) General. A tax is hereby 28 imposed for each taxable year on the partnership taxable income of every 29 electing partnership doing business within this state and on the S 30 corporation taxable income of every electing S corporation doing busi- 31 ness within this state. This tax shall be in addition to any other taxes 32 imposed and shall be at the rate of six and eighty-five hundredths 33 percent for each taxable year beginning on or after January first, two 34 thousand twenty-two. 35 (b) Allocation to New York by an electing partnership. In determining 36 the amount of partnership taxable income, the adjusted net income of the 37 electing partnership shall be allocated to this state pursuant to the 38 principles of article twenty-two of this chapter. 39 (c) Allocation to New York by an electing S corporation. In determin- 40 ing the amount of S corporation taxable income, the adjusted net income 41 of the electing S corporation shall be allocated to this state by multi- 42 plying the adjusted net income of the electing S corporation by the 43 business apportionment factor of the electing S corporation as calcu- 44 lated pursuant to section two hundred ten-A of this chapter. 45 § 863. Pass-through entity tax credit. An individual subject to tax 46 under article twenty-two of this chapter that is a partner or member in 47 an electing partnership or a shareholder of an electing S corporation 48 subject to tax under this article shall be allowed a credit against the 49 tax imposed pursuant to article twenty-two of this chapter, computed 50 pursuant to the provisions of subsection (kkk) of section six hundred 51 six of this chapter. 52 § 864. Payment of estimated tax. (a) Definition of estimated tax. 53 Estimated tax means the amount that an electing partnership or electing 54 S corporation estimates to be the tax imposed by section eight hundred 55 sixty-two of this article for the current taxable year.S. 2509 16 A. 3009 1 (b) General. The estimated tax shall be paid as follows for an elect- 2 ing partnership and an electing S corporation that reports on a calendar 3 year basis: 4 (1) The estimated tax shall be paid in four equal installments on 5 March fifteenth, June fifteenth, September fifteenth and December 6 fifteenth. 7 (2) The amount of any required installment shall be twenty-five 8 percent of the required annual payment. 9 (3) The required annual payment is the lesser of: (A) ninety percent 10 of the tax shown on the return for the taxable year; or (B) one hundred 11 percent of the tax shown on the return of the electing partnership or 12 electing S corporation for the preceding taxable year. 13 (c) Application to short taxable year. This section shall apply to a 14 taxable year of less than twelve months in accordance with procedures 15 established by the commissioner. 16 (d) Fiscal year. This section shall apply to a taxable year other than 17 a calendar year by the substitution of the months of such fiscal year 18 for the corresponding months specified in this section. 19 (e) Installments paid in advance. An electing partnership or electing 20 S corporation may elect to pay any installment of its estimated tax 21 prior to the date prescribed for the payment thereof. 22 § 865. Filing of return and payment of tax. (a) General. On or before 23 the fifteenth day of the third month following the close of the taxable 24 year, each electing partnership and each electing S corporation must 25 file a return for the taxable year reporting the information required 26 pursuant to this article. 27 (b) Certification of eligibility. Every return filed pursuant to 28 subdivision (a) of this section shall include, in a format as prescribed 29 by the commissioner, a certification by an individual authorized to act 30 on behalf of the electing partnership or electing S corporation that the 31 taxpayer: 32 (1) made a timely, valid election to be subject to tax pursuant to 33 this article; 34 (2) was at all times during the taxable year eligible to make such an 35 election, unless such return includes a notification of termination as 36 provided for in subdivision (c) of this section; and 37 (3) that all statements contained therein are true. 38 (c) Notification of termination. If an election is terminated during 39 the taxable year pursuant to subdivision (e) of section eight hundred 40 sixty-one of this article, the electing partnership or electing S corpo- 41 ration is required to file a return pursuant to subdivision (a) of this 42 section notifying the commissioner of such termination. Such notifica- 43 tion will be considered a claim for a credit or refund of an overpayment 44 of pass-through entity tax of any estimated payments made pursuant to 45 this article for the taxable year containing the date of termination. 46 (d) Information on return. Each electing partnership and electing S 47 corporation shall report on such return: 48 (1) The balance of any tax shown on such return, not previously paid 49 as installments of estimated tax, shall be paid with such return; 50 (2) Identifying information of all partners, members and/or sharehold- 51 ers eligible to receive a credit pursuant to section eight hundred sixty 52 three and such partner's, member's and/or shareholder's distributive or 53 pro rata share of the pass-through entity tax imposed on the electing 54 partnership or S corporation; and 55 (3) Any other information as required by the commissioner.S. 2509 17 A. 3009 1 (e) Information provided to partners. Each electing partnership 2 subject to tax under this article shall report to each partner or member 3 its distributive share of: 4 (1) the partnership taxable income of the electing partnership; 5 (2) the pass-through entity tax imposed on the electing partnership; 6 and 7 (3) any other information as required by the commissioner. 8 (f) Information provided to shareholders. Each electing S corporation 9 subject to tax under this article shall report to each shareholder its 10 pro rata share of: 11 (1) the S corporation taxable income of the electing S corporation; 12 (2) the pass-through entity tax imposed on the electing S corporation; 13 and 14 (3) any other information as required by the commissioner. 15 § 866. Accounting periods and methods. (a) Accounting periods. An 16 electing partnership's or electing S corporation's taxable year pursuant 17 to this article shall be the same as the electing partnership's or 18 electing S corporation's taxable year for federal income tax purposes. 19 (b) Accounting methods. An electing partnership's or electing S corpo- 20 ration's method of accounting pursuant to this article shall be the same 21 as the electing partnership's or electing S corporation's method of 22 accounting for federal income tax purposes. 23 (c) Change of accounting period or method. (1) If an electing partner- 24 ship's or electing S corporation's taxable year or method of accounting 25 is changed for federal income tax purposes, the taxable year or method 26 of accounting for purposes of this article shall be similarly changed. 27 (2) If an electing partnership's or electing S corporation's method of 28 accounting is changed, any additional tax that results from adjustments 29 determined to be necessary solely by reason of such change shall not be 30 greater than if such adjustments were ratably allocated and included for 31 the taxable year of the change and the preceding taxable years, not in 32 excess of two, during which the entity used the method of accounting 33 from which the change is made. 34 § 867. Procedural provisions. (a) General. All provisions of article 35 twenty-two of this chapter will apply to the provisions of this article 36 in the same manner and with the same force and effect as if the language 37 of article twenty-two of this chapter had been incorporated in full into 38 this article and had been specifically adjusted for and expressly 39 referred to the tax imposed by this article, except to the extent that 40 any provision is either inconsistent with a provision of this article or 41 is not relevant to this article. Notwithstanding the preceding sentence, 42 no credit against tax in article twenty-two of this chapter can be used 43 to offset the tax due pursuant to this article. 44 (b) Cross Article filings. Notwithstanding any other provisions of 45 this article: 46 (1) The commissioner may require the filing of one return which, in 47 addition to the return provided for in section eight hundred sixty-five 48 of this article, may also include any of the returns required to be 49 filed by a taxpayer pursuant to the provisions of subsection (c) of 50 section six hundred fifty-eight or article nine-A of this chapter. 51 (2) Where such return is required, the commissioner may also require 52 the payment with it of a single amount which shall equal the total of 53 the amounts (total taxes less any credits or refunds) that would have 54 been required to be paid with the returns pursuant to the provisions of 55 this article and the provisions of article twenty-two of this chapter orS. 2509 18 A. 3009 1 the provisions of article nine-A of this chapter, whichever is applica- 2 ble. 3 (3) Notwithstanding any other law to the contrary, the commissioner 4 may require that all forms or returns pursuant to this article must be 5 filed electronically and all payments of tax must be paid electron- 6 ically. 7 (c) Liability for tax. An electing partnership or electing S corpo- 8 ration shall be liable for the tax due pursuant to this article. In 9 addition, every individual eligible to claim a credit pursuant to 10 subsection (kkk) of section six hundred six of this chapter because he 11 or she is a partner or member in an electing partnership or a sharehold- 12 er in an electing S corporation shall be jointly and severally liable 13 for the tax imposed pursuant to this article on such electing partner- 14 ship or electing S corporation. 15 (d) Deposit and disposition of revenue. All taxes, interest, penal- 16 ties, and fees collected or received by the commissioner pursuant to 17 this article shall be deposited and disposed of pursuant to the 18 provisions of section one hundred seventy-one-a of this chapter. 19 (e) Secrecy provision. All the provisions of paragraphs one and two of 20 subsection (e) of section six hundred ninety-seven of this chapter will 21 apply to the provisions of this article. Notwithstanding any provisions 22 of this chapter to the contrary, the commissioner may disclose informa- 23 tion and returns regarding the calculation and payment of the tax 24 imposed by this article and any credit calculated on taxes paid pursuant 25 to this article by an electing partnership or electing S corporation to 26 a partner, member or shareholder of such entity. 27 § 2. Section 606 of the tax law is amended by adding a new subsection 28 (kkk) to read as follows: 29 (kkk) Credit for pass-through entity tax. (1) A taxpayer partner or 30 member of an electing partnership and a taxpayer shareholder of an 31 electing S corporation subject to tax under article twenty-four-A of 32 this chapter shall be entitled to a credit against the tax imposed by 33 this article as provided in this subsection. For purposes of this 34 subsection, the terms "electing partnership," "electing S corporation," 35 and "pass-through entity tax" shall have the same meanings as used in 36 article twenty-four-A of this chapter. 37 (2) The credit shall be equal to the product of: 38 (i) the taxpayer's profit percentage of the electing partnership or 39 pro rata share of the electing S corporation; 40 (ii) ninety-two percent; and 41 (iii) the pass-through entity tax paid by the electing partnership or 42 S corporation for the taxable year. 43 (3) If a taxpayer is a partner, member or shareholder in multiple 44 electing partnerships and/or electing S corporations subject to tax 45 pursuant to article twenty-four-A of this chapter, the taxpayer's credit 46 shall be the sum of such credits calculated pursuant to paragraph two of 47 this subsection with regard to each entity in which the taxpayer has a 48 direct ownership interest. 49 (4) If the amount of the credit allowable pursuant to this subsection 50 for any taxable year exceeds the tax due for such year pursuant to this 51 article, the excess shall be treated as an overpayment, to be credited 52 or refunded, without interest. 53 § 3. Section 620 of the tax law, as amended by chapter 2 of the laws 54 of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as 55 added by chapter 274 of the laws of 1987, and subsection (d) as added by 56 chapter 166 of 1991, is amended to read as follows:S. 2509 19 A. 3009 1 § 620. Credit for income tax of another state. (a) General. A resident 2 shall be allowed a credit against the tax otherwise due under this arti- 3 cle for any income tax imposed on such individual for the taxable year 4 by another state of the United States, a political subdivision of such 5 state, the District of Columbia or a province of Canada, upon income 6 both derived therefrom and subject to tax under this article. The term 7 "income tax imposed" in the previous sentence shall not include the 8 portion of such tax (determined in the manner provided for in section 9 six hundred twenty-A) which is imposed upon the ordinary income portion 10 (or part thereof) of a lump sum distribution which is subject to the 11 separate tax imposed by section [six hundred one-C] six hundred three. 12 (b) Pass-through entity taxes. (1) A resident shall be allowed a cred- 13 it against the tax otherwise due pursuant to this article for any pass- 14 through entity tax substantially similar to the tax imposed pursuant to 15 article twenty-four-A of this chapter imposed on the income of a part- 16 nership or S corporation of which the resident is a partner, member or 17 shareholder for the taxable year by another state of the United States, 18 a political subdivision of such state, or the District of Columbia upon 19 income both derived therefrom and subject to tax under this article. 20 (2) Such credit shall be equal to the product of: 21 (A) the taxpayer's profit percentage of the electing partnership or 22 pro rata share of the electing S corporation; 23 (B) ninety-two percent; and 24 (C) the pass-through entity tax paid by the electing partnership or S 25 corporation to such other state, political subdivision of such other 26 state or the District of Columbia. 27 (3) However, such credit will be allowed on tax paid only if: 28 (A) the state of the United States, political subdivision of such 29 state, or the District of Columbia imposing such tax also imposes an 30 income tax substantially similar to the tax imposed under this article; 31 and 32 (B) in the case of taxes paid by an S corporation, such S corporation 33 was treated as a New York S corporation. 34 (c) Limitations. (1) The credit under this section shall not exceed 35 the percentage of the tax otherwise due under this article determined by 36 dividing the portion of the taxpayer's New York income subject to taxa- 37 tion by such other jurisdiction by the total amount of the taxpayer's 38 New York income. 39 (2) The credit under this section shall not reduce the tax otherwise 40 due under this article to an amount less than would have been due if the 41 income subject to taxation by such other jurisdiction were excluded from 42 the taxpayer's New York income. 43 (3) In the case of a taxpayer who elects to claim the foreign tax 44 credit for federal income tax purposes, the credit under this section 45 for income tax imposed by a province of Canada shall be allowed for that 46 portion of the provincial tax not claimed for federal purposes for the 47 taxable year or a preceding taxable year, provided however, to the 48 extent the provincial tax is claimed for federal purposes for a succeed- 49 ing taxable year, the credit under this section must be added back in 50 such succeeding taxable year. The provincial tax shall be deemed to be 51 claimed last for federal income tax purposes and for purposes of this 52 subsection. 53 [(c)] (d) Definition. For purposes of this section New York income 54 means: 55 (1) the New York adjusted gross income of an individual, orS. 2509 20 A. 3009 1 (2) the amount of the income of an estate or trust, determined as if 2 the estate or trust were an individual computing his New York adjusted 3 gross income under section six hundred twelve. 4 [(d) S corporation shareholders. In the case of a shareholder of an S5corporation, the term "income tax" in subsection (a) of this section6shall not include any such tax imposed upon or payable by the corpo-7ration, but shall include any such tax with respect to the income of the8corporation imposed upon or payable by the shareholder, without regard9to whether an election independent of the federal S election was10required to effect such imposition upon the shareholder.] 11 § 4. Subdivision 1 of section 171-a of the tax law, as amended by 12 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 13 read as follows: 14 1. All taxes, interest, penalties and fees collected or received by 15 the commissioner or the commissioner's duly authorized agent under arti- 16 cles nine (except section one hundred eighty-two-a thereof and except as 17 otherwise provided in section two hundred five thereof), nine-A, 18 twelve-A (except as otherwise provided in section two hundred eighty- 19 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 20 section three hundred twelve thereof), eighteen, nineteen, twenty 21 (except as otherwise provided in section four hundred eighty-two there- 22 of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty- 23 four-a, twenty-six, twenty-eight (except as otherwise provided in 24 section eleven hundred two or eleven hundred three thereof), 25 twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided 26 in section fourteen hundred twenty-one thereof), thirty-three and thir- 27 ty-three-A of this chapter shall be deposited daily in one account with 28 such responsible banks, banking houses or trust companies as may be 29 designated by the comptroller, to the credit of the comptroller. Such an 30 account may be established in one or more of such depositories. Such 31 deposits shall be kept separate and apart from all other money in the 32 possession of the comptroller. The comptroller shall require adequate 33 security from all such depositories. Of the total revenue collected or 34 received under such articles of this chapter, the comptroller shall 35 retain in the comptroller's hands such amount as the commissioner may 36 determine to be necessary for refunds or reimbursements under such arti- 37 cles of this chapter out of which amount the comptroller shall pay any 38 refunds or reimbursements to which taxpayers shall be entitled under the 39 provisions of such articles of this chapter. The commissioner and the 40 comptroller shall maintain a system of accounts showing the amount of 41 revenue collected or received from each of the taxes imposed by such 42 articles. The comptroller, after reserving the amount to pay such 43 refunds or reimbursements, shall, on or before the tenth day of each 44 month, pay into the state treasury to the credit of the general fund all 45 revenue deposited under this section during the preceding calendar month 46 and remaining to the comptroller's credit on the last day of such 47 preceding month, (i) except that the comptroller shall pay to the state 48 department of social services that amount of overpayments of tax imposed 49 by article twenty-two of this chapter and the interest on such amount 50 which is certified to the comptroller by the commissioner as the amount 51 to be credited against past-due support pursuant to subdivision six of 52 section one hundred seventy-one-c of this article, (ii) and except that 53 the comptroller shall pay to the New York state higher education 54 services corporation and the state university of New York or the city 55 university of New York respectively that amount of overpayments of tax 56 imposed by article twenty-two of this chapter and the interest on suchS. 2509 21 A. 3009 1 amount which is certified to the comptroller by the commissioner as the 2 amount to be credited against the amount of defaults in repayment of 3 guaranteed student loans and state university loans or city university 4 loans pursuant to subdivision five of section one hundred seventy-one-d 5 and subdivision six of section one hundred seventy-one-e of this arti- 6 cle, (iii) and except further that, notwithstanding any law, the comp- 7 troller shall credit to the revenue arrearage account, pursuant to 8 section ninety-one-a of the state finance law, that amount of overpay- 9 ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- 10 ty-A, thirty-B or thirty-three of this chapter, and any interest there- 11 on, which is certified to the comptroller by the commissioner as the 12 amount to be credited against a past-due legally enforceable debt owed 13 to a state agency pursuant to paragraph (a) of subdivision six of 14 section one hundred seventy-one-f of this article, provided, however, he 15 shall credit to the special offset fiduciary account, pursuant to 16 section ninety-one-c of the state finance law, any such amount credita- 17 ble as a liability as set forth in paragraph (b) of subdivision six of 18 section one hundred seventy-one-f of this article, (iv) and except 19 further that the comptroller shall pay to the city of New York that 20 amount of overpayment of tax imposed by article nine, nine-A, twenty- 21 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 22 interest thereon that is certified to the comptroller by the commission- 23 er as the amount to be credited against city of New York tax warrant 24 judgment debt pursuant to section one hundred seventy-one-l of this 25 article, (v) and except further that the comptroller shall pay to a 26 non-obligated spouse that amount of overpayment of tax imposed by arti- 27 cle twenty-two of this chapter and the interest on such amount which has 28 been credited pursuant to section one hundred seventy-one-c, one hundred 29 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 30 one hundred seventy-one-l of this article and which is certified to the 31 comptroller by the commissioner as the amount due such non-obligated 32 spouse pursuant to paragraph six of subsection (b) of section six 33 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 34 a like amount which the comptroller shall pay into the treasury to the 35 credit of the general fund from amounts subsequently payable to the 36 department of social services, the state university of New York, the 37 city university of New York, or the higher education services corpo- 38 ration, or the revenue arrearage account or special offset fiduciary 39 account pursuant to section ninety-one-a or ninety-one-c of the state 40 finance law, as the case may be, whichever had been credited the amount 41 originally withheld from such overpayment, and (vii) with respect to 42 amounts originally withheld from such overpayment pursuant to section 43 one hundred seventy-one-l of this article and paid to the city of New 44 York, the comptroller shall collect a like amount from the city of New 45 York. 46 § 5. Subdivision 1 of section 171-a of the tax law, as amended by 47 section 4 of part XX of chapter 59 of the laws of 2019, is amended to 48 read as follows: 49 1. All taxes, interest, penalties and fees collected or received by 50 the commissioner or the commissioner's duly authorized agent under arti- 51 cles nine (except section one hundred eighty-two-a thereof and except as 52 otherwise provided in section two hundred five thereof), nine-A, 53 twelve-A (except as otherwise provided in section two hundred eighty- 54 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 55 section three hundred twelve thereof), eighteen, nineteen, twenty 56 (except as otherwise provided in section four hundred eighty-two there-S. 2509 22 A. 3009 1 of), twenty-D, twenty-one, twenty-two, twenty-four, twenty-four-a, twen- 2 ty-six, twenty-eight (except as otherwise provided in section eleven 3 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 4 nine-B, thirty-one (except as otherwise provided in section fourteen 5 hundred twenty-one thereof), thirty-three and thirty-three-A of this 6 chapter shall be deposited daily in one account with such responsible 7 banks, banking houses or trust companies as may be designated by the 8 comptroller, to the credit of the comptroller. Such an account may be 9 established in one or more of such depositories. Such deposits shall be 10 kept separate and apart from all other money in the possession of the 11 comptroller. The comptroller shall require adequate security from all 12 such depositories. Of the total revenue collected or received under such 13 articles of this chapter, the comptroller shall retain in the comp- 14 troller's hands such amount as the commissioner may determine to be 15 necessary for refunds or reimbursements under such articles of this 16 chapter out of which amount the comptroller shall pay any refunds or 17 reimbursements to which taxpayers shall be entitled under the provisions 18 of such articles of this chapter. The commissioner and the comptroller 19 shall maintain a system of accounts showing the amount of revenue 20 collected or received from each of the taxes imposed by such articles. 21 The comptroller, after reserving the amount to pay such refunds or 22 reimbursements, shall, on or before the tenth day of each month, pay 23 into the state treasury to the credit of the general fund all revenue 24 deposited under this section during the preceding calendar month and 25 remaining to the comptroller's credit on the last day of such preceding 26 month, (i) except that the comptroller shall pay to the state department 27 of social services that amount of overpayments of tax imposed by article 28 twenty-two of this chapter and the interest on such amount which is 29 certified to the comptroller by the commissioner as the amount to be 30 credited against past-due support pursuant to subdivision six of section 31 one hundred seventy-one-c of this article, (ii) and except that the 32 comptroller shall pay to the New York state higher education services 33 corporation and the state university of New York or the city university 34 of New York respectively that amount of overpayments of tax imposed by 35 article twenty-two of this chapter and the interest on such amount which 36 is certified to the comptroller by the commissioner as the amount to be 37 credited against the amount of defaults in repayment of guaranteed 38 student loans and state university loans or city university loans pursu- 39 ant to subdivision five of section one hundred seventy-one-d and subdi- 40 vision six of section one hundred seventy-one-e of this article, (iii) 41 and except further that, notwithstanding any law, the comptroller shall 42 credit to the revenue arrearage account, pursuant to section 43 ninety-one-a of the state finance law, that amount of overpayment of tax 44 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 45 or thirty-three of this chapter, and any interest thereon, which is 46 certified to the comptroller by the commissioner as the amount to be 47 credited against a past-due legally enforceable debt owed to a state 48 agency pursuant to paragraph (a) of subdivision six of section one 49 hundred seventy-one-f of this article, provided, however, he shall cred- 50 it to the special offset fiduciary account, pursuant to section ninety- 51 one-c of the state finance law, any such amount creditable as a liabil- 52 ity as set forth in paragraph (b) of subdivision six of section one 53 hundred seventy-one-f of this article, (iv) and except further that the 54 comptroller shall pay to the city of New York that amount of overpayment 55 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 56 thirty-B or thirty-three of this chapter and any interest thereon thatS. 2509 23 A. 3009 1 is certified to the comptroller by the commissioner as the amount to be 2 credited against city of New York tax warrant judgment debt pursuant to 3 section one hundred seventy-one-l of this article, (v) and except 4 further that the comptroller shall pay to a non-obligated spouse that 5 amount of overpayment of tax imposed by article twenty-two of this chap- 6 ter and the interest on such amount which has been credited pursuant to 7 section one hundred seventy-one-c, one hundred seventy-one-d, one 8 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 9 ty-one-l of this article and which is certified to the comptroller by 10 the commissioner as the amount due such non-obligated spouse pursuant to 11 paragraph six of subsection (b) of section six hundred fifty-one of this 12 chapter; and (vi) the comptroller shall deduct a like amount which the 13 comptroller shall pay into the treasury to the credit of the general 14 fund from amounts subsequently payable to the department of social 15 services, the state university of New York, the city university of New 16 York, or the higher education services corporation, or the revenue 17 arrearage account or special offset fiduciary account pursuant to 18 section ninety-one-a or ninety-one-c of the state finance law, as the 19 case may be, whichever had been credited the amount originally withheld 20 from such overpayment, and (vii) with respect to amounts originally 21 withheld from such overpayment pursuant to section one hundred seventy- 22 one-l of this article and paid to the city of New York, the comptroller 23 shall collect a like amount from the city of New York. 24 § 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 25 92-z of the state finance law, as amended by section 5 of part MM of 26 chapter 59 of the laws of 2018, are amended to read as follows: 27 2. Such fund shall consist of (a) fifty percent of receipts from the 28 imposition of personal income taxes pursuant to article twenty-two of 29 the tax law, less such amounts as the commissioner of taxation and 30 finance may determine to be necessary for refunds, [and] (b) fifty 31 percent of receipts from the imposition of employer compensation expense 32 taxes pursuant to article twenty-four of the tax law, less such amounts 33 as the commissioner of taxation and finance may determine to be neces- 34 sary for refunds, and (c) fifty percent of receipts from the imposition 35 of the pass-through entity taxes pursuant to article twenty-four-A of 36 the tax law, less such amounts as the commission of taxation and finance 37 may determine to be necessary for refunds. 38 3. (a) Beginning on the first day of each month, the comptroller shall 39 deposit all of the receipts collected pursuant to section six hundred 40 seventy-one of the tax law in the revenue bond tax fund until the amount 41 of monthly receipts anticipated to be deposited pursuant to the certif- 42 icate required in paragraph (b) of subdivision five of this section are 43 met. On or before the twelfth day of each month, the commissioner of 44 taxation and finance shall certify to the state comptroller the amounts 45 specified in paragraph (a) of subdivision two of this section relating 46 to the preceding month and, in addition, no later than March thirty- 47 first of each fiscal year the commissioner of taxation and finance shall 48 certify such amounts relating to the last month of such fiscal year. The 49 amounts so certified shall be deposited by the state comptroller in the 50 revenue bond tax fund. 51 (b) Beginning on the first day of each month, the comptroller shall 52 deposit all of the receipts collected pursuant to section eight hundred 53 fifty-four of the tax law in the revenue bond tax fund until the amount 54 of monthly receipts anticipated to be deposited pursuant to the certif- 55 icate required in paragraph (b) of subdivision five of this section are 56 met. On or before the twelfth day of each month, the commissioner ofS. 2509 24 A. 3009 1 taxation and finance shall certify to the state comptroller the amounts 2 specified in paragraph (b) of subdivision two of this section relating 3 to the preceding month and, in addition, no later than March thirty- 4 first of each fiscal year the commissioner of taxation and finance shall 5 certify such amounts relating to the last month of such fiscal year. The 6 amounts so certified shall be deposited by the state comptroller in the 7 revenue bond tax fund. 8 (c) Beginning on the first day of each month, the comptroller shall 9 deposit all of the receipts collected pursuant to sections eight hundred 10 sixty-four and eight hundred sixty-five of the tax law in the revenue 11 bond tax fund until the amount of monthly receipts anticipated to be 12 deposited pursuant to the certificate required in paragraph (b) of 13 subdivision five of this section are met. On or before the twelfth day 14 of each month, the commissioner of taxation and finance shall certify to 15 the state comptroller the amounts specified in paragraph (c) of subdivi- 16 sion two of this section relating to the preceding month and, in addi- 17 tion, no later than March thirty-first of each fiscal year the commis- 18 sioner of taxation and finance shall certify such amounts relating to 19 the last month of such fiscal year. The amounts so certified shall be 20 deposited by the state comptroller in the revenue bond tax fund. 21 (a) The state comptroller shall from time to time, but in no event 22 later than the fifteenth day of each month (other than the last month of 23 the fiscal year) and no later than the thirty-first day of the last 24 month of each fiscal year, pay over and distribute to the credit of the 25 general fund of the state treasury all moneys in the revenue bond tax 26 fund, if any, in excess of the aggregate amount required to be set aside 27 for the payment of cash requirements pursuant to paragraph (b) of this 28 subdivision, provided that an appropriation has been made to pay all 29 amounts specified in any certificate or certificates delivered by the 30 director of the budget pursuant to paragraph (b) of this subdivision as 31 being required by each authorized issuer as such term is defined in 32 section sixty-eight-a of this chapter for the payment of cash require- 33 ments of such issuers for such fiscal year. Subject to the rights of 34 holders of debt of the state, in no event shall the state comptroller 35 pay over and distribute any moneys on deposit in the revenue bond tax 36 fund to any person other than an authorized issuer pursuant to such 37 certificate or certificates (i) unless and until the aggregate of all 38 cash requirements certified to the state comptroller as required by such 39 authorized issuers to be set aside pursuant to paragraph (b) of this 40 subdivision for such fiscal year shall have been appropriated to such 41 authorized issuers in accordance with the schedule specified in the 42 certificate or certificates filed by the director of the budget or (ii) 43 if, after having been so certified and appropriated, any payment 44 required to be made pursuant to paragraph (b) of this subdivision has 45 not been made to the authorized issuers which was required to have been 46 made pursuant to such certificate or certificates; provided, however, 47 that no person, including such authorized issuers or the holders of 48 revenue bonds, shall have any lien on moneys on deposit in the revenue 49 bond tax fund. Any agreement entered into pursuant to section sixty- 50 eight-c of this chapter related to any payment authorized by this 51 section shall be executory only to the extent of such revenues available 52 to the state in such fund. Notwithstanding subdivisions two and three of 53 this section, in the event the aggregate of all cash requirements certi- 54 fied to the state comptroller as required by such authorized issuers to 55 be set aside pursuant to paragraph (b) of this subdivision for the 56 fiscal year beginning on April first shall not have been appropriated toS. 2509 25 A. 3009 1 such authorized issuers in accordance with the schedule specified in the 2 certificate or certificates filed by the director of the budget or, (ii) 3 if, having been so certified and appropriated, any payment required to 4 be made pursuant to paragraph (b) of this subdivision has not been made 5 pursuant to such certificate or certificates, all receipts collected 6 pursuant to section six hundred seventy-one of the tax law, [and] 7 section eight hundred fifty-four of the tax law, section eight hundred 8 sixty-four of the tax law, and section eight hundred sixty-five of the 9 tax law shall be deposited in the revenue bond tax fund until the great- 10 er of forty percent of the aggregate of the receipts from the imposition 11 of (A) the personal income tax imposed by article twenty-two of the tax 12 law, [and] (B) the employer compensation expense tax imposed by article 13 twenty-four of the tax law, and (C) the pass-through entity tax imposed 14 by article twenty-four-A of the tax law for the fiscal year beginning on 15 April first and as specified in the certificate or certificates filed by 16 the director of the budget pursuant to this paragraph or a total of 17 twelve billion dollars has been deposited in the revenue bond tax fund. 18 Notwithstanding any other provision of law, if the state has appropri- 19 ated and paid to the authorized issuers the amounts necessary for the 20 authorized issuers to meet their requirements for the current fiscal 21 year pursuant to the certificate or certificates submitted by the direc- 22 tor of the budget pursuant to paragraph (b) of this section, the state 23 comptroller shall, on the last day of each fiscal year, pay to the 24 general fund of the state all sums remaining in the revenue bond tax 25 fund on such date except such amounts as the director of the budget may 26 certify are needed to meet the cash requirements of authorized issuers 27 during the subsequent fiscal year. 28 § 7. Subdivision 5 of section 68-c of the state finance law, as 29 amended by section 6 of part MM of chapter 59 of the laws of 2018, is 30 amended to read as follows: 31 5. Nothing contained in this article shall be deemed to restrict the 32 right of the state to amend, repeal, modify or otherwise alter statutes 33 imposing or relating to the taxes imposed pursuant to article 34 twenty-two, [and] article twenty-four, and article twenty-four-A of the 35 tax law. The authorized issuers shall not include within any resolution, 36 contract or agreement with holders of the revenue bonds issued under 37 this article any provision which provides that a default occurs as a 38 result of the state exercising its right to amend, repeal, modify or 39 otherwise alter the taxes imposed pursuant to article twenty-two, [and] 40 article twenty-four, and article twenty-four-A of the tax law. 41 § 8. This act shall take effect immediately and shall apply to all 42 taxable years beginning on or after January 1, 2022; provided, however, 43 that the amendments to subdivision 1 of section 171-a of the tax law 44 made by section four of this act shall not affect the expiration of such 45 subdivision and shall expire therewith, when upon such date the 46 provisions of section five of this act shall take effect. 47 PART D 48 Section 1. Section 352 of the economic development law is amended by 49 adding two new subdivisions 5-a and 13-a to read as follows: 50 5-a. "Child care services" means those services undertaken or spon- 51 sored by a participant in this program meeting the requirements of 52 "child day care" as defined in paragraph (a) of subdivision one of 53 section three hundred ninety of the social services law or any child 54 care services in the city of New York whereby a permit to operate suchS. 2509 26 A. 3009 1 child care services is required pursuant to the health code of the city 2 of New York. 3 13-a. "Net new child care services expenditures" means the calculation 4 of new, annual participant expenditures on child care services whether 5 internal or provided by a third party (including coverage for full or 6 partial discount of employee rates), minus any revenues received by the 7 participant through a third-party operator (i.e. rent paid to the 8 participant by the child care provider) or employees and may be further 9 defined by the commissioner in regulations. For the purposes of this 10 definition, expenditures for child care services that a participant has 11 incurred prior to admission to this program shall not be eligible for 12 the credit. 13 § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the 14 economic development law, as amended by section 2 of part L of chapter 15 59 of the laws of 2020, are amended and a new paragraph (m) is added to 16 read as follows: 17 (k) as a life sciences company; [or] 18 (l) as a company operating in one of the industries listed in para- 19 graphs (b) through (e) of this subdivision and engaging in a green 20 project as defined in section three hundred fifty-two of this 21 article[.]; or 22 (m) as a participant operating in one of the industries listed in 23 paragraphs (a) through (k) of this subdivision and operating or sponsor- 24 ing child care services to its employees as defined in section three 25 hundred fifty-two of this article. 26 § 3. Subdivisions 2 and 6 of section 355 of the economic development 27 law, subdivision 2 as amended by section 4 of part L of chapter 59 of 28 the laws of 2020 and subdivision 6 as amended by section 4 of part K of 29 chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is 30 added to read as follows: 31 2. Excelsior investment tax credit component. A participant in the 32 excelsior jobs program shall be eligible to claim a credit on qualified 33 investments. In a project that is not a green project, the credit shall 34 be equal to two percent of the cost or other basis for federal income 35 tax purposes of the qualified investment. In a green project, the credit 36 shall be equal to five percent of the cost or other basis for federal 37 income tax purposes of the qualified investment. In a project for child 38 care services, the credit shall be equal to five percent of the cost or 39 other basis for federal income tax purposes of the qualified investment 40 in child care services. A participant may not claim both the excelsior 41 investment tax credit component and the investment tax credit set forth 42 in subdivision one of section two hundred ten-B, subsection (a) of 43 section six hundred six, the former subsection (i) of section fourteen 44 hundred fifty-six, or subdivision (q) of section fifteen hundred eleven 45 of the tax law for the same property in any taxable year, except that a 46 participant may claim both the excelsior investment tax credit component 47 and the investment tax credit for research and development property. In 48 addition, a taxpayer who or which is qualified to claim the excelsior 49 investment tax credit component and is also qualified to claim the 50 brownfield tangible property credit component under section twenty-one 51 of the tax law may claim either the excelsior investment tax credit 52 component or such tangible property credit component, but not both with 53 regard to a particular piece of property. A credit may not be claimed 54 until a business enterprise has received a certificate of tax credit, 55 provided that qualified investments made on or after the issuance of the 56 certificate of eligibility but before the issuance of the certificate ofS. 2509 27 A. 3009 1 tax credit to the business enterprise, may be claimed in the first taxa- 2 ble year for which the business enterprise is allowed to claim the cred- 3 it. Expenses incurred prior to the date the certificate of eligibility 4 is issued are not eligible to be included in the calculation of the 5 credit. 6 2-a. Excelsior child care services tax credit component. A participant 7 engaging in a new excelsior jobs program project shall be eligible to 8 claim a credit on its net new child care services expenditures for its 9 operation, sponsorship or direct financial support of a child care 10 services program. The credit shall be equal to six percent of the net 11 new child care services expenditures as defined in this chapter. 12 6. Claim of tax credit. The business enterprise shall be allowed to 13 claim the credit as prescribed in section thirty-one of the tax law. No 14 costs used by an entertainment company as the basis for the allowance of 15 a tax credit described in this section shall be used by such enter- 16 tainment company to claim any other credit allowed pursuant to the tax 17 law. No costs or expenditures for child care services used by a partic- 18 ipant to claim the credit as prescribed in section forty-four of the tax 19 law shall be used for the allowance of a tax credit described in this 20 section. 21 § 4. Subdivision (a) of section 31 of the tax law is amended by adding 22 a new paragraph 2-a to read as follows: 23 (2-a) the excelsior child care services tax credit component; 24 § 5. Subdivision (a) of section 44 of the tax law, as added by section 25 1 of part L of chapter 59 of the laws of 2019, is amended to read as 26 follows: 27 (a) General. A taxpayer subject to tax under article nine-A, twenty- 28 two, or thirty-three of this chapter shall be allowed a credit against 29 such tax in an amount equal to two hundred percent of the portion of the 30 credit that is allowed to the taxpayer under section 45F of the internal 31 revenue code that is attributable to (i) qualified child care expendi- 32 tures paid or incurred with respect to a qualified child care facility 33 with a situs in the state, and to (ii) qualified child care resource and 34 referral expenditures paid or incurred with respect to the taxpayer's 35 employees working in the state. The credit allowable under this subdivi- 36 sion for any taxable year shall not exceed [one hundred fifty] five 37 hundred thousand dollars. If the entity operating the qualified child 38 care facility is a partnership or a New York S corporation, then such 39 cap shall be applied at the entity level, so the aggregate credit 40 allowed to all the partners or shareholders of such entity in a taxable 41 year does not exceed [one hundred fifty] five hundred thousand dollars. 42 § 6. This act shall take effect immediately; provided, however, 43 section five of this act shall apply to taxable years beginning on or 44 after January 1, 2022. 45 PART E 46 Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax 47 law, as added by chapter 485 of the laws of 1988, is amended to read as 48 follows: 49 (b) (1) A corporation classed as a "taxicab" or "omnibus", 50 (i) which is organized, incorporated or formed under the laws of any 51 other state, country or sovereignty, and 52 (ii) which neither owns nor leases property in this state in a corpo- 53 rate or organized capacity, norS. 2509 28 A. 3009 1 (iii) maintains an office in this state in a corporate or organized 2 capacity, but 3 (iv) which is doing business or employing capital in this state by 4 conducting at least one but fewer than twelve trips into this state 5 during the calendar year, shall [annually pay a tax equal to fifteen6dollars for each trip conducted into this state] not be taxed under the 7 provisions of this article. If the only property a corporation owns or 8 leases in this state is a vehicle or vehicles used to conduct trips, it 9 shall not be considered, for purposes of clause (ii) of this subpara- 10 graph, to be owning or leasing property in this state. 11 (2) [The commissioner of taxation and finance may prescribe such forms12as he may deem necessary to report such tax in a simplified manner.13(3)] For purposes of this subdivision, a corporation classed as a 14 "taxicab" or "omnibus" shall be considered to be conducting a trip into 15 New York state when one of its vehicles enters New York state and trans- 16 ports passengers to, from, or to and from a location in New York state. 17 A corporation shall not be considered to be conducting a trip into New 18 York state if its vehicle only makes incidental stops at locations in 19 the state while in transit from a location outside New York state to 20 another location outside New York state. The number of trips a corpo- 21 ration conducts into New York state shall be calculated by determining 22 the number of trips each vehicle owned, leased or operated by the corpo- 23 ration conducts into New York state and adding those numbers together. 24 [(4) Provided, however, that the provisions of this paragraph shall25not apply to any corporation which does not file its franchise tax26report in a timely manner (determined with regard to any extension of27time for filing).] 28 § 2. Subdivision 1-A of section 208 of the tax law, as amended by 29 section 4 of part A of chapter 59 of the laws of 2014, is amended to 30 read as follows: 31 1-A. The term "New York S corporation" means, with respect to any 32 taxable year, a corporation subject to tax under this article [for which33an election is in effect pursuant to] and described in paragraph (i) or 34 (ii) of subsection (a) of section six hundred sixty of this chapter [for35such year], and any such year shall be denominated a "New York S year"[,36and such election shall be denominated a "New York S election"]. The 37 term "New York C corporation" means, with respect to any taxable year, a 38 corporation subject to tax under this article which is not a New York S 39 corporation, and any such year shall be denominated a "New York C year". 40 The term "termination year" means any taxable year of a corporation 41 during which the corporation's status as a New York S [election] corpo- 42 ration terminates on a day other than the first day of such year. The 43 portion of the taxable year ending before the first day for which such 44 termination is effective shall be denominated the "S short year", and 45 the portion of such year beginning on such first day shall be denomi- 46 nated the "C short year". The term "New York S termination year" means 47 any termination year which is [not] also an S termination year for 48 federal purposes. 49 § 3. Subdivision 1-B and subparagraph (ii) of the opening paragraph 50 and paragraph (k) of subdivision 9 of section 208 of the tax law are 51 REPEALED. 52 § 4. Subparagraph (A) and the opening paragraph of subparagraph (B) of 53 paragraph 5 of subdivision (a) of section 292 of the tax law, as added 54 by section 48 of part A of chapter 389 of the laws of 1997, are amended 55 to read as follows: 56 (A) In the case of a shareholder of an S corporation,S. 2509 29 A. 3009 1 (i) [where the election provided for in] subject to subsection (a) of 2 section six hundred sixty of this chapter [is in effect with respect to3such corporation], there shall be added to federal unrelated business 4 taxable income an amount equal to the shareholder's pro rata share of 5 the corporation's reductions for taxes described in paragraphs two and 6 three of subsection (f) of section thirteen hundred sixty-six of the 7 internal revenue code, and 8 (ii) [where such election has not been made with respect to such9corporation, there shall be subtracted from federal unrelated business10taxable income any items of income of the corporation included therein,11and there shall be added to federal unrelated business taxable income12any items of loss or deduction included therein, and13(iii)] in the case of a New York S termination year, the amount of any 14 such items of S corporation income, loss, deduction and reductions for 15 taxes shall be adjusted in the manner provided in paragraph two or three 16 of subsection (s) of section six hundred twelve of this chapter. 17 In the case of a shareholder of a corporation which was, for any of 18 its taxable years beginning after nineteen hundred ninety-seven and 19 before two thousand twenty-two, a federal S corporation but a New York C 20 corporation: 21 § 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as 22 amended by chapter 606 of the laws of 1984, subparagraph (A) as amended 23 by chapter 28 of the laws of 1987 and subparagraph (B) as amended by 24 chapter 190 of the laws of 1990, is amended to read as follows: 25 (18) In the case of a shareholder of an S corporation as described in 26 subsection (a) of section six hundred sixty 27 (A) [where the election provided for in subsection (a) of section six28hundred sixty is in effect with respect to such corporation,] an amount 29 equal to his or her pro rata share of the corporation's reductions for 30 taxes described in paragraphs two and three of subsection (f) of section 31 thirteen hundred sixty-six of the internal revenue code, and 32 (B) in the case of a New York S termination year, subparagraph (A) of 33 this paragraph shall apply to the amount of reductions for taxes deter- 34 mined under subsection (s) of this section. 35 § 6. Paragraph 19 of subsection (b) of section 612 of the tax law is 36 REPEALED. 37 § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax 38 law, paragraph 20 as amended by chapter 606 of the laws of 1984 and 39 paragraph 21 as amended by section 70 of part A of chapter 59 of the 40 laws of 2014, are amended to read as follows: 41 (20) S corporation distributions to the extent not included in federal 42 gross income for the taxable year because of the application of section 43 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred 44 seventy-one or subsection (c) of section thirteen hundred seventy-nine 45 of the internal revenue code which represent income not previously 46 subject to tax under this article because the election provided for in 47 subsection (a) of section six hundred sixty in effect for taxable years 48 beginning before January first, two thousand twenty-two had not been 49 made. Any such distribution treated in the manner described in paragraph 50 two of subsection (b) of section thirteen hundred sixty-eight of the 51 internal revenue code for federal income tax purposes shall be treated 52 as ordinary income for purposes of this article. 53 (21) In relation to the disposition of stock or indebtedness of a 54 corporation which elected under subchapter s of chapter one of the 55 internal revenue code for any taxable year of such corporation begin- 56 ning, in the case of a corporation taxable under article nine-A of thisS. 2509 30 A. 3009 1 chapter, after December thirty-first, nineteen hundred eighty and before 2 January first, two thousand twenty-two, the amount required to be added 3 to federal adjusted gross income pursuant to subsection (n) of this 4 section. 5 § 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as 6 amended by section 70 of part A of chapter 59 of the laws of 2014, is 7 amended to read as follows: 8 (21) In relation to the disposition of stock or indebtedness of a 9 corporation which elected under subchapter s of chapter one of the 10 internal revenue code for any taxable year of such corporation begin- 11 ning, in the case of a corporation taxable under article nine-A of this 12 chapter, after December thirty-first, nineteen hundred eighty and before 13 January first, two thousand twenty-two, the amounts required to be 14 subtracted from federal adjusted gross income pursuant to subsection (n) 15 of this section. 16 § 9. Paragraph 22 of subsection (c) of section 612 of the tax law is 17 REPEALED. 18 § 10. Subsection (e) of section 612 of the tax law, as amended by 19 chapter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of 20 the laws of 1992, is amended to read as follows: 21 (e) Modifications of partners and shareholders of S corporations. (1) 22 Partners and shareholders of S corporations [which are not New York C23corporations]. The amounts of modifications required to be made under 24 this section by a partner or by a shareholder of an S corporation 25 [(other than an S corporation which is a New York C corporation)], which 26 relate to partnership or S corporation items of income, gain, loss or 27 deduction shall be determined under section six hundred seventeen and, 28 in the case of a partner of a partnership doing an insurance business as 29 a member of the New York insurance exchange described in section six 30 thousand two hundred one of the insurance law, under section six hundred 31 seventeen-a of this article. 32 (2) [Shareholders of S corporations which are New York C corporations.33In the case of a shareholder of an S corporation which is a New York C34corporation, the modifications under this section which relate to the35corporation's items of income, loss and deduction shall not apply,36except for the modifications provided under paragraph nineteen of37subsection (b) and paragraph twenty-two of subsection (c) of this38section.39(3)] New York S termination year. In the case of a New York S termi- 40 nation year, the amounts of the modifications required under this 41 section which relate to the S corporation's items of income, loss, 42 deduction and reductions for taxes (as described in paragraphs two and 43 three of subsection (f) of section thirteen hundred sixty-six of the 44 internal revenue code) shall be adjusted in the same manner that the S 45 corporation's items are adjusted under subsection (s) of section six 46 hundred twelve. 47 § 11. Subsection (n) of section 612 of the tax law, as amended by 48 section 61 of part A of chapter 389 of the laws of 1997, is amended to 49 read as follows: 50 (n) Where gain or loss is recognized for federal income tax purposes 51 upon the disposition of stock or indebtedness of a corporation electing 52 under subchapter s of chapter one of the internal revenue code 53 (1) There shall be added to federal adjusted gross income the amount 54 of increase in basis with respect to such stock or indebtedness pursuant 55 to subsection (a) of section thirteen hundred seventy-six of the inter- 56 nal revenue code as such section was in effect for taxable years begin-S. 2509 31 A. 3009 1 ning before January first, nineteen hundred eighty-three and subpara- 2 graphs (A) and (B) of paragraph one of subsection (a) of section 3 thirteen hundred sixty-seven of such code, for each taxable year of the 4 corporation beginning, in the case of a corporation taxable under arti- 5 cle nine-A of this chapter, after December thirty-first, nineteen 6 hundred eighty and before January first, two thousand twenty-two, and in 7 the case of a corporation taxable under former article thirty-two of 8 this chapter, after December thirty-first, nineteen hundred ninety-six 9 and before January first, two thousand fifteen, for which the election 10 provided for in subsection (a) of section six hundred sixty of this 11 article was not in effect, and 12 (2) There shall be subtracted from federal adjusted gross income 13 (A) the amount of reduction in basis with respect to such stock or 14 indebtedness pursuant to subsection (b) of section thirteen hundred 15 seventy-six of the internal revenue code as such section was in effect 16 for taxable years beginning before January first, nineteen hundred 17 eighty-three and subparagraphs (B) and (C) of paragraph two of 18 subsection (a) of section thirteen hundred sixty-seven of such code, for 19 each taxable year of the corporation beginning, in the case of a corpo- 20 ration taxable under article nine-A of this chapter, after December 21 thirty-first, nineteen hundred eighty and before January first, two 22 thousand twenty-two, and in the case of a corporation taxable under 23 former article thirty-two of this chapter, after December thirty-first, 24 nineteen hundred ninety-six and before January first, two thousand 25 fifteen, for which the election provided for in subsection (a) of 26 section six hundred sixty of this article was not in effect and 27 (B) the amount of any modifications to federal gross income with 28 respect to such stock pursuant to paragraph twenty of subsection (b) of 29 this section. 30 § 12. Paragraph 6 of subsection (c) of section 615 of the tax law is 31 REPEALED. 32 § 13. Subsection (e) of section 615 of the tax law, as amended by 33 chapter 760 of the laws of 1992, is amended to read as follows: 34 (e) Modifications of partners and shareholders of S corporations. (1) 35 Partners and shareholders of S corporations [which are not New York C36corporations]. The amounts of modifications under subsection (c) or 37 under paragraph (2) or (3) of subsection (d) required to be made by a 38 partner or by a shareholder of an S corporation [(other than an S corpo-39ration which is a New York C corporation)], with respect to items of 40 deduction of a partnership or S corporation shall be determined under 41 section six hundred seventeen. 42 (2) [Shareholders of S corporations which are New York C corporations.43In the case of a shareholder of an S corporation which is a New York C44corporation, the modifications under this section which relate to the45corporation's items of deduction shall not apply, except for the modifi-46cation provided under paragraph six of subsection (c).47(3)] New York S termination year. In the case of a New York S termi- 48 nation year, the amounts of the modifications required under this 49 section which relate to the S corporation's items of deduction shall be 50 adjusted in the same manner that the S corporation's items are adjusted 51 under subsection (s) of section six hundred twelve. 52 § 14. Subsection (a) of section 617 of the tax law, as amended by 53 chapter 190 of the laws of 1990, is amended to read as follows: 54 (a) Partner's and shareholder's modifications. In determining New York 55 adjusted gross income and New York taxable income of a resident partner 56 or a resident shareholder of an S corporation [(other than an S corpo-S. 2509 32 A. 3009 1ration which is a New York C corporation)], any modification described 2 in subsections (b), (c) or (d) of section six hundred twelve, subsection 3 (c) of section six hundred fifteen or paragraphs (2) or (3) of 4 subsection (d) of such section, which relates to an item of partnership 5 or S corporation income, gain, loss or deduction shall be made in 6 accordance with the partner's distributive share or the shareholder's 7 pro rata share, for federal income tax purposes, of the item to which 8 the modification relates. Where a partner's distributive share or a 9 shareholder's pro rata share of any such item is not required to be 10 taken into account separately for federal income tax purposes, the part- 11 ner's or shareholder's share of such item shall be determined in accord- 12 ance with his or her share, for federal income tax purposes, of partner- 13 ship or S corporation taxable income or loss generally. In the case of a 14 New York S termination year, his or her pro rata share of any such item 15 shall be determined under subsection (s) of section six hundred twelve. 16 § 15. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 17 631 of the tax law, as added by section 3 of part C of chapter 57 of the 18 laws of 2010, is amended to read as follows: 19 (E-1) in the case of an S corporation [for which an election is in20effect pursuant] subject to subsection (a) of section six hundred sixty 21 of this article that terminates its taxable status in New York, any 22 income or gain recognized on the receipt of payments from an installment 23 sale contract entered into when the S corporation was subject to tax in 24 New York, allocated in a manner consistent with the applicable methods 25 and rules for allocation under article nine-A or former article thirty- 26 two of this chapter, in the year that the S corporation sold its assets. 27 § 16. The section heading and paragraph 2 of subsection (a) of section 28 632 of the tax law, the section heading as amended by chapter 606 of the 29 laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 30 of part A of chapter 59 of the laws of 2014, are amended to read as 31 follows: 32 Nonresident partners and [electing] shareholders of S corporations. 33 (2) In determining New York source income of a nonresident shareholder 34 of an S corporation [where the election provided for in] subject to 35 subsection (a) of section six hundred sixty of this article [is in36effect], there shall be included only the portion derived from or 37 connected with New York sources of such shareholder's pro rata share of 38 items of S corporation income, loss and deduction entering into his or 39 her federal adjusted gross income, increased by reductions for taxes 40 described in paragraphs two and three of subsection (f) of section thir- 41 teen hundred sixty-six of the internal revenue code, as such portion 42 shall be determined under regulations of the commissioner consistent 43 with the applicable methods and rules for allocation under article 44 nine-A of this chapter[, regardless of whether or not such item or45reduction is included in entire net income under article nine-A for the46tax year]. If a nonresident is a shareholder in an S corporation [where47the election provided for in] subject to subsection (a) of section six 48 hundred sixty of this article [is in effect], and the S corporation has 49 distributed an installment obligation under section 453(h)(1)(A) of the 50 Internal Revenue Code, then any gain recognized on the receipt of 51 payments from the installment obligation for federal income tax purposes 52 will be treated as New York source income allocated in a manner consist- 53 ent with the applicable methods and rules for allocation under article 54 nine-A of this chapter in the year that the assets were sold. In addi- 55 tion, if the shareholders of the S corporation have made an election 56 under section 338(h)(10) of the Internal Revenue Code, then any gainS. 2509 33 A. 3009 1 recognized on the deemed asset sale for federal income tax purposes will 2 be treated as New York source income allocated in a manner consistent 3 with the applicable methods and rules for allocation under article 4 nine-A of this chapter in the year that the shareholder made the section 5 338(h)(10) election. For purposes of a section 338(h)(10) election, when 6 a nonresident shareholder exchanges his or her S corporation stock as 7 part of the deemed liquidation, any gain or loss recognized shall be 8 treated as the disposition of an intangible asset and will not increase 9 or offset any gain recognized on the deemed assets sale as a result of 10 the section 338(h)(10) election. 11 § 17. Subsection (a) of section 632-a of the tax law, as added by 12 section 1 of part K of chapter 60 of the laws of 2007, is amended to 13 read as follows: 14 (a) General. If (1) substantially all of the services of a personal 15 service corporation or S corporation are performed for or on behalf of 16 another corporation, partnership, or other entity and (2) the effect of 17 forming or availing of such personal service corporation or S corpo- 18 ration is the avoidance or evasion of New York income tax by reducing 19 the income of, or in the case of a nonresident, reducing the New York 20 source income of, or securing the benefit of any expense, deduction, 21 credit, exclusion, or other allowance for, any employee-owner which 22 would not otherwise be available, then the commissioner may allocate all 23 income, deductions, credits, exclusions, and other allowances between 24 such personal service corporation or S corporation (even if such 25 personal service corporation or S corporation [is taxed under article26nine-A of this chapter or] is not subject to tax in this state) and its 27 employee-owners, provided such allocation is necessary to prevent avoid- 28 ance or evasion of New York state income tax or to clearly reflect the 29 source and the amount of the income of the personal service corporation 30 or S corporation or any of its employee-owners. 31 § 18. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection 32 (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 33 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by 34 section 72 of part A of chapter 59 of the laws of 2014, are amended to 35 read as follows: 36 (2) S corporations. Every S corporation [for which the election37provided for in] subject to subsection (a) of section six hundred sixty 38 [is in effect] shall make a return for the taxable year setting forth 39 all items of income, loss and deduction and such other pertinent infor- 40 mation as the commissioner of taxation and finance may by regulations 41 and instructions prescribe. Such return shall be filed on or before the 42 fifteenth day of the third month following the close of each taxable 43 year. 44 (A) General. Every entity which is a partnership, other than a public- 45 ly traded partnership as defined in section 7704 of the federal Internal 46 Revenue Code, subchapter K limited liability company or an S corporation 47 [for which the election provided for in subsection (a) of section six48hundred sixty of this part is in effect], which has partners, members or 49 shareholders who are nonresident individuals, as defined under 50 subsection (b) of section six hundred five of this article, or C corpo- 51 rations, and which has any income derived from New York sources, deter- 52 mined in accordance with the applicable rules of section six hundred 53 thirty-one of this article as in the case of a nonresident individual, 54 shall pay estimated tax on such income on behalf of such partners, 55 members or shareholders in the manner and at the times prescribed by 56 subsection (c) of section six hundred eighty-five of this article. ForS. 2509 34 A. 3009 1 purposes of this paragraph, the term "estimated tax" shall mean a part- 2 ner's, member's or shareholder's distributive share or pro rata share of 3 the entity income derived from New York sources, multiplied by the high- 4 est rate of tax prescribed by section six hundred one of this article 5 for the taxable year of any partner, member or shareholder who is an 6 individual taxpayer, or paragraph (a) of subdivision one of section two 7 hundred ten of this chapter for the taxable year of any partner, member 8 or shareholder which is a C corporation, whether or not such C corpo- 9 ration is subject to tax under article nine, nine-A or thirty-three of 10 this chapter, and reduced by the distributive share or pro rata share of 11 any credits determined under section one hundred eighty-seven, one 12 hundred eighty-seven-a, six hundred six or fifteen hundred eleven of 13 this chapter, whichever is applicable, derived from the entity. 14 § 19. Section 660 of the tax law, as amended by chapter 606 of the 15 laws of 1984, subsections (a) and (h) as amended by section 73 of part A 16 of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as 17 amended by section 51, paragraphs 4 and 5 of subsection (b) as added and 18 paragraph 6 of subsection (b) as renumbered by section 52 and 19 subsections (e) and (f) as added and subsection (g) as relettered by 20 section 53 of part A of chapter 389 of the laws of 1997, subsection (d) 21 as added by chapter 760 of the laws of 1992, subsection (i) as added by 22 section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of 23 subsection (i) as amended by section 39 of part T of chapter 59 of the 24 laws of 2015, is amended to read as follows: 25 § 660. [Election by shareholders of S corporations] Tax treatment of 26 federal S corporations. (a) [Election.] If a corporation is an eligible 27 S corporation, the shareholders of the corporation [may elect in the28manner set forth in subsection (b) of this section to] shall take into 29 account, to the extent provided for in this article (or in article thir- 30 teen of this chapter, in the case of a shareholder which is a taxpayer 31 under such article), the S corporation items of income, loss, deduction 32 and reductions for taxes described in paragraphs two and three of 33 subsection (f) of section thirteen hundred sixty-six of the internal 34 revenue code which are taken into account for federal income tax 35 purposes for the taxable year. [No election under this subsection shall36be effective unless all shareholders of the corporation have so37elected.] An eligible S corporation is (i) [an S] a corporation that has 38 elected to be an S corporation for federal income tax purposes pursuant 39 to section thirteen hundred sixty-two of the internal revenue code which 40 is subject to tax under article nine-A of this chapter, or (ii) [an S] a 41 corporation that has elected to be an S corporation for federal income 42 tax purposes pursuant to section thirteen hundred sixty-two of the 43 internal revenue code which is the parent of a qualified subchapter S 44 subsidiary as defined in subparagraph (B) of paragraph three of 45 subsection (b) of section thirteen hundred sixty-one of the internal 46 revenue code subject to tax under article nine-A[, where the sharehold-47ers of such parent corporation are entitled to make the election under48this subsection by reason of subparagraph three of paragraph (k) of49subdivision nine of section two hundred eight] of this chapter. 50 (b) [Requirements of election. An election under subsection (a) of51this section shall be made on such form and in such manner as the tax52commission may prescribe by regulation or instruction.53(1) When made. An election under subsection (a) of this section may be54made at any time during the preceding taxable year of the corporation or55at any time during the taxable year of the corporation and on or before56the fifteenth day of the third month of such taxable year.S. 2509 35 A. 3009 1(2) Certain elections made during first two and one-half months. If an2election made under subsection (a) of this section is made for any taxa-3ble year of the corporation during such year and on or before the4fifteenth day of the third month of such year, such election shall be5treated as made for the following taxable year if6(A) on one or more days in such taxable year before the day on which7the election was made the corporation did not meet the requirements of8subsection (b) of section thirteen hundred sixty-one of the internal9revenue code or10(B) one or more of the shareholders who held stock in the corporation11during such taxable year and before the election was made did not12consent to the election.13(3) Elections made after first two and one-half months. If an election14under subsection (a) of this section is made for any taxable year of the15corporation and such election is made after the fifteenth day of the16third month of such taxable year and on or before the fifteenth day of17the third month of the following taxable year, such election shall be18treated as made for the following taxable year.19(4) Taxable years of two and one-half months or less. For purposes of20this subsection, an election for a taxable year made not later than two21months and fifteen days after the first day of the taxable year shall be22treated as timely made during such year.23(5) Authority to treat late elections, etc., as timely. If (A) an24election under subsection (a) of this section is made for any taxable25year (determined without regard to paragraph three of this subsection)26after the date prescribed by this subsection for making such election27for such taxable year, or if no such election is made for any taxable28year, and29(B) the commissioner determines that there was reasonable cause for30failure to timely make such election, then31(C) the commissioner may treat such an election as timely made for32such taxable year (and paragraph three of this subsection shall not33apply).34(6) Years for which effective. An election under subsection (a) of35this section shall be effective for the taxable year of the corporation36for which it is made and for all succeeding taxable years of the corpo-37ration until such election is terminated under subsection (c) of this38section.39(c)] Termination. An [election under] eligible S corporation shall 40 cease to be subject to subsection (a) of this section [shall cease to be41effective42(1)] on the day an election to be an S corporation ceases to be effec- 43 tive for federal income tax purposes pursuant to subsection (d) of 44 section thirteen hundred sixty-two of the internal revenue code[, or45(2) if shareholders holding more than one-half of the shares of stock46of the corporation on the day on which the revocation is made revoke47such election in the manner the tax commission may prescribe by regu-48lation,49(A) on the first day of the taxable year of the corporation, if the50revocation is made during such taxable year and on or before the51fifteenth day of the third month thereof, or52(B) on the first day of the following taxable year of the corporation,53if the revocation is made during the taxable year but after the54fifteenth day of the third month thereof, orS. 2509 36 A. 3009 1(C) on and after the date so specified, if the revocation specifies a2date for revocation which is on or after the day on which the revocation3is made, or4(3) if any person who was not a shareholder of the corporation on the5day on which the election is made becomes a shareholder in the corpo-6ration and affirmatively refuses to consent to such election in the7manner the tax commission may prescribe by regulation, on the day such8person becomes a shareholder]. 9 [(d)] (c) New York S termination year. In the case of a New York S 10 termination year, the amount of any item of S corporation income, loss 11 and deduction and reductions for taxes (as described in paragraphs two 12 and three of subsection (f) of section thirteen hundred sixty-six of the 13 internal revenue code) required to be taken account of under this arti- 14 cle shall be adjusted in the same manner that the S corporation's items 15 which are included in the shareholder's federal adjusted gross income 16 are adjusted under subsection (s) of section six hundred twelve. 17 [(e) Inadvertent invalid elections. If (1) an election under18subsection (a) of this section was not effective for the taxable year19for which made (determined without regard to paragraph two of subsection20(b) of this section) by reason of a failure to obtain shareholder21consents,22(2) the commissioner determines that the circumstances resulting in23such ineffectiveness were inadvertent,24(3) no later than a reasonable period of time after discovery of the25circumstances resulting in such ineffectiveness, steps were taken to26acquire the required shareholder consents, and27(4) the corporation, and each person who was a shareholder in the28corporation at any time during the period specified pursuant to this29subsection, agrees to make such adjustments (consistent with the treat-30ment of the corporation as a New York S corporation) as may be required31by the commissioner with respect to such period,32(5) then, notwithstanding the circumstances resulting in such ineffec-33tiveness, such corporation shall be treated as a New York S corporation34during the period specified by the commissioner.35(f)] (d) Qualified subchapter S subsidiaries. If an S corporation has 36 elected to treat its wholly owned subsidiary as a qualified subchapter S 37 subsidiary for federal income tax purposes under paragraph three of 38 subsection (b) of section thirteen hundred sixty-one of the internal 39 revenue code, such election shall be applicable for New York state tax 40 purposes and 41 (1) the assets, liabilities, income, deductions, property, payroll, 42 receipts, capital, credits, and all other tax attributes and elements of 43 economic activity of the subsidiary shall be deemed to be those of the 44 parent corporation, 45 (2) transactions between the parent corporation and the subsidiary, 46 including the payment of interest and dividends, shall not be taken into 47 account, and 48 (3) general executive officers of the subsidiary shall be deemed to be 49 general executive officers of the parent corporation. 50 (e) Validated federal elections. If [(1) an election under subsection51(a) of this section was made for a taxable year or years of a corpo-52ration, which years occur with or within the period for which] the 53 federal S election of [such] an eligible S corporation has been vali- 54 dated pursuant to the provisions of subsection (f) of section thirteen 55 hundred sixty-two of the internal revenue code, [andS. 2509 37 A. 3009 1(2) the corporation, and each person who was a shareholder in the2corporation at any time during such taxable year or years agrees to make3such adjustments (consistent with the treatment of the corporation as a4New York S corporation) as may be required by the commissioner with5respect to such year or years,6(3) then] such corporation shall be treated as [a New York] an eligi- 7 ble S corporation subject to subsection (a) of this section during 8 [such] the year or years for which such election has been validated. 9 [(g) Transitional rule. Any election made under this section (as in10effect for taxable years beginning before January first, nineteen11hundred eighty-three) shall be treated as an election made under12subsection (a) of this section.13(h) Cross reference. For definitions relating to S corporations, see14subdivision one-A of section two hundred eight of this chapter.15(i) Mandated New York S corporation election. (1) Notwithstanding the16provisions in subsection (a) of this section, in the case of an eligible17S corporation for which the election under subsection (a) of this18section is not in effect for the current taxable year, the shareholders19of an eligible S corporation are deemed to have made that election20effective for the eligible S corporation's entire current taxable year,21if the eligible S corporation's investment income for the current taxa-22ble year is more than fifty percent of its federal gross income for such23year. In determining whether an eligible S corporation is deemed to have24made that election, the income of a qualified subchapter S subsidiary25owned directly or indirectly by the eligible S corporation shall be26included with the income of the eligible S corporation.27(2) For the purposes of this subsection, the term "eligible S corpo-28ration" has the same definition as in subsection (a) of this section.29(3) For the purposes of this subsection, the term "investment income"30means the sum of an eligible S corporation's gross income from interest,31dividends, royalties, annuities, rents and gains derived from dealings32in property, including the corporation's share of such items from a33partnership, estate or trust, to the extent such items would be includa-34ble in federal gross income for the taxable year.35(4) Estimated tax payments. When making estimated tax payments36required to be made under this chapter in the current tax year, the37eligible S corporation and its shareholders may rely on the eligible S38corporation's filing status for the prior year. If the eligible S corpo-39ration's filing status changes from the prior tax year the corporation40or the shareholders, as the case may be, which made the payments shall41be entitled to a refund of such estimated tax payments. No additions to42tax with respect to any required declarations or payments of estimated43tax imposed under this chapter shall be imposed on the corporation or44shareholders, whichever is the taxpayer for the current taxable year, if45the corporation or the shareholders file such declarations and make such46estimated tax payments by January fifteenth of the following calendar47year, regardless of whether the taxpayer's tax year is a calendar or a48fiscal year.] 49 § 20. Transition rules. Any prior net operating loss conversion 50 subtraction and net operating loss carryforward that otherwise would 51 have been allowed under subparagraphs (viii) and (ix), respectively, of 52 paragraph (a) of subdivision 1 of section 210 of the tax law for the 53 taxable years beginning on or after January 1, 2022 to any taxpayer that 54 was a New York C corporation for a taxable year beginning on or after 55 January 1, 2021 and before January 1, 2022, and that becomes a New York 56 S corporation for a taxable year beginning on or after January 1, 2022S. 2509 38 A. 3009 1 as a result of the amendments made by this act, shall be held in abey- 2 ance and be available to such taxpayer if its election to be a federal S 3 corporation is terminated. Further, any credit carryforwards allowed to 4 such a taxpayer under section 210-B of the tax law shall be held in 5 abeyance and be available to such taxpayer if its election to be a 6 federal S corporation is terminated. However, the taxpayer's years as a 7 New York S corporation shall be counted for purposes of computing any 8 time period applicable to the allowance of the prior net operating loss 9 conversion subtraction or carryforward, the net operating loss 10 deduction, or any credit carryforward. 11 § 21. This act shall take effect immediately, provided, however, that 12 section one shall apply to taxable years beginning on or after January 13 1, 2021 and sections two through twenty shall apply to taxable years 14 beginning on or after January 1, 2022. 15 PART F 16 Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax 17 law, as amended by section 5-a of part M of chapter 59 of the laws of 18 2020, is amended to read as follows: 19 (5) For the period two thousand fifteen through two thousand [twenty-20five] twenty-six, in addition to the amount of credit established in 21 paragraph two of this subdivision, a taxpayer shall be allowed a credit 22 equal to the product (or pro rata share of the product, in the case of a 23 member of a partnership) of ten percent and the amount of wages or sala- 24 ries paid to individuals directly employed (excluding those employed as 25 writers, directors, music directors, producers and performers, including 26 background actors with no scripted lines) by a qualified film production 27 company or a qualified independent film production company for services 28 performed by those individuals in one of the counties specified in this 29 paragraph in connection with a qualified film with a minimum budget of 30 five hundred thousand dollars. For purposes of this additional credit, 31 the services must be performed in one or more of the following counties: 32 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 33 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 34 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 35 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 36 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 37 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 38 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 39 Yates. The aggregate amount of tax credits allowed pursuant to the 40 authority of this paragraph shall be five million dollars each year 41 during the period two thousand fifteen through two thousand [twenty-42five] twenty-six of the annual allocation made available to the program 43 pursuant to paragraph four of subdivision (e) of this section. Such 44 aggregate amount of credits shall be allocated by the governor's office 45 for motion picture and television development among taxpayers in order 46 of priority based upon the date of filing an application for allocation 47 of film production credit with such office. If the total amount of 48 allocated credits applied for under this paragraph in any year exceeds 49 the aggregate amount of tax credits allowed for such year under this 50 paragraph, such excess shall be treated as having been applied for on 51 the first day of the next year. If the total amount of allocated tax 52 credits applied for under this paragraph at the conclusion of any year 53 is less than five million dollars, the remainder shall be treated as 54 part of the annual allocation made available to the program pursuant toS. 2509 39 A. 3009 1 paragraph four of subdivision (e) of this section. However, in no event 2 may the total of the credits allocated under this paragraph and the 3 credits allocated under paragraph five of subdivision (a) of section 4 thirty-one of this article exceed five million dollars in any year 5 during the period two thousand fifteen through two thousand [twenty-6five] twenty-six. 7 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 8 amended by section 5-b of part M of chapter 59 of the laws of 2020, is 9 amended to read as follows: 10 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 11 subdivision (a) of this section shall be increased by an additional four 12 hundred twenty million dollars in each year starting in two thousand ten 13 through two thousand [twenty-five] twenty-six provided however, seven 14 million dollars of the annual allocation shall be available for the 15 empire state film post production credit pursuant to section thirty-one 16 of this article in two thousand thirteen and two thousand fourteen, 17 twenty-five million dollars of the annual allocation shall be available 18 for the empire state film post production credit pursuant to section 19 thirty-one of this article in each year starting in two thousand fifteen 20 through two thousand [twenty-five] twenty-six and five million dollars 21 of the annual allocation shall be made available for the television 22 writers' and directors' fees and salaries credit pursuant to section 23 twenty-four-b of this article in each year starting in two thousand 24 twenty through two thousand [twenty-five] twenty-six. This amount shall 25 be allocated by the governor's office for motion picture and television 26 development among taxpayers in accordance with subdivision (a) of this 27 section. If the commissioner of economic development determines that the 28 aggregate amount of tax credits available from additional pool 2 for the 29 empire state film production tax credit have been previously allocated, 30 and determines that the pending applications from eligible applicants 31 for the empire state film post production tax credit pursuant to section 32 thirty-one of this article is insufficient to utilize the balance of 33 unallocated empire state film post production tax credits from such 34 pool, the remainder, after such pending applications are considered, 35 shall be made available for allocation in the empire state film tax 36 credit pursuant to this section, subdivision twenty of section two 37 hundred ten-B and subsection (gg) of section six hundred six of this 38 chapter. Also, if the commissioner of economic development determines 39 that the aggregate amount of tax credits available from additional pool 40 2 for the empire state film post production tax credit have been previ- 41 ously allocated, and determines that the pending applications from 42 eligible applicants for the empire state film production tax credit 43 pursuant to this section is insufficient to utilize the balance of unal- 44 located film production tax credits from such pool, then all or part of 45 the remainder, after such pending applications are considered, shall be 46 made available for allocation for the empire state film post production 47 credit pursuant to this section, subdivision thirty-two of section two 48 hundred ten-B and subsection (qq) of section six hundred six of this 49 chapter. The governor's office for motion picture and television devel- 50 opment must notify taxpayers of their allocation year and include the 51 allocation year on the certificate of tax credit. Taxpayers eligible to 52 claim a credit must report the allocation year directly on their empire 53 state film production credit tax form for each year a credit is claimed 54 and include a copy of the certificate with their tax return. In the case 55 of a qualified film that receives funds from additional pool 2, no 56 empire state film production credit shall be claimed before the later ofS. 2509 40 A. 3009 1 the taxable year the production of the qualified film is complete, or 2 the taxable year immediately following the allocation year for which the 3 film has been allocated credit by the governor's office for motion 4 picture and television development. 5 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 6 amended by section 2 of part SSS of chapter 59 of the laws of 2019, is 7 amended to read as follows: 8 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 9 subdivision (a) of this section shall be increased by an additional four 10 hundred twenty million dollars in each year starting in two thousand ten 11 through two thousand [twenty-four] twenty-six provided however, seven 12 million dollars of the annual allocation shall be available for the 13 empire state film post production credit pursuant to section thirty-one 14 of this article in two thousand thirteen and two thousand fourteen and 15 twenty-five million dollars of the annual allocation shall be available 16 for the empire state film post production credit pursuant to section 17 thirty-one of this article in each year starting in two thousand fifteen 18 through two thousand [twenty-four] twenty-six. This amount shall be 19 allocated by the governor's office for motion picture and television 20 development among taxpayers in accordance with subdivision (a) of this 21 section. If the commissioner of economic development determines that the 22 aggregate amount of tax credits available from additional pool 2 for the 23 empire state film production tax credit have been previously allocated, 24 and determines that the pending applications from eligible applicants 25 for the empire state film post production tax credit pursuant to section 26 thirty-one of this article is insufficient to utilize the balance of 27 unallocated empire state film post production tax credits from such 28 pool, the remainder, after such pending applications are considered, 29 shall be made available for allocation in the empire state film tax 30 credit pursuant to this section, subdivision twenty of section two 31 hundred ten-B and subsection (gg) of section six hundred six of this 32 chapter. Also, if the commissioner of economic development determines 33 that the aggregate amount of tax credits available from additional pool 34 2 for the empire state film post production tax credit have been previ- 35 ously allocated, and determines that the pending applications from 36 eligible applicants for the empire state film production tax credit 37 pursuant to this section is insufficient to utilize the balance of unal- 38 located film production tax credits from such pool, then all or part of 39 the remainder, after such pending applications are considered, shall be 40 made available for allocation for the empire state film post production 41 credit pursuant to this section, subdivision thirty-two of section two 42 hundred ten-B and subsection (qq) of section six hundred six of this 43 chapter. The governor's office for motion picture and television devel- 44 opment must notify taxpayers of their allocation year and include the 45 allocation year on the certificate of tax credit. Taxpayers eligible to 46 claim a credit must report the allocation year directly on their empire 47 state film production credit tax form for each year a credit is claimed 48 and include a copy of the certificate with their tax return. In the case 49 of a qualified film that receives funds from additional pool 2, no 50 empire state film production credit shall be claimed before the later of 51 the taxable year the production of the qualified film is complete, or 52 the taxable year immediately following the allocation year for which the 53 film has been allocated credit by the governor's office for motion 54 picture and television development.S. 2509 41 A. 3009 1 § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 2 amended by section 5-c of part M of chapter 59 of the laws of 2020, is 3 amended to read as follows: 4 (6) For the period two thousand fifteen through two thousand [twenty-5five] twenty-six, 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) for services performed by 12 those individuals in one of the counties specified in this paragraph in 13 connection with the post production work on a qualified film with a 14 minimum budget of five hundred thousand dollars at a qualified post 15 production facility in one of the counties listed in this paragraph. For 16 purposes of this additional credit, the services must be performed in 17 one or more of the following counties: Albany, Allegany, Broome, Catta- 18 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 19 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 20 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 21 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 22 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 23 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 24 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate 25 amount of tax credits allowed pursuant to the authority of this para- 26 graph shall be five million dollars each year during the period two 27 thousand fifteen through two thousand [twenty-five] twenty-six of the 28 annual allocation made available to the empire state film post 29 production credit pursuant to paragraph four of subdivision (e) of 30 section twenty-four of this article. Such aggregate amount of credits 31 shall be allocated by the governor's office for motion picture and tele- 32 vision development among taxpayers in order of priority based upon the 33 date of filing an application for allocation of post production credit 34 with such office. If the total amount of allocated credits applied for 35 under this paragraph in any year exceeds the aggregate amount of tax 36 credits allowed for such year under this paragraph, such excess shall be 37 treated as having been applied for on the first day of the next year. If 38 the total amount of allocated tax credits applied for under this para- 39 graph at the conclusion of any year is less than five million dollars, 40 the remainder shall be treated as part of the annual allocation for two 41 thousand seventeen made available to the empire state film post 42 production credit pursuant to paragraph four of subdivision (e) of 43 section twenty-four of this article. However, in no event may the total 44 of the credits allocated under this paragraph and the credits allocated 45 under paragraph five of subdivision (a) of section twenty-four of this 46 article exceed five million dollars in any year during the period two 47 thousand fifteen through two thousand [twenty-five] twenty-six. 48 § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as 49 separately amended by sections 3 and 4 of part M of chapter 59 of the 50 laws of 2020, is amended to read as follow: 51 (3) "Qualified film" means a feature-length film, television film, 52 relocated television production, television pilot or television series, 53 regardless of the medium by means of which the film, pilot or series is 54 created or conveyed. For the purposes of the credit provided by this 55 section only, a "qualified film" [with the exception of a television56pilot,] whose majority of principal photography shooting days in theS. 2509 42 A. 3009 1 production of the qualified film are shot in Westchester, Rockland, 2 Nassau, or Suffolk county or any of the five New York City boroughs 3 shall have a minimum budget of one million dollars. A "qualified film", 4 [with the exception of a television pilot,] whose majority of principal 5 photography shooting days in the production of the qualified film are 6 shot in any other county of the state than those listed in the preceding 7 sentence shall have a minimum budget of two hundred fifty thousand 8 dollars. "Qualified film" shall not include: (i) a documentary film, 9 news or current affairs program, interview or talk program, "how-to" 10 (i.e., instructional) film or program, film or program consisting prima- 11 rily of stock footage, sporting event or sporting program, game show, 12 award ceremony, film or program intended primarily for industrial, 13 corporate or institutional end-users, fundraising film or program, 14 daytime drama (i.e., daytime "soap opera"), commercials, music videos or 15 "reality" program; (ii) a production for which records are required 16 under section 2257 of title 18, United States code, to be maintained 17 with respect to any performer in such production (reporting of books, 18 films, etc. with respect to sexually explicit conduct); or (iii) other 19 than a relocated television production, a television series commonly 20 known as variety entertainment, variety sketch and variety talk, i.e., a 21 program with components of improvisational or scripted content (mono- 22 logues, sketches, interviews), either exclusively or in combination with 23 other entertainment elements such as musical performances, dancing, 24 cooking, crafts, pranks, stunts, and games and which may be further 25 defined in regulations of the commissioner of economic development. 26 However, a qualified film shall include a television series as described 27 in subparagraph (iii) of this paragraph only if an application for such 28 series has been deemed conditionally eligible for the tax credit under 29 this section prior to April first, two thousand twenty, such series 30 remains in continuous production for each season, and an annual applica- 31 tion for each season of such series is continually submitted for such 32 series after April first, two thousand twenty. 33 § 6. This act shall take effect immediately; provided, however, that 34 the amendments made by section five of this act shall apply to applica- 35 tions that are filed with the governor's office for motion picture and 36 television development on or after April 1, 2021; provided, further, 37 however that the amendments to paragraph 4 of subdivision (e) of section 38 24 of the tax law made by section two of this act shall take effect on 39 the same date and in the same manner as section 5 of chapter 683 of the 40 laws of 2019, as amended, takes effect. 41 PART G 42 Section 1. Paragraph 3 of subsection (v) of section 685 of the tax 43 law, as amended by section 3 of part I of chapter 59 of the laws of 44 2018, is amended to read as follows: 45 (3) Failure to provide complete and correct employee withholding 46 reconciliation information. In the case of a failure by an employer to 47 provide complete and correct quarterly withholding information relating 48 to individual employees on a quarterly combined withholding, wage 49 reporting and unemployment insurance return covering each calendar quar- 50 ter of a year, such employer shall, unless it is shown that such failure 51 is due to reasonable cause and not due to willful neglect, pay a penalty 52 equal to the product of [fifty] one hundred dollars multiplied by the 53 number of employees for whom such information is incomplete or incor- 54 rect; provided, however, that if the number of such employees cannot beS. 2509 43 A. 3009 1 determined from the quarterly combined withholding, wage reporting and 2 unemployment insurance return, the commissioner may utilize any informa- 3 tion in the commissioner's possession in making such determination. The 4 total amount of the penalty imposed pursuant to this paragraph on an 5 employer for any such failure for each calendar quarter of a year shall 6 not exceed [ten] fifty thousand dollars. 7 § 2. This act shall take effect immediately and apply to returns filed 8 on or after June 1, 2021. 9 PART H 10 Section 1. This act shall be known and may be cited as the "Cannabis 11 Regulation and Taxation Act". 12 § 2. A new chapter 7-A of the consolidated laws is added to read as 13 follows: 14 CHAPTER 7-A OF THE CONSOLIDATED LAWS 15 CANNABIS LAW 16 ARTICLE 1 17 SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER; 18 DEFINITIONS 19 Section 1. Short title. 20 2. Policy of state and purpose of chapter. 21 3. Definitions. 22 § 1. Short title. This chapter shall be known and may be cited and 23 referred to as the "cannabis law". 24 § 2. Policy of state and purpose of chapter. It is hereby declared as 25 policy of the state of New York that it is necessary to properly regu- 26 late, restrict, and control the cultivation, processing, manufacture, 27 wholesale, and retail production, distribution, transportation, adver- 28 tising, marketing, and sale of cannabis, cannabis products, medical 29 cannabis, and cannabinoid hemp within the state of New York, for the 30 purposes of fostering and promoting temperance in their consumption, to 31 properly protect the public health, safety, and welfare, to displace the 32 illicit cannabis market, to provide safe and affordable access to 33 medical cannabis for patients, and to promote social and economic equal- 34 ity. It is hereby declared that such policy will best be carried out by 35 empowering the state office of cannabis management and its executive 36 director, to determine whether public health, safety, convenience and 37 advantage will be promoted by the issuance of registrations, licenses 38 and/or permits granting the privilege to produce, distribute, transport, 39 sell, or traffic in cannabis, medical cannabis, or cannabinoid hemp, to 40 increase or decrease in the number thereof, scope of activities, and the 41 location of premises registered, licensed, or permitted thereby, subject 42 only to the right of judicial review hereinafter provided for. It is the 43 purpose of this chapter to carry out that policy in the public interest. 44 The restrictions, regulations, and provisions contained in this chapter 45 are enacted by the legislature for the protection of the health, safety, 46 and welfare of the people of the state. 47 § 3. Definitions. Whenever used in this chapter, unless otherwise 48 expressly stated or unless the context or subject matter requires a 49 different meaning, the following terms shall have the representative 50 meanings hereinafter set forth or indicated: 51 1. "Applicant" means a person or for-profit entity or not-for-profit 52 corporation and includes: board members, officers, managers, owners, 53 partners, principal stakeholders, financiers, and members who submit anS. 2509 44 A. 3009 1 application to become a registered organization, licensee or permittee, 2 and may include any other individual or entity with a material or opera- 3 tional interest in the license or its operations as determined by its 4 board in regulation. 5 2. "Bona fide cannabis retailer association" shall mean an association 6 of retailers holding licenses under this chapter, organized under the 7 non-profit or not-for-profit laws of this state. 8 3. "Cannabis" means all parts of the plant of the genus cannabis, 9 whether growing or not; the seeds thereof; the resin extracted from any 10 part of the plant; and every compound, manufacture, salt, derivative, 11 mixture, or preparation of the plant, its seeds or resin. 12 4. "Concentrated cannabis" means: (a) the separated resin, whether 13 crude or purified, obtained from a plant of the genus cannabis; or (b) a 14 material, preparation, mixture, compound or other substance which 15 contains more than three-tenths of one percent by weight or by volume of 16 delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran 17 numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 18 (6) monoterpene numbering system or which exceeds an amount of delta-9 19 tetrahydrocannabinol or its isomer, delta-8 dibenzopyran numbering 20 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- 21 terpene numbering system per serving or per product determined by the 22 board in regulation. 23 5. "Adult-use cannabis consumer" means a person, twenty-one years of 24 age or older, who purchases approved adult-use cannabis or adult-use 25 cannabis products for personal use, but not for resale to others. 26 6. "Adult-use cannabis processor" means a person licensed by the 27 office who may purchase adult-use cannabis from adult-use cannabis 28 cultivators or processors, and who may process adult-use cannabis, and 29 adult-use cannabis products, package and label adult-use cannabis, and 30 adult-use cannabis products for sale in adult-use cannabis retail 31 outlets, and who may sell adult-use cannabis and cannabis-infused 32 products at wholesale to licensed adult-use cannabis distributors or 33 processors, in accordance with regulations determined by the board. 34 7. "Adult-use cannabis product" or "adult-use cannabis" means any 35 approved adult-use cannabis, concentrated cannabis, or adult-use canna- 36 bis-infused or extracted products, or products which otherwise contain 37 or are derived from adult-use cannabis, and which have been authorized 38 for distribution to and for use by an adult-use cannabis consumer as 39 determined by the executive director. 40 8. "Adult-use cannabis retail dispenser" means a person or entity 41 licensed by the executive director who may purchase adult-use cannabis 42 products, from adult-use cannabis cultivators, processors or distribu- 43 tors, and who may sell approved adult-use cannabis products, through a 44 retail outlet, as determined by the executive director. 45 9. "Certified medical use" means the acquisition, possession, use, or 46 transportation of medical cannabis by a certified patient, or the acqui- 47 sition, possession, delivery, transportation or administration of 48 medical cannabis by a designated caregiver or designated caregiver 49 facility, for use as part of the treatment of the patient's serious 50 condition, as authorized in a certification under this chapter including 51 enabling the patient to tolerate treatment for the serious condition. 52 10. "Caring for" means treating a patient, in the course of which the 53 practitioner has completed a full assessment of the patient's medical 54 history and current medical condition. 55 11. "Certified patient" means a patient who is a resident of New York 56 state or receiving care and treatment in New York state as determined byS. 2509 45 A. 3009 1 the executive director in regulation, and is certified under section 2 thirty of this chapter. 3 12. "Certification" means a certification, made under this chapter. 4 13. "Adult-use cultivation" shall include, the planting, growing, 5 cloning, harvesting, drying, curing, grading and trimming of adult-use 6 cannabis, or such other cultivation related processes as determined by 7 the executive director. 8 14. "Executive director" means the executive director of the office of 9 cannabis management. 10 15. "Convicted" and "conviction" include and mean a finding of guilt 11 resulting from a plea of guilty, the decision of a court or magistrate 12 or the verdict of a jury, irrespective of the pronouncement of judgment 13 or the suspension thereof. 14 16. "Designated caregiver" means an individual designated by a certi- 15 fied patient in a registry application. A certified patient may desig- 16 nate up to two designated caregivers or additional designated caregivers 17 as may be approved by the office. 18 17. "Designated caregiver facility" means a general hospital or resi- 19 dential health care facility operating pursuant to article twenty-eight 20 of the public health law; an adult care facility operating pursuant to 21 title two of article seven of the social services law; a community 22 mental health residence established pursuant to section 41.44 of the 23 mental hygiene Law; a hospital operating pursuant to section 7.17 of the 24 mental hygiene law; a mental hygiene facility operating pursuant to 25 article thirty-one of the mental hygiene law; an inpatient or residen- 26 tial treatment program certified pursuant to article thirty-two of the 27 mental hygiene law; a residential facility for the care and treatment of 28 persons with developmental disabilities operating pursuant to article 29 sixteen of the mental hygiene law; a residential treatment facility for 30 children and youth operating pursuant to article thirty-one of the 31 mental hygiene law; a private or public school; research institution 32 with an internal review board; or any other facility as determined by 33 the executive director; that registers with the office of cannabis 34 management to assist one or more certified patients with the acquisi- 35 tion, possession, delivery, transportation or administration of medical 36 cannabis. 37 18. "Felony" means any criminal offense classified as a felony under 38 the laws of this state or any criminal offense committed in any other 39 state, district, or territory of the United States and classified as a 40 felony therein which if committed within this state, would constitute a 41 felony in this state. 42 19. "Form of medical cannabis" means characteristics of the medical 43 cannabis recommended or limited for a particular certified patient, 44 including the method of consumption and any particular strain, variety, 45 and quantity or percentage of cannabis or particular active ingredient. 46 20. "Government agency" means any office, division, board, bureau, 47 commission, office, agency, authority or public corporation of the state 48 or federal government or a county, city, town or village government 49 within the state. 50 21. "Hemp" means the plant Cannabis sativa L. and any part of such 51 plant, including the seeds thereof and all derivatives, extracts, canna- 52 binoids, isomers, acids, salts, and salts of isomers, whether growing or 53 not, with a delta-9 tetrahydrocannabinol concentration of not more than 54 three-tenths of one percent on a dry weight or per volume basis. 55 22. "Cannabinoid hemp product" means any hemp and any product proc- 56 essed or derived from hemp, that is used for human consumption providedS. 2509 46 A. 3009 1 that when such product is packaged or offered for retail sale to a 2 consumer, it shall not have a concentration of more than three-tenths of 3 one percent of delta-9 tetrahydrocannabinol or more than an amount of 4 total THC per quantity of cannabinoid hemp product as determined by the 5 board in regulation. 6 23. "Cannabinoid hemp processor license" means a license granted by 7 the office to process, extract, pack or manufacture cannabinoid hemp or 8 hemp extract into products, whether in intermediate or final form, used 9 for human consumption. 10 24. "Cannabinoid hemp retailer license" means a license granted by the 11 office to sell cannabinoid hemp, in final approved form, to consumers 12 within the state. 13 25. "Individual dose" means a single measure of adult-use cannabis, 14 medical cannabis or cannabinoid hemp product, as determined by the exec- 15 utive director in regulation. Individual doses may be established 16 through a measure of raw material, a measure of an individual cannabi- 17 noid or compound, a measure of total THC, or an equivalency thereof. 18 26. "Labor peace agreement" means an agreement between an entity and a 19 labor organization that, at a minimum, protects the state's proprietary 20 interests by prohibiting labor organizations and members from engaging 21 in picketing, work stoppages, boycotts, and any other economic interfer- 22 ence with the registered organization or licensee's business. 23 27. "License" means a license issued pursuant to this chapter. 24 28. "Medical cannabis" means cannabis as defined in subdivision three 25 of this section, intended and approved for a certified medical use, as 26 determined by the executive director in consultation with the commis- 27 sioner of health. 28 30. "Office" or "office of cannabis management" means the New York 29 state office of cannabis management. 30 31. "Permit" means a permit issued pursuant to this chapter. 31 32. "Permittee" means any person to whom a permit has been issued 32 pursuant to this chapter. 33 33. "Person" means individual, institution, corporation, government or 34 governmental subdivision or agency, business trust, estate, trust, part- 35 nership or association, or any other legal entity. 36 34. "Practitioner" means a practitioner who: (i) is authorized to 37 prescribe controlled substances within the state, (ii) by training or 38 experience is qualified to treat a serious condition as defined in 39 subdivision forty-three of this section; and (iii) completes, at a mini- 40 mum, a two-hour course as determined by the board in regulation; 41 provided however, the executive director may revoke a practitioner's 42 ability to certify patients for cause. 43 35. "Processing" includes, blending, extracting, infusing, packaging, 44 labeling, branding and otherwise making or preparing adult-use cannabis, 45 medical cannabis and cannabinoid hemp, or such other related processes 46 as determined by the executive director. Processing shall not include 47 the cultivation of cannabis. 48 36. "Registered organization" means an organization registered under 49 article three of this chapter. 50 37. "Registry application" means an application properly completed and 51 filed with the office of cannabis management by a certified patient 52 under article three of this chapter. 53 38. "Registry identification card" means a document that identifies a 54 certified patient or designated caregiver, as provided under section 55 thirty-two of this chapter.S. 2509 47 A. 3009 1 39. "Retail sale" or "sale at retail" means a sale to a consumer or to 2 any person for any purpose other than for resale. 3 40. "Retailer" means any licensed person who sells at retail any 4 approved adult-use cannabis product. 5 41. "Sale" means any transfer, exchange or barter in any manner or by 6 any means whatsoever, and includes and means all sales made by any 7 person, whether principal, proprietor, agent, servant or employee of any 8 cannabis product. 9 42. "To sell" includes to solicit or receive an order for, to keep or 10 expose for sale, and to keep with intent to sell and shall include the 11 transportation or delivery of any cannabis product in the state. 12 43. "Serious condition" means having one of the following severe 13 debilitating or life-threatening conditions: cancer, positive status for 14 human immunodeficiency virus or acquired immune deficiency syndrome, 15 amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, 16 damage to the nervous tissue of the spinal cord with objective neurolog- 17 ical indication of intractable spasticity, epilepsy, inflammatory bowel 18 disease, neuropathies, Huntington's disease, post-traumatic stress 19 disorder, pain that degrades health and functional capability where the 20 use of medical cannabis is an alternative to opioid use, substance use 21 disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri- 22 tis, autism, any condition authorized as part of a cannabis research 23 license, or any other condition as added by the executive director. 24 44. "Traffic in" includes to cultivate, process, manufacture, distrib- 25 ute or sell any cannabis, adult-use cannabis product or medical cannabis 26 at wholesale or retail. 27 45. "Terminally ill" means an individual has a medical prognosis that 28 the individual's life expectancy is approximately one year or less if 29 the illness runs its normal course. 30 46. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna- 31 binol and the optical isomers of such substances. 32 47. "Total THC" means the sum of the percentage by weight of tetrahy- 33 drocannabinolic acid multiplied by 0.877 plus the percentage by weight 34 of THC. 35 48. "Wholesale sale" or "sale at wholesale" means a sale to any person 36 for purposes of resale. 37 49. "Distributor" means any person who sells at wholesale any adult- 38 use cannabis product, except medical cannabis, the sale of which a 39 license is required under the provisions of this chapter. 40 50. "Warehouse" means and includes a place in which cannabis products 41 are housed or stored. 42 ARTICLE 2 43 NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT 44 Section 7. Establishment of an office of cannabis management. 45 8. Establishment of the cannabis control board. 46 9. Functions, powers and duties of the cannabis control board. 47 10. Executive director. 48 11. Functions, powers and duties of the office and executive 49 director. 50 12. Rulemaking authority. 51 13. Deputies; employees. 52 14. Disposition of moneys received for license fees. 53 15. Violations of cannabis laws or regulations; penalties and 54 injunctions. 55 16. Formal hearings; notice and procedure.S. 2509 48 A. 3009 1 17. Ethics, transparency and accountability. 2 18. Public health and education campaign. 3 19. Traffic safety oral fluid or other roadside detection method 4 pilot program. 5 20. Establish uniform policies and best practices. 6 § 7. Establishment of an office of cannabis management. There is here- 7 by established, within the division of alcoholic beverage control, an 8 independent office of cannabis management, which shall have exclusive 9 jurisdiction to exercise the powers and duties provided by this chapter. 10 The office shall exercise its authority by and through a cannabis 11 control board and executive director. 12 § 8. Establishment of the cannabis control board. 1. The cannabis 13 control board or "board" is created and shall consist of a chairperson 14 with one vote, and four other voting board members, all of whom shall be 15 citizens and residents of this state. 16 2. The governor shall appoint all members of the board, and shall 17 designate one member to serve as chairperson. All members of the board 18 shall serve for a term of three years and shall continue to serve in 19 office until the expiration of their terms and until their successors 20 are appointed and have qualified. The members, other than the chair- 21 person, shall be compensated at a rate of two hundred sixty dollars per 22 day when performing the work of the board, together with an allowance 23 for actual and necessary expenses incurred in the discharge of their 24 duties. No person shall be appointed to or employed by the board if, 25 during the period commencing three years prior to appointment or employ- 26 ment, such person held any direct or indirect interest in, or employment 27 by, any corporation, association or person engaged in regulated activity 28 within the state. The chairperson shall also be designated as the exec- 29 utive director of the office of cannabis management. 30 3. Prior to appointment or employment, each member, officer or employ- 31 ee of the board shall swear or affirm that he or she possesses no inter- 32 est in any corporation or association holding a license, registration, 33 certificate or permit issued by the board. Thereafter, no member or 34 officer of the board shall hold any direct interest in or be employed by 35 any applicant for or by any corporation, association or person holding a 36 license, registration, certificate or permit issued by the board for a 37 period of four years commencing on the date his or her membership with 38 the board terminates. Further, no employee of the board may acquire any 39 direct or indirect interest in, or accept employment with, any applicant 40 for or any person holding a license, registration, certificate or permit 41 issued by the board for a period of two years commencing at the termi- 42 nation of employment with the board. The board may, by resolution 43 adopted by unanimous vote at a properly noticed public meeting, waive 44 for good cause the pre-employment restrictions enumerated in this subdi- 45 vision for a prospective employee whose duties and responsibilities are 46 not policy-making. Such adopted resolution shall state the reasons for 47 waiving the pre-employment conditions for the prospective employee, 48 including a finding that there were no other qualified candidates with 49 the desired experience for the specified position. 50 4. Any member of the board may be removed by the governor for cause 51 after notice and an opportunity to be heard. A statement of the cause 52 for their removal shall be filed by the governor in the office of the 53 secretary of state. 54 5. In the event of a vacancy caused by the death, resignation, removal 55 or disability of any board member, the vacancy shall be filled in the 56 same manner as the original appointment; provided that in such instanceS. 2509 49 A. 3009 1 the governor may appoint a member of the board to serve as chairperson 2 for the remainder of their term without consultation with the Senate and 3 the Assembly. 4 6. A majority of the board members of the authority shall constitute a 5 quorum for the purpose of conducting business, and a majority vote of 6 those present shall be required for action. 7 7. The board shall meet as frequently as its business may require, and 8 at least four times in each year. The board may enact and from time to 9 time amend by-laws in relation to its meetings and the transactions of 10 its business. 11 § 9. Functions, powers and duties of the cannabis control board. The 12 cannabis control board shall have such powers and duties as are set 13 forth in this chapter and shall: 14 1. approve the office's social and economic equity plan pursuant to 15 section eighty-four of this chapter; 16 2. approve the type and number of available licenses issued by the 17 office; 18 3. approve the opening of new license application periods and when new 19 or additional licenses are made available; 20 4. approve the creation of any new type of license; 21 5. approve any price quotas or price controls set by the executive 22 director as provided by this chapter; 23 6. at the request of the executive director, appoint advisory groups 24 or committees necessary to provide assistance to the office to carry out 25 the policy of the state and purpose of this chapter; 26 7. when an administrative decision is appealed by an applicant, regis- 27 tered organization, licensee or permittee, issue a final determination 28 of the office; and 29 8. promulgate any rules and regulations necessary to effectuate this 30 chapter. 31 § 10. Executive director. The office shall exercise its authority, 32 through its executive director. The executive director shall receive an 33 annual salary within the amounts appropriated therefor. 34 § 11. Functions, powers and duties of the office and executive direc- 35 tor. The office of cannabis management, by and through its executive 36 director, shall have the following powers and duties: 37 1. To issue or refuse to issue any registration, license or permit 38 provided for in this chapter. 39 2. To limit the number, scope, and/or availability of registrations, 40 licenses and permits of each class to be issued within any political or 41 geographic subdivision of the state, and in connection therewith to 42 prohibit the acceptance of applications for such classes which have been 43 so limited, as set out in regulation and approved by the board. 44 3. To revoke, cancel or suspend for cause any registration, license, 45 or permit issued under this chapter and/or to impose a civil penalty for 46 cause against any holder of a registration, license, or permit issued 47 pursuant to this chapter or any person engaged in activities without a 48 license or permit for which a license or permit is required by this 49 chapter. Any civil penalty so imposed shall be in addition to and sepa- 50 rate and apart from the terms and provisions of the bond required pursu- 51 ant to section thirty-five of this chapter. 52 4. To fix by regulation the standards and requirements for the culti- 53 vation, processing, packaging, marketing, and sale of medical cannabis, 54 adult-use cannabis and cannabinoid hemp, including but not limited to, 55 the ability to regulate potency, excipients, and the types and forms of 56 products which may be manufactured and/or processed, in order to ensureS. 2509 50 A. 3009 1 the health and safety of the public and the use of proper ingredients 2 and methods in the manufacture of all cannabis and cannabinoid hemp to 3 be sold or consumed in the state and to ensure that products are not 4 packaged, marketed, or otherwise trafficked in a way which targets 5 minors or promotes increased use or cannabis use disorders, as set out 6 in regulation and approved by the board. 7 5. To limit or prohibit, at any time of public emergency and without 8 previous notice or advertisement, the cultivation, processing, distrib- 9 ution or sale of any or all adult-use cannabis products, medical canna- 10 bis or cannabinoid hemp, for and during the period of such emergency. 11 6. To inspect or provide for the inspection at any time of any prem- 12 ises where adult-use cannabis, medical cannabis or cannabinoid hemp is 13 cultivated, processed, stored, distributed or sold including but not 14 limited to compelling the production and review of all relevant business 15 records and financial statements and corporate documents. 16 7. To prescribe forms of applications, criteria of review and method 17 of selection or issuance for registrations, licenses and permits under 18 this chapter and of all reports deemed necessary by the office. 19 8. To delegate the powers provided in this section to such other offi- 20 cers or employees or other state agencies as may be deemed appropriate 21 by the executive director, provided however, that any duty delegated to 22 the executive director by the board shall not be further delegated with- 23 out approval by the board. 24 9. To exercise the powers and perform the duties in relation to the 25 administration of the office as are necessary but not specifically vest- 26 ed by this chapter, including but not limited to budgetary and fiscal 27 matters. 28 10. To develop and establish minimum criteria for certifying employees 29 to work in the cannabis industry, which may include the establishment of 30 a cannabis workers certification program. 31 11. To enter into contracts, memoranda of understanding, and agree- 32 ments as deemed appropriate by the executive director to effectuate the 33 policy and purpose of this chapter. 34 12. To establish and implement a social and economic equity plan, 35 subject to approval of the board, to ensure access to, and participation 36 in, the cannabis industry by social equity and economic empowerment 37 applicants as prescribed in section eighty-four of this chapter. 38 13. If the executive director finds that public health, safety, or 39 welfare imperatively requires emergency action, and incorporates a find- 40 ing to that effect in an order, summary suspension of a license or 41 administrative hold of products and a product recall may be ordered, 42 effective on the date specified in such order or upon service of a 43 certified copy of such order on the licensee, whichever shall be later, 44 pending proceedings for revocation or other action. These proceedings 45 shall be promptly instituted and determined. In addition, the executive 46 director may order the administrative seizure of product, issue a stop 47 order, or take any other action necessary to effectuate and enforce the 48 policy and purpose of this chapter. 49 14. To issue guidance and industry advisories. 50 15. To recommend that the state enter into tribal-state compacts with 51 the New York state Indian nations and tribes, as defined by section two 52 of the Indian law, authorizing such Indian nations or tribes to acquire, 53 possess, manufacture, sell, deliver, transport, distribute or dispense 54 adult-use cannabis and/or medical cannabis. 55 16. To coordinate across state agencies and departments in order to 56 research and study any changes in cannabis use and the impact thatS. 2509 51 A. 3009 1 cannabis use and the regulated cannabis industry may have on access to 2 cannabis products, public health, and public safety. 3 § 12. Rulemaking authority. 1. The board shall perform such acts, 4 prescribe such forms and promulgate such rules, regulations and orders 5 as it may deem necessary or proper to fully effectuate the provisions of 6 this chapter, in accordance with the state administrative procedure act. 7 2. The board shall promulgate any and all necessary rules and regu- 8 lations governing the production, processing, transportation, distrib- 9 ution, marketing, advertising and sale of medical cannabis, adult-use 10 cannabis and cannabinoid hemp, the registration of organizations author- 11 ized to traffic in medical cannabis, the licensing and/or permitting of 12 adult-use cannabis cultivators, processors, cooperatives, distributors, 13 and retail dispensaries, and the licensing of cannabinoid hemp process- 14 ors and retailers, including but not limited to: 15 (a) establishing application, registration, reinstatement, and renewal 16 fees; 17 (b) the qualifications and selection criteria for registration, 18 licensing, or permitting; 19 (c) the books and records to be created and maintained by registered 20 organizations, licensees, and permittees, including the reports to be 21 made thereon to the office, and inspection of any and all books and 22 records maintained by any registered organization, licensee, or permit- 23 tee and on the premise of any registered organization, licensee, or 24 permittee; 25 (d) methods of producing, processing, and packaging adult-use canna- 26 bis, medical cannabis, and cannabinoid hemp; conditions of sanitation, 27 standards of ingredients, quality, and identity of adult-use cannabis 28 and medical cannabis products cultivated, processed, packaged, or sold 29 by registered organizations and licensees, and standards for the devices 30 used to consume adult-use cannabis, medical cannabis and cannabinoid 31 hemp; 32 (e) security requirements for adult-use cannabis retail dispensaries 33 and premises where cannabis products or medical cannabis are cultivated, 34 produced, processed, or stored, and safety protocols for registered 35 organizations, licensees and their employees; 36 (f) hearing procedures and additional causes for cancellation, revoca- 37 tion, and/or civil penalties against any person registered, licensed, or 38 permitted by the office; and 39 (g) the circumstances under and manner and process by which an appli- 40 cant, registered organization, licensee, or permittee, may apply to 41 change or alter its previously submitted or approved owners, managers, 42 members, directors, financiers, or interest holders. 43 3. The board shall promulgate rules and regulations to: 44 (a) prevent the distribution of adult-use cannabis to persons under 45 twenty-one years of age including the marketing, packaging and branding 46 of adult-use cannabis; 47 (b) prevent the revenue from the sale of cannabis from going to crimi- 48 nal enterprises, gangs, and cartels; 49 (c) prevent the diversion and inversion of adult-use cannabis and 50 medical cannabis from this state to other states and from other states 51 into this state insofar as cannabis remains federally prohibited; 52 (d) prevent cannabis activity that is legal under state law from being 53 used as a cover or pretext for the trafficking of other illegal drugs or 54 other illegal activity; 55 (e) prevent violence and the use of firearms in the cultivation and 56 distribution of cannabis;S. 2509 52 A. 3009 1 (f) prevent drugged driving and the exacerbation of other adverse 2 public health consequences associated with the use of cannabis; 3 (g) prevent the growing of cannabis on public lands and the attendant 4 public safety and environmental dangers posed by cannabis production on 5 public lands; 6 (h) prevent the possession and use of adult-use cannabis and medical 7 cannabis on federal property insofar as cannabis remains federally 8 prohibited; 9 (i) regulate and restrict the use of cannabis and prohibit the traf- 10 ficking of dangerous cannabis products in order to reduce the rate of 11 cannabis abuse, cannabis dependency, cannabis use disorders, and other 12 adverse public health and safety consequences of cannabis use; 13 (j) educate the public and at-risk populations about responsible 14 cannabis use and the potential dangers of cannabis use; 15 (k) prevent predatory marketing and advertising practices targeted 16 toward at-risk populations such as minors, pregnant or breastfeeding 17 women, and demographics which disproportionately engage in higher rates 18 of cannabis use and display higher rates of cannabis use disorders; 19 (l) notwithstanding any other section of state law, adopt rules and 20 regulations based on federal guidance provided those rules and regu- 21 lations are designed to comply with federal guidance and mitigate feder- 22 al enforcement against the registrations, licenses, or permits issued 23 under this chapter, or the cannabis industry as a whole. This may 24 include regulations which permit the sharing of licensee, registrant, or 25 permit-holder information with designated banking or financial insti- 26 tutions; and 27 (m) establish application, licensing, and permitting processes which 28 ensure all material owners and interest holders are disclosed and that 29 officials or other individuals with control over the approval of an 30 application, permit, or license do not themselves have any interest in 31 an application, license, or permit. 32 4. The board, in consultation with the department of agriculture and 33 markets and the department of environmental conservation, shall promul- 34 gate necessary rules and regulations governing the safe production of 35 adult-use cannabis and medical cannabis, including but not limited to 36 environmental and energy standards and restrictions on the use of pesti- 37 cides. 38 5. The board shall have the authority to promulgate regulations 39 governing the appropriate use and licensure of the manufacturing of 40 cannabinoids, or other compounds contained within the cannabis plant, 41 through any method other than planting, growing, cloning, harvesting, or 42 other traditional means of plant agriculture. 43 § 13. Deputies; employees. 1. The executive director shall appoint a 44 deputy director for health and safety who shall be a licensed health 45 care practitioner within the state and who shall oversee all clinical 46 aspects of the office. The executive director shall also appoint a depu- 47 ty director for social and economic equity who shall oversee the social 48 and economic equity plan. The executive director may appoint such other 49 deputies as he or she deems necessary to fulfill the responsibilities of 50 the office. 51 2. The executive director may appoint and remove from time to time, in 52 accordance with law and any applicable rules of the state civil service 53 commission, such additional employees, under such titles as the execu- 54 tive director may assign, as the executive director may deem necessary 55 for the efficient administration of the office. They shall perform suchS. 2509 53 A. 3009 1 duties as the executive director shall assign to them. The compensation 2 of such employees shall be within the amounts appropriated therefor. 3 3. Investigators employed by the office shall be deemed to be peace 4 officers for the purpose of enforcing the provisions of this chapter or 5 judgments or orders obtained for violation thereof, with all the powers 6 set forth in section 2.20 of the criminal procedure law. 7 § 14. Disposition of moneys received for license fees. The office 8 shall establish a scale of application, licensing, and renewal fees, 9 based upon the cost of enforcing this chapter which may vary based on 10 the nature, size, class, or scope of the cannabis business being 11 licensed or the classification of the applicant, as follows: 12 1. The office shall charge each registered organization, licensee and 13 permittee a registration, licensure or permit fee, and renewal fee, as 14 applicable. The fees may vary depending upon the nature, size, class or 15 scope of the different registration, licensure and permit activities, or 16 the classification of the applicant. 17 2. The total fees assessed pursuant to this chapter may be set at an 18 amount that will generate sufficient total revenue to fully cover the 19 total costs of administering this chapter. 20 3. The office shall deposit all fees collected in the New York state 21 cannabis revenue fund established pursuant to section ninety-nine-ii of 22 the state finance law. 23 § 15. Violations of cannabis laws or regulations; penalties and 24 injunctions. 1. A person who willfully violates any provision of this 25 chapter, or any regulation lawfully made or established by any public 26 officer under authority of this chapter, the punishment for violating 27 which is not otherwise prescribed by this chapter or any other law, is 28 punishable by a fine not exceeding five thousand dollars per violation, 29 per day, or by both. 30 2. Any person who violates, disobeys or disregards any term or 31 provision of this chapter or of any lawful notice, order or regulation 32 pursuant thereto for which a civil penalty is not otherwise expressly 33 prescribed by law, shall be liable to the people of the state for a 34 civil penalty of not to exceed five thousand dollars per violation, per 35 day. 36 3. The penalty provided for in subdivision one of this section may be 37 recovered by an action brought by the executive director in any court of 38 competent jurisdiction. 39 4. Nothing in this section shall be construed to alter or repeal any 40 existing provision of law declaring such violations to be misdemeanors 41 or felonies or prescribing the penalty therefor. 42 5. Such civil penalty may be released or compromised by the executive 43 director before the matter has been referred to the attorney general, 44 and where such matter has been referred to the attorney general, any 45 such penalty may be released or compromised and any action commenced to 46 recover the same may be settled and discontinued by the attorney general 47 with the consent of the executive director. 48 6. It shall be the duty of the attorney general upon the request of 49 the executive director to bring an action for an injunction against any 50 person who violates, disobeys or disregards any term or provision of 51 this chapter or of any lawful notice, order or regulation pursuant ther- 52 eto; provided, however, that the executive director shall furnish the 53 attorney general with such material, evidentiary matter or proof as may 54 be requested by the attorney general for the prosecution of such an 55 action.S. 2509 54 A. 3009 1 7. It is the purpose of this section to provide additional and cumula- 2 tive remedies, and nothing herein contained shall abridge or alter 3 rights of action or remedies now or hereafter existing, nor shall any 4 provision of this section, nor any action done by virtue of this 5 section, be construed as estopping the state, persons or municipalities 6 in the exercising of their respective rights. 7 § 16. Formal hearings; notice and procedure. 1. The board, or any 8 person designated by the board for this purpose, may issue subpoenas and 9 administer oaths in connection with any hearing or investigation under 10 or pursuant to this chapter, and it shall be the duty of the board and 11 any persons designated by the board for such purpose to issue subpoenas 12 at the request of and upon behalf of the respondent. 13 2. The board and those designated by the board shall not be bound by 14 the laws of evidence in the conduct of hearing proceedings, but the 15 determination shall be founded upon substantial evidence to sustain it. 16 3. Notice of hearing shall be served at least fifteen days prior to 17 the date of the hearing, provided that, whenever because of danger to 18 the public health, safety or welfare it appears prejudicial to the 19 interests of the people of the state to delay action for fifteen days, 20 the executive director may serve the respondent with an order requiring 21 certain action or the cessation of certain activities immediately or 22 within a specified period of less than fifteen days. 23 4. Service of notice of hearing or order shall be made by personal 24 service or by registered or certified mail. Where service, whether by 25 personal service or by registered or certified mail, is made upon an 26 incompetent, partnership, or corporation, it shall be made upon the 27 person or persons designated to receive personal service by article 28 three of the civil practice law and rules. 29 5. At a hearing, the respondent may appear personally, shall have the 30 right of counsel, and may cross-examine witnesses against him or her and 31 produce evidence and witnesses in his or her behalf. 32 6. Following a hearing, the board or its designee may make appropriate 33 determinations and issue a final order in accordance therewith. 34 7. The board may adopt, amend and repeal administrative rules and 35 regulations governing the procedures to be followed with respect to 36 hearings, such rules to be consistent with the policy and purpose of 37 this chapter and the effective and fair enforcement of its provisions. 38 8. The provisions of this section shall be applicable to all hearings 39 held pursuant to this chapter, except where other provisions of this 40 chapter applicable thereto are inconsistent therewith, in which event 41 such other provisions shall apply. 42 § 17. Ethics, transparency and accountability. Except as authorized by 43 the board no member of the office or any officer, deputy, assistant, 44 inspector or employee thereof shall have any interest, direct or indi- 45 rect, either proprietary or by means of any loan, mortgage or lien, or 46 in any other manner, in or on any premises registered, licensed or 47 permitted under this chapter; nor shall they have any interest, direct 48 or indirect, in any business wholly or substantially devoted to the 49 cultivation, processing, distribution, sale, transportation, marketing, 50 testing, or storage of adult-use cannabis, medical cannabis or cannabi- 51 noid hemp, or own any stock in any corporation which has any interest, 52 proprietary or otherwise, direct or indirect, in any premises where 53 adult-use cannabis, medical cannabis or cannabinoid hemp is cultivated, 54 processed, distributed or sold, or in any business wholly or partially 55 devoted to the cultivation, processing, distribution, sale, transporta- 56 tion or storage of adult-use cannabis, medical cannabis or cannabinoidS. 2509 55 A. 3009 1 hemp, or receive any commission or profit whatsoever, direct or indi- 2 rect, from any person applying for, receiving, managing or operating any 3 license or permit provided for in this chapter, or hold any other 4 elected or appointed public office in the state or in any political 5 subdivision to which a registered organization, licensee, permittee or 6 applicant would appear. Anyone who violates any of the provisions of 7 this section shall be removed or shall divest him or herself of such 8 direct or indirect interests. 9 § 18. Public health and education campaign. The office, in consulta- 10 tion with the commissioners of the department of health, office of 11 addiction services and supports, and office of mental health, shall 12 develop and implement a comprehensive public health monitoring, surveil- 13 lance and education campaign regarding the legalization of adult-use 14 cannabis and the impact of cannabis use on public health and safety. 15 The public health and education campaign shall also include general 16 education to the public about the cannabis law. 17 § 19. Traffic safety oral fluid or other roadside detection method 18 pilot program. The office, in consultation with the commissioner of the 19 department of motor vehicles and the superintendent of the state police, 20 shall develop and implement a workgroup together with other states to 21 outline goals and standard operating procedures for a statewide or 22 regional oral fluid or other roadside detection pilot program. The work- 23 group may include, but not be limited to, representatives from district 24 attorney offices, local and county police departments, and other rele- 25 vant public safety experts. 26 § 20. Establish uniform policies and best practices. The office shall 27 engage in activities with other states, territories, or jurisdictions in 28 order to coordinate and establish, uniform policies and best practices 29 in cannabis regulation. These activities shall prioritize coordination 30 with neighboring and regional states, and may include, but not be limit- 31 ed to establish working groups related to laboratory testing, products 32 safety, taxation, road safety, compliance and adherence with federal 33 policies which promote or facilitate cannabis research, commerce and/or 34 regulation, and any other issues identified by the executive director. 35 The executive director may enter into any contracts, or memoranda of 36 understanding necessary to effectuate this provision. 37 ARTICLE 3 38 MEDICAL CANNABIS 39 Section 30. Certification of patients. 40 31. Lawful medical use. 41 32. Registry identification cards. 42 33. Registration as a designated caregiver facility. 43 34. Registered organizations. 44 35. Registering of registered organizations. 45 36. Intentionally omitted. 46 37. Reports of registered organizations. 47 38. Evaluation; research programs; report by office. 48 39. Cannabis research license. 49 40. Registered organizations and adult-use cannabis. 50 41. Intentionally omitted. 51 42. Relation to other laws. 52 43. Protections for the medical use of cannabis. 53 44. Regulations. 54 45. Suspend; terminate. 55 46. Pricing.S. 2509 56 A. 3009 1 47. Severability. 2 § 30. Certification of patients. 1. A patient certification may only 3 be issued if: 4 (a) the patient has a serious condition, which shall be specified in 5 the patient's health care record; 6 (b) the practitioner by training or experience is qualified to treat 7 the serious condition; 8 (c) the patient is under the practitioner's continuing care for the 9 serious condition; and 10 (d) in the practitioner's professional opinion and review of past 11 treatments, the patient is likely to receive therapeutic or palliative 12 benefit from the primary or adjunctive treatment with medical use of 13 cannabis for the serious condition. 14 2. The certification shall include: (a) the name, date of birth and 15 address of the patient; (b) a statement that the patient has a serious 16 condition and the patient is under the practitioner's care for the seri- 17 ous condition; (c) a statement attesting that all requirements of subdi- 18 vision one of this section have been satisfied; (d) the date; and (e) 19 the name, address, telephone number, and the signature of the certifying 20 practitioner. The executive director may require by regulation that the 21 certification shall be on a form provided by the office. The practition- 22 er may state in the certification that, in the practitioner's profes- 23 sional opinion, the patient would benefit from medical cannabis only 24 until a specified date. The practitioner may state in the certification 25 that, in the practitioner's professional opinion, the patient is termi- 26 nally ill and that the certification shall not expire until the patient 27 dies. 28 3. In making a certification, the practitioner may consider any 29 approved form of medical cannabis the patient should consume, including 30 the method of consumption and any particular strain, variety, and quan- 31 tity or percentage of cannabis or particular active ingredient, and 32 appropriate dosage. The practitioner may state in the certification any 33 recommendation or limitation the practitioner makes, in his or her 34 professional opinion, concerning the appropriate form or forms of 35 medical cannabis and dosage. 36 4. Every practitioner shall consult the prescription monitoring 37 program registry prior to making or issuing a certification, for the 38 purpose of reviewing a patient's controlled substance history. For 39 purposes of this section, a practitioner may authorize a designee to 40 consult the prescription monitoring program registry on his or her 41 behalf, provided that such designation is in accordance with section 42 thirty-three hundred forty-three-a of the public health law. 43 5. The practitioner shall give the certification to the certified 44 patient, and place a copy in the patient's health care record. 45 6. No practitioner shall issue a certification under this section for 46 himself or herself. 47 7. A registry identification card based on a certification shall 48 expire one year after the date the certification is signed by the prac- 49 titioner. 50 8. (a) If the practitioner states in the certification that, in the 51 practitioner's professional opinion, the patient would benefit from 52 medical cannabis only until a specified earlier date, then the registry 53 identification card shall expire on that date; (b) if the practitioner 54 states in the certification that in the practitioner's professional 55 opinion the patient is terminally ill and that the certification shall 56 not expire until the patient dies, then the registry identification cardS. 2509 57 A. 3009 1 shall state that the patient is terminally ill and that the registration 2 card shall not expire until the patient dies; (c) if the practitioner 3 re-issues the certification to terminate the certification on an earlier 4 date, then the registry identification card shall expire on that date 5 and shall be promptly destroyed by the certified patient; (d) if the 6 certification so provides, the registry identification card shall state 7 any recommendation or limitation by the practitioner as to the form or 8 forms of medical cannabis or dosage for the certified patient; and (e) 9 the board shall make regulations to implement this subdivision. 10 9. A practitioner who offers patient certification shall not have any 11 business relationship with, or own any stock in any corporation which 12 has any interest, proprietary or otherwise, direct or indirect, in any 13 registered organization, or other business or premises where medical 14 cannabis is cultivated, processed, distributed or sold. This provision 15 shall not be construed to prohibit a practitioner who offers patient 16 certification from providing their medical expertise to, or engaging in 17 medical cannabis research with, a registered organization or a licensee 18 that traffics in medical cannabis provided that the practitioner is not 19 compensated for or offered any consideration for these educational or 20 research activities. 21 § 31. Lawful medical use. The possession, acquisition, use, delivery, 22 transfer, transportation, or administration of medical cannabis by a 23 certified patient, designated caregiver or designated caregiver facili- 24 ty, for certified medical use, shall be lawful under this article 25 provided that: 26 (a) the cannabis that may be possessed by a certified patient shall 27 not exceed quantities determined by the board in regulation; 28 (b) the cannabis that may be possessed by designated caregivers does 29 not exceed the quantities determined by the executive director under 30 paragraph (a) of this subdivision for any certified patient for whom the 31 caregiver is issued a valid registry identification card; 32 (c) the cannabis that may be possessed by designated caregiver facili- 33 ties does not exceed the quantities determined by the board under para- 34 graph (a) of this subdivision for each certified patient under the care 35 or treatment of the facility; 36 (d) the form or forms of medical cannabis that may be possessed by the 37 certified patient, designated caregiver or designated caregiver facility 38 pursuant to a certification shall be in compliance with any recommenda- 39 tion or limitation by the practitioner as to the form or forms of 40 medical cannabis or dosage for the certified patient in the certif- 41 ication and consistent with any guidance or limitation issued by the 42 executive director or regulation issued by the board; and 43 (e) the medical cannabis shall be kept in the original package in 44 which it was dispensed under this article, except for the portion 45 removed for immediate consumption for certified medical use by the 46 certified patient. 47 § 32. Registry identification cards. 1. Upon approval of the certif- 48 ication, the office shall issue registry identification cards for certi- 49 fied patients and designated caregivers. A registry identification card 50 shall expire as provided in this article or as otherwise provided in 51 this section. The office shall begin issuing registry identification 52 cards as soon as practicable after the certifications required by this 53 chapter are granted. The office may specify a form for a registry appli- 54 cation, in which case the office shall provide the form on request, 55 reproductions of the form may be used, and the form shall be available 56 for downloading from the office's website.S. 2509 58 A. 3009 1 2. To obtain, amend or renew a registry identification card, a certi- 2 fied patient or designated caregiver shall file a registry application 3 with the office, unless otherwise exempted by the executive director. 4 The registry application or renewal application shall include such 5 information as prescribed by the office which shall include but not be 6 limited to: 7 (a) in the case of a certified patient: 8 (i) the patient's certification, a new written certification shall be 9 provided with a renewal application if required by the office; 10 (ii) the name, address, and date of birth of the patient; 11 (iii) the date of the certification; 12 (iv) if the patient has a registry identification card based on a 13 current valid certification, the registry identification number and 14 expiration date of that registry identification card; 15 (v) the specified date until which the patient would benefit from 16 medical cannabis, if the certification states such a date; 17 (vi) the name, address, and telephone number of the certifying practi- 18 tioner; 19 (vii) any recommendation or limitation by the practitioner as to the 20 form or forms of medical cannabis or dosage for the certified patient; 21 (viii) if the certified patient applies to designate a designated 22 caregiver, the name, address, and date of birth of the designated care- 23 giver, and other individual identifying information required by the 24 office; and 25 (ix) other individual identifying information required by the office; 26 (b) in the case of a designated caregiver: 27 (i) the name, address, and date of birth of the designated caregiver; 28 (ii) if the designated caregiver has a registry identification card, 29 the registry identification number and expiration date of that registry 30 identification card; and 31 (iii) other individual identifying information required by the office; 32 (c) a statement that a false statement made in the application is 33 punishable under section 210.45 of the penal law; 34 (d) the date of the application and the signature of the certified 35 patient or designated caregiver, as the case may be; 36 (e) any other requirements determined by the executive director. 37 3. Where a certified patient is under the age of eighteen or otherwise 38 incapable of consent: 39 (a) The application for a registry identification card shall be made 40 by an appropriate person over eighteen years of age. The application 41 shall state facts demonstrating that the person is appropriate. 42 (b) The designated caregiver shall be: (i) a parent or legal guardian 43 of the certified patient; (ii) a person designated by a parent or legal 44 guardian; (iii) a designated caregiver facility; or (iv) an appropriate 45 person approved by the office upon a sufficient showing that no parent 46 or legal guardian is appropriate or available. 47 4. No person may be a designated caregiver if the person is under 48 twenty-one years of age unless a sufficient showing is made to the 49 office that the person should be permitted to serve as a designated 50 caregiver. The requirements for such a showing shall be determined by 51 the executive director. 52 5. No person may be a designated caregiver for more than one certified 53 patient at one time, unless approved by the office. The office may allow 54 a designated caregiver to serve more than one patient in cases where 55 additional designating patients are immediate family members, in theS. 2509 59 A. 3009 1 immediate and continuous care of the caregiver, or satisfy other eligi- 2 bility requirements determined by the board in regulation. 3 6. If a certified patient wishes to change or terminate his or her 4 designated caregiver, for whatever reason, the certified patient shall 5 notify the office as soon as practicable. The office shall issue a 6 notification to the designated caregiver that their registration card is 7 invalid and must be promptly destroyed. The newly designated caregiver 8 must comply with all requirements set forth in this section. 9 7. If the certification so provides, the registry identification card 10 shall contain any recommendation or limitation by the practitioner as to 11 the form or forms of medical cannabis or dosage for the certified 12 patient. 13 8. The office shall issue separate registry identification cards for 14 certified patients and designated caregivers as soon as reasonably prac- 15 ticable after receiving and approving a complete application under this 16 section, unless it determines that the application is incomplete, factu- 17 ally inaccurate, or fails to satisfy any applicable regulation, in which 18 case it shall promptly notify the applicant. 19 9. If the application of a certified patient designates an individual 20 as a designated caregiver who is not authorized to be a designated care- 21 giver, that portion of the application shall be denied by the office but 22 that shall not affect the approval of the balance of the application. 23 10. A registry identification card shall: 24 (a) contain the name of the certified patient or the designated care- 25 giver as the case may be; 26 (b) contain the date of issuance and expiration date, as applicable, 27 of the registry identification card; 28 (c) contain a registry identification number for the certified patient 29 or designated caregiver, as the case may be and a registry identifica- 30 tion number; 31 (d) contain a photograph of the individual to whom the registry iden- 32 tification card is being issued, which shall be obtained by the office 33 in a manner specified by the executive director; provided, however, that 34 if the office requires certified patients to submit photographs for this 35 purpose, there shall be a reasonable accommodation of certified patients 36 who are confined to their homes due to their medical conditions and may 37 therefore have difficulty procuring photographs; 38 (e) be a secure document as determined by the office; 39 (f) plainly state any recommendation or limitation by the practitioner 40 as to the form or forms of medical cannabis or dosage for the certified 41 patient; and 42 (g) contain any other requirements determined by the executive direc- 43 tor. 44 11. A certified patient or designated caregiver who has been issued a 45 registry identification card shall notify the office of any change in 46 his or her name or address or, with respect to the patient, if he or she 47 ceases to have the serious condition noted on the certification within 48 ten days of such change. The certified patient's or designated 49 caregiver's registry identification card shall be deemed invalid and 50 shall be promptly destroyed. 51 12. If a certified patient or designated caregiver loses his or her 52 registry identification card, he or she shall notify the office within 53 ten days of losing the card. The office shall issue a new registry iden- 54 tification card as soon as practicable, which may contain a new registry 55 identification number, to the certified patient or designated caregiver, 56 as the case may be.S. 2509 60 A. 3009 1 13. The office shall maintain a confidential list of the persons to 2 whom it has issued registry identification cards. Individual identifying 3 information obtained by the office under this article shall be confiden- 4 tial and exempt from disclosure under article six of the public officers 5 law. Notwithstanding this subdivision, the office may notify any appro- 6 priate law enforcement agency of information relating to any violation 7 or suspected violation of this article. 8 14. The office shall verify to law enforcement personnel in an appro- 9 priate case whether a registry identification card is valid and any 10 other information necessary to protect patients' rights to medical 11 cannabis by confirming compliance with this article. 12 15. If a certified patient or designated caregiver willfully violates 13 any provision of this article or regulations promulgated hereunder as 14 determined by the executive director, his or her certification and 15 registry identification card may be suspended or revoked. This is in 16 addition to any other penalty that may apply. 17 § 33. Registration as a designated caregiver facility. 1. To obtain, 18 amend or renew a registration as a designated caregiver facility, the 19 facility shall file a registry application with the office. The registry 20 application or renewal application shall include: 21 (a) the facility's full name and address; 22 (b) operating certificate or license number where appropriate; 23 (c) name, title, and signature of an authorized facility represen- 24 tative; 25 (d) a statement that the facility agrees to secure and ensure proper 26 handling of all medical cannabis products; 27 (e) an acknowledgement that a false statement in the application is 28 punishable under section 210.45 of the penal law; and 29 (f) any other information that may be required by the executive direc- 30 tor. 31 2. Prior to issuing or renewing a designated caregiver facility regis- 32 tration, the office may verify the information submitted by the appli- 33 cant. The applicant shall provide, at the office's request, such infor- 34 mation and documentation, including any consents or authorizations that 35 may be necessary for the office to verify the information. 36 3. The office shall approve, deny or reject an initial or renewal 37 application. If the application is approved within the 30-day period, 38 the office shall issue a registration as soon as is reasonably practica- 39 ble. 40 4. Registrations issued under this section shall remain valid for two 41 years from the date of issuance. 42 § 34. Registered organizations. 1. A registered organization shall be 43 a for-profit business entity or not-for-profit corporation organized for 44 the purpose of acquiring, possessing, manufacturing, selling, deliver- 45 ing, transporting, distributing, or dispensing cannabis for certified 46 medical use, in accordance with minimum operating and recordkeeping 47 requirements determined by the board in regulation. 48 2. The acquiring, possession, manufacture, testing, sale, delivery, 49 transporting, distributing, or dispensing of medical cannabis by a 50 registered organization under this article in accordance with its regis- 51 tration under this article or a renewal thereof shall be lawful under 52 this chapter. 53 3. Each registered organization shall contract with an independent 54 laboratory permitted by the office to test the medical cannabis produced 55 by the registered organization. The executive director, in consultation 56 with the commissioner of health, shall approve the laboratory used byS. 2509 61 A. 3009 1 the registered organization, including but not limited to sampling and 2 testing protocols and standards used by the laboratory, and may require 3 that the registered organization use a particular testing laboratory. 4 4. (a) A registered organization may only sell, deliver, distribute, 5 or dispense medical cannabis to a certified patient or designated care- 6 giver upon presentation to the registered organization of valid iden- 7 tification for that certified patient or designated caregiver. When 8 presented with the registry identification card, the registered organ- 9 ization shall provide to the certified patient or designated caregiver a 10 receipt, which shall state: the name, address, and registry identifica- 11 tion number of the registered organization; the name and registry iden- 12 tification number of the certified patient and the designated caregiver, 13 if any; the date the cannabis was sold; any recommendation or limitation 14 by the practitioner as to the form or forms of medical cannabis or 15 dosage for the certified patient; and the form and the quantity of 16 medical cannabis sold. The registered organization shall retain a copy 17 of the registry identification card and the receipt for six years, and 18 shall make such records available to the office upon demand. 19 (b) The proprietor of a registered organization shall file or cause to 20 be filed any receipt and certification information with the office by 21 electronic means on a real-time basis as the executive director may 22 require. When filing receipt and certification information electron- 23 ically pursuant to this paragraph, the proprietor of the registered 24 organization shall dispose of any electronically recorded prescription 25 information in such manner as the executive director shall require. 26 5. (a) No registered organization may sell, deliver, distribute or 27 dispense to any certified patient or designated caregiver a quantity of 28 medical cannabis larger than that individual would be allowed to possess 29 as set out in regulation by the board. 30 (b) When dispensing medical cannabis to a certified patient or desig- 31 nated caregiver, the registered organization: (i) shall not dispense an 32 amount greater than an amount established by the board in regulation; 33 and (ii) shall verify the information in subparagraph (i) of this para- 34 graph by consulting the prescription monitoring program registry under 35 this article. 36 (c) Medical cannabis dispensed to a certified patient or designated 37 caregiver by a registered organization shall conform to any recommenda- 38 tion or limitation by the practitioner as to the form or forms of 39 medical cannabis or dosage for the certified patient, and any medical 40 cannabis product or form limitations or restrictions determined by the 41 executive director. 42 6. When a registered organization sells, delivers, distributes or 43 dispenses medical cannabis to a certified patient or designated caregiv- 44 er, it shall provide to that individual a safety insert, which may be 45 developed by the registered organization and shall include, but not be 46 limited to, information on: 47 (a) methods for administering medical cannabis in individual doses, 48 (b) any potential dangers stemming from the use of medical cannabis, 49 (c) how to recognize what may be problematic usage of medical cannabis 50 and obtain appropriate services or treatment for problematic usage, and 51 (d) other information as determined by the executive director. 52 7. Registered organizations shall not be managed by or employ anyone 53 who has been convicted of any felony other than for the sale or 54 possession of drugs, narcotics, or controlled substances, and provided 55 that this subdivision only applies to (a) managers or employees who come 56 into contact with or handle medical cannabis, and (b) a conviction lessS. 2509 62 A. 3009 1 than ten years, not counting time spent in incarceration, prior to being 2 employed, for which the person has not received a certificate of relief 3 from disabilities, a certificate of good conduct under article twenty- 4 three of the correction law, or an executive pardon. 5 8. Manufacturing of medical cannabis by a registered organization 6 shall only be done in a secure facility located in New York state, which 7 may include a greenhouse. The board shall promulgate regulations estab- 8 lishing requirements for such facilities. 9 9. Dispensing of medical cannabis by a registered organization shall 10 only be done in an indoor, enclosed, secure facility located in New York 11 state. The board shall promulgate regulations establishing requirements 12 for such facilities. 13 10. A registered organization shall determine the quality, safety, and 14 clinical strength of medical cannabis manufactured or dispensed by the 15 registered organization, and shall provide documentation of that quali- 16 ty, safety and clinical strength to the office and to any person or 17 entity to which the medical cannabis is sold or dispensed. 18 11. A registered organization shall be deemed to be a "health care 19 provider" for the purposes of title two-D of article two of the public 20 health law. 21 12. Medical cannabis shall be dispensed to a certified patient or 22 designated caregiver in a sealed and properly labeled package as deter- 23 mined by the executive director. The labeling shall contain: (a) the 24 information required to be included in the receipt provided to the 25 certified patient or designated caregiver by the registered organiza- 26 tion; (b) the packaging date; (c) any applicable date by which the 27 medical cannabis should be used; (d) a warning stating, "This product is 28 for medicinal use only. Women should not consume during pregnancy or 29 while breastfeeding except on the advice of the certifying health care 30 practitioner, and in the case of breastfeeding mothers, including the 31 infant's pediatrician. This product might impair the ability to drive. 32 Keep out of reach of children."; (e) the amount of individual doses 33 contained within; (f) a warning that the medical cannabis must be kept 34 in the original container in which it was dispensed; and (g) any other 35 information required by the office. 36 13. The board is authorized to make rules and regulations restricting 37 the advertising and marketing of medical cannabis. 38 14. The board is authorized to make rules and regulations regulating 39 the packaging, labeling, form and method of administration or ingestion, 40 branding and marketing of medical cannabis products to prohibit acci- 41 dental or overconsumption. 42 § 35. Registering of registered organizations. 1. Application for 43 initial registration. (a) An applicant for registration as a registered 44 organization under section thirty-four of this article shall include 45 such information prepared in such manner and detail as the executive 46 director may require, including but not limited to: 47 (i) a description of the activities in which it intends to engage as a 48 registered organization; 49 (ii) that the applicant: 50 (A) is of good moral character; 51 (B) possesses or has the right to use sufficient land, buildings, and 52 other premises, which shall be specified in the application, and equip- 53 ment to properly carry on the activity described in the application, or 54 in the alternative posts a bond of not less than two million dollars;S. 2509 63 A. 3009 1 (C) is able to maintain effective security and control to prevent 2 diversion, abuse, and other illegal conduct relating to the cannabis; 3 and 4 (D) is able to comply with all applicable state laws and regulations 5 relating to the activities in which it is applying to engage in under 6 the registration; 7 (iii) that the applicant has entered into a labor peace agreement with 8 a bona fide labor organization that is actively engaged in representing 9 or attempting to represent the applicant's employees and the maintenance 10 of such a labor peace agreement shall be an ongoing material condition 11 of certification; 12 (iv) the applicant's status as a for-profit business entity or not- 13 for-profit corporation; and 14 (v) the application shall include the name, residence address and 15 title of each of the officers and directors and the name and residence 16 address of any person or entity that is a member of the applicant 17 including those of the applicant's parent companies, subsidiaries or 18 affiliates. Each such person, if an individual, or lawful represen- 19 tative if a legal entity, shall submit an affidavit with the application 20 setting forth: 21 (A) any position of management, interest, or ownership during the 22 preceding ten years of a ten per centum or greater interest in any other 23 cannabis business or applicant, located in or outside of this state, 24 manufacturing or distributing drugs, including indirect interest manage- 25 ment or ownership of parent companies, subsidiaries, or affiliates; 26 (B) whether such person or any such business has had a cannabis busi- 27 ness application denied or withdrawn or been convicted of a felony or 28 had a registration or license subject to administrative action, includ- 29 ing but not limited to violations, penalties, or consent agreements, or 30 had any registration or license suspended or revoked in any administra- 31 tive or judicial proceeding; and 32 (C) such other information as the executive director may reasonably 33 require to enforce the licensing restrictions of this chapter. 34 2. The applicant shall be under a continuing duty to obtain approval 35 from the office prior to any material changes in ownership, management, 36 or financial or managerial interest, or prior to substantive operational 37 changes, and to disclose any change in facts or circumstances reflected 38 in the application or any newly discovered or occurring fact or circum- 39 stance which is required to be included in the application. 40 3. (a) The executive director may grant a registration, approve one or 41 more activities permitted under a registration, or grant a requested 42 amendment to a registration under this section if they are satisfied 43 that: 44 (i) the applicant will be able to maintain effective control against 45 diversion of cannabis; 46 (ii) the applicant will be able to comply with all applicable state 47 laws and regulations; 48 (iii) the applicant and its officers are ready, willing and able to 49 properly carry on the manufacturing or distributing activity for which a 50 registration is sought; 51 (iv) the applicant possesses or has the right to use sufficient land, 52 buildings and equipment to properly carry on the activity described in 53 the application; 54 (v) it is in the public interest that such registration be granted, 55 including but not limited to:S. 2509 64 A. 3009 1 (A) whether the number of registered organizations in an area will be 2 adequate or excessive to reasonably serve the state or area's patient 3 need and demand; 4 (B) whether the registered organization is a minority and/or woman 5 owned business enterprise or a service-disabled veteran-owned business; 6 (C) whether the registered organization provides education and 7 outreach to practitioners; 8 (D) whether the registered organization promotes the research and 9 development of medical cannabis and/or patient outreach; and 10 (E) the affordability medical cannabis products offered by the regis- 11 tered organization; 12 (vi) the applicant and its managing officers and interest holders are 13 of good moral character and have demonstrated a record and history of 14 compliance with cannabis laws and regulations in the jurisdictions where 15 they operate or have operated cannabis licenses and/or registrations; 16 (vii) the applicant has entered into a labor peace agreement with a 17 bona fide labor organization that is actively engaged in representing or 18 attempting to represent the applicant's employees; and the maintenance 19 of such a labor peace agreement shall be an ongoing material condition 20 of registration; and 21 (viii) the applicant satisfies any other conditions as determined by 22 the executive director. 23 (b) If the executive director is not satisfied that the applicant 24 should be issued a registration or granted approval to amend an existing 25 registration, he or she shall notify the applicant in writing of those 26 factors upon which the denial is based. Within thirty days of the 27 receipt of such notification, the applicant may submit a written request 28 to the board to appeal the decision. 29 (c) The fee for a registration under this section shall be an amount 30 determined by the office in regulations. 31 (d) Registrations issued under this section shall be effective only 32 for the registered organization and shall specify: 33 (i) the name and address of the registered organization; 34 (ii) which activities of a registered organization are permitted by 35 the registration; 36 (iii) the land, buildings and facilities that may be used for the 37 permitted activities of the registered organization; and 38 (iv) such other information as the executive director shall reasonably 39 provide to assure compliance with this article. 40 (e) Upon application of a registered organization, a registration may 41 be amended to allow the registered organization to relocate within the 42 state or to add or delete permitted registered organization activities 43 or facilities. The fee for such amendment request shall be determined by 44 the executive director. 45 4. A registration issued under this section shall be valid for two 46 years from the date of issue. 47 5. (a) An application for the renewal of any registration issued 48 under this section shall be filed with the office not more than six 49 months nor less than four months prior to the expiration thereof. A 50 late-filed application for the renewal of a registration may, in the 51 discretion of the executive director, be treated as an application for 52 an initial license. 53 (b) The application for renewal shall include such information 54 prepared in the manner and detail as the executive director may require, 55 including but not limited to:S. 2509 65 A. 3009 1 (i) any material change in the circumstances or factors listed in 2 subdivision one of this section; and 3 (ii) every known charge or investigation, pending or concluded during 4 the period of the registration, by any governmental or administrative 5 agency with respect to: 6 (A) each incident or alleged incident involving the theft, loss, or 7 possible diversion of cannabis manufactured or distributed by the appli- 8 cant; and 9 (B) compliance by the applicant with the laws of any state or territo- 10 ry with respect to the cultivation, manufacture, distribution or sale of 11 adult-use cannabis or medical cannabis. 12 (c) An applicant for renewal shall be under a continuing duty to 13 report to the office any change in facts or circumstances reflected in 14 the application or any newly discovered or occurring fact or circum- 15 stance which is required to be included in the application, and to 16 obtain approval prior to any material change in ownership interest, 17 management or operations. 18 (d) If the executive director is not satisfied that the registered 19 organization applicant is entitled to a renewal of the registration, he 20 or she shall within a reasonably practicable time as determined by the 21 executive director, serve upon the registered organization or its attor- 22 ney of record in person or by registered or certified mail an order 23 directing the registered organization to show cause why its application 24 for renewal should not be denied. The order shall specify in detail the 25 respects in which the applicant has not satisfied the executive director 26 that the registration should be renewed. 27 6. (a) The executive director shall renew a registration unless he or 28 she determines and finds that: 29 (i) the applicant is unlikely to maintain or be able to maintain 30 effective control against diversion; 31 (ii) the applicant is unlikely to comply with all state laws and regu- 32 lations applicable to the registration application and activities in 33 which it may engage under the registration; 34 (iii) it is not in the public interest to renew the registration 35 because the number of registered organizations in an area is excessive 36 to reasonably serve the state or area and patient need; 37 (iv) the applicant has either violated or terminated its labor peace 38 agreement; or 39 (v) the applicant has substantively violated this chapter, regulations 40 promulgated thereunder, or the laws of another jurisdiction in which 41 they operate or have operated a cannabis license or registration. 42 (b) For purposes of this section, proof that a registered organiza- 43 tion, during the period of its registration, has failed to maintain 44 effective control against diversion, violated any provision of this 45 article, or has knowingly or negligently failed to comply with applica- 46 ble state laws relating to the activities in which it engages under the 47 registration, may constitute grounds for suspension, revocation or limi- 48 tation of the registered organization's registration or as determined by 49 the executive director. The registered organization shall also be under 50 a continuing duty to report to the office and obtain prior approval for 51 any material change or fact or circumstance to the information provided 52 in the registered organization's application. 53 7. The office may suspend or revoke the registration of a registered 54 organization, on grounds and using procedures under this article relat- 55 ing to a license, to the extent consistent with this article. The 56 office shall suspend or revoke the registration in the event that aS. 2509 66 A. 3009 1 registered organization violates or terminates the applicable labor 2 peace agreement. Conduct in compliance with this article which may 3 violate conflicting federal law, shall not in and of itself be grounds 4 to suspend or terminate a registration. 5 8. The office shall begin issuing registrations for registered organ- 6 izations as soon as practicable after the certifications required by 7 this article are given. 8 9. The office shall register at least ten registered organizations 9 that manufacture medical cannabis with no more than four dispensing 10 sites wholly owned and operated by such registered organization. The 11 executive director shall ensure that such registered organization, 12 dispensing sites or approved delivery activities are geographically 13 distributed across the state to satisfy patient and program need. The 14 executive director may register additional registered organizations. 15 § 36. Intentionally omitted. 16 § 37. Reports of registered organizations. 1. The executive director 17 shall require each registered organization to file reports by the regis- 18 tered organization during a particular period. The executive director 19 shall determine the information to be reported and the forms, time, and 20 manner of the reporting. 21 2. The executive director shall require each registered organization 22 to adopt and maintain security, tracking, record keeping, record 23 retention and surveillance systems, relating to all medical cannabis at 24 every stage of acquiring, possession, manufacture, sale, delivery, 25 transporting, distributing, or dispensing by the registered organiza- 26 tion, subject to regulations of the board. 27 § 38. Evaluation; research programs; report by office. 1. The execu- 28 tive director may provide for the analysis and evaluation of the opera- 29 tion of this article. The executive director may enter into agreements 30 with one or more persons, not-for-profit corporations or other organiza- 31 tions, for the performance of an evaluation of, or to aid in, the imple- 32 mentation and effectiveness of this article. 33 2. The office may develop, seek any necessary federal approval for, 34 and carry out research programs relating to medical use of cannabis. 35 Participation in any such research program shall be voluntary on the 36 part of practitioners, patients, and designated caregivers. 37 3. The office shall report every two years, beginning two years after 38 the effective date of this chapter, to the governor and the legislature 39 on the medical use of cannabis under this article and make appropriate 40 recommendations. 41 § 39. Cannabis research license. 1. The board shall establish a 42 cannabis research license that permits a licensee to produce, process, 43 purchase and/or possess cannabis for the following limited research 44 purposes: 45 (a) to test chemical potency and composition levels; 46 (b) to conduct clinical investigations of cannabis-derived drug 47 products; 48 (c) to conduct research on the efficacy and safety of administering 49 cannabis as part of medical treatment; and 50 (d) to conduct genomic or agricultural research. 51 2. As part of the application process for a cannabis research license, 52 an applicant shall submit to the office a description of the research 53 that is intended to be conducted as well as the amount of cannabis to be 54 grown or purchased. The office shall review an applicant's research 55 project and determine whether it meets the requirements of subdivisionS. 2509 67 A. 3009 1 one of this section. In addition, the office shall assess the applica- 2 tion based on the following criteria: 3 (a) project quality, study design, value, and impact; 4 (b) whether the applicant has the appropriate personnel, expertise, 5 facilities and infrastructure, funding, and human, animal, or other 6 approvals in place to successfully conduct the project; and 7 (c) whether the amount of cannabis to be grown or purchased by the 8 applicant is consistent with the project's scope and goals. If the 9 office determines that the research project does not meet the require- 10 ments of subdivision one of this section, the application must be 11 denied. 12 3. A cannabis research licensee may only sell cannabis grown or within 13 its operation to other cannabis research licensees. The office may 14 revoke a cannabis research license for violations of this subdivision. 15 4. A cannabis research licensee may contract with the higher education 16 institutions to perform research in conjunction with the university. All 17 research projects, entered into under this section shall be approved by 18 the office and meet the requirements of subdivision one of this section. 19 5. In establishing a cannabis research license, the board may adopt 20 regulations on the following: 21 (a) application requirements; 22 (b) cannabis research license renewal requirements, including whether 23 additional research projects may be added or considered; 24 (c) conditions for license revocation; 25 (d) security measures to ensure cannabis is not diverted to purposes 26 other than research; 27 (e) amount of plants, useable cannabis, or concentrated cannabis a 28 licensee may have on its premises; 29 (f) licensee reporting requirements; 30 (g) conditions under which cannabis grown by licensed or registered 31 cannabis producers and other product types from licensed cannabis 32 processors may be donated to cannabis research licensees; and 33 (h) any additional requirements deemed necessary by the office. 34 6. A cannabis research license issued pursuant to this section shall 35 be issued in the name of the applicant, specify the location at which 36 the cannabis researcher intends to operate, which shall be within the 37 state of New York unless otherwise permitted under federal law, and the 38 holder thereof may not allow any other person to use the license. 39 7. The application and license fees for a cannabis research license 40 shall be determined by the executive director on an annual basis and may 41 be based on the size, scope and duration of the research proposed. 42 8. Each cannabis research licensee shall issue an annual report to the 43 office. The office shall review such report and make a determination as 44 to whether the research project continues to meet the research quali- 45 fications under this section. 46 § 40. Registered organizations and adult-use cannabis. 1. The board 47 shall have the authority to hold a competitive bidding process, includ- 48 ing, in its discretion the ability to set price by an auction, to deter- 49 mine the registered organization(s) authorized to be licensed to culti- 50 vate, process, distribute and/or sell adult-use cannabis and to collect 51 the fees generated from such auction to administer the office's social 52 and economic equity plan and other duties prescribed by this chapter, 53 and notwithstanding the prohibitions in article four of this chapter the 54 board may permit such bidders to continue to participate in adult-use 55 cannabis as a vertically integrated entity if such competitive process 56 permits.S. 2509 68 A. 3009 1 2. Alternatively, registered organizations may apply for licensure as 2 an adult-use cannabis cultivator, adult-use cannabis processor, and 3 adult-use cannabis distributor, or apply for licensure as an adult-use 4 cannabis retail dispensary, subject to all of the restrictions and limi- 5 tations set forth in article four of this chapter. 6 3. Any registered organization which is licensed to cultivate, proc- 7 ess, distribute and sell adult-use cannabis and cannabis products pursu- 8 ant to this section and article four of this chapter, shall be required 9 to maintain sufficient supply and distribution of medical cannabis 10 products for certified patients pursuant to regulations promulgated by 11 the board. 12 § 41. Intentionally omitted. 13 § 42. Relation to other laws. 1. The provisions of this article shall 14 apply, except that where a provision of this article conflicts with 15 another provision of this chapter, this article shall apply. 16 2. Medical cannabis shall not be deemed to be a "drug" for purposes of 17 article one hundred thirty-seven of the education law. 18 § 43. Protections for the medical use of cannabis. 1. Certified 19 patients, designated caregivers, designated caregiver facilities, prac- 20 titioners, registered organizations and the employees of registered 21 organizations, and cannabis researchers shall not be subject to arrest, 22 prosecution, or penalty in any manner, or denied any right or privilege, 23 including but not limited to civil penalty or disciplinary action by a 24 business or occupational or professional licensing board or bureau, 25 solely for the certified medical use or manufacture of cannabis, or for 26 any other action or conduct, in accordance with this article. 27 2. Being a certified patient shall be deemed to be having a "disabili- 28 ty" under article fifteen of the executive law, section forty-c of the 29 civil rights law, sections 240.00, 485.00, and 485.05 of the penal law, 30 and section 200.50 of the criminal procedure law. This subdivision shall 31 not bar the enforcement of a policy prohibiting an employee from 32 performing his or her employment duties while impaired by or under the 33 influence of a controlled substance. This subdivision shall not require 34 any person or entity to do any act that would put the person or entity 35 in direct violation of federal law or cause it to lose a federal 36 contract or funding. 37 3. The fact that a person is a certified patient and/or acting in 38 accordance with this article, shall not be a consideration in a proceed- 39 ing pursuant to applicable sections of the domestic relations law, the 40 social services law and the family court act. 41 4. (a) Certification applications, certification forms, any certified 42 patient information contained within a database, and copies of registry 43 identification cards shall be deemed exempt from public disclosure under 44 sections eighty-seven and eighty-nine of the public officers law. Upon 45 specific request by a certified patient to the office, the office may 46 verify the requesting patient's status as a valid certified patient to 47 the patient's school or employer, to ensure compliance with the 48 protections afforded by this section. 49 (b) The name, contact information, and other information relating to 50 practitioners registered with the office under this article shall be 51 public information and shall be maintained by the executive director on 52 the office's website accessible to the public in searchable form. Howev- 53 er, if a practitioner notifies the office in writing that he or she does 54 not want his or her name and other information disclosed, that practi- 55 tioner's name and other information shall thereafter not be publicS. 2509 69 A. 3009 1 information or maintained on the office's website, unless the practi- 2 tioner cancels the request. 3 § 44. Regulations. The board shall make regulations to implement this 4 article. 5 § 45. Suspend; terminate. Based upon the recommendation of the execu- 6 tive director and/or the superintendent of state police that there is a 7 risk to the public health or safety, the governor may immediately termi- 8 nate all licenses issued to registered organizations. 9 § 46. Pricing. 1. The executive director may require the sale of 10 medical cannabis to be at or below an approved price established by the 11 executive director. Every charge made or demanded for medical cannabis 12 not in accordance with an approved price, is prohibited. 13 2. In reviewing the per dose price of each form of medical cannabis, 14 the executive director may consider the fixed and variable costs of 15 producing the form of cannabis and any other factor the executive direc- 16 tor, in his or her discretion, deems relevant in reviewing the per dose 17 price of each form of medical cannabis. 18 § 47. Severability. If any clause, sentence, paragraph, section or 19 part of this article shall be adjudged by any court of competent juris- 20 diction to be invalid, the judgment shall not affect, impair, or invali- 21 date the remainder thereof, but shall be confined in its operation to 22 the clause, sentence, paragraph, section or part thereof directly 23 involved in the controversy in which the judgment shall have been 24 rendered. 25 ARTICLE 4 26 ADULT-USE CANNABIS 27 Section 60. Licenses issued. 28 61. Awarding of licenses. 29 62. Information to be requested in response to the request for 30 proposals. 31 63. Fees. 32 64. Approval and selection criteria. 33 65. Limitations of licensure; duration. 34 66. License renewal. 35 67. Amendments; changes in ownership and organizational struc- 36 ture. 37 68. Adult-use cultivator license. 38 69. Adult-use processor license. 39 70. Adult-use cooperative license. 40 71. Adult-use distributor license. 41 72. Adult-use retail dispensary license. 42 73. Intentionally omitted. 43 74. Intentionally omitted. 44 75. Record keeping and tracking. 45 76. Inspections and ongoing requirements. 46 77. Adult-use cultivators, processors or distributors not to be 47 interested in retail dispensaries. 48 78. Packaging, labeling, form and administration of adult-use 49 cannabis products. 50 79. Laboratory testing. 51 80. Provisions governing the cultivation and processing of 52 adult-use cannabis. 53 81. Provisions governing the distribution of adult-use cannabis. 54 82. Provisions governing adult-use cannabis retail dispensaries.S. 2509 70 A. 3009 1 83. Adult-use cannabis advertising and marketing. 2 84. Minority, women-owned businesses and disadvantaged farmers; 3 social and economic equity plan. 4 85. Regulations. 5 § 60. Licenses issued. The following kinds of licenses shall be 6 issued by the executive director for the cultivation, processing, 7 distribution and sale of cannabis to cannabis consumers: 8 1. Adult-use cultivator license; 9 2. Adult-use processor license; 10 3. Adult-use cooperative license; 11 4. Adult-use distributor license; 12 5. Adult-use retail dispensary license; and 13 6. Any other type of license as prescribed by the executive director 14 in regulation. 15 § 61. Awarding of licenses. 1. The board shall issue a request for 16 proposals for licenses authorized pursuant to this section, and may 17 award as many licenses in such classes as the board sets out in such 18 request. 19 2. Except as otherwise provided in this article, a separate license 20 shall be required for each facility at which cultivation, processing, 21 distribution or retail dispensing is conducted. 22 3. An award shall not be denied for a license under this article based 23 solely on a conviction for a violation of article two hundred twenty or 24 section 240.36 of the penal law, prior to the date article two hundred 25 twenty-one of the penal law took effect, or a conviction for a violation 26 of article two hundred twenty-one of the penal law after the effective 27 date of this chapter. 28 § 62. Information to be requested in response to the request for 29 proposals. 1. The office shall have the authority to prescribe the 30 manner and form in which a response must be submitted to the office. 31 Such information may include, but is not limited to: information about 32 the applicant's identity, including racial and ethnic diversity; owner- 33 ship and investment information, including the corporate structure; 34 evidence of good moral character, including the submission of finger- 35 prints by the applicant to the division of criminal justice services; 36 information about the premises to be licensed; financial statements; and 37 any other information prescribed in regulation. 38 2. All responses shall be signed by the applicant (if an individual), 39 by a managing partner (if a limited liability corporation), by an offi- 40 cer (if a corporation), or by all partners (if a partnership). Each 41 person signing such response shall verify it or affirm it as true under 42 the penalties of perjury. 43 3. All responses shall be accompanied by a check, draft or other forms 44 of payment as the office may require or authorize in the amount required 45 by this article for such license or permit. 46 4. If there be any proposed change, after the filing of the response 47 or the award of a license, in any of the facts required to be set forth 48 in such application, a supplemental statement requesting approval of 49 such change, cost and source of money involved in the change, duly veri- 50 fied, shall be submitted to the office at least thirty days prior to 51 such proposed change. Failure to do so shall, if willful and deliberate, 52 be cause for revocation of the license. 53 5. In giving any notice, or taking any action in reference to a regis- 54 tered organization or licensee of a licensed premises, the office may 55 rely upon the information furnished in such response and in any supple- 56 mental statement or request connected therewith, and such informationS. 2509 71 A. 3009 1 may be presumed to be correct, and shall be binding upon a registered 2 organization, licensee or licensed premises as if correct. All informa- 3 tion required to be furnished in such response, requests or supplemental 4 statements shall be deemed material in any prosecution for perjury, any 5 proceeding to revoke or suspend any license, or impose a fine and in the 6 office's determination to approve or deny the license. 7 6. The office may, in its discretion, waive the submission of any 8 category of information described in this section for any category of 9 license or permit, provided that it shall not be permitted to waive the 10 requirement for submission of any such category of information solely 11 for an individual proposer or proposers. 12 7. The office may, in its discretion, wholly prohibit and/or prescribe 13 specific criteria under which it will consider and allow limited trans- 14 fers or changes of ownership, interest, or control during the registra- 15 tion or license application period and/or up to two years after an 16 approved applicant commences licensed activities. 17 § 63. Fees. 1. The office shall have the authority to charge proposers 18 under this article a non-refundable application fee and/or to auction 19 licenses to bidders determined by the office to be qualified for such 20 licensure based on the selection criteria in section sixty-four of this 21 article. Such fee may be based on the type of licensure sought, culti- 22 vation and/or production volume, sequence or priority of issuance, or 23 any other factors deemed necessary, reasonable and appropriate by the 24 office to achieve the policy and purpose of this chapter. 25 2. The office shall have the authority to charge licensees a biennial 26 or annual license fee which shall be non-refundable. Such fee may be 27 based on the amount of cannabis to be cultivated, processed, distributed 28 and/or dispensed by the licensee or the gross annual receipts of the 29 licensee for the previous license period, or any other factors deemed 30 reasonable and appropriate by the office. 31 3. The office shall have the authority to waive or reduce fees pursu- 32 ant to this section for social and economic equity applicants. 33 § 64. Approval and selection criteria. 1. The board shall develop 34 regulations for use by the office in determining whether or not a propo- 35 ser shall be awarded a license and subsequently granted the privilege of 36 holding an adult-use cannabis license. The criteria for such approval or 37 subsequent issuance shall be based on, but not limited to, the following 38 criteria: 39 (a) the proposer will be able to maintain effective control against 40 the illegal diversion or inversion of cannabis; 41 (b) the proposer will be able to comply with all applicable state laws 42 and regulations; 43 (c) the proposer and its officers are ready, willing, and able to 44 properly carry on the activities for which a license is sought; 45 (d) where appropriate and applicable, the proposer possesses or has 46 the right to use, or opportunity to acquire, sufficient land, buildings, 47 and equipment to properly carry on the activity described in the appli- 48 cation; 49 (e) it is in the public interest that such license be granted, taking 50 into consideration, but not limited to, the following criteria: 51 (i) that it is a privilege, and not a right, to cultivate, process, 52 distribute, and sell cannabis; 53 (ii) the number, classes, scope and character of other licenses or 54 approved applicants in proximity to the location or in the state, county 55 or particular municipality or subdivision thereof as appropriate;S. 2509 72 A. 3009 1 (iii) evidence that all necessary licenses and permits have been 2 obtained from the state and all other governing bodies; 3 (iv) the history of cannabis or other relevant regulatory violations 4 at the proposed location or by the applicant in any relevant jurisdic- 5 tion, as well as any pattern of violations under this chapter, and 6 reported criminal activity at the proposed premises; 7 (v) the effect on the production, price and availability of cannabis 8 and cannabis products; and 9 (vi) any other factors specified by law or regulation that are rele- 10 vant to determine that granting a license would promote public health 11 and safety and the public interest of the state, county or community; 12 (f) the proposer and its managing officers are of good moral character 13 and do not have an ownership or controlling interest in more licenses, 14 registrations, permits, or the scope of activity allowed by this chap- 15 ter, or any regulations promulgated hereunder; 16 (g) the proposer has entered into a labor peace agreement with a bona- 17 fide labor organization that is actively engaged in representing or 18 attempting to represent the proposer's employees, and the maintenance of 19 such a labor peace agreement shall be an ongoing material condition of 20 licensure. 21 (h) the proposer will contribute to communities, the workforce and 22 people disproportionately harmed by cannabis law enforcement through 23 participation in the social and economic equity plan implemented by the 24 office or other suitable means; 25 (i) if the response is for an adult-use cultivator license, the envi- 26 ronmental impact of the facility to be licensed; and 27 (j) the proposer satisfies any other conditions as determined by the 28 executive director. 29 2. If the executive director is not satisfied that the proposer is 30 eligible to be approved, or subsequently should be issued a license, the 31 executive director shall notify the proposer in writing of the specific 32 reason or reasons for denial. 33 § 65. Limitations of licensure; duration. 1. No license of any kind 34 may be issued to a person under the age of twenty-one years, nor shall 35 any licensee employ anyone under the age of eighteen years. 36 2. No person shall sell, or give away or cause or permit or procure to 37 be sold, or given away any cannabis to any person, actually or apparent- 38 ly, under the age of twenty-one years, or any visibly intoxicated 39 person. 40 3. No licensee, registrant or permittee shall knowingly sell, or give 41 away or cause or permit or procure to be sold, or given away to a lawful 42 cannabis consumer any amount of cannabis which would cause the lawful 43 cannabis consumer to be in violation of the possession limits estab- 44 lished by this chapter, or their equivalent as determined by the execu- 45 tive director. 46 4. The office shall have the authority to limit, by canopy, plant 47 count, square footage or other means, the amount of cannabis allowed to 48 be grown, processed, distributed or sold by a licensee. 49 5. All licenses under this article shall expire two years after the 50 date of issue. 51 § 66. License renewal. 1. Each license, issued pursuant to this arti- 52 cle, may be approved for renewal upon application therefor by the licen- 53 see and the payment of the fee for such license as prescribed by this 54 article. In the case of applications for renewals, the office may 55 dispense with the requirements of such statements as it deems unneces- 56 sary in view of those contained in the application made for the originalS. 2509 73 A. 3009 1 license, but in any event the submission of photographs of the licensed 2 premises may be dispensed with, provided the applicant for such renewal 3 shall file a statement with the office to the effect that there has been 4 no alteration of such premises since the original license was issued. 5 The office may make such rules as it deems necessary, not inconsistent 6 with this chapter, regarding applications for renewals of licenses and 7 permits and the time for making the same. 8 2. The office shall create a social responsibility framework agreement 9 and make the adherence to and fulfillment of such agreement a condi- 10 tional requirement of license renewal. 11 3. The office shall provide an application for renewal of a license 12 issued under this article not less than ninety days prior to the expira- 13 tion of the current license. 14 4. The office may only issue a renewal license upon receipt of the 15 prescribed renewal application and renewal fee from a licensee if, in 16 addition to the criteria in this section, the licensee's license is not 17 under suspension and has not been revoked. 18 5. Each applicant must maintain a labor peace agreement with a bona- 19 fide labor organization that is actively engaged in representing or 20 attempting to represent the applicant's employees and the maintenance of 21 such a labor peace agreement shall be an ongoing material condition of 22 licensure. 23 § 67. Amendments; changes in ownership and organizational structure. 24 1. Licenses issued pursuant to this article shall specify: 25 (a) the name and address of the licensee; 26 (b) the activities permitted by the license; 27 (c) the land, buildings, facilities, locations or areas that may be 28 used for the licensed activities of the licensee; 29 (d) a unique license number issued by the office to the licensee; and 30 (e) such other information as the executive director shall deem neces- 31 sary to assure compliance with this chapter. 32 2. Upon application to the office, a response to a request for 33 proposals or license may be amended to allow the applicant or licensee 34 to relocate within the state, to add or delete licensed activities or 35 facilities, or to amend the ownership or organizational structure of the 36 entity that is the applicant or licensee, upon approval by the executive 37 director. The fee for such amendment shall be determined by the execu- 38 tive director. 39 3. A license shall become void by a change in ownership, management, 40 interest, substantial corporate change, location, or material changes in 41 operations without prior written approval of the executive director. The 42 executive director may specify the process for amendment requests and 43 allowing for certain types of changes in ownership without the need for 44 prior written approval. 45 4. For purposes of this section, "substantial corporate change" shall 46 mean: 47 (a) for a corporation, a change of five percent or more of the offi- 48 cers and/or directors, or a transfer of five percent or more of stock of 49 such corporation, or an existing stockholder obtaining five percent or 50 more of the stock of such corporation; or 51 (b) for a limited liability company, a change of five percent or more 52 of the managing members of the company, or a transfer of five percent or 53 more of ownership interest in said company, or an existing member 54 obtaining a cumulative of five percent or more of the ownership interest 55 in said company.S. 2509 74 A. 3009 1 § 68. Adult-use cultivator license. 1. An adult-use cultivator's 2 license shall authorize the acquisition, possession, cultivation and 3 sale of cannabis from the licensed premises of the adult-use cultivator 4 by such licensee to duly licensed processors in this state. The board 5 may establish regulations allowing licensed adult-use cultivators to 6 perform certain types of minimal processing, defined in regulation, 7 without the need for an adult-use processor license. 8 2. For purposes of this section, cultivation shall include, but not be 9 limited to, the planting, growing, cloning, harvesting, drying, curing, 10 grading and trimming of cannabis. 11 3. A person holding an adult-use cultivator's license may apply for, 12 and obtain, not more than one processor's license and one distributor's 13 license. 14 4. A person holding an adult-use cultivator's license may not also 15 hold a retail dispensary license pursuant to this article and no adult- 16 use cannabis cultivator shall have a direct or indirect interest, 17 including by stock ownership, interlocking directors, mortgage or lien, 18 personal or real property, management agreement, share parent companies 19 or affiliate organizations, or any other means, in any premises licensed 20 as an adult-use cannabis retail dispensary or in any business licensed 21 as an adult-use cannabis retail dispensary pursuant to this article. 22 5. No person may have a direct or indirect financial or controlling 23 interest in more than one adult-use cultivator license issued pursuant 24 to this chapter, provided that one adult-use cultivator license may 25 authorize adult-use cultivation in more than one location pursuant to 26 criteria established by the board in regulation. 27 6. The executive director shall have the authority to issue microbusi- 28 ness licenses, allowing microbusiness licensees to cultivate, process, 29 distribute and retail adult-use cannabis direct to licensed cannabis 30 retailers and consumers, under a single license. The board may estab- 31 lish through regulation microbusiness license eligibility criteria and 32 production limits of total cannabis cultivated, processed and/or 33 distributed annually for microbusiness licenses. 34 § 69. Adult-use processor license. 1. A processor's license shall 35 authorize the acquisition, possession, processing and sale of cannabis 36 from the licensed premises of the adult-use cultivator by such licensee 37 to duly licensed distributors. 38 2. For purposes of this section, processing shall include, but not be 39 limited to, blending, extracting, infusing, packaging, labeling, brand- 40 ing or otherwise making or preparing cannabis products. Processing shall 41 not include the cultivation of cannabis. 42 3. No processor shall be engaged in any other business on the premises 43 to be licensed; except that a person issued an adult-use cannabis culti- 44 vator, processor, and/or distributor license may hold and operate all 45 issued licenses on the same premises. 46 4. No cannabis processor licensee may hold more than one cannabis 47 processor license, provided a single license may authorize processor 48 activities at multiple locations. 49 5. No adult-use cannabis processor shall have a direct or indirect 50 interest, including by stock ownership, interlocking directors, mortgage 51 or lien, personal or real property, management agreement, or through 52 parent organizations or affiliate entities, or any other means, in any 53 premises licensed as an adult-use cannabis retail dispensary or in any 54 business licensed as an adult-use cannabis retail dispensary pursuant to 55 this article.S. 2509 75 A. 3009 1 § 70. Adult-use cooperative license. 1. A cooperative license shall 2 authorize the acquisition, possession, cultivation, processing or sale 3 from the licensed premises of the adult-use cooperative by such licensee 4 to duly licensed distributors and/or retail dispensaries; but not 5 directly to cannabis consumers. 6 2. To be licensed as an adult-use cooperative, the cooperative must: 7 (a) be comprised of residents of the state of New York as a limited 8 liability company or limited liability partnership under the laws of the 9 state, or an appropriate business structure as determined by the board; 10 (b) subordinate capital, both as regards control over the cooperative 11 undertaking, and as regards the ownership of the pecuniary benefits 12 arising therefrom; 13 (c) be democratically controlled by the members themselves on the 14 basis of one vote per member; 15 (d) vest in and allocate with priority to and among the members of all 16 increases arising from their cooperative endeavor in proportion to the 17 members' active participation in the cooperative endeavor; and 18 (e) operate according to the seven cooperative principles published by 19 the International Cooperative Alliance in nineteen hundred ninety-five. 20 3. No person shall be a member of more than one adult-use cooperative 21 licensed pursuant to this section. 22 4. No person or member of an adult-use cooperative license may have a 23 direct or indirect financial or controlling interest in any other 24 adult-use cannabis license issued pursuant to this chapter. 25 5. No adult-use cannabis cooperative shall have a direct or indirect 26 interest, including by stock ownership, interlocking directors, mortgage 27 or lien, personal or real property, or any other means, in any premises 28 licensed as an adult-use cannabis retail dispensary or in any business 29 licensed as an adult-use cannabis retail dispensary pursuant to this 30 article. 31 6. The board shall promulgate regulations governing cooperative 32 licenses, including, but not limited to, the establishment of canopy 33 limits and other restrictions on the size and scope of cooperative 34 licensees. 35 § 71. Adult-use distributor license. 1. A distributor's license shall 36 authorize the acquisition, possession, distribution and sale of cannabis 37 from the licensed premises of a licensed adult-use processor, microbusi- 38 ness cultivator, adult-use cooperative, or registered organization 39 authorized to sell adult-use cannabis, or any other person licensed, 40 registered or permitted by the office to sell or transfer cannabis to or 41 within the state, to duly licensed retail dispensaries. 42 2. No distributor shall have a direct or indirect economic interest in 43 any microbusiness or adult-use retail dispensary licensed pursuant to 44 this article, or in any registered organization registered pursuant to 45 article three of this chapter. This restriction shall not prohibit a 46 registered organization authorized pursuant to section forty of this 47 chapter, from being granted licensure by the office to distribute 48 adult-use cannabis products cultivated and processed by the registered 49 organization to the registered organization's own licensed adult-use 50 retail dispensaries. 51 3. Nothing in subdivision two of this section shall prevent a distrib- 52 utor from charging an appropriate fee for the distribution of cannabis, 53 including based on the volume of cannabis distributed. 54 4. Adult-use distributor licensees are subject to minimum operating 55 requirements as determined by the board in regulation.S. 2509 76 A. 3009 1 § 72. Adult-use retail dispensary license. 1. A retail dispensary 2 license shall authorize the acquisition, possession and sale of cannabis 3 from the licensed premises of the retail dispensary by such licensee to 4 cannabis consumers. 5 2. No person may have a direct or indirect financial or controlling 6 interest in more than three retail dispensary licenses issued pursuant 7 to this chapter. This restriction shall not prohibit a registered organ- 8 ization, authorized pursuant to section forty of this chapter, from 9 being granted licensure by the office to sell adult-use cannabis at 10 locations previously registered by the department of health; subject to 11 any conditions, limitations or restrictions established by the office. 12 3. No person holding a retail dispensary license may also hold or have 13 any interest in an adult-use cultivation, processor, microbusiness, 14 cooperative or distributor license pursuant to this article. 15 4. No retail license shall be granted for any premises, unless the 16 applicant shall be the owner thereof, or shall be in possession of said 17 premises under a lease, management agreement or other agreement giving 18 the applicant control over the premises, in writing, for a term not less 19 than the license period. 20 5. No cannabis retail licensee shall locate a storefront within five 21 hundred feet of a building occupied exclusively as a school. 22 § 73. Intentionally omitted. 23 § 74. Intentionally omitted. 24 § 75. Record keeping and tracking. The board shall, by regulation, 25 require each licensee pursuant to this article to adopt and maintain 26 security, tracking, record keeping, record retention and surveillance 27 systems, relating to all cannabis at every stage of acquiring, 28 possession, manufacture, sale, delivery, transporting, or distributing 29 by the licensee. 30 § 76. Inspections and ongoing requirements. All licensed or permitted 31 premises, regardless of the type of premises, and records including but 32 not limited to financial statements and corporate documents, shall be 33 subject to inspection by the office, by the duly authorized represen- 34 tatives of the office, by any peace officer acting pursuant to his or 35 her special duties, or by a police officer. The office shall make 36 reasonable accommodations so that ordinary business is not interrupted 37 and safety and security procedures are not compromised by the 38 inspection. A person who holds a license or permit must make himself or 39 herself, or an agent thereof, available and present for any inspection 40 required by the office. Such inspection may include, but is not limited 41 to, ensuring compliance by the licensee or permittee with all of the 42 requirements of this article, the regulations promulgated pursuant ther- 43 eto, and other applicable building codes, fire, health, safety, and 44 governmental regulations, including at the municipal, county, and state 45 level and include any inspector or official of relevant jurisdiction. 46 § 77. Adult-use cultivators, processors or distributors not to be 47 interested in retail dispensaries. 1. It shall be unlawful for a culti- 48 vator, processor, microbusiness, cooperative or distributor licensed 49 under this article to: 50 (a) be interested directly or indirectly in any premises where any 51 cannabis product is sold at retail; or in any business devoted wholly or 52 partially to the sale of any cannabis product at retail by stock owner- 53 ship, interlocking directors, mortgage or lien or any personal or real 54 property, or by any other means. 55 (b) make, or cause to be made, any loan to any person engaged in the 56 manufacture or sale of any cannabis product at wholesale or retail.S. 2509 77 A. 3009 1 (c) make any gift or render any service of any kind whatsoever, 2 directly or indirectly, to any person licensed under this chapter which 3 in the judgment of the office may tend to influence such licensee to 4 purchase or promote the product of such cultivator or processor or 5 distributor. 6 (d) enter into any contract or agreement with any retail licensee 7 whereby such licensee agrees to confine his sales to cannabis products 8 manufactured or sold by one or more such cultivator or processors or 9 distributors. Any such contract shall be void and subject the licenses 10 of all parties concerned to revocation for cause and any applicable 11 administrative enforcement and penalties. 12 2. The provisions of this section shall not prohibit a microbusiness, 13 or registered organization authorized pursuant to section forty of this 14 chapter, from cultivating, processing, distributing and selling adult- 15 use cannabis under this article, at facilities wholly owned and operated 16 by such microbusiness or registered organization, subject to any condi- 17 tions, limitations or restrictions established by the office. 18 3. The board shall have the authority to create rules and regulations 19 in regard to this section. 20 § 78. Packaging, labeling, form and administration of adult-use canna- 21 bis products. 1. The board is hereby authorized to promulgate rules and 22 regulations governing the packaging, labeling, form and method of admin- 23 istration or ingestion, branding and marketing of cannabis products, 24 sold or possessed for sale in New York state. 25 2. Such regulations shall include, but not be limited to, requiring 26 that: 27 (a) packaging meets requirements similar to the federal "poison 28 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.; 29 (b) prior to sale at a retailer, cannabis and cannabis products shall 30 be labeled according to regulations and placed in a resealable, child- 31 resistant package; and 32 (c) packages, labels, forms and products shall not be made to be 33 attractive to or target persons under the age of twenty-one. 34 3. Such regulations shall include requiring labels warning consumers 35 of any potential impact on human health resulting from the consumption 36 of cannabis products that shall be affixed to those products when sold, 37 if such labels are deemed warranted by the office and may establish 38 standardized and/or uniform packaging requirements for adult-use 39 products. 40 4. Such rules and regulations shall determine serving sizes for canna- 41 bis products, active cannabis concentration per serving size, and number 42 of servings per container. Such regulations may also require a nutri- 43 tional fact panel that incorporates data regarding serving sizes and 44 potency thereof. 45 5. Such rules and regulations shall establish approved product types 46 and forms and establish an application and review process to determine 47 the suitability of new product types and forms, taking into consider- 48 ation the consumer and public health and safety implications of differ- 49 ent product varieties, manufacturing processes, product types and forms, 50 the means and methods of administration associated with specific product 51 types, and any other criteria identified by the office for consideration 52 to protect public health and safety. 53 6. Such regulations shall also require product labels to accurately 54 display the total THC of each product. 55 7. The packaging, sale, labeling, marketing, branding, advertising or 56 possession by any licensee of any cannabis product not labeled orS. 2509 78 A. 3009 1 offered in conformity with rules and regulations promulgated in accord- 2 ance with this section shall be grounds for the imposition of a fine, 3 and/or the suspension, revocation or cancellation of a license. Fines 4 may be imposed on a per violation, per day basis. 5 § 79. Laboratory testing. 1. Every processor of adult-use cannabis 6 shall contract with an independent laboratory permitted pursuant to 7 section one hundred twenty-nine of this chapter, to test the cannabis 8 products it produces pursuant to rules and regulations prescribed by the 9 office. The executive director may assign an approved testing laborato- 10 ry, which the processor of adult-use cannabis must use, and may estab- 11 lish consortia with neighboring states, to inform best practices, and 12 share data. 13 2. Adult-use cannabis processors, cooperatives and microbusinesses 14 shall make laboratory test reports available to licensed distributors 15 and retail dispensaries for all cannabis products manufactured by the 16 processor or licensee. 17 3. Licensed retail dispensaries shall maintain accurate documentation 18 of laboratory test reports for each cannabis product offered for sale to 19 cannabis consumers. Such documentation shall be made publicly available 20 by the licensed retail dispensary. 21 4. Onsite laboratory testing by licensees is permissible subject to 22 regulation; however, such testing shall not be certified by the office 23 and does not exempt the licensee from the requirements of quality assur- 24 ance testing at a testing laboratory pursuant to this section. 25 5. An owner of a cannabis laboratory testing permit shall not hold a 26 license, or interest in a license, in any other category within this 27 article and shall not own or have ownership interest in a registered 28 organization registered pursuant to article three of this chapter, or a 29 cannabinoid hemp processor license pursuant to article five of this 30 chapter. 31 6. The office shall have the authority to require any licensee under 32 this article to submit cannabis or cannabis products to one or more 33 independent laboratories for testing and the board may promulgate regu- 34 lations related to all aspects of third-party testing and quality assur- 35 ance including but not limited to: 36 (a) minimum testing and sampling requirements; 37 (b) testing and sampling methodologies; 38 (c) testing reporting requirements; 39 (d) retesting; and 40 (e) product quarantine, hold, recall, and remediation. 41 § 80. Provisions governing the cultivation and processing of adult-use 42 cannabis. 1. Cultivation of cannabis shall comply with regulations 43 promulgated by the board governing minimum requirements. 44 2. No cultivator or processor of adult-use cannabis shall sell, or 45 agree to sell or deliver in the state any cannabis products, as the case 46 may be, except in sealed containers containing quantities in accordance 47 with size standards pursuant to regulations adopted by the office. Such 48 containers shall have affixed thereto such labels or other means of 49 tracking and identification as may be required by the rules of the exec- 50 utive director. 51 3. No cultivator or processor of adult-use cannabis shall furnish or 52 cause to be furnished to any licensee, any exterior or interior sign, 53 printed, painted, electric or otherwise, except as authorized by the 54 office. The office may make such rules as it deems necessary to carry 55 out the purpose and intent of this subdivision.S. 2509 79 A. 3009 1 4. The board, in conjunction with the department of environmental 2 conservation, shall promulgate all necessary rules and regulations, as 3 well as a process for approval, governing the safe production of canna- 4 bis including, but not limited to, environmental and energy standards 5 and restrictions on the use of pesticides. 6 5. No cultivator or processor of adult-use cannabis shall deliver any 7 cannabis products, except in vehicles owned and operated by such culti- 8 vator, processor, or hired and operated by such cultivator or processor 9 from a trucking or transportation company registered with the office, 10 and shall only make deliveries at the licensed premises of the purchas- 11 er. 12 6. No cultivator or processor of adult-use cannabis, including an 13 adult-use cannabis cooperative or microbusiness, may offer any incen- 14 tive, payment or other benefit to a licensed cannabis retail dispensary 15 in return for carrying the cultivator, processor, cooperative or micro- 16 business's products, or preferential shelf placement. 17 7. All cannabis products shall be processed in accordance with good 18 manufacturing practices for the product category, pursuant to either 19 Part 111 or Part 117 of Title 21 of the Code of Federal Regulations, as 20 may be defined and modified by the board in regulation, which shall to 21 the extent practicable and possible, align with neighboring state 22 requirements. 23 8. No processor of adult-use cannabis shall produce any product which, 24 in the discretion of the office, is designed to appeal to anyone under 25 the age of twenty-one years. 26 9. The use or integration of wine, beer, liquor or nicotine or any 27 other substance identified in regulation in cannabis products is prohib- 28 ited. 29 10. The board shall promulgate regulations governing the minimum 30 requirements for the secure transport of adult-use cannabis. 31 § 81. Provisions governing the distribution of adult-use cannabis. 1. 32 No distributor shall sell, or agree to sell or deliver any cannabis 33 products, as the case may be, in any container, except in a sealed pack- 34 age. Such containers shall have affixed thereto such labels as may be 35 required by the rules of the office. 36 2. No distributor shall deliver any cannabis products, except in vehi- 37 cles owned and operated by such distributor, or hired and operated by 38 such distributor from a trucking or transportation company permitted by 39 the office, and shall only make deliveries at the licensed premises of 40 the purchaser. 41 3. Each distributor shall keep and maintain upon the licensed prem- 42 ises, adequate books and records of all transactions involving the busi- 43 ness transacted by such distributor, which shall show the amount of 44 cannabis products purchased by such distributor and the total THC 45 content of purchased cannabis products as reflected on the product 46 labels, together with the names, license numbers and places of business 47 of the persons from whom the same was purchased and the amount involved 48 in such purchases, as well as the amount of cannabis products sold by 49 such distributor together and the total THC content of cannabis products 50 sold as reflected on the final product labels, with the names, 51 addresses, and license numbers of such purchasers and any other informa- 52 tion required in regulation. Each sale shall be recorded separately on a 53 numbered invoice, which shall have printed thereon the number, the name 54 of the licensee, the address of the licensed premises, and the current 55 license number and any other information required in regulation. Such 56 distributor shall deliver to the purchaser a true duplicate invoiceS. 2509 80 A. 3009 1 stating the name and address of the purchaser, the quantity of cannabis 2 products, the total THC content of purchased cannabis products as 3 reflected on the product labels, description by brands and the price of 4 such cannabis products, and a true, accurate and complete statement of 5 the terms and conditions on which such sale is made. Such books, records 6 and invoices shall be kept for a period of six years and shall be avail- 7 able for inspection by any authorized representative of the office. 8 4. No distributor shall furnish or cause to be furnished to any licen- 9 see, any exterior or interior sign, printed, painted, electric or other- 10 wise, unless authorized by the office. 11 5. No distributor shall provide any discount, rebate, customer loyalty 12 program or other consideration to any licensed retailer, except as 13 otherwise allowed by the office. 14 6. The board is authorized to promulgate regulations establishing a 15 minimum margin for which a distributor may mark up a cannabis product 16 for sale to a retail dispensary. Any adult-use cannabis product sold by 17 a distributor in violation of the established markup allowed in regu- 18 lation, shall be unlawful. 19 7. Each distributor shall keep and maintain upon the licensed prem- 20 ises, adequate books and records to demonstrate the distributor's actual 21 cost of doing business, using accounting standards and methods regularly 22 employed in the determination of costs for the purpose of federal income 23 tax reporting, for the total operation of the licensee. Such books, 24 records, financial statements, contracts, corporate documents, and 25 invoices shall be kept for a period of six years and shall be available 26 for inspection by any authorized representative of the office, includ- 27 ing, for use in determining the minimum markup allowed in regulation 28 pursuant to subdivision six of this section. 29 § 82. Provisions governing adult-use cannabis retail dispensaries. 1. 30 No cannabis retail licensee shall sell or give away or cause or permit 31 or procure to be sold or given away any cannabis to any person, actually 32 or apparently, under the age of twenty-one years or any visibly intoxi- 33 cated person. 34 2. No cannabis retail licensee shall sell more than one ounce of 35 adult-use cannabis, or its equivalent amount as determined in regu- 36 lation, per cannabis consumer per day. 37 3. No cannabis retail licensee shall sell alcoholic beverages, nor 38 have or possess a license or permit to sell alcoholic beverages, on the 39 same premises where cannabis products are sold. 40 4. No sign of any kind printed, painted or electric, advertising any 41 brand shall be permitted on the exterior or interior of such premises, 42 except as permitted by the office. 43 5. No cannabis retail licensee shall sell any cannabis products to any 44 person with knowledge of, or with reasonable cause to believe, that the 45 person to whom such cannabis products are being sold, has acquired the 46 same for the purpose of peddling them from place to place, or of selling 47 or giving them away in violation of the provisions of this chapter or in 48 violation of the rules and regulations of the board. 49 6. All premises licensed under this section shall be subject to 50 reasonable inspection by any peace officer described in subdivision four 51 of section 2.10 of the criminal procedure law acting pursuant to his or 52 her special duties, or police officer or any duly authorized represen- 53 tative of the office. 54 7. No cannabis retail licensee shall be interested, directly or indi- 55 rectly, in any cultivator, processor or distributor licensed pursuant toS. 2509 81 A. 3009 1 this article, by stock ownership, interlocking directors, mortgage or 2 lien on any personal or real property or by any other means. 3 8. No cannabis retail licensee shall make or cause to be made any loan 4 to any person engaged in the cultivation, processing or distribution of 5 cannabis pursuant to this article. 6 9. Each cannabis retail licensee shall designate the price of each 7 item of cannabis by attaching to or otherwise displaying immediately 8 adjacent to each such item displayed in the interior of the licensed 9 premises where sales are made a price tag, sign or placard setting forth 10 the price at which each such item is offered for sale therein. 11 10. No person licensed to sell cannabis products at retail, shall 12 allow or permit any gambling, or offer any gambling on the licensed 13 premises, or allow or permit illicit drug activity on the licensed prem- 14 ises. The use of the licensed premises or any part thereof for the sale 15 of lottery tickets, when duly authorized and lawfully conducted thereon, 16 shall not constitute gambling within the meaning of this subdivision. 17 11. All adult-use dispensing facilities shall make educational materi- 18 als and resources available to cannabis consumers at the point of sale, 19 as prescribed by the office, encouraging such cannabis consumers to seek 20 the help of a state licensed facility or program for the treatment of 21 cannabis use disorder. 22 12. The board is authorized to promulgate regulations governing 23 licensed adult-use dispensing facilities, including but not limited to, 24 minimum general operating requirements, the hours of operation, size and 25 location of the licensed facility, potency and types of products offered 26 and establishing a minimum margin for which a retail dispensary must 27 markup a cannabis product(s) before selling to a cannabis consumer. Any 28 adult-use cannabis product sold by a retail dispensary for less than the 29 minimum markup allowed in regulation, shall be unlawful. 30 § 83. Adult-use cannabis advertising and marketing. 1. The board is 31 hereby authorized to promulgate rules and regulations governing, 32 restricting, and prohibiting various forms and content of the advertis- 33 ing and marketing of licensed adult-use cannabis cultivators, process- 34 ors, cooperatives, distributors, retailers, and any cannabis products or 35 services. 36 2. The office shall promulgate regulations for appropriate content, 37 warnings, and means of advertising and marketing, including but not 38 limited to prohibiting advertising that: 39 (a) is false, deceptive, or misleading; 40 (b) promotes overconsumption; 41 (c) depicts consumption; 42 (d) is designed in any way to appeal to children or other minors; 43 (e) is within or is readily observed within five hundred feet of the 44 perimeter of a school grounds, playground, child care center, public 45 park, or library; 46 (f) is in public transit vehicles and stations; 47 (g) is in the form of an unsolicited internet pop-up; 48 (h) is on publicly owned or operated property; 49 (i) makes medical claims or promotes adult-use cannabis for a medical 50 or wellness purpose; 51 (j) promotes or implements discounts, coupons, or other means of sell- 52 ing adult-use cannabis products below market value or whose discount 53 would subvert local and state tax collections; 54 (k) the content and primary purpose of which is not to alert and 55 educate lawful cannabis consumers about the availability of regulatedS. 2509 82 A. 3009 1 adult-use cannabis and displace the illicit market but to solely promote 2 cannabis use; or 3 (l) fails to satisfy any other advertising or marketing rule or regu- 4 lations promulgated by the office related to marketing or advertising. 5 3. The office shall promulgate regulations prohibiting all marketing 6 strategies and implementation including, but not limited to, branding, 7 packaging, labeling, location of cannabis retailers, and advertisements 8 that are designed to: 9 (a) appeal to persons under twenty-one years of age and/or at-risk 10 populations; or 11 (b) disseminate false or misleading information to customers. 12 4. The office shall promulgate regulations requiring that: 13 (a) all advertisements and marketing accurately and legibly identify 14 the licensee responsible for its content and contain recognizable and 15 legible warnings associated with cannabis use; and 16 (b) any broadcast, cable, radio, print and digital communication 17 advertisements only be placed where the audience is reasonably expected 18 to be twenty-one years of age or older, as determined by reliable, 19 up-to-date audience composition data. The burden of proving this 20 requirement lies with the party that has paid for or facilitated the 21 advertisement. 22 5. The office shall establish procedures to review and enforce all 23 advertising and marketing requirements. 24 § 84. Minority, women-owned businesses and disadvantaged farmers; 25 social and economic equity plan. 1. The office shall implement a social 26 and economic equity plan that actively promotes racial, ethnic, and 27 gender diversity in the adult-use cannabis industry and prioritizes 28 applicants who qualify as a minority and women-owned business, social 29 equity applicant, or disadvantaged farmer and which positively impacts 30 areas that have been harmed through disproportionate enforcement of the 31 war on drugs. 32 2. The office shall create a social and economic equity plan which 33 promotes diversity in ownership and employment in the adult-use cannabis 34 industry and the inclusion of: 35 (a) minority-owned businesses; 36 (b) women-owned businesses; 37 (c) social equity applicants as defined in subdivision four of this 38 section; 39 (d) minority and women-owned businesses, as defined in subdivision 40 four of this section; and 41 (e) disadvantaged farmers, as defined in subdivision four of this 42 section. 43 3. (a) The social and economic equity plan implemented by the office 44 shall promote participation and hiring of qualified social and economic 45 equity applicants. These applicants shall be deemed qualified by the 46 office through criteria determined in this section and by regulation 47 promulgated hereunder. Once qualified, a social and economic equity 48 applicant shall be eligible to access all or some of this available 49 social and economic equity plan programs based on their qualification 50 criteria, which may include but not be limited to: 51 (i) priority in submission and review for adult-use cannabis licenses; 52 (ii) priority in specific classes or categories of adult-use cannabis 53 licenses and licensed activities, geographic areas or license location; 54 (iii) reduced or deferred fees for adult-use cannabis applications 55 and/or licenses;S. 2509 83 A. 3009 1 (iv) access to low or zero interest small business loans for entry 2 into the adult-use cannabis market; 3 (v) access to incubator programs pairing qualified and eligible social 4 and economic equity applicants with support in the form of counseling 5 services, education, small business development, and compliance assist- 6 ance; 7 (vi) access to cannabis workforce development and hiring initiatives 8 which incentivize hiring of qualified social and economic equity staff 9 members; and 10 (vii) any other available program or initiative developed under the 11 office's social and economic equity plan. 12 (b) The executive director shall have the ability to alter or amend 13 the social and economic equity plan, and its programs, to meet the needs 14 of qualified social and economic equity applicants and areas as the 15 industry grows and evolves. 16 (c) Under the social and economic equity plan, the board shall also 17 have the authority to create and distribute local social and economic 18 equity impact grants to community-based organizations which are located 19 or operate in areas of disproportionate enforcement from the war on 20 drugs. The application for, and administration of social and economic 21 equity impact grants shall be determined by the board through regu- 22 lations, provided sufficient funds are available. 23 4. For the purposes of this section, the following definitions shall 24 apply: 25 (a) A minority-owned business, minority group member, and women-owned 26 business shall have the same meaning as defined in section three hundred 27 ten of the executive law. 28 (b) A firm owned by a minority group member who is also a woman may be 29 defined as a minority-owned business, a women-owned business, or both. 30 (c) "Disadvantaged farmer" shall mean a New York state resident or 31 business enterprise, including a sole proprietorship, partnership, 32 limited liability company or corporation, that has reported at least 33 two-thirds of its federal gross income as income from farming, in at 34 least one of the five preceding tax years, and who: 35 (i) farms in a county that has greater than ten percent rate of pover- 36 ty according to the latest U.S. census bureau's american communities 37 survey; 38 (ii) has been disproportionately impacted by low commodity prices or 39 faces the loss of farmland through development or suburban sprawl; and 40 (iii) meets any other qualifications as defined in regulation by the 41 board. 42 (d) "Social equity applicants" shall mean an applicant for licensure 43 or employment that: 44 (i) is or has been a member of a community group or resident of an 45 area that has been disproportionately impacted by the enforcement of 46 cannabis prohibition, as determined by the board in regulation; 47 (ii) has an income lower than eighty percent of the median income of 48 the county in which the applicant resides; and 49 (iii) was convicted of a marihuana-related offense prior to the effec- 50 tive date of this chapter or had a parent, guardian, child, or spouse 51 who, prior to the effective date of this chapter, was convicted of a 52 marihuana-related offense. 53 5. Licenses issued to minority and women-owned businesses or under the 54 social and economic equity plan shall not be transferable for a period 55 of two years except to qualified minority and women-owned businesses orS. 2509 84 A. 3009 1 social and economic equity applicants and only upon prior written 2 approval of the executive director. 3 § 85. Regulations. The board shall make regulations to implement this 4 article. 5 ARTICLE 5 6 CANNABINOID HEMP AND HEMP EXTRACT 7 Section 90. Definitions. 8 91. Rulemaking authority. 9 92. Cannabinoid hemp processor license. 10 93. Cannabinoid hemp retailer license. 11 94. Cannabinoid license applications. 12 95. Information to be requested in applications for licenses. 13 96. Fees. 14 97. Selection criteria. 15 98. License renewal. 16 99. Form of license. 17 100. Transferability; amendment to license; change in ownership 18 or control. 19 101. Granting, suspending or revoking licenses. 20 102. Record keeping and tracking. 21 103. Packaging and labeling of cannabinoid hemp and hemp 22 extract. 23 104. Processing of cannabinoid hemp and hemp extract. 24 105. Laboratory testing. 25 106. New York hemp product. 26 107. Penalties. 27 108. Hemp workgroup. 28 109. Prohibitions. 29 110. Special use permits. 30 111. Severability. 31 § 90. Definitions. As used in this article, the following terms shall 32 have the following meanings, unless the context clearly requires other- 33 wise: 34 1. "Cannabinoid" means the phytocannabinoids found in hemp and does 35 not include synthetic cannabinoids as that term is defined in subdivi- 36 sion (g) of schedule I of section thirty-three hundred six of the public 37 health law. 38 2. "Cannabinoid hemp product" means any hemp and any product processed 39 or derived from hemp, that is used for human consumption provided that 40 when such product is packaged or offered for retail sale to a consumer, 41 it shall not have a concentration of more than three-tenths of one 42 percent delta-9 tetrahydrocannabinol or a final total THC concentration 43 which exceeds an amount determined by the board in regulation. 44 3. "Used for human consumption" means intended by the manufacturer or 45 distributor to be: (a) used for human consumption for its cannabinoid 46 content; or (b) used in, on or by the human body for its cannabinoid 47 content. 48 4. "Hemp" means the plant Cannabis sativa L. and any part of such 49 plant, including the seeds thereof and all derivatives, extracts, canna- 50 binoids, isomers, acids, salts, and salts of isomers, whether growing or 51 not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more 52 than three-tenths of one percent on a dry weight basis. It shall not 53 include "medical cannabis" as defined in subdivision twenty-eight of 54 section three of this chapter.S. 2509 85 A. 3009 1 5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom- 2 ers, acids, salts, and salts of isomers derived from hemp, used or 3 intended for human consumption, for its cannabinoid content, with a 4 total THC concentration of not more than an amount determined by the 5 board in regulation. For the purpose of this article, hemp extract 6 excludes (a) any food, food ingredient or food additive that is general- 7 ly recognized as safe pursuant to federal law; or (b) any hemp extract 8 that is not used for human consumption. Such excluded substances shall 9 not be regulated pursuant to the provisions of this article but are 10 subject to other provisions of applicable state law, rules and regu- 11 lations. 12 6. "License" means a license issued pursuant to this article. 13 7. "Cannabinoid hemp processor license" means a license granted by the 14 office to process, extract, pack or manufacture cannabinoid hemp or hemp 15 extract into products, whether in intermediate or final form, used for 16 human consumption. 17 8. "Processing" means extracting, preparing, treating, modifying, 18 compounding, manufacturing or otherwise manipulating cannabinoid hemp to 19 concentrate or extract its cannabinoids, or creating product, whether in 20 intermediate or final form, used for human consumption. For purposes of 21 this article, processing does not include: (a) growing, cultivation, 22 cloning, harvesting, drying, curing, grinding or trimming when author- 23 ized pursuant to article twenty-nine of the agriculture and markets law; 24 or 25 (b) mere transportation, such as by common carrier or another entity 26 or individual. 27 § 91. Rulemaking authority. The board may make regulations pursuant to 28 this article for the processing, distribution, marketing, transportation 29 and sale of cannabinoid hemp and hemp extracts used for human consump- 30 tion, which may include, but not be limited to: 31 1. Specifying forms, establishing application, reasonable adminis- 32 tration and renewal fees, or license duration; 33 2. Establishing the qualifications and criteria for licensing, as 34 authorized by law; 35 3. The books and records to be created and maintained by licensees and 36 lawful procedures for their inspection; 37 4. Any reporting requirements; 38 5. Methods and standards of processing, labeling, packaging and 39 marketing of cannabinoid hemp, hemp extract and products derived there- 40 from; 41 6. Procedures for how cannabinoid hemp, hemp extract or ingredients, 42 additives, or products derived therefrom can be deemed as acceptable for 43 sale in the state; 44 7. Provisions governing the modes and forms of administration, includ- 45 ing inhalation; 46 8. Procedures for determining whether cannabinoid hemp, hemp extract 47 or ingredients, additives, or products derived therefrom produced 48 outside the state or within the state meet the standards and require- 49 ments of this article and can therefore be sold within the state; 50 9. Procedures for the granting, cancellation, revocation or suspension 51 of licenses, consistent with the state administrative procedures act; 52 10. Restrictions governing the advertising and marketing of cannabi- 53 noid hemp, hemp extract and products derived therefrom; and 54 11. Any other regulations necessary to implement this article. 55 § 92. Cannabinoid hemp processor license. 1. Persons processing canna- 56 binoid hemp or hemp extract used for human consumption, whether inS. 2509 86 A. 3009 1 intermediate or final form, shall be required to obtain a cannabinoid 2 hemp processor license from the office. 3 2. A cannabinoid hemp processor license authorizes one or more specif- 4 ic activities related to the processing of cannabinoid hemp into 5 products used for human consumption, whether in intermediate or final 6 form, and the distribution or sale thereof by the licensee. Nothing 7 herein shall prevent a cannabinoid hemp processor from processing, 8 extracting and processing hemp products not to be used for human 9 consumption. 10 3. Persons authorized to grow hemp pursuant to article twenty-nine of 11 the agriculture and markets law are not authorized to engage in process- 12 ing of cannabinoid hemp or hemp extract without first being licensed as 13 a cannabinoid hemp processor under this article. 14 4. This article shall not apply to hemp, cannabinoid hemp, hemp 15 extracts or products derived therefrom that are not used for human 16 consumption. This article also shall not apply to hemp, cannabinoid 17 hemp, hemp extracts or products derived therefrom that have been deemed 18 generally recognized as safe pursuant to federal law. 19 5. The executive director shall have the authority to set reasonable 20 fees for such license, to limit the activities permitted by such 21 license, to establish the period during which such license is author- 22 ized, which shall be two years or more. The board shall make rules and 23 regulations necessary to implement this section. 24 6. Any person holding an active research partnership agreement with 25 the department of agriculture and markets, authorizing that person to 26 process cannabinoid hemp, shall be awarded licensure under this section, 27 provided that the research partner is actively performing research 28 pursuant to such agreement and is able to demonstrate compliance with 29 this article, as determined by the office, after notice and an opportu- 30 nity to be heard. 31 § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi- 32 noid hemp, in final form to consumers within the state, shall be 33 required to obtain a cannabinoid hemp retailer license from the office. 34 2. The executive director shall have the authority to set reasonable 35 fees for such license, to establish the period during which such license 36 is authorized, which shall be one year or more. The board shall make 37 rules and regulations necessary to implement this section. 38 § 94. Cannabinoid license applications. 1. Persons shall apply for a 39 license under this article by submitting an application upon a form 40 supplied by the office, providing all the relevant requested informa- 41 tion, verified by the applicant or an authorized representative of the 42 applicant. 43 2. A separate license shall be required for each facility at which 44 processing or retail sales are conducted; however, an applicant may 45 submit one application for separate licensure at multiple locations. 46 3. Each applicant shall remit with its application the fee for each 47 requested license, which shall be a reasonable fee. 48 § 95. Information to be requested in applications for licenses. 1. The 49 executive director may specify the manner and form in which an applica- 50 tion shall be submitted to the office for licensure under this article. 51 2. The executive director shall prescribe what relevant information 52 shall be included on an application for licensure under this article. 53 Such information may include, but is not limited to: information about 54 the applicant's identity; ownership and investment information, includ- 55 ing the corporate structure; evidence of good moral character; financial 56 statements; information about the premises to be licensed; informationS. 2509 87 A. 3009 1 about the activities to be licensed; and any other relevant information 2 prescribed by the executive director. 3 3. All license applications shall be signed by the applicant if an 4 individual, by a managing partner if a limited liability company, by an 5 officer if a corporation, or by all partners if a partnership. Each 6 person signing such application shall verify it as true under the penal- 7 ties of perjury. 8 4. All license applications shall be accompanied by a check, draft or 9 other forms of payment as the office may require or authorize in the 10 reasonable amount required by this article for such license. 11 5. If there be any change, after the filing of the application or the 12 granting, modification or renewal of a license, in any of the material 13 facts required to be set forth in such application, a supplemental 14 statement giving notice of such change, duly verified, shall be filed 15 with the office within ten days after such change. Failure to do so, if 16 willful and deliberate, may be grounds for revocation of the license. 17 § 96. Fees. The office may charge licensees a reasonable license fee. 18 Such fee may be based on the activities permitted by the license, the 19 amount of cannabinoid hemp or hemp extract to be processed or extracted 20 by the licensee, the gross annual receipts of the licensee for the 21 previous license period, or any other factors reasonably deemed appro- 22 priate by the office. 23 § 97. Selection criteria. 1. The applicant, if an individual or indi- 24 viduals, shall furnish evidence of the individual's good moral charac- 25 ter, and if an entity, the applicant shall furnish evidence of the good 26 moral character of the individuals who have or will have substantial 27 responsibility for the licensed or authorized activity and those in 28 control of the entity, including principals, officers, or others with 29 such control. 30 2. The applicant shall furnish evidence of the applicant's experience 31 and competency, and that the applicant has or will have adequate facili- 32 ties, equipment, process controls, and security to undertake those 33 activities for which licensure is sought. 34 3. The applicant shall furnish evidence of his, her or its ability to 35 comply with all applicable state and local laws, rules and regulations. 36 4. If the executive director is not satisfied that the applicant 37 should be issued a license, the executive director shall notify the 38 applicant in writing of the specific reason or reasons for denial. 39 5. No license pursuant to this article may be issued to an individual 40 under the age of eighteen years. 41 § 98. License renewal. 1. Each license, issued pursuant to this arti- 42 cle, may be renewed upon application therefor by the licensee and the 43 payment of the reasonable fee for such license as specified by this 44 article. 45 2. In the case of applications for renewals, the office may dispense 46 with the requirements of such statements as it deems unnecessary in view 47 of those contained in the application made for the original license. 48 3. The office shall provide an application for renewal of any license 49 issued under this article not less than ninety days prior to the expira- 50 tion of the current license. 51 4. The office may only issue a renewal license upon receipt of the 52 specified renewal application and renewal fee from a licensee if, in 53 addition to the selection criteria set out in this article, the 54 licensee's license is not under suspension and has not been revoked. 55 § 99. Form of license. Licenses issued pursuant to this article shall 56 specify:S. 2509 88 A. 3009 1 1. The name and address of the licensee; 2 2. The activities permitted by the license; 3 3. The land, buildings and facilities that may be used for the 4 licensed activities of the licensee; 5 4. A unique license number issued by the office to the licensee; and 6 5. Such other information as the office shall deem necessary to assure 7 compliance with this chapter. 8 § 100. Transferability; amendment to license; change in ownership or 9 control. 1. Licenses issued under this article are not transferable, 10 absent written consent of the office. 11 2. Upon application of a licensee, a license may be amended to add or 12 delete permitted activities. 13 3. A license shall become void by a change in ownership, substantial 14 corporate change or change of location without prior written approval of 15 the office. The board may make regulations allowing for certain types of 16 changes in ownership without the need for prior written approval. 17 § 101. Granting, suspending or revoking licenses. After due notice and 18 an opportunity to be heard, which process shall be established by rules 19 and regulations, the office may decline to grant a new license, impose 20 conditions or limits with respect to the grant of a license, modify an 21 existing license or decline to renew a license, and may suspend or 22 revoke a license already granted after due notice and an opportunity to 23 be heard, as established by rules and regulations, whenever the execu- 24 tive director finds that: 25 1. A material statement contained in an application is or was false or 26 misleading; 27 2. The applicant or licensee, or a person in a position of management 28 and control thereof or of the licensed activity, does not have good 29 moral character, necessary experience or competency, adequate facili- 30 ties, equipment, process controls, or security to process, distribute, 31 transport or sell cannabinoid hemp, hemp extract or products derived 32 therefrom; 33 3. After appropriate notice and opportunity, the applicant or licensee 34 has failed or refused to produce any records or provide any information 35 required by this article or the regulations promulgated pursuant there- 36 to; 37 4. The licensee has conducted activities outside of those activities 38 permitted on its license; or 39 5. The applicant or licensee, or any officer, director, partner, or 40 any other person exercising any position of management or control there- 41 of or of the licensed activity has willfully failed to comply with any 42 of the provisions of this article or regulations under it and other laws 43 of this state applicable to the licensed activity. 44 § 102. Record keeping and tracking. Every licensee shall keep, in such 45 form as the executive director may direct, such relevant records as may 46 be required pursuant to regulations under this article. 47 § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1. 48 Cannabinoid hemp processors shall be required to provide appropriate 49 label warning to consumers, and restricted from making unapproved label 50 claims, as determined by the office, concerning the potential impact on 51 or benefit to human health resulting from the use of cannabinoid hemp, 52 hemp extract and products derived therefrom for human consumption, which 53 labels shall be affixed to those products when sold, pursuant to rules 54 and regulations that the board may adopt. 55 2. The board may, by rules and regulations, require processors to 56 establish a code, including, but not limited to QR code, for labels andS. 2509 89 A. 3009 1 establish methods and procedures for determining, among other things, 2 serving sizes or dosages for cannabinoid hemp, hemp extract and products 3 derived therefrom, active cannabinoid concentration per serving size, 4 number of servings per container, and the growing region, state or coun- 5 try of origin if not from the United States. Such rules and regulations 6 may require an appropriate fact panel that incorporates data regarding 7 serving sizes and potency thereof. 8 3. The packaging, sale, or possession of products derived from canna- 9 binoid hemp or hemp extract used for human consumption not labeled or 10 offered in conformity with regulations under this section shall be 11 grounds for the seizure or quarantine of the product, the imposition of 12 a civil penalty against a processor or retailer, and the suspension, 13 revocation or suspension of a license, in accordance with this article. 14 § 104. Processing of cannabinoid hemp and hemp extract. 1. No process- 15 or shall sell or agree to sell or deliver in the state any cannabinoid 16 hemp, hemp extract or product derived therefrom, used for human consump- 17 tion, except in sealed containers containing quantities in accordance 18 with size standards pursuant to rules adopted by the office. Such 19 containers shall have affixed thereto such labels as may be required by 20 the rules of the office. 21 2. Processors shall take such steps necessary to ensure that the 22 cannabinoid hemp or hemp extract used in their processing operation has 23 only been grown with pesticides that are registered by the department of 24 environmental conservation or that specifically meet the United States 25 environmental protection agency registration exemption criteria for 26 minimum risk, used in compliance with rules, regulations, standards and 27 guidelines issued by the department of environmental conservation for 28 pesticides. 29 3. All cannabinoid hemp, hemp extract and products derived therefrom 30 used for human consumption shall be extracted and processed in accord- 31 ance with good manufacturing processes for the product category pursuant 32 to Part 117 or Part 111 of title 21 of the code of federal regulations, 33 as may be defined, modified and decided upon by the office, provided 34 that such rules shall be in conformity to the extent practicable with 35 neighboring states. 36 4. As necessary to protect human health, the office shall have the 37 authority to: (a) regulate and prohibit specific ingredients, excipients 38 or methods used in processing cannabinoid hemp, hemp extract and 39 products derived therefrom; and (b) prohibit, or expressly allow, 40 certain products or product classes derived from cannabinoid hemp or 41 hemp extract, to be processed. 42 § 105. Laboratory testing. Every cannabinoid hemp processor shall 43 contract with an independent commercial laboratory to test the hemp 44 extract and products produced by the licensed processor. The executive 45 director, in consultation with the commissioner of the department of 46 health, shall establish the necessary qualifications or certifications 47 required for such laboratories used by licensees. The board is author- 48 ized to issue rules and regulations consistent with this article estab- 49 lishing the testing required, the reporting of testing results and the 50 form for reporting such laboratory testing results. The office has 51 authority to require licensees to submit any cannabinoid hemp, hemp 52 extract or product derived therefrom, processed or offered for sale 53 within the state, for testing. This section shall not obligate the 54 office, in any way, to perform any testing on hemp, cannabinoid hemp, 55 hemp extract or product derived therefrom. The office shall be author-S. 2509 90 A. 3009 1 ized to establish consortia or cooperative agreements with neighboring 2 states to effectuate this section. 3 § 106. New York hemp product. The office may establish and adopt offi- 4 cial grades and standards for cannabinoid hemp, hemp extract and 5 products derived therefrom, as he or she may deem advisable, which are 6 produced for sale in this state and, from time to time, may amend or 7 modify such grades and standards. 8 § 107. Penalties. Notwithstanding the provision of any law to the 9 contrary, the failure to comply with a requirement of this article, or a 10 regulation thereunder, may be punishable by a civil penalty of not more 11 than one thousand dollars for a first violation; not more than five 12 thousand dollars for a second violation within three years; and not more 13 than ten thousand dollars for a third violation and each subsequent 14 violation thereafter, within three years. 15 § 108. Hemp workgroup. The executive director, in consultation with 16 the commissioner of the department of agriculture and markets and the 17 commissioner of health, may appoint a New York state hemp and hemp 18 extract workgroup, composed of growers, researchers, producers, process- 19 ors, manufacturers and trade associations, to make recommendations for 20 the industrial hemp and cannabinoid hemp programs, state, regional, and 21 federal policies and policy initiatives, and opportunities for the 22 promotion and marketing of cannabinoid hemp and hemp extract as consist- 23 ent with federal and state laws, rules and regulations. 24 § 109. Prohibitions. 1. Except as authorized by the United States food 25 and drug administration, the processing of cannabinoid hemp or hemp 26 extract used for human consumption is prohibited within the state unless 27 the processor is licensed under this article. 28 2. Cannabinoid hemp and hemp extracts used for human consumption and 29 grown or processed outside the state shall not be distributed or sold at 30 retail within the state, unless they meet all standards established for 31 cannabinoid hemp under state law and regulations. 32 3. The retail sale of cannabinoid hemp is prohibited in this state 33 unless the retailer is licensed under this article. 34 § 110. Special use permits. The office shall have the authority to 35 issue temporary permits for carrying on any activity related to cannabi- 36 noid hemp, hemp extract and products derived therefrom, licensed under 37 this article. The executive director may set reasonable fees for such 38 permits and to establish the periods during which such permits are 39 valid. The board shall make rules and regulations to implement this 40 section. 41 § 111. Severability. If any provision of this article or the applica- 42 tion thereof to any person or circumstances is held invalid, such inva- 43 lidity shall not affect other provisions or applications of this article 44 which can be given effect without the invalid provision or application, 45 and to this end the provisions of this article are declared to be sever- 46 able. 47 ARTICLE 6 48 GENERAL PROVISIONS 49 Section 125. General prohibitions and restrictions. 50 126. License to be confined to premises licensed; premises for 51 which no license shall be granted; transporting cannabis. 52 127. Protections for the use of cannabis; unlawful discrimi- 53 nations prohibited. 54 128. Registrations and licenses. 55 129. Laboratory testing permit.S. 2509 91 A. 3009 1 130. Special use permits. 2 132. Municipal control and preemption. 3 133. Office to be necessary party to certain proceedings. 4 134. Penalties for violation of this chapter. 5 135. Revocation of registrations, licenses and permits for 6 cause; procedure for revocation or cancellation. 7 136. Lawful actions pursuant to this chapter. 8 137. Review by courts. 9 138. Illicit cannabis. 10 139. Injunction for unlawful manufacturing, sale, distribution, 11 or consumption of cannabis. 12 140. Persons forbidden to traffic cannabis; certain officials 13 not to be interested in manufacture or sale of cannabis 14 products. 15 141. Access to criminal history information through the division 16 of criminal justice services. 17 § 125. General prohibitions and restrictions. 1. No person shall 18 cultivate, process, or distribute for sale or sell at wholesale or 19 retail any cannabis, adult-use cannabis product, medical cannabis or 20 cannabinoid hemp within the state without obtaining the appropriate 21 registration, license, or permit therefor required by this chapter. 22 2. No registered organization, licensee, or permittee shall sell, or 23 agree to sell or deliver in this state any cannabis or cannabinoid hemp 24 for the purposes of resale to any person who is not duly registered, 25 licensed or permitted pursuant to this chapter to sell such product, at 26 wholesale or retail, as the case may be, at the time of such agreement 27 and sale. 28 3. No registered organization, licensee, or permittee shall employ, or 29 permit to be employed, or shall allow to work, on any premises regis- 30 tered or licensed for retail sale hereunder, any person under the age of 31 eighteen years in any capacity where the duties of such person require 32 or permit such person to sell, dispense or handle cannabis. 33 4. No registered organization, licensee, or permittee shall sell, 34 deliver or give away, or cause, permit or procure to be sold, delivered 35 or given away any adult-use cannabis, cannabis product, medical cannabis 36 or cannabinoid hemp on credit unless authorized by the executive direc- 37 tor; except that a registered organization, licensee or permittee may 38 accept third party credit cards for the sale of any cannabis, cannabis 39 product, medical cannabis or cannabinoid hemp for which it is regis- 40 tered, licensed or permitted to dispense or sell to patients or cannabis 41 consumers. This includes, but is not limited to, any consignment sale of 42 any kind. 43 5. No registered organization, licensee, or permittee shall cease to 44 be operated as a bona fide or legitimate premises within the contem- 45 plation of the registration, license, or permit issued for such prem- 46 ises, as determined within the judgment of the office. 47 6. No registered organization, licensee, or permittee shall refuse, 48 nor any person holding a registration, license, or permit refuse, nor 49 any officer or director of any corporation or organization holding a 50 registration, license, or permit refuse, to appear and/or testify under 51 oath at an inquiry or hearing held by the office, with respect to any 52 matter bearing upon the registration, license, or permit, the conduct of 53 any people at the licensed premises, or bearing upon the character or 54 fitness of such registrant, licensee, or permittee to continue to hold 55 any registration, license, or permit. Nor shall any of the above offer 56 false testimony under oath at such inquiry or hearing.S. 2509 92 A. 3009 1 7. No registered organization, licensee, or permittee shall engage, 2 participate in, or aid or abet any violation or provision of this chap- 3 ter, or the rules or regulations of the office or board. 4 8. The proper conduct of registered, licensed, or permitted premises 5 is essential to the public interest. Failure of a registered organiza- 6 tion, licensee, or permittee to exercise adequate supervision over the 7 registered, licensed, or permitted location poses a substantial risk not 8 only to the objectives of this chapter but imperils the health, safety, 9 and welfare of the people of this state. It shall be the obligation of 10 each person registered, licensed, or permitted under this chapter to 11 ensure that a high degree of supervision is exercised over any and all 12 conduct at any registered, licensed, or permitted location at any and 13 all times in order to safeguard against abuses of the privilege of being 14 registered, licensed, or permitted, as well as other violations of law, 15 statute, rule, or regulation. Persons registered, licensed, or permitted 16 shall be held strictly accountable for any and all violations that occur 17 upon any registered, licensed, or permitted premises, and for any and 18 all violations committed by or permitted by any manager, agent or 19 employee of such registered, licensed, or permitted person. 20 9. It shall be unlawful for any person, partnership or corporation 21 operating a place for profit or pecuniary gain, with a capacity for the 22 assemblage of twenty or more persons to permit a person or persons to 23 come to the place of assembly for the purpose of cultivating, process- 24 ing, distributing, or retail distribution or sale of cannabis on said 25 premises. This includes, but is not limited, to, cannabis that is either 26 provided by the operator of the place of assembly, his agents, servants 27 or employees, or cannabis that is brought onto said premises by the 28 person or persons assembling at such place, unless an appropriate regis- 29 tration, license, or permit has first been obtained from the office of 30 cannabis management by the operator of said place of assembly. 31 10. As it is a privilege under the law to be registered, licensed, or 32 permitted to cultivate, process, distribute, traffic, or sell cannabis, 33 the office may impose any such further restrictions upon any registrant, 34 licensee, or permittee in particular instances as it deems necessary to 35 further state policy and best serve the public interest. A violation or 36 failure of any person registered, licensed, or permitted to comply with 37 any condition, stipulation, or agreement, upon which any registration, 38 license, or permit was issued or renewed by the office shall subject the 39 registrant, licensee, or permittee to suspension, cancellation, revoca- 40 tion, and/or civil penalties as determined by the office. 41 11. No adult-use cannabis or medical cannabis may be imported to, or 42 exported out of, New York state by a registered organization, licensee 43 or person holding a license and/or permit pursuant to this chapter, 44 until such time as it may become legal to do so under federal law and 45 the board has promulgated regulations for the minimum requirements of 46 such activities. Should it become legal to do so under federal law, the 47 board shall have the authority to promulgate rules and regulations to 48 protect the public and the policy of the state. 49 12. No registered organization, licensee or any of its agents, serv- 50 ants or employees shall peddle any cannabis product, medical cannabis or 51 cannabinoid hemp from house to house by means of a truck or otherwise, 52 where the sale is consummated and delivery made concurrently at the 53 residence or place of business of a cannabis consumer. The office may 54 establish regulations to enforce this subdivision. This subdivision 55 shall not prohibit the delivery by a registered organization to certi-S. 2509 93 A. 3009 1 fied patients or their designated caregivers, pursuant to article three 2 of this chapter. 3 13. No licensee shall employ any canvasser or solicitor for the 4 purpose of receiving an order from a certified patient, designated care- 5 giver or cannabis consumer for any cannabis product, medical cannabis or 6 cannabinoid hemp at the residence or place of business of such patient, 7 caregiver or consumer, nor shall any licensee receive or accept any 8 order, for the sale of any cannabis product, medical cannabis or canna- 9 binoid hemp which shall be solicited at the residence or place of busi- 10 ness of a patient, caregiver or consumer. This subdivision shall not 11 prohibit the solicitation by a distributor of an order from any licensee 12 at the licensed premises of such licensee. 13 14. No premises registered, licensed, or permitted by the office 14 shall: 15 (a) permit or allow any gambling on the premises; 16 (b) permit or allow the premises to become disorderly; 17 (c) permit or allow the use, by any person, of any fireworks or other 18 pyrotechnics on the premises; or 19 (d) permit or allow to appear as an entertainer, on any part of the 20 premises registered, licensed, or permitted, any person under the age of 21 eighteen years. 22 § 126. License to be confined to premises licensed; premises for which 23 no license shall be granted; transporting cannabis. 1. A registration, 24 license, or permit issued to any person, pursuant to this chapter, for 25 any registered, licensed, or permitted premises shall not be transfera- 26 ble to any other person, to any other location or premises, or to any 27 other building or part of the building containing the licensed premises 28 except in the discretion of the office. All privileges granted by any 29 registration, license, or permit shall be available only to the person 30 therein specified, and only for the premises licensed and no other 31 except if authorized by the office. Provided, however, that the 32 provisions of this section shall not be deemed to prohibit an applica- 33 tion or request for approval for a registration or license as provided 34 for in this chapter. A violation of this section shall subject the 35 registration, license, or permit to revocation for cause. 36 2. Where a registration or license for premises has been revoked, the 37 office in its discretion may refuse to accept an application from, or 38 issue a registration, license, or permit under this chapter to, any 39 individual, business, or entity connected to the revoked registration or 40 license, or for such premises or for any part of the building containing 41 such premises and connected therewith. 42 3. In determining whether to issue such a proscription against grant- 43 ing any registration, license, or permit for such five-year period, in 44 addition to any other factors deemed relevant to the office, the office 45 shall, in the case of a license revoked due to the illegal sale of 46 cannabis to a minor, determine whether the proposed subsequent licensee 47 has obtained such premises through an arm's length transaction, and, if 48 such transaction is not found to be an arm's length transaction, the 49 office shall deny the issuance of such license. 50 4. For purposes of this section, "arm's length transaction" shall mean 51 a sale of a fee of all undivided interests in real property, lease, 52 management agreement, or other agreement giving the applicant control 53 over the cannabis at the premises, or any part thereof, in the open 54 market, between an informed and willing buyer and seller where neither 55 is under any compulsion to participate in the transaction, unaffected by 56 any unusual conditions indicating a reasonable possibility that the saleS. 2509 94 A. 3009 1 was made for the purpose of permitting the original licensee to avoid 2 the effect of the revocation. The following sales shall be presumed not 3 to be arm's length transactions unless adequate documentation is 4 provided demonstrating that the sale, lease, management agreement, or 5 other agreement giving the applicant control over the cannabis at the 6 premises, was not conducted, in whole or in part, for the purpose of 7 permitting the original licensee to avoid the effect of the revocation: 8 (a) a sale between relatives; 9 (b) a sale between related companies or partners in a business; or 10 (c) a sale, lease, management agreement, or other agreement giving the 11 applicant control over the cannabis at the premises, affected by other 12 facts or circumstances that would indicate that the sale, lease, manage- 13 ment agreement, or other agreement giving the applicant control over the 14 cannabis at the premises, is entered into for the primary purpose of 15 permitting the original licensee to avoid the effect of the revocation. 16 5. No registered organization, licensee or permittee shall transport 17 cannabis products or medical cannabis except in vehicles owned and oper- 18 ated by such registered organization, licensee or permittee, or hired 19 and operated by such registered organization, licensee or permittee from 20 a trucking or transportation company permitted and registered with the 21 office. 22 6. No common carrier or person operating a transportation facility in 23 this state, other than the United States government, shall receive for 24 transportation or delivery within the state any cannabis products or 25 medical cannabis unless registered, licensed or permitted pursuant to 26 this chapter and the shipment is accompanied by copy of a bill of 27 lading, or other document, showing the name and address of the consig- 28 nor, the name and address of the consignee, the date of the shipment, 29 and the quantity and kind of cannabis products or medical cannabis 30 contained therein. 31 § 127. Protections for the use of cannabis; unlawful discriminations 32 prohibited. 1. No person, registered organization, licensee or permit- 33 tee, or agent or contractor of a registered organization, licensee or 34 permittee shall be subject to arrest, prosecution, or penalty in any 35 manner, or denied any right or privilege, including but not limited to 36 civil liability or disciplinary action by a business or occupational or 37 professional licensing board or office, solely for conduct permitted 38 under this chapter. For the avoidance of doubt, the appellate division 39 of the supreme court of the state of New York, and any disciplinary or 40 character and fitness committees established by them are occupational 41 and professional licensing boards within the meaning of this section. 42 State or local law enforcement agencies shall not cooperate with or 43 provide assistance to the government of the United States or any agency 44 thereof in enforcing the federal controlled substances act, 21 U.S.C. et 45 seq., solely for actions consistent with this chapter, except pursuant 46 to an order of a court of competent jurisdiction. 47 2. No school or landlord may refuse to enroll or lease to and may not 48 otherwise penalize a person solely for conduct allowed under this chap- 49 ter, except as exempted: 50 (a) if failing to do so would cause the school or landlord to lose a 51 monetary or licensing related benefit under federal law or regulations; 52 (b) if the institution has adopted a code of conduct prohibiting 53 cannabis use on the basis of religious belief; or 54 (c) if a property is registered with the New York smoke-free housing 55 registry, it is not required to permit the smoking of cannabis products 56 on its premises.S. 2509 95 A. 3009 1 3. For the purposes of medical care, including organ transplants, a 2 certified patient's authorized use of medical cannabis must be consid- 3 ered the equivalent of the use of any other medication under the direc- 4 tion of a practitioner and does not constitute the use of an illicit 5 substance or otherwise disqualify a registered qualifying patient from 6 medical care. 7 4. An employer may implement policies prohibiting the use or 8 possession of cannabis in accordance with section two hundred one-d of 9 the labor law, provided such policies are in writing as part of an 10 established workplace policy, uniformly applied to all employees, and 11 the employer gives prior written notice of such policies to employees. 12 5. An employer may take disciplinary or adverse employment action 13 against an employee, including termination of employment, for violating 14 an established workplace policy adopted under subdivision four of this 15 section, or if the results of a drug test administered in accordance 16 with applicable state and local law demonstrate that the employee was 17 impaired by or under the influence of cannabis while in the workplace or 18 during the performance of work. For the purposes of this subdivision, a 19 drug test that solely yields a positive result for cannabis metabolites 20 shall not be construed as proof that an employee is under the influence 21 of or impaired by cannabis unless the test yields a positive result for 22 active tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-8-tet- 23 rahydrocannabinol, or other active cannabinoid found in cannabis which 24 causes impairment. 25 6. Nothing in this chapter permits any person to undertake any task 26 under the influence of cannabis when doing so would constitute negli- 27 gence or professional malpractice, jeopardize workplace safety, or to 28 operate, navigate or be in actual physical control of any motor vehicle 29 or other transport vehicle, aircraft, motorboat, machinery or equipment, 30 or firearms under the influence of cannabis. 31 7. A person currently under parole, probation or other state super- 32 vision, or released on recognizance, non-monetary conditions, or bail 33 prior to being convicted, shall not be punished or otherwise penalized 34 for conduct allowed under this chapter unless the terms and conditions 35 of said parole, probation, or state supervision explicitly prohibit a 36 person's cannabis use or any other conduct otherwise allowed under this 37 chapter. A person's use of cannabis or conduct under this chapter shall 38 not be prohibited unless it has been shown by clear and convincing 39 evidence that the prohibition is reasonably related to the underlying 40 crime. Nothing in this provision shall restrict the rights of a certi- 41 fied medical patient. 42 § 128. Registrations and licenses. 1. No registration or license 43 shall be transferable or assignable except that notwithstanding any 44 other provision of law, the registration or license of a sole proprietor 45 converting to corporate form, where such proprietor becomes the sole 46 stockholder and only officer and director of such new corporation, may 47 be transferred to the subject corporation if all requirements of this 48 chapter remain the same with respect to such registration or license as 49 transferred and, further, the registered organization or licensee shall 50 transmit to the office, within ten days of the transfer of license 51 allowable under this subdivision, on a form prescribed by the office, 52 notification of the transfer of such license. 53 2. No registration, license or permit shall be pledged or deposited as 54 collateral security for any loan or upon any other condition; and any 55 such pledge or deposit, and any contract providing therefor, shall be 56 void.S. 2509 96 A. 3009 1 3. Licenses issued under this chapter shall contain, in addition to 2 any further information or material to be prescribed by the rules of the 3 office, the following information: 4 (a) name of the person to whom the license is issued; 5 (b) kind of license and what kind of traffic in cannabis is thereby 6 permitted; 7 (c) description by street and number, or otherwise, of licensed prem- 8 ises; and 9 (d) a statement in substance that such license shall not be deemed a 10 property or vested right, and that it may be revoked at any time pursu- 11 ant to law. 12 § 129. Laboratory testing permit. 1. The executive director, in 13 consultation with the commissioner of health, shall approve and permit 14 one or more independent cannabis testing laboratories to test medical 15 cannabis, adult-use cannabis and/or cannabinoid hemp. 16 2. To be permitted as an independent cannabis laboratory, a laboratory 17 must apply to the office, on a form and in a manner prescribed by the 18 office, which may include a permit fee and must demonstrate the follow- 19 ing to the satisfaction of the executive director: 20 (a) the owners and directors of the laboratory are of good moral char- 21 acter; 22 (b) the laboratory and its staff has the skills, resources and exper- 23 tise needed to accurately and consistently perform testing required for 24 adult-use cannabis, medical cannabis and/or cannabinoid hemp; 25 (c) the laboratory has in place and will maintain adequate policies, 26 procedures, and facility security to ensure proper: collection, label- 27 ing, accessioning, preparation, analysis, result reporting, disposal and 28 storage of adult-use cannabis, medical cannabis and/or cannabinoid hemp; 29 (d) the laboratory is physically located in New York state except as 30 authorized in regulation; and 31 (e) the laboratory meets the requirements prescribed by this chapter 32 and by regulation. 33 3. The owner of a laboratory testing permit under this section shall 34 not hold a registration or license in any category of this chapter and 35 shall not have any direct or indirect ownership interest in such regis- 36 tered organization or licensee. No board member, officer, manager, 37 owner, partner, principal stakeholder or member of a registered organ- 38 ization or licensee under this chapter, or such person's immediate fami- 39 ly member, shall have an interest or voting rights in any laboratory 40 testing permittee. 41 4. The office shall require that the permitted laboratory report test- 42 ing results to the office in a manner, form and timeframe as determined 43 by the executive director. 44 5. The board is authorized to promulgate regulations establishing 45 minimum operating and testing requirements, and requiring permitted 46 laboratories to perform certain tests and services. 47 6. The executive director is authorized to enter into contracts or 48 memoranda of understanding with any other state for the purposes of 49 aligning laboratory testing requirements or establishing best practices 50 in testing of cannabis. 51 § 130. Special use permits. The office is hereby authorized to issue 52 the following kinds of permits for carrying on activities consistent 53 with the policy and purpose of this chapter with respect to cannabis. 54 The executive director has the authority to set fees for all permits 55 issued pursuant to this section, to establish the periods during which 56 permits are authorized.S. 2509 97 A. 3009 1 1. Industrial cannabis permit - to purchase cannabis for use in the 2 manufacture and sale of any of the following, when such cannabis is not 3 otherwise suitable for consumption purposes, namely: (a) apparel, ener- 4 gy, paper, and tools; (b) scientific, chemical, mechanical and indus- 5 trial products; or (c) any other industrial use as determined by the 6 executive director. 7 2. Nursery permit - to produce clones, immature plants, seeds, and 8 other agricultural products used specifically for the planting, propa- 9 gation, and cultivation of cannabis, and to sell such to licensed 10 adult-use cultivators, registered organizations, and certified patients 11 or their designated caregivers. 12 3. Solicitor's permit - to offer for sale or to solicit orders for the 13 sale of any cannabis products and/or medical cannabis, as a represen- 14 tative of a registered organization or licensee under this chapter. 15 4. Broker's permit - to act as a broker in the purchase and sale of 16 cannabis products and/or medical cannabis for a fee or commission, for 17 or on behalf of a person authorized to cultivate, process, distribute or 18 dispense cannabis products, medical cannabis or cannabinoid hemp within 19 the state. 20 5. Trucking permit - to allow for the trucking or transportation of 21 cannabis products and/or medical cannabis by a person other than a 22 registered organization or licensee under this chapter. 23 6. Warehouse permit - to allow for the storage of cannabis, cannabis 24 products, or medical cannabis at a location not otherwise registered or 25 licensed by the office. 26 7. Temporary retail cannabis permit - to authorize the retail sale of 27 adult-use cannabis to cannabis consumers, for a limited purpose or dura- 28 tion. 29 8. Caterer's permit - to authorize the service of cannabis products at 30 a function, occasion or event in a hotel, restaurant, club, ballroom or 31 other premises, which shall authorize within the hours fixed by the 32 office, during which cannabis may lawfully be sold or served on the 33 premises in which such function, occasion or event is held. 34 9. Packaging permit - to authorize a licensed cannabis distributor to 35 sort, package, label and bundle cannabis products from one or more 36 registered organizations or licensed processors, on the premises of the 37 licensed cannabis distributor or at a warehouse for which a permit has 38 been issued under this section. 39 10. Miscellaneous permits - to purchase, receive or sell cannabis, 40 cannabis products or medical cannabis, or receipts, certificates, 41 contracts or other documents pertaining to cannabis, cannabis products, 42 or medical cannabis, or to provide specialized or certified ancillary 43 services to support the implementation and purpose of this chapter, in 44 cases not expressly provided for by this chapter, when in the judgment 45 of the office it would be appropriate and consistent with the policy and 46 purpose of this chapter. 47 § 132. Municipal control and preemption. 1. The provisions of article 48 four of this chapter, authorizing the cultivation, processing, distrib- 49 ution and sale of adult-use cannabis to cannabis consumers, shall not be 50 applicable to a county, or city having a population of one hundred thou- 51 sand or more residents, which on or before December thirty-first, two 52 thousand twenty-one, adopts a local law, ordinance or resolution by a 53 majority vote of its governing body, to completely prohibit the estab- 54 lishment of one or more types of licenses contained in article four of 55 this chapter, within the jurisdiction of such county or city. Any coun- 56 ty law, ordinance or resolution passed by a county pursuant to thisS. 2509 98 A. 3009 1 subdivision shall not apply to a city that has a population of one 2 hundred thousand or more residents and that is geographically located 3 within the county unless such a prohibition is also adopted by a majori- 4 ty vote of the city's governing body. No law, ordinance or resolution 5 may be adopted after January first, two thousand twenty-two, completely 6 prohibiting the establishment of one or more types of licenses contained 7 in article four of this chapter. 8 2. Except as provided for in subdivision one of this section, all 9 counties, towns, cities and villages are hereby preempted from adopting 10 any rule, ordinance, regulation or prohibition pertaining to the opera- 11 tion or licensure of registered organizations, adult-use cannabis 12 licenses or cannabinoid hemp licenses. However, counties, cities, towns 13 and villages, as applicable, may pass ordinances or regulations govern- 14 ing the hours of operation and location of licensed adult-use cannabis 15 retail dispensaries, provided such ordinances or regulations do not make 16 the operation of such licensed retail dispensaries unreasonably imprac- 17 ticable. 18 3. Local rules, ordinances, regulations or prohibitions enacted by a 19 county, city, town, or village shall not require an adult-use cannabis 20 applicant, licensee or permittee to enter into a community host agree- 21 ment or pay any consideration to the municipality other than reasonable 22 zoning and permitting fees. 23 4. Notwithstanding subdivision one of this section, adult-use canna- 24 bis, medical cannabis and cannabinoid hemp farming and farm operations, 25 on land located within an agricultural district, shall be deemed an 26 approved activity under the relevant county, city, town, or village land 27 use or zoning ordinances, rules, or regulations, inclusive of all neces- 28 sary ancillary farm operations as permitted by license pursuant to this 29 chapter. 30 § 133. Office to be necessary party to certain proceedings. The 31 office shall be made a party to all actions and proceedings affecting in 32 any manner the possession, ownership or transfer of a registration, 33 license or permit to operate within a municipality; to all injunction 34 proceedings; and to all other civil actions or proceedings which in any 35 manner affect the enjoyment of the privileges or the operation of the 36 restrictions provided for in this chapter. 37 § 134. Penalties for violation of this chapter. 1. Any person who 38 cultivates for sale or sells cannabis, cannabis products, medical canna- 39 bis or cannabinoid hemp without having an appropriate registration, 40 license or permit therefor, or whose registration, license, or permit 41 has been revoked, surrendered or cancelled, upon first conviction there- 42 of shall be guilty of a misdemeanor, punishable by a fine not more than 43 five thousand dollars per violation, per day, and upon second conviction 44 thereof shall be guilty of a class A misdemeanor punishable by a fine 45 not more than ten thousand dollars per violation, per day, or a sentence 46 of imprisonment not to exceed thirty days and upon all subsequent 47 convictions thereof shall be an E felony punishable by a fine not more 48 than twenty-five thousand dollars per violation, per day or a sentence 49 of imprisonment not to exceed one year. 50 2. Any registered organization or licensee, whose registration or 51 license has been suspended pursuant to the provisions of this chapter, 52 who sells cannabis, cannabis products, medical cannabis or cannabinoid 53 hemp during the suspension period, upon conviction thereof shall be 54 guilty of an A misdemeanor, punishable punished by a fine of not more 55 than five thousand dollars per violation, per day.S. 2509 99 A. 3009 1 3. Any person who shall make any false statement in the application 2 for or renewal of a registration, license or a permit under this chapter 3 shall be guilty of a misdemeanor, and upon conviction thereof shall be 4 punishable by a fine of not more than five thousand dollars. 5 4. Any violation by any person of any provision of this chapter for 6 which no punishment or penalty is otherwise provided shall be a misde- 7 meanor. 8 5. Nothing in this section shall prohibit the office from suspending, 9 revoking, or denying a license, permit, registration, or application in 10 addition to the penalties prescribed herein. 11 § 135. Revocation of registrations, licenses and permits for cause; 12 procedure for revocation or cancellation. 1. Any registration, license 13 or permit issued pursuant to this chapter may be revoked, cancelled, 14 suspended and/or subjected to the imposition of a civil penalty for 15 cause, and must be revoked for the following causes: 16 (a) the registered organization, licensee, permittee or his or her 17 agent or employee has sold any illegal cannabis on the premises regis- 18 tered, licensed or permitted; 19 (b) for transferring, assigning or hypothecating a registration, 20 license or permit without prior written approval of the office; 21 (c) for failing to follow testing requirements prescribed under this 22 chapter or falsifying testing results; 23 (d) for knowingly distributing cannabis products to persons under 24 twenty-one years of age; 25 (e) for diverting, inverting or trafficking in cannabis to or from an 26 illegal and unlicensed, registered, or permitted source in violation of 27 this chapter; or 28 (f) for any other violation established in regulation which poses an 29 imminent and substantial threat to public health, public safety, or the 30 integrity of the state's cannabis regulatory structure. 31 2. Notwithstanding the issuance of a registration, license or permit 32 by way of renewal, the office may revoke, cancel or suspend such regis- 33 tration, license or permit and/or may impose a civil penalty against any 34 holder of such registration, license or permit, as prescribed by this 35 section, for causes or violations occurring during a license period 36 which occurred prior to the issuance of such registration, license or 37 permit. 38 3. (a) As used in this section, the term "for cause" shall also 39 include the existence of a sustained and continuing pattern of miscon- 40 duct, failure to adequately prevent diversion or disorder on or about 41 the registered, licensed or permitted premises, or in the area in front 42 of or adjacent to the registered or licensed premises, or in any parking 43 lot provided by the registered organization or licensee for use by 44 registered organization or licensee's patrons, which, in the judgment of 45 the office, adversely affects or tends to affect the protection, health, 46 welfare, safety, or repose of the inhabitants of the area in which the 47 registered or licensed premises is located, or results in the licensed 48 premises becoming a focal point for police attention, or is offensive to 49 public decency. 50 (b) (i) As used in this section, the term "for cause" shall also 51 include deliberately misleading the authority: 52 (A) as to the nature and character of the business to be operated by 53 the registered organization, licensee or permittee; or 54 (B) by substantially altering the nature or character of such business 55 during the registration or licensing period without seeking appropriate 56 approvals from the office.S. 2509 100 A. 3009 1 (ii) As used in this subdivision, the term "substantially altering the 2 nature or character" of such business shall mean any significant alter- 3 ation in the scope of business activities conducted by a registered 4 organization, licensee or permittee that would require obtaining an 5 alternate form of registration, license or permit. 6 4. As used in this chapter, the existence of a sustained and continu- 7 ing pattern of misconduct, failure to adequately prevent diversion or 8 disorder on or about the premises may be presumed upon the third inci- 9 dent reported to the office by a law enforcement agency, or discovered 10 by the office during the course of any investigation, of misconduct, 11 diversion or disorder on or about the premises or related to the opera- 12 tion of the premises. 13 5. The denial, revocation, or suspension of any application, license, 14 permit, or registration issued to or submitted by a person, business, or 15 entity may also be grounds for the denial, suspension, or revocation of 16 any and all other licenses, permits, or registrations applied for by, or 17 issued to said person, business, or entity if the executive director 18 determines it necessary to protect public health and safety or that the 19 person, business, and/or entities involved no longer possess the good 20 moral character required to participate in the cannabis industry. 21 6. Any registration, license or permit issued by the office pursuant 22 to this chapter may be revoked, cancelled or suspended and/or be 23 subjected to the imposition of a monetary penalty in the manner 24 prescribed by this section. 25 7. The office may on its own initiative, or on complaint of any 26 person, institute proceedings to revoke, cancel or suspend any adult-use 27 cannabis retail dispensary license and may impose a civil penalty 28 against the licensee after a hearing at which the licensee shall be 29 given an opportunity to be heard. Such hearing shall be held in such 30 manner and upon such notice as may be prescribed by regulation. 31 8. All other registrations, licenses or permits issued under this 32 chapter may be revoked, cancelled, suspended and/or made subject to the 33 imposition of a civil penalty by the office after a hearing to be held 34 in such manner and upon such notice as may be prescribed in regulation 35 by the board. 36 9. Notwithstanding any other provision of this chapter, the office 37 may: (a) revoke or refuse to issue any class or type of license, permit, 38 or registration if it determines that failing to do so would conflict 39 with any federal law or guidance pertaining to regulatory, enforcement 40 and other systems that states, businesses, or other institutions may 41 implement to mitigate the potential for federal intervention or enforce- 42 ment. This provision shall not be construed to prohibit the overall 43 implementation and administration of this chapter on account of the 44 federal classification of marijuana or cannabis as a schedule I 45 substance or any other federal prohibitions or restrictions; and 46 (b) the board may adopt rules and regulations based on federal guid- 47 ance, provided those rules and regulations are designed to comply with 48 federal guidance and mitigate federal enforcement against the registra- 49 tions, licenses, or permits issued under this chapter, or the cannabis 50 industry as a whole. This may include regulations which permit the shar- 51 ing of licensee, registrant, or permit holder information with desig- 52 nated banking or financial institutions, provided these regulations are 53 designed to aid cannabis industry participants' access to banking and 54 financial services. 55 § 136. Lawful actions pursuant to this chapter. 1. Contracts related 56 to the operation of registered organizations, licenses and permits underS. 2509 101 A. 3009 1 this chapter shall be lawful and shall not be deemed unenforceable on 2 the basis that the actions permitted pursuant to the registration, 3 license or permit are prohibited by federal law. 4 2. The following actions are not unlawful as provided under this chap- 5 ter, shall not be an offense under any state or local law, and shall not 6 result in any civil fine, seizure, or forfeiture of assets against any 7 person acting in accordance with this chapter: 8 (a) Actions of a registered organization, licensee, or permittee, or 9 the employees or agents of such registered organization, licensee or 10 permittee, as permitted by this chapter and consistent with rules and 11 regulations of the office, pursuant to a valid registration, license or 12 permit issued by the office. 13 (b) Actions of those who allow property to be used by a registered 14 organization, licensee, or permittee, or the employees or agents of such 15 registered organization, licensee or permittee, as permitted by this 16 chapter and consistent with rules and regulations of the office, pursu- 17 ant to a valid registration, license or permit issued by the office. 18 (c) Actions of any person or entity, their employees, or their agents 19 providing a service to a registered organization, licensee, permittee or 20 a potential registered organization, licensee, or permittee, as permit- 21 ted by this chapter and consistent with rules and regulations of the 22 office, relating to the formation of a business. 23 (d) The purchase, possession, or consumption of cannabis, medical 24 cannabis and cannabinoid hemp, as permitted by this chapter and consist- 25 ent with rules and regulations of the office, obtained from a validly 26 registered, licensed or permitted retailer. 27 § 137. Review by courts. 1. The following actions by the office shall 28 be subject to review by the supreme court in the manner provided in 29 article seventy-eight of the civil practice law and rules: 30 (a) refusal by the office to issue a registration, license, or a 31 permit; 32 (b) the revocation, cancellation or suspension of a registration, 33 license, or permit by the office; 34 (c) the failure or refusal by the office to render a decision upon any 35 completed application for a license, registration or permit, or hearing 36 submitted to or held by the office within sixty days after such 37 submission of a completed application or hearing; 38 (d) the transfer by the office of a registration, license, or permit 39 to any other entity or premises, or refusal by the office to approve 40 such a transfer; and 41 (e) refusal to approve a corporate change in stockholders, stockhold- 42 ings, officers or directors. 43 2. No stay shall be granted pending the determination of such matter 44 except on notice to the office and only for a period of less than thirty 45 days. In no instance shall a stay be granted where the office has issued 46 a summary suspension of a registration, license, or permit for the 47 protection of the public health, safety, and welfare. 48 § 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any 49 cannabis product or medical cannabis owned, cultivated, distributed, 50 bought, sold, packaged, rectified, blended, treated, fortified, mixed, 51 processed, warehoused, possessed or transported, on which any tax 52 required to have been paid under any applicable state law has not been 53 paid; or any adult-use cannabis or medical cannabis product the form, 54 packaging, or content of which is not permitted by the office, as appli- 55 cable.S. 2509 102 A. 3009 1 2. Any person who shall knowingly possess or have under his or her 2 control any illicit cannabis is guilty of a misdemeanor. 3 3. Any person who shall knowingly barter or exchange with, or sell, 4 give or offer to sell or to give another any illicit cannabis is guilty 5 of a class A misdemeanor. 6 4. Any person who shall possess or have under his or her control or 7 transport any illicit cannabis with intent to barter or exchange with, 8 or to sell or give to another the same or any part thereof is guilty of 9 a class A misdemeanor. Such intent is presumptively established by proof 10 that the person knowingly possessed or had under his or her control one 11 or more ounces, or an equivalent amount as determined by the board in 12 regulation, of illicit cannabis. This presumption may be rebutted. 13 5. Any person who, being the owner, lessee, or occupant of any room, 14 shed, tenement, booth or building, float or vessel, or part thereof, 15 knowingly permits the same to be used for the cultivation, processing, 16 distribution, purchase, sale, warehousing, transportation, or storage of 17 any illicit cannabis, is guilty of a misdemeanor. 18 § 139. Injunction for unlawful manufacturing, sale, distribution, or 19 consumption of cannabis. 1. If any person shall engage or participate 20 or be about to engage or participate in the cultivation, production, 21 distribution, traffic, or sale of cannabis products, medical cannabis or 22 cannabinoid hemp in this state without obtaining the appropriate regis- 23 tration, license, or permit therefor, or shall traffic in cannabis 24 products, medical cannabis or cannabinoid hemp contrary to any provision 25 of this chapter, or otherwise unlawfully, or shall traffic in illicit 26 cannabis or, operating either a place for profit or pecuniary gain, or a 27 not-for-profit basis, with a capacity for the assemblage of twenty or 28 more persons, shall permit a person or persons to come to such place of 29 assembly for the purpose of consuming cannabis products without having 30 the appropriate license or permit therefor, the office may present a 31 verified petition or complaint to a justice of the supreme court at a 32 special term of the supreme court of the judicial district in which such 33 city, village or town is situated, for an order enjoining such person 34 engaging or participating in such activity or from carrying on such 35 business. Such petition or complaint shall state the facts upon which 36 such application is based. Upon the presentation of the petition or 37 complaint, the justice or court may grant an order temporarily restrain- 38 ing any person from continuing to engage in conduct as specified in the 39 petition or complaint, and shall grant an order requiring such person to 40 appear before such justice or court at or before a special term of the 41 supreme court in such judicial district on the day specified therein, 42 not more than ten days after the granting thereof, to show cause why 43 such person should not be permanently enjoined from engaging or partic- 44 ipating in such activity or from carrying on such business, or why such 45 person should not be enjoined from carrying on such business contrary to 46 the provisions of this chapter. A copy of such petition or complaint and 47 order shall be served upon the person, in the manner directed by such 48 order, not less than three days before the return day thereof. On the 49 day specified in such order, the justice or court before whom the same 50 is returnable shall hear the proofs of the parties and may, if deemed 51 necessary or proper, take testimony in relation to the allegations of 52 the petition or complaint. If the justice or court is satisfied that 53 such person is about to engage or participate in the unlawful traffic in 54 cannabis, medical cannabis or cannabinoid hemp or has unlawfully culti- 55 vated, processed, or sold cannabis products, medical cannabis or canna- 56 binoid hemp without having obtained a registration or license or contra-S. 2509 103 A. 3009 1 ry to the provisions of this chapter, or has trafficked in illicit 2 cannabis, or, is operating or is about to operate such place for profit 3 or pecuniary gain, with such capacity, and has permitted or is about to 4 permit a person or persons to come to such place of assembly for the 5 purpose of consuming cannabis products without having such appropriate 6 license, an order shall be granted enjoining such person from thereafter 7 engaging or participating in or carrying on such activity or business, 8 and allowing for the seizure of such illicit cannabis without limit. If, 9 after the entry of such an order in the county clerk's office of the 10 county in which the principal place of business of the corporation or 11 partnership is located, or in which the individual so enjoined resides 12 or conducts such business, and the service of a copy thereof upon such 13 person, or such substituted service as the court may direct, such 14 person, partnership or corporation shall, in violation of such order, 15 cultivate, process, distribute or sell cannabis products, medical canna- 16 bis or cannabinoid hemp, or illicit cannabis, or permit a person or 17 persons to come to such place of assembly for the purpose of consuming 18 cannabis products, such activity shall be deemed a contempt of court and 19 be punishable in the manner provided by the judiciary law, and, in addi- 20 tion to any such punishment, the justice or court before whom or which 21 the petition or complaint is heard, may, in his or its discretion, order 22 the seizure and forfeiture of any cannabis products and any fixtures, 23 equipment and supplies used in the operation or promotion of such ille- 24 gal activity and such property shall be subject to forfeiture pursuant 25 to law. Costs upon the application for such injunction may be awarded in 26 favor of and against the parties thereto in such sums as in the 27 discretion of the justice or court before whom or which the petition or 28 complaint is heard may seem proper. 29 2. The owner, lessor and lessee of a building, erection or place where 30 cannabis products, medical cannabis or cannabinoid hemp is unlawfully 31 cultivated, processed, distributed, sold, consumed or permitted to be 32 unlawfully cultivated, processed, distributed, sold or consumed may be 33 made a respondent or defendant in the proceeding or action. 34 3. The gift or transfer of cannabis in conjunction with the transfer 35 of any money, consideration or value, or another item or any other 36 services in an effort to evade laws, licensing, permitting, and regis- 37 tration requirements governing the sale of cannabis shall be considered 38 an unlawful activity under this chapter. 39 § 140. Persons forbidden to traffic cannabis; certain officials not to 40 be interested in manufacture or sale of cannabis products. 1. The 41 following are forbidden to traffic in cannabis: 42 (a) Except as provided in subdivision one-a of this section, a person 43 who has been convicted of a felony, unless subsequent to such conviction 44 such person shall have received an executive pardon therefor removing 45 this disability, a certificate of good conduct granted by the department 46 of corrections and community supervision, or a certificate of relief 47 from disabilities granted by the department of corrections and community 48 supervision or a court of this state pursuant to the provisions of arti- 49 cle twenty-three of the correction law to remove the disability under 50 this section because of such conviction; 51 (b) A person under the age of twenty-one years; 52 (c) A person who is not a citizen of the United States or an alien 53 lawfully admitted for permanent residence in the United States; 54 (d) A partnership or a corporation, unless each member of the partner- 55 ship, or each of the principal officers and directors of the corpo- 56 ration, is a citizen of the United States or an alien lawfully admittedS. 2509 104 A. 3009 1 for permanent residence in the United States, not less than twenty-one 2 years of age, and has not been convicted of any felony, or if so 3 convicted has received, subsequent to such conviction, an executive 4 pardon therefor removing this disability a certificate of good conduct 5 granted by the department of corrections and community supervision, or a 6 certificate of relief from disabilities granted by the department of 7 corrections and community supervision or a court of this state pursuant 8 to the provisions of article twenty-three of the correction law to 9 remove the disability under this section because of such conviction; 10 provided however that a corporation which otherwise conforms to the 11 requirements of this section and chapter may be licensed if each of its 12 principal officers and more than one-half of its directors are citizens 13 of the United States or aliens lawfully admitted for permanent residence 14 in the United States; and provided further that a corporation organized 15 under the not-for-profit corporation law or the education law which 16 otherwise conforms to the requirements of this section and chapter may 17 be licensed if each of its principal officers and more than one-half of 18 its directors are not less than twenty-one years of age and none of its 19 directors are less than eighteen years of age; and provided further that 20 a corporation organized under the not-for-profit corporation law or the 21 education law and located on the premises of a college as defined by 22 section two of the education law which otherwise conforms to the 23 requirements of this section and chapter may be licensed if each of its 24 principal officers and each of its directors are not less than twenty- 25 one years of age; 26 (e) A person who shall have had any registration or license issued 27 under this chapter revoked for cause, until no less than two years from 28 the date of such revocation; 29 (f) A person not registered or licensed under the provisions of this 30 chapter, who has been convicted of a violation of this chapter, until no 31 less than two years from the date of such conviction; or 32 (g) A corporation or partnership, if any officer and director or any 33 partner, while not licensed under the provisions of this chapter, has 34 been convicted of a violation of this chapter, or has had a registration 35 or license issued under this chapter revoked for cause, until no less 36 than two years from the date of such conviction or revocation. 37 1-a. Notwithstanding the provision of subdivision one of this section, 38 a corporation holding a registration or license to traffic cannabis 39 products or medical cannabis may, upon conviction of a felony be auto- 40 matically forbidden to traffic in cannabis products or medical cannabis, 41 and the application for a registered organization or license by such a 42 corporation may be subject to denial, and the registration or license of 43 such a corporation may be subject to revocation or suspension by the 44 office pursuant, consistent with the provisions of article 45 twenty-three-A of the correction law. For any felony conviction by a 46 court other than a court of this state, the office may request the 47 department of corrections and community supervision to investigate and 48 review the facts and circumstances concerning such a conviction, and 49 such department shall, if so requested, submit its findings to the 50 office as to whether the corporation has conducted itself in a manner 51 such that discretionary review by the office would not be inconsistent 52 with the public interest. The department of corrections and community 53 supervision may charge the registered organization, licensee or appli- 54 cant a fee equivalent to the expenses of an appropriate investigation 55 under this subdivision. For any conviction rendered by a court of this 56 state, the office may request the corporation, if the corporation isS. 2509 105 A. 3009 1 eligible for a certificate of relief from disabilities, to seek such a 2 certificate from the court which rendered the conviction and to submit 3 such a certificate as part of the office's discretionary review process. 4 2. Except as may otherwise be provided for in regulation, it shall be 5 unlawful for any police commissioner, police inspector, captain, 6 sergeant, roundsman, patrolman or other police official or subordinate 7 of any police department in the state, to be either directly or indi- 8 rectly interested in the cultivation, processing, distribution, or sale 9 of cannabis products or to offer for sale, or recommend to any regis- 10 tered organization or licensee any cannabis products. A person may not 11 be denied any registration or license granted under the provisions of 12 this chapter solely on the grounds of being the spouse of a public serv- 13 ant described in this section. The solicitation or recommendation made 14 to any registered organization or licensee, to purchase any cannabis 15 products by any police official or subordinate as hereinabove described, 16 shall be presumptive evidence of the interest of such official or subor- 17 dinate in the cultivation, processing, distribution, or sale of cannabis 18 products. 19 3. No elective village officer shall be subject to the limitations set 20 forth in subdivision two of this section unless such elective village 21 officer shall be assigned duties directly relating to the operation or 22 management of the police department or have direct authority over any 23 applicable local licensing requirements or approvals. 24 § 141. Access to criminal history information through the division of 25 criminal justice services. In connection with the administration of 26 this chapter, the office is authorized to request, receive and review 27 criminal history information through the division of criminal justice 28 services with respect to any person seeking a registration, license, 29 permit or authorization to cultivate, process, distribute or sell 30 medical cannabis or adult-use cannabis. At the office's request, each 31 person, member, principal and/or officer of the applicant shall submit 32 to the office his or her fingerprints in such form and in such manner as 33 specified by the division, for the purpose of conducting a criminal 34 history search and returning a report thereon in accordance with the 35 procedures and requirements established by the division pursuant to the 36 provisions of article thirty-five of the executive law, which shall 37 include the payment of the prescribed processing fees for the cost of 38 the division's full search and retain procedures and a national criminal 39 history record check. The executive director, or his or her designee, 40 shall submit such fingerprints and the processing fee to the division. 41 The division shall forward to the office a report with respect to the 42 applicant's previous criminal history, if any, or a statement that the 43 applicant has no previous criminal history according to its files. Fing- 44 erprints submitted to the division pursuant to this subdivision may also 45 be submitted to the federal bureau of investigation for a national crim- 46 inal history record check. If additional copies of fingerprints are 47 required, the applicant shall furnish them upon request. 48 § 3. Intentionally omitted. 49 § 4. Section 3302 of the public health law, as added by chapter 878 of 50 the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and 51 subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24, 25, 52 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, 53 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 54 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of 55 subdivision 20, the opening paragraph of subdivision 22 and subdivision 56 29 as amended by chapter 163 of the laws of 1973, subdivision 21 asS. 2509 106 A. 3009 1 amended by chapter 1 of the laws of 2020, subdivision 31 as amended by 2 section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as 3 added by section 6 of part A of chapter 447 of the laws of 2012, and 4 subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of 5 the laws of 2014, is amended to read as follows: 6 § 3302. Definitions of terms of general use in this article. Except 7 where different meanings are expressly specified in subsequent 8 provisions of this article, the following terms have the following mean- 9 ings: 10 1. "Addict" means a person who habitually uses a controlled substance 11 for a non-legitimate or unlawful use, and who by reason of such use is 12 dependent thereon. 13 2. "Administer" means the direct application of a controlled 14 substance, whether by injection, inhalation, ingestion, or any other 15 means, to the body of a patient or research subject. 16 3. "Agent" means an authorized person who acts on behalf of or at the 17 direction of a manufacturer, distributor, or dispenser. No person may be 18 authorized to so act if under title VIII of the education law such 19 person would not be permitted to engage in such conduct. It does not 20 include a common or contract carrier, public warehouseman, or employee 21 of the carrier or warehouseman when acting in the usual and lawful 22 course of the carrier's or warehouseman's business. 23 4. ["Concentrated Cannabis" means24(a) the separated resin, whether crude or purified, obtained from a25plant of the genus Cannabis; or26(b) a material, preparation, mixture, compound or other substance27which contains more than two and one-half percent by weight of delta-928tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering29system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-30terpene numbering system.315.] "Controlled substance" means a substance or substances listed in 32 section thirty-three hundred six of this [chapter] title. 33 [6.] 5. "Commissioner" means commissioner of health of the state of 34 New York. 35 [7.] 6. "Deliver" or "delivery" means the actual, constructive or 36 attempted transfer from one person to another of a controlled substance, 37 whether or not there is an agency relationship. 38 [8.] 7. "Department" means the department of health of the state of 39 New York. 40 [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- 41 mate user or research subject by lawful means, including by means of the 42 internet, and includes the packaging, labeling, or compounding necessary 43 to prepare the substance for such delivery. 44 [10.] 9. "Distribute" means to deliver a controlled substance, includ- 45 ing by means of the internet, other than by administering or dispensing. 46 [11.] 10. "Distributor" means a person who distributes a controlled 47 substance. 48 [12.] 11. "Diversion" means manufacture, possession, delivery or use 49 of a controlled substance by a person or in a manner not specifically 50 authorized by law. 51 [13.] 12. "Drug" means 52 (a) substances recognized as drugs in the official United States Phar- 53 macopoeia, official Homeopathic Pharmacopoeia of the United States, or 54 official National Formulary, or any supplement to any of them; 55 (b) substances intended for use in the diagnosis, cure, mitigation, 56 treatment, or prevention of disease in man or animals; andS. 2509 107 A. 3009 1 (c) substances (other than food) intended to affect the structure or a 2 function of the body of man or animal. It does not include devices or 3 their components, parts, or accessories. 4 [14.] 13. "Federal agency" means the Drug Enforcement Administration, 5 United States Department of Justice, or its successor agency. 6 [15.] 14. "Federal controlled substances act" means the Comprehensive 7 Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and 8 any act or acts amendatory or supplemental thereto or regulations 9 promulgated thereunder. 10 [16.] 15. "Federal registration number" means such number assigned by 11 the Federal agency to any person authorized to manufacture, distribute, 12 sell, dispense or administer controlled substances. 13 [17.] 16. "Habitual user" means any person who is, or by reason of 14 repeated use of any controlled substance for non-legitimate or unlawful 15 use is in danger of becoming, dependent upon such substance. 16 [18.] 17. "Institutional dispenser" means a hospital, veterinary 17 hospital, clinic, dispensary, maternity home, nursing home, mental 18 hospital or similar facility approved and certified by the department as 19 authorized to obtain controlled substances by distribution and to 20 dispense and administer such substances pursuant to the order of a prac- 21 titioner. 22 [19.] 18. "License" means a written authorization issued by the 23 department or the New York state department of education permitting 24 persons to engage in a specified activity with respect to controlled 25 substances. 26 [20.] 19. "Manufacture" means the production, preparation, propa- 27 gation, compounding, cultivation, conversion or processing of a 28 controlled substance, either directly or indirectly or by extraction 29 from substances of natural origin, or independently by means of chemical 30 synthesis, or by a combination of extraction and chemical synthesis, and 31 includes any packaging or repackaging of the substance or labeling or 32 relabeling of its container, except that this term does not include the 33 preparation, compounding, packaging or labeling of a controlled 34 substance: 35 (a) by a practitioner as an incident to his or her administering or 36 dispensing of a controlled substance in the course of his professional 37 practice; or 38 (b) by a practitioner, or by his or her authorized agent under his or 39 her supervision, for the purpose of, or as an incident to, research, 40 teaching, or chemical analysis and not for sale; or 41 (c) by a pharmacist as an incident to his or her dispensing of a 42 controlled substance in the course of his or her professional practice. 43 [21. "Marihuana" means all parts of the plant of the genus Cannabis,44whether growing or not; the seeds thereof; the resin extracted from any45part of the plant; and every compound, manufacture, salt, derivative,46mixture, or preparation of the plant, its seeds or resin. The term47"marihuana" shall not include:48(a) the mature stalks of the plant, fiber produced from the stalks,49oil or cake made from the seeds of the plant, any other compound, manu-50facture, salt, derivative, mixture, or preparation of the mature stalks51(except the resin extracted therefrom), fiber, oil, or cake, or the52sterilized seed of the plant which is incapable of germination;53(b) hemp, as defined in subdivision one of section five hundred five54of the agriculture and markets law;55(c) cannabinoid hemp as defined in subdivision two of section thirty-56three hundred ninety-eight of this chapter; orS. 2509 108 A. 3009 1(d) hemp extract as defined in subdivision five of section thirty-2three hundred ninety-eight of this chapter.322.] 20. "Narcotic drug" means any of the following, whether produced 4 directly or indirectly by extraction from substances of vegetable 5 origin, or independently by means of chemical synthesis, or by a combi- 6 nation of extraction and chemical synthesis: 7 (a) opium and opiate, and any salt, compound, derivative, or prepara- 8 tion of opium or opiate; 9 (b) any salt, compound, isomer, derivative, or preparation thereof 10 which is chemically equivalent or identical with any of the substances 11 referred to in [subdivision] paragraph (a) of this subdivision, but not 12 including the isoquinoline alkaloids of opium; 13 (c) opium poppy and poppy straw. 14 [23.] 21. "Opiate" means any substance having an addiction-forming or 15 addiction-sustaining liability similar to morphine or being capable of 16 conversion into a drug having addiction-forming or addiction-sustaining 17 liability. It does not include, unless specifically designated as 18 controlled under section [3306] thirty-three hundred six of this [arti-19cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and 20 its salts (dextromethorphan). It does include its racemic and levorota- 21 tory forms. 22 [24.] 22. "Opium poppy" means the plant of the species Papaver 23 somniferum L., except its seeds. 24 [25.] 23. "Person" means individual, institution, corporation, govern- 25 ment or governmental subdivision or agency, business trust, estate, 26 trust, partnership or association, or any other legal entity. 27 [26.] 24. "Pharmacist" means any person licensed by the state depart- 28 ment of education to practice pharmacy. 29 [27.] 25. "Pharmacy" means any place registered as such by the New 30 York state board of pharmacy and registered with the Federal agency 31 pursuant to the federal controlled substances act. 32 [28.] 26. "Poppy straw" means all parts, except the seeds, of the 33 opium poppy, after mowing. 34 [29.] 27. "Practitioner" means: 35 A physician, dentist, podiatrist, veterinarian, scientific investi- 36 gator, or other person licensed, or otherwise permitted to dispense, 37 administer or conduct research with respect to a controlled substance in 38 the course of a licensed professional practice or research licensed 39 pursuant to this article. Such person shall be deemed a "practitioner" 40 only as to such substances, or conduct relating to such substances, as 41 is permitted by his license, permit or otherwise permitted by law. 42 [30.] 28. "Prescribe" means a direction or authorization, by 43 prescription, permitting an ultimate user lawfully to obtain controlled 44 substances from any person authorized by law to dispense such 45 substances. 46 [31.] 29. "Prescription" shall mean an official New York state 47 prescription, an electronic prescription, an oral prescription[,] or an 48 out-of-state prescription[, or any one]. 49 [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- 50 er, or offer or agree to do the same. 51 [33.] 31. "Ultimate user" means a person who lawfully obtains and 52 possesses a controlled substance for his own use or the use by a member 53 of his household or for an animal owned by him or in his custody. It 54 shall also mean and include a person designated, by a practitioner on a 55 prescription, to obtain such substance on behalf of the patient for whom 56 such substance is intended.S. 2509 109 A. 3009 1 [34.] 32. "Internet" means collectively computer and telecommuni- 2 cations facilities which comprise the worldwide network of networks that 3 employ a set of industry standards and protocols, or any predecessor or 4 successor protocol to such protocol, to exchange information of all 5 kinds. "Internet," as used in this article, also includes other 6 networks, whether private or public, used to transmit information by 7 electronic means. 8 [35.] 33. "By means of the internet" means any sale, delivery, 9 distribution, or dispensing of a controlled substance that uses the 10 internet, is initiated by use of the internet or causes the internet to 11 be used. 12 [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person 13 in the United States that sells, delivers or dispenses, or offers to 14 sell, deliver, or dispense, a controlled substance by means of the 15 internet. 16 [37.] 35. "Electronic prescription" means a prescription issued with 17 an electronic signature and transmitted by electronic means in accord- 18 ance with regulations of the commissioner and the commissioner of educa- 19 tion and consistent with federal requirements. A prescription generated 20 on an electronic system that is printed out or transmitted via facsimile 21 is not considered an electronic prescription and must be manually 22 signed. 23 [38.] 36. "Electronic" means of or relating to technology having elec- 24 trical, digital, magnetic, wireless, optical, electromagnetic or similar 25 capabilities. "Electronic" shall not include facsimile. 26 [39.] 37. "Electronic record" means a paperless record that is 27 created, generated, transmitted, communicated, received or stored by 28 means of electronic equipment and includes the preservation, retrieval, 29 use and disposition in accordance with regulations of the commissioner 30 and the commissioner of education and in compliance with federal law and 31 regulations. 32 [40.] 38. "Electronic signature" means an electronic sound, symbol, or 33 process, attached to or logically associated with an electronic record 34 and executed or adopted by a person with the intent to sign the record, 35 in accordance with regulations of the commissioner and the commissioner 36 of education. 37 [41.] 39. "Registry" or "prescription monitoring program registry" 38 means the prescription monitoring program registry established pursuant 39 to section thirty-three hundred forty-three-a of this article. 40 [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- 41 ing, pooling, reconstituting, or otherwise altering of a drug or bulk 42 drug substance to create a drug with respect to an outsourcing facility 43 under section 503B of the federal Food, Drug and Cosmetic Act and 44 further defined in this section. 45 [43.] 41. "Outsourcing facility" means a facility that: 46 (a) is engaged in the compounding of sterile drugs as defined in 47 section sixty-eight hundred two of the education law; 48 (b) is currently registered as an outsourcing facility pursuant to 49 article one hundred thirty-seven of the education law; and 50 (c) complies with all applicable requirements of federal and state 51 law, including the Federal Food, Drug and Cosmetic Act. 52 Notwithstanding any other provision of law to the contrary, when an 53 outsourcing facility distributes or dispenses any drug to any person 54 pursuant to a prescription, such outsourcing facility shall be deemed to 55 be providing pharmacy services and shall be subject to all laws, rules 56 and regulations governing pharmacies and pharmacy services.S. 2509 110 A. 3009 1 § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 2 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of 3 section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 4 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 5 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of 6 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the 7 laws of 2006, are amended to read as follows: 8 (13) [Marihuana.9(14)] Mescaline. 10 [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 11 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. 12 [(16)] (15) Peyote. Meaning all parts of the plant presently classi- 13 fied botanically as Lophophora williamsii Lemaire, whether growing or 14 not, the seeds thereof, any extract from any part of such plant, and 15 every compound, manufacture, salts, derivative, mixture, or preparation 16 of such plant, its seeds or extracts. 17 [(17)] (16) N-ethyl-3-piperidyl benzilate. 18 [(18)] (17) N-methyl-3-piperidyl benzilate. 19 [(19)] (18) Psilocybin. 20 [(20)] (19) Psilocyn. 21 [(21)] (20) Synthetic Tetrahydrocannabinols. [Synthetic] tetrahydro- 22 cannabinols not derived from the cannabis plant, or tetrahydrocannabi- 23 nols manufactured or created from the cannabis plant but which were not 24 produced by the cannabis plant during its cultivation or present at the 25 time of harvest that are equivalents of the substances contained in the 26 plant, or in the resinous extractives of cannabis, sp. and/or synthetic 27 substances, derivatives, and their isomers with similar chemical struc- 28 ture and pharmacological activity such as the following: 29 [/\] delta 1 cis or trans tetrahydrocannabinol, and their optical 30 isomers 31 [/\] delta 6 cis or trans tetrahydrocannabinol, and their optical 32 isomers 33 [/\] delta 3, 4 cis or trans tetrahydrocannabinol, and its optical 34 isomers (since nomenclature of these substances is not internationally 35 standardized, compounds of these structures, regardless of numerical 36 designation of atomic positions covered). 37 Tetrahydrocannabinol created or produced by decarboxylation of tetrah- 38 ydrocannabinolic acid produced from the cannabis plant through culti- 39 vation or present at the time of harvest and/or any U.S. Food and Drug 40 Administration approved product containing tetrahydrocannabinol shall 41 not be considered a synthetic tetrahydrocannabinol. 42 [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other 43 names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- 44 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. 45 [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other 46 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. 47 [(24)] (23) Thiophene analog of phencyclidine. Some trade or other 48 names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of 49 phencyclidine, TPCP, TCP. 50 [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). 51 [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as 52 N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, 53 MDE, MDEA. 54 [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as 55 N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and 56 N-hydroxy MDA.S. 2509 111 A. 3009 1 [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other 2 names: TCPY. 3 [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryp- 4 tamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) 5 indole; Alpha-ET or AET. 6 [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other 7 names: DOET. 8 [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other 9 names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl 10 DOB; 2C-B, Nexus. 11 [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its 12 optical isomers, salts and salts of isomers. 13 § 6. Title 5-A of article 33 of the public health law is REPEALED. 14 § 6-a. Article 33-B of the public health law is REPEALED. 15 § 7. Section 3382 of the public health law, as added by chapter 878 of 16 the laws of 1972, is amended to read as follows: 17 § 3382. Growing of the plant known as Cannabis by unlicensed persons. 18 A person who, without being licensed so to do under this article or 19 articles three, four or five of the cannabis law, grows the plant of the 20 genus Cannabis or knowingly allows it to grow on his land without 21 destroying the same, shall be guilty of a class A misdemeanor. 22 § 8. Subdivision 1 of section 3397-b of the public health law, as 23 added by chapter 810 of the laws of 1980, is amended to read as follows: 24 1. ["Marijuana"] "Cannabis" means [marijuana] cannabis as defined in 25 [section thirty-three hundred two of this chapter] subdivision three of 26 section three of the cannabis law and shall also include tetrahydrocan- 27 nabinols or a chemical derivative of tetrahydrocannabinol. 28 § 9. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, 29 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 30 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as 31 amended by chapter 664 of the laws of 1985, are amended and a new subdi- 32 vision 21 is added to read as follows: 33 5. "Controlled substance" means any substance listed in schedule I, 34 II, III, IV or V of section thirty-three hundred six of the public 35 health law other than [marihuana] cannabis as defined in subdivision six 36 of this section, but including concentrated cannabis as defined in 37 [paragraph (a) of subdivision four of section thirty-three hundred two38of such law] subdivision twenty-one of this section. 39 6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-40bis" as those terms are defined in section thirty-three hundred two of41the public health law] all parts of the plant of the genus cannabis, 42 whether growing or not; the seeds thereof; and every compound, manufac- 43 ture, salt, derivative, mixture, or preparation of the plant, or its 44 seeds. It does not include the mature stalks of the plant, fiber 45 produced from the stalks, oil or cake made from the seeds of the plant, 46 any other compound, manufacture, salt, derivative, mixture, or prepara- 47 tion of the mature stalks, fiber, oil, or cake, or the sterilized seed 48 of the plant which is incapable of germination. It does not include all 49 parts of the plant cannabis sativa l., whether growing or not, having no 50 more than three-tenths of one percent tetrahydrocannabinol (THC). 51 Cannabis does not include any drug product for which an application has 52 been approved by the Federal Food and Drug Administration. 53 9. "Hallucinogen" means any controlled substance listed in schedule 54 I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) and 55 (21).S. 2509 112 A. 3009 1 21. "Concentrated cannabis" means: (a) the separated resin, whether 2 crude or purified, obtained from a plant of the genus cannabis; or (b) a 3 material, preparation, mixture, compound or other substance which 4 contains more than three percent by weight of delta-9 tetrahydrocannabi- 5 nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 6 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering 7 system. 8 § 10. Subdivision 4 of section 220.06 of the penal law is REPEALED. 9 § 11. Subdivision 10 of section 220.09 of the penal law is REPEALED. 10 § 12. Subdivision 3 of section 220.34 of the penal law, as amended by 11 chapter 537 of the laws of 1998, is amended to read as follows: 12 3. concentrated cannabis as defined in [paragraph (a) of subdivision13four of section thirty-three hundred two of the public health law] 14 subdivision twenty-one of section 220.00 of this article; or 15 § 13. Subdivision 4 of section 15.20 of the penal law, as added by 16 chapter 75 of the laws of 1995, is amended to read as follows: 17 4. Notwithstanding the use of the term "knowingly" in any provision of 18 this chapter defining an offense in which the aggregate weight of a 19 controlled substance or [marihuana] cannabis is an element, knowledge by 20 the defendant of the aggregate weight of such controlled substance or 21 [marihuana] cannabis is not an element of any such offense and it is 22 not, unless expressly so provided, a defense to a prosecution therefor 23 that the defendant did not know the aggregate weight of the controlled 24 substance or [marihuana] cannabis. 25 § 14. Section 221.00 of the penal law, as amended by chapter 90 of the 26 laws of 2014, is amended to read as follows: 27 § 221.00 [Marihuana] Cannabis; definitions. 28 Unless the context in which they are used clearly otherwise requires, 29 the terms occurring in this article shall have the same meaning ascribed 30 to them in article two hundred twenty of this chapter. Any act that is 31 lawful under [title five-A of article thirty-three of the public health] 32 articles three, four or five, of the cannabis law is not a violation of 33 this article. 34 § 15. Section 221.00 of the penal law, as added by chapter 360 of the 35 laws of 1977, is amended to read as follows: 36 § 221.00 [Marihuana] Cannabis; definitions. 37 Unless the context in which they are used clearly otherwise requires, 38 the terms occurring in this article shall have the same meaning ascribed 39 to them in article two hundred twenty of this chapter. 40 § 16. Section 221.05 of the penal law, as amended by chapter 131 of 41 the laws of 2019, is amended to read as follows: 42 § 221.05 Unlawful possession of [marihuana] cannabis in the second 43 degree. 44 A person is guilty of unlawful possession of [marihuana] cannabis in 45 the second degree when he knowingly and unlawfully possesses [marihua-46na.]: 47 1. cannabis and is less than twenty-one years of age; or 48 2. cannabis in a public place, as defined in section 240.00 of this 49 part, and such cannabis is burning. 50 Unlawful possession of [marihuana] cannabis in the second degree is a 51 violation punishable only by a fine of not more than fifty dollars when 52 such possession is by a person less than twenty-one years of age and of 53 an aggregate weight of less than one-half of one ounce of cannabis or 54 less than two and one-half grams of concentrated cannabis or a fine of 55 not more than one hundred dollars when such possession is by a person 56 less than twenty-one years of age and of an aggregate weight more thanS. 2509 113 A. 3009 1 one-half of one ounce of cannabis but not more than one ounce of canna- 2 bis, or more than two and one-half grams of concentrated cannabis but 3 not more than five grams of concentrated cannabis. Unlawful possession 4 of cannabis in the second degree is punishable by a fine of not more 5 than one hundred twenty-five dollars when such possession is in a public 6 place and such cannabis is burning. The term "burning" shall mean and 7 include smoking and vaping as such terms are defined in section thirteen 8 hundred ninety-nine-n of the public health law. 9 § 16-a. Subdivision 8 of section 1399-n of the public health law, as 10 amended by chapter 131 of the laws of 2019, is amended to read as 11 follows: 12 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or 13 any other matter or substance which contains tobacco or [marihuana] 14 cannabis as defined in section [thirty-three hundred two of this chap-15ter] 220.00 of the penal law. 16 § 17. Section 221.15 of the penal law, as amended by chapter 265 of 17 the laws of 1979, the opening paragraph as amended by chapter 75 of the 18 laws of 1995, is amended to read as follows: 19 § 221.15 [Criminal] Unlawful possession of [marihuana] cannabis in the 20 [fourth] first degree. 21 A person is guilty of [criminal] unlawful possession of [marihuana] 22 cannabis in the [fourth] first degree when he or she knowingly and 23 unlawfully possesses [one or more preparations, compounds, mixtures or24substances containing marihuana and the preparations, compounds,25mixtures or substances are of] an aggregate weight of more than [two26ounces] one ounce of cannabis or more than five grams of concentrated 27 cannabis. 28 [Criminal] Unlawful possession of [marihuana] cannabis in the [fourth] 29 first degree is a [class A misdemeanor] violation punishable by a fine 30 of not more than one hundred twenty-five dollars. The provisions of this 31 section shall not apply to certified patients or designated caregivers 32 as lawfully registered under article three of the cannabis law. 33 § 18. Section 221.20 of the penal law, as amended by chapter 265 of 34 the laws of 1979, the opening paragraph as amended by chapter 75 of the 35 laws of 1995, is amended to read as follows: 36 § 221.20 Criminal possession of [marihuana] cannabis in the [third] 37 second degree. 38 A person is guilty of criminal possession of [marihuana] cannabis in 39 the [third] second degree when he or she knowingly and unlawfully 40 possesses [one or more preparations, compounds, mixtures or substances41containing marihuana and the preparations, compounds, mixtures or42substances are of] an aggregate weight of more than [eight] two ounces 43 of cannabis or more than ten grams of concentrated cannabis. 44 Criminal possession of [marihuana] cannabis in the [third] second 45 degree is a class [E felony] A misdemeanor punishable by a fine not more 46 than one hundred twenty-five dollars per ounce possessed in excess of 47 two ounces of cannabis or ten grams of concentrated cannabis. However, 48 where the defendant has previously been convicted of an offense defined 49 in this article or article two hundred twenty of this title, committed 50 within the three years immediately preceding such violation, it shall be 51 punishable (a) only by a fine of not more than two hundred dollars per 52 ounce possessed in excess of two ounces, if the defendant was previously 53 convicted of one such offense committed during such period, and (b) by a 54 fine of not more than two hundred fifty dollars per ounce possessed in 55 excess of two ounces or a term of imprisonment not in excess of fifteen 56 days or both, if the defendant was previously convicted of two suchS. 2509 114 A. 3009 1 offenses committed during such period. The provisions of this section 2 shall not apply to certified patients or designated caregivers as 3 lawfully registered under article three of the cannabis law. 4 § 19. Section 221.25 of the penal law, as amended by chapter 265 of 5 the laws of 1979, the opening paragraph as amended by chapter 75 of the 6 laws of 1995, is amended to read as follows: 7 § 221.25 Criminal possession of [marihuana] cannabis in the [second] 8 first degree. 9 A person is guilty of criminal possession of [marihuana] cannabis in 10 the [second] first degree when he or she knowingly and unlawfully 11 possesses [one or more preparations, compounds, mixtures or substances12containing marihuana and the preparations, compounds, mixtures or13substances are of] an aggregate weight of more than [sixteen] sixty-four 14 ounces of cannabis or more than eighty grams of concentrated cannabis. 15 Criminal possession of [marihuana] cannabis in the [second] first 16 degree is a class [D] E felony. 17 § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. 18 § 20-a. Paragraph (c) of subdivision 8 of section 700.05 of the crimi- 19 nal procedure law, as amended by chapter 37 of the laws of 2014, is 20 amended to read as follows: 21 (c) Criminal possession of a controlled substance in the seventh 22 degree as defined in section 220.03 of the penal law, criminal 23 possession of a controlled substance in the fifth degree as defined in 24 section 220.06 of the penal law, criminal possession of a controlled 25 substance in the fourth degree as defined in section 220.09 of the penal 26 law, criminal possession of a controlled substance in the third degree 27 as defined in section 220.16 of the penal law, criminal possession of a 28 controlled substance in the second degree as defined in section 220.18 29 of the penal law, criminal possession of a controlled substance in the 30 first degree as defined in section 220.21 of the penal law, criminal 31 sale of a controlled substance in the fifth degree as defined in section 32 220.31 of the penal law, criminal sale of a controlled substance in the 33 fourth degree as defined in section 220.34 of the penal law, criminal 34 sale of a controlled substance in the third degree as defined in section 35 220.39 of the penal law, criminal sale of a controlled substance in the 36 second degree as defined in section 220.41 of the penal law, criminal 37 sale of a controlled substance in the first degree as defined in section 38 220.43 of the penal law, criminally possessing a hypodermic instrument 39 as defined in section 220.45 of the penal law, criminal sale of a 40 prescription for a controlled substance or a controlled substance by a 41 practitioner or pharmacist as defined in section 220.65 of the penal 42 law, criminal possession of methamphetamine manufacturing material in 43 the second degree as defined in section 220.70 of the penal law, crimi- 44 nal possession of methamphetamine manufacturing material in the first 45 degree as defined in section 220.71 of the penal law, criminal 46 possession of precursors of methamphetamine as defined in section 220.72 47 of the penal law, unlawful manufacture of methamphetamine in the third 48 degree as defined in section 220.73 of the penal law, unlawful manufac- 49 ture of methamphetamine in the second degree as defined in section 50 220.74 of the penal law, unlawful manufacture of methamphetamine in the 51 first degree as defined in section 220.75 of the penal law, unlawful 52 disposal of methamphetamine laboratory material as defined in section 53 220.76 of the penal law, operating as a major trafficker as defined in 54 section 220.77 of the penal law, [criminal possession of marihuana in55the first degree as defined in section 221.30 of the penal law, criminal56sale of marihuana in the first degree as defined in section 221.55 ofS. 2509 115 A. 3009 1the penal law,] promoting gambling in the second degree as defined in 2 section 225.05 of the penal law, promoting gambling in the first degree 3 as defined in section 225.10 of the penal law, possession of gambling 4 records in the second degree as defined in section 225.15 of the penal 5 law, possession of gambling records in the first degree as defined in 6 section 225.20 of the penal law, and possession of a gambling device as 7 defined in section 225.30 of the penal law; 8 § 20-b. Paragraph (c) of subdivision 4-b and subdivisions 6 and 9 of 9 section 1310 of the civil practice law and rules, paragraph (c) of 10 subdivision 4-b as added by chapter 655 of the laws of 1990 and subdivi- 11 sions 6 and 9 as added by chapter 669 of the laws of 1984, are amended 12 to read as follows: 13 (c) a conviction of a person for a violation of section 220.09, 14 220.16, 220.34 or 220.39 of the penal law, [or a conviction of a crimi-15nal defendant for a violation of section 221.30 of the penal law,] or 16 where the accusatory instrument charges any such felony, conviction upon 17 a plea of guilty to a felony for which the plea is otherwise authorized 18 by law, together with evidence which: (i) provides substantial indicia 19 that the defendant used the real property to engage in a continual, 20 ongoing course of conduct involving the unlawful mixing, compounding, 21 manufacturing, warehousing, or packaging of controlled substances [or22where the conviction is for a violation of section 221.30 of the penal23law, marijuana,] as part of an illegal trade or business for gain; and 24 (ii) establishes, where the conviction is for possession of a controlled 25 substance [or where the conviction is for a violation of section 221.3026of the penal law, marijuana], that such possession was with the intent 27 to sell it. 28 6. "Pre-conviction forfeiture crime" means only a felony defined in 29 article two hundred twenty or section [221.30 or] 221.55 of the penal 30 law. 31 9. "Criminal defendant" means a person who has criminal liability for 32 a crime defined in subdivisions five and six [hereof] of this section. 33 For purposes of this article, a person has criminal liability when (a) 34 he has been convicted of a post-conviction forfeiture crime, or (b) the 35 claiming authority proves by clear and convincing evidence that such 36 person has committed an act in violation of article two hundred twenty 37 or section [221.30 or] 221.55 of the penal law. 38 § 20-c. Paragraph (c) of subdivision 7 of section 480.00 of the penal 39 law, as added by chapter 655 of the laws of 1990, is amended to read as 40 follows: 41 (c) a conviction of a person for a violation of section 220.09, 42 220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or where the 43 accusatory instrument charges any such felony, conviction upon a plea of 44 guilty to a felony for which the plea is otherwise authorized by law, 45 together with evidence which: (i) provides substantial indicia that the 46 defendant used the real property to engage in a continual, ongoing 47 course of conduct involving the unlawful mixing, compounding, manufac- 48 turing, warehousing, or packaging of controlled substances [or where the49conviction is for a violation of section 221.30 of this chapter, mari-50juana] as part of an illegal trade or business for gain; and (ii) estab- 51 lishes, where the conviction is for possession of a controlled substance 52 [or where the conviction is for a violation of section 221.30 of this53chapter, marijuana], that such possession was with the intent to sell 54 it.S. 2509 116 A. 3009 1 § 20-d. Paragraph (c) of subdivision 4 of section 509-cc of the vehi- 2 cle and traffic law, as amended by chapter 368 of the laws of 2015, is 3 amended to read as follows: 4 (c) The offenses referred to in subparagraph (i) of paragraph (b) of 5 subdivision one and subparagraph (i) of paragraph (c) of subdivision two 6 of this section that result in disqualification for a period of five 7 years shall include a conviction under sections 100.10, 105.13, 115.05, 8 120.03, 120.04, 120.04-a, 120.05, 120.10, 120.25, 121.12, 121.13, 9 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17, 10 140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09, 11 220.16, 220.31, 220.34, 220.60, 220.65, [221.30,] 221.50, 221.55, 12 230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05, 13 235.06, 235.07, 235.21, 240.06, 245.00, 260.10, subdivision two of 14 section 260.20 and sections 260.25, 265.02, 265.03, 265.08, 265.09, 15 265.10, 265.12, 265.35 of the penal law or an attempt to commit any of 16 the aforesaid offenses under section 110.00 of the penal law, or any 17 similar offenses committed under a former section of the penal law, or 18 any offenses committed under a former section of the penal law which 19 would constitute violations of the aforesaid sections of the penal law, 20 or any offenses committed outside this state which would constitute 21 violations of the aforesaid sections of the penal law. 22 § 20-e. Subdivision 1 of section 170.56 of the criminal procedure law, 23 as amended by chapter 360 of the laws of 1977, is amended to read as 24 follows: 25 1. Upon or after arraignment in a local criminal court upon an infor- 26 mation, a prosecutor's information or a misdemeanor complaint, where the 27 sole remaining count or counts charge a violation or violations of 28 section 221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law and 29 before the entry of a plea of guilty thereto or commencement of a trial 30 thereof, the court, upon motion of a defendant, may order that all 31 proceedings be suspended and the action adjourned in contemplation of 32 dismissal, or upon a finding that adjournment would not be necessary or 33 appropriate and the setting forth in the record of the reasons for such 34 findings, may dismiss in furtherance of justice the accusatory instru- 35 ment; provided, however, that the court may not order such adjournment 36 in contemplation of dismissal or dismiss the accusatory instrument if: 37 (a) the defendant has previously been granted such adjournment in 38 contemplation of dismissal, or (b) the defendant has previously been 39 granted a dismissal under this section, or (c) the defendant has previ- 40 ously been convicted of any offense involving controlled substances, or 41 (d) the defendant has previously been convicted of a crime and the 42 district attorney does not consent or (e) the defendant has previously 43 been adjudicated a youthful offender on the basis of any act or acts 44 involving controlled substances and the district attorney does not 45 consent. 46 § 20-f. Subparagraph (iii) of paragraph (k) of subdivision 3 of 47 section 160.50 of the criminal procedure law, as amended by chapter 132 48 of the laws of 2019, is amended to read as follows: 49 (iii) the conviction is for an offense defined in section 221.05 [or], 50 221.10 or 221.15 of the penal law. 51 § 21. Section 221.35 of the penal law, as amended by chapter 265 of 52 the laws of 1979, the opening paragraph as amended by chapter 75 of the 53 laws of 1995, is amended to read as follows: 54 § 221.35 Criminal sale of [marihuana] cannabis in the fifth degree. 55 A person is guilty of criminal sale of [marihuana] cannabis in the 56 fifth degree when he or she knowingly and unlawfully sells, [without]S. 2509 117 A. 3009 1 for consideration[, one or more preparations, compounds, mixtures or2substances containing marihuana and the preparations, compounds,3mixtures or substances are] cannabis or cannabis concentrate of [an4aggregate weight of two grams or less; or one cigarette containing mari-5huana] any weight. 6 Criminal sale of [marihuana] cannabis in the fifth degree is a [class7B misdemeanor] violation punishable by a fine not more than the greater 8 of two-hundred and fifty dollars or two times the value of the sale. 9 § 22. Section 221.40 of the penal law, as added by chapter 360 of the 10 laws of 1977, is amended to read as follows: 11 § 221.40 Criminal sale of [marihuana] cannabis in the fourth degree. 12 A person is guilty of criminal sale of [marihuana] cannabis in the 13 fourth degree when he or she knowingly and unlawfully sells [marihuana14except as provided in section 221.35 of this article] cannabis of an 15 aggregate weight of more than one ounce or more than five grams of 16 cannabis concentrate. 17 Criminal sale of [marihuana] cannabis in the fourth degree is a [class18A] misdemeanor punishable by a fine of not more than the greater of five 19 hundred dollars or two times the value of the sale or a maximum of three 20 months imprisonment, or both. 21 § 23. Section 221.45 of the penal law, as amended by chapter 265 of 22 the laws of 1979, the opening paragraph as amended by chapter 75 of the 23 laws of 1995, is amended to read as follows: 24 § 221.45 Criminal sale of [marihuana] cannabis in the third degree. 25 A person is guilty of criminal sale of [marihuana] cannabis in the 26 third degree when he or she knowingly and unlawfully sells [one or more27preparations, compounds, mixtures or substances containing marihuana and28the preparations, compounds, mixtures or substances are of an aggregate29weight of more than twenty-five grams] or an aggregate weight of more 30 than four ounces of cannabis or more than twenty grams of concentrated 31 cannabis. 32 Criminal sale of [marihuana] cannabis in the third degree is a [class33E felony] misdemeanor punishable by a fine of not more than the greater 34 of one thousand dollars or two times the value of the sale or a maximum 35 of one year imprisonment or both. 36 § 24. Section 221.50 of the penal law, as amended by chapter 265 of 37 the laws of 1979, the opening paragraph as amended by chapter 75 of the 38 laws of 1995, is amended to read as follows: 39 § 221.50 Criminal sale of [marihuana] cannabis in the second degree. 40 A person is guilty of criminal sale of [marihuana] cannabis in the 41 second degree when he knowingly and unlawfully sells [one or more prepa-42rations, compounds, mixtures or substances containing marihuana and the43preparations, compounds, mixtures or substances are of] an aggregate 44 weight of more than [four ounces, or knowingly and unlawfully sells one45or more preparations, compounds, mixtures or substances containing mari-46huana to a person less than eighteen years of age] sixteen ounces of 47 cannabis or more than eighty grams of concentrated cannabis or any 48 amount of cannabis or concentrated cannabis to any person under twenty- 49 one years of age. In any prosecution for unlawful sale of cannabis or 50 concentrated cannabis to someone under twenty-one years of age pursuant 51 to this section, it is an affirmative defense that: (a) the defendant 52 had reasonable cause to believe that the person under twenty-one years 53 of age involved was twenty-one years old or more; and (b) such person 54 under twenty-one years of age exhibited to the defendant a draft card, 55 driver's license or identification card, birth certificate or otherS. 2509 118 A. 3009 1 official or apparently official document purporting to establish that 2 such person was twenty-one years old or more. 3 Criminal sale of [marihuana] cannabis in the second degree is a class 4 D felony. 5 § 25. Section 221.55 of the penal law, as amended by chapter 265 of 6 the laws of 1979, the opening paragraph as amended by chapter 75 of the 7 laws of 1995, is amended to read as follows: 8 § 221.55 Criminal sale of [marihuana] cannabis in the first degree. 9 A person is guilty of criminal sale of [marihuana] cannabis in the 10 first degree when he knowingly and unlawfully sells [one or more prepa-11rations, compounds, mixtures or substances containing marihuana and the12preparations, compounds, mixtures or substances are of an aggregate13weight of] more than [sixteen] sixty-four ounces of cannabis or three 14 hundred and twenty grams of cannabis concentrate. 15 Criminal sale of [marihuana] cannabis in the first degree is a class C 16 felony. 17 § 26. The penal law is amended by adding a new section 221.60 to read 18 as follows: 19 § 221.60 Licensing of cannabis production and distribution. 20 The provisions of this article and of article two hundred twenty of 21 this title shall not apply to any person exempted from criminal penal- 22 ties pursuant to the provisions of this chapter or possessing, manufac- 23 turing, transporting, distributing, selling or transferring cannabis or 24 concentrated cannabis, or engaged in any other action that is in compli- 25 ance with article three, four or five of the cannabis law. 26 § 27. Intentionally omitted. 27 § 28. Paragraph (f) of subdivision 2 of section 850 of the general 28 business law is REPEALED. 29 § 29. Paragraph (h) of subdivision 2 of section 850 of the general 30 business law, as amended by chapter 812 of the laws of 1980, is amended 31 to read as follows: 32 (h) Objects, used or designed for the purpose of ingesting, inhaling, 33 or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil 34 into the human body. 35 § 30. Section 114-a of the vehicle and traffic law, as added by chap- 36 ter 163 of the laws of 1973, is amended to read as follows: 37 § 114-a. Drug. The term "drug" when used in this chapter, means and 38 includes any substance listed in section thirty-three hundred six of the 39 public health law and any substance or combination of substances that 40 impair, to any extent, physical or mental abilities. 41 § 31. The article heading of article 20-B of the tax law, as added by 42 chapter 90 of the laws of 2014, is amended to read as follows: 43 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS 44 § 32. The paragraph heading and subparagraph (i) of paragraph (b) of 45 subdivision 1 of section 1193 of the vehicle and traffic law, as amended 46 by chapter 169 of the laws of 2013, are amended to read as follows: 47 Driving while intoxicated or while ability impaired by drugs or while 48 ability impaired by the combined influence of drugs or of alcohol and 49 any drug or drugs; aggravated driving while intoxicated; misdemeanor 50 offenses. (i) A violation of subdivision two, three, or four [or four-a] 51 of section eleven hundred ninety-two of this article shall be a misde- 52 meanor and shall be punishable by a fine of not less than five hundred 53 dollars nor more than one thousand dollars, or by imprisonment in a 54 penitentiary or county jail for not more than one year, or by both such 55 fine and imprisonment. A violation of paragraph (a) of subdivision two-a 56 of section eleven hundred ninety-two of this article shall be a misde-S. 2509 119 A. 3009 1 meanor and shall be punishable by a fine of not less than one thousand 2 dollars nor more than two thousand five hundred dollars or by imprison- 3 ment in a penitentiary or county jail for not more than one year, or by 4 both such fine and imprisonment. 5 § 33. Paragraph (c) of subdivision 1 of section 1193 of the vehicle 6 and traffic law is amended by adding a new subparagraph (i-a) to read as 7 follows: 8 (i-a) A violation of subdivision four-a of section eleven hundred 9 ninety-two of this article shall be a class E felony, and shall be 10 punishable by a fine of not less than one thousand dollars nor more than 11 five thousand dollars or by a period of imprisonment as provided in the 12 penal law, or by both such fine and imprisonment. 13 § 33-a. Subdivisions 1, 2 and 3 of section 1194 of the vehicle and 14 traffic law, as added by chapter 47 of the laws of 1988, paragraph (a) 15 of subdivision 2 as amended by chapter 196 of the laws of 1996, para- 16 graphs (b) and (c) of subdivision 2 as amended by chapter 489 of the 17 laws of 2017, clause (A) of subparagraph 1, subparagraphs 2 and 3 of 18 paragraph (b), subparagraphs 1, 2 and 3 of paragraph (c) of subdivision 19 2 as amended by chapter 27 of the laws of 2018, subparagraphs 1 and 2 of 20 paragraph (d) of subdivision 2 as amended by chapter 732 of the laws of 21 2006, and item (iii) of clause c of subparagraph 1 of paragraph (d) of 22 subdivision 2 as amended by section 37 of part LL of chapter 56 of the 23 laws of 2010, are amended to read as follows: 24 1. Arrest and field testing. (a) Arrest. Notwithstanding the 25 provisions of section 140.10 of the criminal procedure law, a police 26 officer may, without a warrant, arrest a person, in case of a violation 27 of subdivision one of section eleven hundred ninety-two of this article, 28 if such violation is coupled with an accident or collision in which such 29 person is involved, which in fact has been committed, though not in the 30 police officer's presence, when the officer has reasonable cause to 31 believe that the violation was committed by such person. 32 (b) Field testing. Every person operating a motor vehicle which has 33 been involved in an accident or which is operated in violation of any of 34 the provisions of this chapter shall, at the request of a police offi- 35 cer, submit to a breath test and/or oral/bodily fluid test to be admin- 36 istered by the police officer. If such test indicates that such opera- 37 tor has consumed alcohol or drug or drugs, the police officer may 38 request such operator to submit to a chemical test and/or an evaluation 39 conducted by a drug recognition expert in the manner set forth in subdi- 40 vision two of this section. 41 2. Chemical tests and drug recognition evaluations. (a) When author- 42 ized. Any person who operates a motor vehicle in this state shall be 43 deemed to have given consent to an evaluation conducted by a certified 44 drug recognition expert and/or a chemical test of one or more of the 45 following: breath, blood, urine, or saliva, for the purpose of determin- 46 ing the alcoholic and/or drug content of the blood provided that such 47 test is administered by or at the direction of a police officer with 48 respect to a chemical test of breath, urine or saliva or, with respect 49 to a chemical test of blood, at the direction of a police officer: 50 (1) having reasonable grounds to believe such person to have been 51 operating in violation of any subdivision of section eleven hundred 52 ninety-two of this article and within two hours after such person has 53 been placed under arrest for any such violation; or having reasonable 54 grounds to believe such person to have been operating in violation of 55 section eleven hundred ninety-two-a of this article and within two hours 56 after the stop of such person for any such violation,S. 2509 120 A. 3009 1 (2) within two hours after a breath test, as provided in paragraph (b) 2 of subdivision one of this section, indicates that alcohol has been 3 consumed by such person and in accordance with the rules and regulations 4 established by the police force of which the officer is a member; 5 (3) for the purposes of this paragraph, "reasonable grounds" to 6 believe that a person has been operating a motor vehicle after having 7 consumed alcohol in violation of section eleven hundred ninety-two-a of 8 this article shall be determined by viewing the totality of circum- 9 stances surrounding the incident which, when taken together, indicate 10 that the operator was driving in violation of such subdivision. Such 11 circumstances may include any visible or behavioral indication of alco- 12 hol consumption by the operator, the existence of an open container 13 containing or having contained an alcoholic beverage in or around the 14 vehicle driven by the operator, or any other evidence surrounding the 15 circumstances of the incident which indicates that the operator has been 16 operating a motor vehicle after having consumed alcohol at the time of 17 the incident; or 18 (4) notwithstanding any other provision of law to the contrary, no 19 person under the age of twenty-one shall be arrested for an alleged 20 violation of section eleven hundred ninety-two-a of this article. 21 However, a person under the age of twenty-one for whom a chemical test 22 and/or an evaluation conducted by a certified drug recognition expert is 23 authorized pursuant to this paragraph may be temporarily detained by the 24 police solely for the purpose of requesting or administering such chemi- 25 cal test and/or an evaluation conducted by a certified drug recognition 26 expert whenever arrest without a warrant for a petty offense would be 27 authorized in accordance with the provisions of section 140.10 of the 28 criminal procedure law or paragraph (a) of subdivision one of this 29 section. 30 (b) Report of refusal. (1) If: (A) such person having been placed 31 under arrest; or (B) after a breath, blood, urine, and/or oral/bodily 32 fluid test indicates the presence of alcohol and/or drug or drugs in the 33 person's system; or (C) with regard to a person under the age of twen- 34 ty-one, there are reasonable grounds to believe that such person has 35 been operating a motor vehicle after having consumed alcohol in 36 violation of section eleven hundred ninety-two-a of this article; and 37 having thereafter been requested to submit to such chemical test and/or 38 an evaluation or any portion thereof conducted by a certified drug 39 recognition expert and having been informed that the person's license or 40 permit to drive and any non-resident operating privilege shall be imme- 41 diately suspended and subsequently revoked, or, for operators under the 42 age of twenty-one for whom there are reasonable grounds to believe that 43 such operator has been operating a motor vehicle after having consumed 44 alcohol in violation of section eleven hundred ninety-two-a of this 45 article, shall be revoked for refusal to submit to such chemical test or 46 any portion thereof, and/or an evaluation conducted by a certified drug 47 recognition expert or any portion thereof, whether or not the person is 48 found guilty of the charge for which such person is arrested or 49 detained, refuses to submit to such chemical test or any portion there- 50 of, and/or an evaluation or any portion thereof conducted by a certified 51 drug recognition expert or any portion thereof, unless a court order has 52 been granted pursuant to subdivision three of this section, the test 53 shall not be given and a written report of such refusal shall be imme- 54 diately made by the police officer before whom such refusal was made. 55 Such report may be verified by having the report sworn to, or by affix- 56 ing to such report a form notice that false statements made therein areS. 2509 121 A. 3009 1 punishable as a class A misdemeanor pursuant to section 210.45 of the 2 penal law and such form notice together with the subscription of the 3 deponent shall constitute a verification of the report. 4 (2) The report of the police officer shall set forth reasonable 5 grounds to believe such arrested person or such detained person under 6 the age of twenty-one had been driving in violation of any subdivision 7 of section eleven hundred ninety-two or eleven hundred ninety-two-a of 8 this article, that said person had refused to submit to such chemical 9 test, or an evaluation or any portion thereof conducted by a certified 10 drug recognition expert or any portion thereof, and that no chemical 11 test or evaluation conducted by a certified drug recognition expert was 12 administered pursuant to the requirements of subdivision three of this 13 section. The report shall be presented to the court upon arraignment of 14 an arrested person, provided, however, in the case of a person under the 15 age of twenty-one, for whom a test was authorized pursuant to the 16 provisions of subparagraph two or three of paragraph (a) of this subdi- 17 vision, and who has not been placed under arrest for a violation of any 18 of the provisions of section eleven hundred ninety-two of this article, 19 such report shall be forwarded to the commissioner within forty-eight 20 hours in a manner to be prescribed by the commissioner, and all subse- 21 quent proceedings with regard to refusal to submit to such chemical test 22 and/or an evaluation conducted by a certified drug recognition expert by 23 such person shall be as set forth in subdivision three of section eleven 24 hundred ninety-four-a of this article. 25 (3) For persons placed under arrest for a violation of any subdivision 26 of section eleven hundred ninety-two of this article, the license or 27 permit to drive and any non-resident operating privilege shall, upon the 28 basis of such written report, be temporarily suspended by the court 29 without notice pending the determination of a hearing as provided in 30 paragraph (c) of this subdivision. Copies of such report must be trans- 31 mitted by the court to the commissioner and such transmittal may not be 32 waived even with the consent of all the parties. Such report shall be 33 forwarded to the commissioner within forty-eight hours of such arraign- 34 ment. 35 (4) The court or the police officer, in the case of a person under the 36 age of twenty-one alleged to be driving after having consumed alcohol, 37 shall provide such person with a scheduled hearing date, a waiver form, 38 and such other information as may be required by the commissioner. If a 39 hearing, as provided for in paragraph (c) of this subdivision, or subdi- 40 vision three of section eleven hundred ninety-four-a of this article, is 41 waived by such person, the commissioner shall immediately revoke the 42 license, permit, or non-resident operating privilege, as of the date of 43 receipt of such waiver in accordance with the provisions of paragraph 44 (d) of this subdivision. 45 (c) Hearings. Any person whose license or permit to drive or any non- 46 resident driving privilege has been suspended pursuant to paragraph (b) 47 of this subdivision is entitled to a hearing in accordance with a hear- 48 ing schedule to be promulgated by the commissioner. If the department 49 fails to provide for such hearing fifteen days after the date of the 50 arraignment of the arrested person, the license, permit to drive or 51 non-resident operating privilege of such person shall be reinstated 52 pending a hearing pursuant to this section. The hearing shall be limited 53 to the following issues: (1) did the police officer have reasonable 54 grounds to believe that such person had been driving in violation of any 55 subdivision of section eleven hundred ninety-two of this article; (2) 56 did the police officer make a lawful arrest of such person; (3) was suchS. 2509 122 A. 3009 1 person given sufficient warning, in clear or unequivocal language, prior 2 to such refusal that such refusal to submit to such chemical test or any 3 portion thereof and/or an evaluation or any portion thereof conducted by 4 a certified drug recognition expert, would result in the immediate 5 suspension and subsequent revocation of such person's license or operat- 6 ing privilege whether or not such person is found guilty of the charge 7 for which the arrest was made; and (4) did such person refuse to submit 8 to such chemical test or any portion thereof and/or an evaluation or any 9 portion thereof conducted by a certified drug recognition expert. If, 10 after such hearing, the hearing officer, acting on behalf of the commis- 11 sioner, finds on any one of said issues in the negative, the hearing 12 officer shall immediately terminate any suspension arising from such 13 refusal. If, after such hearing, the hearing officer, acting on behalf 14 of the commissioner finds all of the issues in the affirmative, such 15 officer shall immediately revoke the license or permit to drive or any 16 non-resident operating privilege in accordance with the provisions of 17 paragraph (d) of this subdivision. A person who has had a license or 18 permit to drive or non-resident operating privilege suspended or revoked 19 pursuant to this subdivision may appeal the findings of the hearing 20 officer in accordance with the provisions of article three-A of this 21 chapter. Any person may waive the right to a hearing under this section. 22 Failure by such person to appear for the scheduled hearing shall consti- 23 tute a waiver of such hearing, provided, however, that such person may 24 petition the commissioner for a new hearing which shall be held as soon 25 as practicable. 26 (d) Sanctions. (1) Revocations. a. Any license which has been revoked 27 pursuant to paragraph (c) of this subdivision shall not be restored for 28 at least one year after such revocation, nor thereafter, except in the 29 discretion of the commissioner. However, no such license shall be 30 restored for at least eighteen months after such revocation, nor there- 31 after except in the discretion of the commissioner, in any case where 32 the person has had a prior revocation resulting from refusal to submit 33 to a chemical test and/or an evaluation or any portion thereof conducted 34 by a certified drug recognition expert, or has been convicted of or 35 found to be in violation of any subdivision of section eleven hundred 36 ninety-two or section eleven hundred ninety-two-a of this article not 37 arising out of the same incident, within the five years immediately 38 preceding the date of such revocation; provided, however, a prior find- 39 ing that a person under the age of twenty-one has refused to submit to a 40 chemical test pursuant to subdivision three of section eleven hundred 41 ninety-four-a of this article shall have the same effect as a prior 42 finding of a refusal pursuant to this subdivision solely for the purpose 43 of determining the length of any license suspension or revocation 44 required to be imposed under any provision of this article, provided 45 that the subsequent offense or refusal is committed or occurred prior to 46 the expiration of the retention period for such prior refusal as set 47 forth in paragraph (k) of subdivision one of section two hundred one of 48 this chapter. 49 b. Any license which has been revoked pursuant to paragraph (c) of 50 this subdivision or pursuant to subdivision three of section eleven 51 hundred ninety-four-a of this article, where the holder was under the 52 age of twenty-one years at the time of such refusal, shall not be 53 restored for at least one year, nor thereafter, except in the discretion 54 of the commissioner. Where such person under the age of twenty-one years 55 has a prior finding, conviction or youthful offender adjudication 56 resulting from a violation of section eleven hundred ninety-two orS. 2509 123 A. 3009 1 section eleven hundred ninety-two-a of this article, not arising from 2 the same incident, such license shall not be restored for at least one 3 year or until such person reaches the age of twenty-one years, whichever 4 is the greater period of time, nor thereafter, except in the discretion 5 of the commissioner. 6 c. Any commercial driver's license which has been revoked pursuant to 7 paragraph (c) of this subdivision based upon a finding of refusal to 8 submit to a chemical test and/or an evaluation or any portion thereof 9 conducted by a certified drug recognition expert, where such finding 10 occurs within or outside of this state, shall not be restored for at 11 least eighteen months after such revocation, nor thereafter, except in 12 the discretion of the commissioner, but shall not be restored for at 13 least three years after such revocation, nor thereafter, except in the 14 discretion of the commissioner, if the holder of such license was oper- 15 ating a commercial motor vehicle transporting hazardous materials at the 16 time of such refusal. However, such person shall be permanently disqual- 17 ified from operating a commercial motor vehicle in any case where the 18 holder has a prior finding of refusal to submit to a chemical test 19 and/or an evaluation or any portion thereof conducted by a certified 20 drug recognition expert pursuant to this section or has a prior 21 conviction of any of the following offenses: any violation of section 22 eleven hundred ninety-two of this article; any violation of subdivision 23 one or two of section six hundred of this chapter; or has a prior 24 conviction of any felony involving the use of a motor vehicle pursuant 25 to paragraph (a) of subdivision one of section five hundred ten-a of 26 this chapter. Provided that the commissioner may waive such permanent 27 revocation after a period of ten years has expired from such revocation 28 provided: 29 (i) that during such ten year period such person has not been found to 30 have refused a chemical test or an evaluation or any portion thereof 31 conducted by a certified drug recognition expert pursuant to this 32 section and has not been convicted of any one of the following offenses: 33 any violation of section eleven hundred ninety-two of this article; 34 refusal to submit to a chemical test or an evaluation or any portion 35 thereof conducted by a certified drug recognition expert pursuant to 36 this section; any violation of subdivision one or two of section six 37 hundred of this chapter; or has a prior conviction of any felony involv- 38 ing the use of a motor vehicle pursuant to paragraph (a) of subdivision 39 one of section five hundred ten-a of this chapter; 40 (ii) that such person provides acceptable documentation to the commis- 41 sioner that such person is not in need of alcohol or drug treatment or 42 has satisfactorily completed a prescribed course of such treatment; and 43 (iii) after such documentation is accepted, that such person is grant- 44 ed a certificate of relief from disabilities or a certificate of good 45 conduct pursuant to article twenty-three of the correction law by the 46 court in which such person was last penalized. 47 d. Upon a third finding of refusal and/or conviction of any of the 48 offenses which require a permanent commercial driver's license revoca- 49 tion, such permanent revocation may not be waived by the commissioner 50 under any circumstances. 51 (2) Civil penalties. Except as otherwise provided, any person whose 52 license, permit to drive, or any non-resident operating privilege is 53 revoked pursuant to the provisions of this section shall also be liable 54 for a civil penalty in the amount of five hundred dollars except that if 55 such revocation is a second or subsequent revocation pursuant to this 56 section issued within a five year period, or such person has beenS. 2509 124 A. 3009 1 convicted of a violation of any subdivision of section eleven hundred 2 ninety-two of this article within the past five years not arising out of 3 the same incident, the civil penalty shall be in the amount of seven 4 hundred fifty dollars. Any person whose license is revoked pursuant to 5 the provisions of this section based upon a finding of refusal to submit 6 to a chemical test while operating a commercial motor vehicle shall also 7 be liable for a civil penalty of five hundred fifty dollars except that 8 if such person has previously been found to have refused a chemical test 9 and/or an evaluation conducted by a certified drug recognition expert or 10 any portion thereof pursuant to this section while operating a commer- 11 cial motor vehicle or has a prior conviction of any of the following 12 offenses while operating a commercial motor vehicle: any violation of 13 section eleven hundred ninety-two of this article; any violation of 14 subdivision two of section six hundred of this chapter; or has a prior 15 conviction of any felony involving the use of a commercial motor vehicle 16 pursuant to paragraph (a) of subdivision one of section five hundred 17 ten-a of this chapter, then the civil penalty shall be seven hundred 18 fifty dollars. No new driver's license or permit shall be issued, or 19 non-resident operating privilege restored to such person unless such 20 penalty has been paid. All penalties collected by the department pursu- 21 ant to the provisions of this section shall be the property of the state 22 and shall be paid into the general fund of the state treasury. 23 (3) Effect of rehabilitation program. No period of revocation arising 24 out of this section may be set aside by the commissioner for the reason 25 that such person was a participant in the alcohol and drug rehabili- 26 tation program set forth in section eleven hundred ninety-six of this 27 article. 28 (e) Regulations. The commissioner shall promulgate such rules and 29 regulations as may be necessary to effectuate the provisions of subdivi- 30 sions one and two of this section. 31 (f) Evidence. Evidence of a refusal to submit to such chemical test or 32 any portion thereof or an evaluation conducted by a drug recognition 33 expert shall be admissible in any trial, proceeding or hearing based 34 upon a violation of the provisions of section eleven hundred ninety-two 35 of this article but only upon a showing that the person was given suffi- 36 cient warning, in clear and unequivocal language, of the effect of such 37 refusal and that the person persisted in the refusal. 38 (g) Results. Upon the request of the person who was tested, the 39 results of such test shall be made available to such person. 40 3. Compulsory chemical tests. (a) Court ordered chemical tests. 41 Notwithstanding the provisions of subdivision two of this section, no 42 person who operates a motor vehicle in this state may refuse to submit 43 to a chemical test of one or more of the following: breath, blood, urine 44 or [saliva] oral/bodily fluids, for the purpose of determining the alco- 45 holic and/or drug content of the blood or oral/bodily fluids when a 46 court order for such chemical test has been issued in accordance with 47 the provisions of this subdivision. 48 (b) When authorized. Upon refusal by any person to submit to a chemi- 49 cal test or any portion thereof as described above, the test shall not 50 be given unless a police officer or a district attorney, as defined in 51 subdivision thirty-two of section 1.20 of the criminal procedure law, 52 requests and obtains a court order to compel a person to submit to a 53 chemical test to determine the alcoholic and/or drug content of the 54 person's blood or oral/bodily fluids upon a finding of reasonable cause 55 to believe that:S. 2509 125 A. 3009 1 (1) such person was the operator of a motor vehicle [and in the course2of such operation a person other than the operator was killed or3suffered serious physical injury as defined in section 10.00 of the4penal law]; and 5 (2) a. either such person operated the vehicle in violation of any 6 subdivision of section eleven hundred ninety-two of this article, or b. 7 a breath test and/or oral/bodily fluid test administered by a police 8 officer in accordance with paragraph (b) of subdivision one of this 9 section indicates that alcohol and/or drug or drugs has been consumed by 10 such person; and 11 (3) such person has been placed under lawful arrest; and 12 (4) such person has refused to submit to a chemical test and/or an 13 evaluation conducted by a certified drug recognition expert, or any 14 portion thereof, requested in accordance with the provisions of para- 15 graph (a) of subdivision two of this section or is unable to give 16 consent to such a test. 17 (c) Reasonable cause; definition. For the purpose of this subdivision 18 "reasonable cause" shall be determined by viewing the totality of 19 circumstances surrounding the incident which, when taken together, indi- 20 cate that the operator was driving in violation of section eleven 21 hundred ninety-two of this article. Such circumstances may include, but 22 are not limited to: evidence that the operator was operating a motor 23 vehicle in violation of any provision of this article or any other 24 moving violation at the time of the incident; any visible indication of 25 alcohol or drug consumption or impairment by the operator; the existence 26 of an open container containing an alcoholic beverage and/or drug or 27 drugs in or around the vehicle driven by the operator; the odor of 28 cannabis or burnt cannabis; any other evidence surrounding the circum- 29 stances of the incident which indicates that the operator has been oper- 30 ating a motor vehicle while impaired by the consumption of alcohol or 31 drugs or intoxicated at the time of the incident. 32 (d) Court order; procedure. (1) An application for a court order to 33 compel submission to a chemical test or any portion thereof, may be made 34 to any supreme court justice, county court judge or district court judge 35 in the judicial district in which the incident occurred, or if the inci- 36 dent occurred in the city of New York before any supreme court justice 37 or judge of the criminal court of the city of New York. Such application 38 may be communicated by telephone, radio or other means of electronic 39 communication, or in person. 40 (2) The applicant must provide identification by name and title and 41 must state the purpose of the communication. Upon being advised that an 42 application for a court order to compel submission to a chemical test is 43 being made, the court shall place under oath the applicant and any other 44 person providing information in support of the application as provided 45 in subparagraph three of this paragraph. After being sworn the applicant 46 must state that the person from whom the chemical test was requested was 47 the operator of a motor vehicle and [in the course of such operation a48person, other than the operator, has been killed or seriously injured49and], based upon the totality of circumstances, there is reasonable 50 cause to believe that such person was operating a motor vehicle in 51 violation of any subdivision of section eleven hundred ninety-two of 52 this article and, after being placed under lawful arrest such person 53 refused to submit to a chemical test or any portion thereof, in accord- 54 ance with the provisions of this section or is unable to give consent to 55 such a test or any portion thereof. The applicant must make specific 56 allegations of fact to support such statement. Any other person properlyS. 2509 126 A. 3009 1 identified, may present sworn allegations of fact in support of the 2 applicant's statement. 3 (3) Upon being advised that an oral application for a court order to 4 compel a person to submit to a chemical test is being made, a judge or 5 justice shall place under oath the applicant and any other person 6 providing information in support of the application. Such oath or oaths 7 and all of the remaining communication must be recorded, either by means 8 of a voice recording device or verbatim stenographic or verbatim long- 9 hand notes. If a voice recording device is used or a stenographic record 10 made, the judge must have the record transcribed, certify to the accura- 11 cy of the transcription and file the original record and transcription 12 with the court within seventy-two hours of the issuance of the court 13 order. If the longhand notes are taken, the judge shall subscribe a copy 14 and file it with the court within twenty-four hours of the issuance of 15 the order. 16 (4) If the court is satisfied that the requirements for the issuance 17 of a court order pursuant to the provisions of paragraph (b) of this 18 subdivision have been met, it may grant the application and issue an 19 order requiring the accused to submit to a chemical test to determine 20 the alcoholic and/or drug content of his blood and/or oral/bodily fluids 21 ordering the withdrawal of a blood and/or oral/bodily fluid sample in 22 accordance with the provisions of paragraph (a) of subdivision four of 23 this section. When a judge or justice determines to issue an order to 24 compel submission to a chemical test based on an oral application, the 25 applicant therefor shall prepare the order in accordance with the 26 instructions of the judge or justice. In all cases the order shall 27 include the name of the issuing judge or justice, the name of the appli- 28 cant, and the date and time it was issued. It must be signed by the 29 judge or justice if issued in person, or by the applicant if issued 30 orally. 31 (5) Any false statement by an applicant or any other person in support 32 of an application for a court order shall subject such person to the 33 offenses for perjury set forth in article two hundred ten of the penal 34 law. 35 (6) The chief administrator of the courts shall establish a schedule 36 to provide that a sufficient number of judges or justices will be avail- 37 able in each judicial district to hear oral applications for court 38 orders as permitted by this section. 39 (e) Administration of compulsory chemical test. An order issued pursu- 40 ant to the provisions of this subdivision shall require that a chemical 41 test to determine the alcoholic and/or drug content of the operator's 42 blood and/or oral/bodily fluid must be administered. The provisions of 43 paragraphs (a), (b) and (c) of subdivision four of this section shall be 44 applicable to any chemical test administered pursuant to this section. 45 § 33-b. Subdivision 1 of section 1227 of the vehicle and traffic law, 46 as amended by section 3 of part F of chapter 60 of the laws of 2005, is 47 amended to read as follows: 48 1. The drinking of alcoholic beverages or consumption of cannabis, or 49 the possession of an open container containing an alcoholic beverage or 50 cannabis, in a motor vehicle located upon the public highways or right- 51 of-way public highway is prohibited. Any operator or passenger violating 52 this section shall be guilty of a traffic infraction. 53 The provisions of this section shall not be deemed to prohibit the 54 drinking of alcoholic beverages, the consumption of cannabis by means 55 other than burning, or the possession of an open container containing an 56 alcoholic beverage or cannabis by passengers in passenger vehicles oper-S. 2509 127 A. 3009 1 ated pursuant to a certificate or permit issued by the department of 2 transportation or the United States department of transportation. 3 Furthermore, the provisions of this section shall not be deemed to 4 prohibit the possession of wine which is: (a) resealed in accordance 5 with the provisions of subdivision four of section eighty-one of the 6 alcoholic beverage control law; and (b) is transported in the vehicle's 7 trunk or is transported behind the last upright seat or in an area not 8 normally occupied by the driver or passenger in a motor vehicle that is 9 not equipped with a trunk. 10 § 34. Subdivision 1 of section 171-a of the tax law, as amended by 11 section 3 of part XX of chapter 59 of the laws of 2019, is amended to 12 read as follows: 13 1. All taxes, interest, penalties and fees collected or received by 14 the commissioner or the commissioner's duly authorized agent under arti- 15 cles nine (except section one hundred eighty-two-a thereof and except as 16 otherwise provided in section two hundred five thereof), nine-A, 17 twelve-A (except as otherwise provided in section two hundred eighty- 18 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 19 section three hundred twelve thereof), eighteen, nineteen, twenty 20 (except as otherwise provided in section four hundred eighty-two there- 21 of), twenty-B, twenty-C, twenty-D, twenty-one, twenty-two, twenty-four, 22 twenty-six, twenty-eight (except as otherwise provided in section eleven 23 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 24 nine-B, thirty-one (except as otherwise provided in section fourteen 25 hundred twenty-one thereof), thirty-three and thirty-three-A of this 26 chapter shall be deposited daily in one account with such responsible 27 banks, banking houses or trust companies as may be designated by the 28 comptroller, to the credit of the comptroller. Such an account may be 29 established in one or more of such depositories. Such deposits shall be 30 kept separate and apart from all other money in the possession of the 31 comptroller. The comptroller shall require adequate security from all 32 such depositories. Of the total revenue collected or received under such 33 articles of this chapter, the comptroller shall retain in the comp- 34 troller's hands such amount as the commissioner may determine to be 35 necessary for refunds or reimbursements under such articles of this 36 chapter out of which amount the comptroller shall pay any refunds or 37 reimbursements to which taxpayers shall be entitled under the provisions 38 of such articles of this chapter. The commissioner and the comptroller 39 shall maintain a system of accounts showing the amount of revenue 40 collected or received from each of the taxes imposed by such articles. 41 The comptroller, after reserving the amount to pay such refunds or 42 reimbursements, shall, on or before the tenth day of each month, pay 43 into the state treasury to the credit of the general fund all revenue 44 deposited under this section during the preceding calendar month and 45 remaining to the comptroller's credit on the last day of such preceding 46 month, (i) except that the comptroller shall pay to the state department 47 of social services that amount of overpayments of tax imposed by article 48 twenty-two of this chapter and the interest on such amount which is 49 certified to the comptroller by the commissioner as the amount to be 50 credited against past-due support pursuant to subdivision six of section 51 one hundred seventy-one-c of this article, (ii) and except that the 52 comptroller shall pay to the New York state higher education services 53 corporation and the state university of New York or the city university 54 of New York respectively that amount of overpayments of tax imposed by 55 article twenty-two of this chapter and the interest on such amount which 56 is certified to the comptroller by the commissioner as the amount to beS. 2509 128 A. 3009 1 credited against the amount of defaults in repayment of guaranteed 2 student loans and state university loans or city university loans pursu- 3 ant to subdivision five of section one hundred seventy-one-d and subdi- 4 vision six of section one hundred seventy-one-e of this article, (iii) 5 and except further that, notwithstanding any law, the comptroller shall 6 credit to the revenue arrearage account, pursuant to section 7 ninety-one-a of the state finance law, that amount of overpayment of tax 8 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 9 or thirty-three of this chapter, and any interest thereon, which is 10 certified to the comptroller by the commissioner as the amount to be 11 credited against a past-due legally enforceable debt owed to a state 12 agency pursuant to paragraph (a) of subdivision six of section one 13 hundred seventy-one-f of this article, provided, however, he shall cred- 14 it to the special offset fiduciary account, pursuant to section ninety- 15 one-c of the state finance law, any such amount creditable as a liabil- 16 ity as set forth in paragraph (b) of subdivision six of section one 17 hundred seventy-one-f of this article, (iv) and except further that the 18 comptroller shall pay to the city of New York that amount of overpayment 19 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 20 thirty-B or thirty-three of this chapter and any interest thereon that 21 is certified to the comptroller by the commissioner as the amount to be 22 credited against city of New York tax warrant judgment debt pursuant to 23 section one hundred seventy-one-l of this article, (v) and except 24 further that the comptroller shall pay to a non-obligated spouse that 25 amount of overpayment of tax imposed by article twenty-two of this chap- 26 ter and the interest on such amount which has been credited pursuant to 27 section one hundred seventy-one-c, one hundred seventy-one-d, one 28 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 29 ty-one-l of this article and which is certified to the comptroller by 30 the commissioner as the amount due such non-obligated spouse pursuant to 31 paragraph six of subsection (b) of section six hundred fifty-one of this 32 chapter; and (vi) the comptroller shall deduct a like amount which the 33 comptroller shall pay into the treasury to the credit of the general 34 fund from amounts subsequently payable to the department of social 35 services, the state university of New York, the city university of New 36 York, or the higher education services corporation, or the revenue 37 arrearage account or special offset fiduciary account pursuant to 38 section ninety-one-a or ninety-one-c of the state finance law, as the 39 case may be, whichever had been credited the amount originally withheld 40 from such overpayment, and (vii) with respect to amounts originally 41 withheld from such overpayment pursuant to section one hundred seventy- 42 one-l of this article and paid to the city of New York, the comptroller 43 shall collect a like amount from the city of New York. 44 § 35. Section 490 of the tax law, as added by chapter 90 of the laws 45 of 2014, is amended to read as follows: 46 § 490. [Definitions] Excise tax on medical cannabis. 1. (a) [All47definitions of terms applicable to title five-A of article thirty-three48of the public health law shall apply to this article.] For purposes of 49 this article, the terms "medical cannabis," "registered organization," 50 "certified patient," and "designated caregiver" shall have the same 51 definitions as in section three of the cannabis law. 52 (b) As used in this section, where not otherwise specifically defined 53 and unless a different meaning is clearly required "gross receipt" means 54 the amount received in or by reason of any sale, conditional or other- 55 wise, of medical [marihuana] cannabis or in or by reason of the furnish- 56 ing of medical [marihuana] cannabis from the sale of medical [marihuana]S. 2509 129 A. 3009 1 cannabis provided by a registered organization to a certified patient or 2 designated caregiver. Gross receipt is expressed in money, whether paid 3 in cash, credit or property of any kind or nature, and shall be deter- 4 mined without any deduction therefrom on account of the cost of the 5 service sold or the cost of materials, labor or services used or other 6 costs, interest or discount paid, or any other expenses whatsoever. 7 "Amount received" for the purpose of the definition of gross receipt, as 8 the term gross receipt is used throughout this article, means the amount 9 charged for the provision of medical [marihuana] cannabis. 10 2. There is hereby imposed an excise tax on the gross receipts from 11 the sale of medical [marihuana] cannabis by a registered organization to 12 a certified patient or designated caregiver, to be paid by the regis- 13 tered organization, at the rate of seven percent. The tax imposed by 14 this article shall be charged against and be paid by the registered 15 organization and shall not be added as a separate charge or line item on 16 any sales slip, invoice, receipt or other statement or memorandum of the 17 price given to the retail customer. 18 3. The commissioner may make, adopt and amend rules, regulations, 19 procedures and forms necessary for the proper administration of this 20 article. 21 4. Every registered organization that makes sales of medical [marihua-22na] cannabis subject to the tax imposed by this article shall, on or 23 before the twentieth date of each month, file with the commissioner a 24 return on forms to be prescribed by the commissioner, showing its 25 receipts from the retail sale of medical [marihuana] cannabis during the 26 preceding calendar month and the amount of tax due thereon. Such returns 27 shall contain such further information as the commissioner may require. 28 Every registered organization required to file a return under this 29 section shall, at the time of filing such return, pay to the commission- 30 er the total amount of tax due on its retail sales of medical [marihua-31na] cannabis for the period covered by such return. If a return is not 32 filed when due, the tax shall be due on the day on which the return is 33 required to be filed. 34 5. Whenever the commissioner shall determine that any moneys received 35 under the provisions of this article were paid in error, he may cause 36 the same to be refunded, with interest, in accordance with such rules 37 and regulations as he may prescribe, except that no interest shall be 38 allowed or paid if the amount thereof would be less than one dollar. 39 Such interest shall be at the overpayment rate set by the commissioner 40 pursuant to subdivision twenty-sixth of section one hundred seventy-one 41 of this chapter, or if no rate is set, at the rate of six percent per 42 annum, from the date when the tax, penalty or interest to be refunded 43 was paid to a date preceding the date of the refund check by not more 44 than thirty days. Provided, however, that for the purposes of this 45 subdivision, any tax paid before the last day prescribed for its payment 46 shall be deemed to have been paid on such last day. Such moneys received 47 under the provisions of this article which the commissioner shall deter- 48 mine were paid in error, may be refunded out of funds in the custody of 49 the comptroller to the credit of such taxes provided an application 50 therefor is filed with the commissioner within two years from the time 51 the erroneous payment was made. 52 6. The provisions of article twenty-seven of this chapter shall apply 53 to the tax imposed by this article in the same manner and with the same 54 force and effect as if the language of such article had been incorpo- 55 rated in full into this section and had expressly referred to the tax 56 imposed by this article, except to the extent that any provision of suchS. 2509 130 A. 3009 1 article is either inconsistent with a provision of this article or is 2 not relevant to this article. 3 7. All taxes, interest and penalties collected or received by the 4 commissioner under this article shall be deposited and disposed of 5 pursuant to the provisions of section one hundred seventy-one-a of this 6 chapter, provided that an amount equal to one hundred percent collected 7 under this article less any amount determined by the commissioner to be 8 reserved by the comptroller for refunds or reimbursements shall be paid 9 by the comptroller to the credit of the medical [marihuana] cannabis 10 trust fund established by section eighty-nine-h of the state finance 11 law. 12 8. A registered organization that dispenses medical [marihuana] canna- 13 bis shall provide to the department information on where the medical 14 [marihuana] cannabis was dispensed and where the medical [marihuana] 15 cannabis was manufactured. A registered organization that obtains [mari-16huana] cannabis from another registered organization shall obtain from 17 such registered organization information on where the medical [marihua-18na] cannabis was manufactured. 19 § 36. Section 491 of the tax law, as added by chapter 90 of the laws 20 of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 21 of the laws of 2016, is amended to read as follows: 22 § 491. Returns to be secret. 1. Except in accordance with proper judi- 23 cial order or as in this section or otherwise provided by law, it shall 24 be unlawful for the commissioner, any officer or employee of the depart- 25 ment, or any officer or person who, pursuant to this section, is permit- 26 ted to inspect any return or report or to whom a copy, an abstract or a 27 portion of any return or report is furnished, or to whom any information 28 contained in any return or report is furnished, or any person engaged or 29 retained by such department on an independent contract basis or any 30 person who in any manner may acquire knowledge of the contents of a 31 return or report filed pursuant to this article to divulge or make known 32 in any manner the contents or any other information relating to the 33 business of a distributor, owner or other person contained in any return 34 or report required under this article. The officers charged with the 35 custody of such returns or reports shall not be required to produce any 36 of them or evidence of anything contained in them in any action or 37 proceeding in any court, except on behalf of the state, [the state38department of health] office of cannabis management, or the commissioner 39 in an action or proceeding under the provisions of this chapter or on 40 behalf of the state or the commissioner in any other action or proceed- 41 ing involving the collection of a tax due under this chapter to which 42 the state or the commissioner is a party or a claimant or on behalf of 43 any party to any action or proceeding under the provisions of this arti- 44 cle, when the returns or the reports or the facts shown thereby are 45 directly involved in such action or proceeding, or in an action or 46 proceeding relating to the regulation or taxation of medical [marihuana] 47 cannabis on behalf of officers to whom information shall have been 48 supplied as provided in subdivision two of this section, in any of which 49 events the court may require the production of, and may admit in 50 evidence so much of said returns or reports or of the facts shown there- 51 by as are pertinent to the action or proceeding and no more. Nothing 52 herein shall be construed to prohibit the commissioner, in his or her 53 discretion, from allowing the inspection or delivery of a certified copy 54 of any return or report filed under this article or of any information 55 contained in any such return or report by or to a duly authorized offi- 56 cer or employee of the [state department of health] office of cannabisS. 2509 131 A. 3009 1 management; or by or to the attorney general or other legal represen- 2 tatives of the state when an action shall have been recommended or 3 commenced pursuant to this chapter in which such returns or reports or 4 the facts shown thereby are directly involved; or the inspection of the 5 returns or reports required under this article by the comptroller or 6 duly designated officer or employee of the state department of audit and 7 control, for purposes of the audit of a refund of any tax paid by a 8 registered organization or other person under this article; nor to 9 prohibit the delivery to a registered organization, or a duly authorized 10 representative of such registered organization, a certified copy of any 11 return or report filed by such registered organization pursuant to this 12 article, nor to prohibit the publication of statistics so classified as 13 to prevent the identification of particular returns or reports and the 14 items thereof. This section shall also not be construed to prohibit the 15 disclosure, for tax administration purposes, to the division of the 16 budget and the office of the state comptroller, of information aggre- 17 gated from the returns filed by all the registered organizations making 18 sales of, or manufacturing, medical [marihuana] cannabis in a specified 19 county, whether the number of such registered organizations is one or 20 more. Provided further that, notwithstanding the provisions of this 21 subdivision, the commissioner may, in his or her discretion, permit the 22 proper officer of any county entitled to receive an allocation, follow- 23 ing appropriation by the legislature, pursuant to this article and 24 section eighty-nine-h of the state finance law, or the authorized repre- 25 sentative of such officer, to inspect any return filed under this arti- 26 cle, or may furnish to such officer or the officer's authorized repre- 27 sentative an abstract of any such return or supply such officer or such 28 representative with information concerning an item contained in any such 29 return, or disclosed by any investigation of tax liability under this 30 article. 31 2. The commissioner, in his or her discretion and pursuant to such 32 rules and regulations as he or she may adopt, may permit [the commis-33sioner of internal revenue of the United States, or] the appropriate 34 officers of any other state which regulates or taxes medical [marihuana] 35 cannabis, or the duly authorized representatives of such [commissioner36or of any such] officers, to inspect returns or reports made pursuant to 37 this article, or may furnish to such [commissioner or] other officers, 38 or duly authorized representatives, a copy of any such return or report 39 or an abstract of the information therein contained, or any portion 40 thereof, or may supply [such commissioner or] any such officers or such 41 representatives with information relating to the business of a regis- 42 tered organization making returns or reports hereunder. The commissioner 43 may refuse to supply information pursuant to this subdivision [to the44commissioner of internal revenue of the United States or] to the offi- 45 cers of any other state if the statutes [of the United States, or] of 46 the state represented by such officers, do not grant substantially simi- 47 lar privileges to the commissioner, but such refusal shall not be manda- 48 tory. Information shall not be supplied to [the commissioner of internal49revenue of the United States or] the appropriate officers of any other 50 state which regulates or taxes medical [marihuana] cannabis, or the duly 51 authorized representatives [of such commissioner or] of any of such 52 officers, unless such [commissioner,] officer or other representatives 53 shall agree not to divulge or make known in any manner the information 54 so supplied, but such officers may transmit such information to their 55 employees or legal representatives when necessary, who in turn shall beS. 2509 132 A. 3009 1 subject to the same restrictions as those hereby imposed upon such 2 [commissioner,] officer or other representatives. 3 3. (a) Any officer or employee of the state who willfully violates the 4 provisions of subdivision one or two of this section shall be dismissed 5 from office and be incapable of holding any public office in this state 6 for a period of five years thereafter. 7 (b) Cross-reference: For criminal penalties, see article thirty-seven 8 of this chapter. 9 § 37. The tax law is amended by adding a new article 20-C to read as 10 follows: 11 ARTICLE 20-C 12 TAX ON ADULT-USE CANNABIS PRODUCTS 13 Section 492. Definitions. 14 493. Imposition of tax. 15 494. Registration and renewal. 16 495. Returns and payment of tax. 17 496. Records to be kept; penalties. 18 496-a. Returns to be secret. 19 496-b. Administrative provisions. 20 496-c. Illicit cannabis penalty. 21 § 492. Definitions. For purposes of this article, the following defi- 22 nitions shall apply: 23 (a) "Adult-use cannabis product" or "adult-use cannabis" has the same 24 meaning as the term is defined in section three of the cannabis law. For 25 purposes of this article, under no circumstances shall adult-use canna- 26 bis product include medical cannabis or cannabinoid hemp product as 27 defined in section three of the cannabis law. 28 (b) "Cannabis" means all parts of the a plant of the genus cannabis, 29 whether growing or not; the seeds thereof; the resin extracted from any 30 part of the plant; and every compound, manufacture, salt, derivative, 31 mixture, or preparation of the plant, its seeds or resin. For purposes 32 of this article, cannabis does not include medical cannabis or cannabi- 33 noid hemp product as defined in section three of the cannabis law. 34 (c) "Cannabis edible product" means a product, containing either 35 cannabis or concentrated cannabis and other ingredients, intended for 36 use or consumption through ingestion, including sublingual or oral 37 absorption. 38 (d) "Cannabis flower" means the flower of a plant of the genus canna- 39 bis that has been harvested, dried and cured but has not undergone any 40 processing whereby the plant material is transformed into a concentrate, 41 including, but not limited to, concentrated cannabis, or into an edible 42 or topical product containing cannabis or concentrated cannabis and 43 other ingredients. Cannabis flower excludes leaves and stem. 44 (e) "Concentrated cannabis" has the same meaning as the term is 45 defined in section three of the cannabis law. 46 (f) "Distributor" has the same meaning as the term is defined in 47 section three of the cannabis law. 48 (g) "Illicit cannabis" means and includes cannabis flower, concen- 49 trated cannabis, cannabis edible product and cannabis plant on which any 50 tax required to have been paid under this chapter has not been paid, or 51 the form, packaging, or content of which is not permitted by the office 52 of cannabis management, as applicable. 53 (h) "Cannabis plant" means cannabis that has not been harvested, or 54 undergone processing, drying or curing. 55 (i) "Person" means every individual, partnership, limited liability 56 company, society, association, joint stock company, corporation, estate,S. 2509 133 A. 3009 1 receiver, trustee, assignee, referee, and any other person acting in a 2 fiduciary or representative capacity, whether appointed by a court or 3 otherwise, and any combination of the foregoing. 4 (j) "Sale" means any transfer of title, possession or both, exchange 5 or barter, rental, lease or license to use or consume, conditional, or 6 otherwise, in any manner or by any means whatsoever for a consideration 7 or any agreement therefor. 8 (k) "Total THC" has the same meaning as the term defined in section 9 three of the cannabis law. 10 § 493. Imposition of tax. (a) There is hereby imposed a tax on 11 adult-use cannabis products sold by a distributor to a person who sells 12 adult-use cannabis products at retail at the following rates: 13 (1) cannabis flower at the rate of seven tenths of one cent per milli- 14 gram of the amount of total THC, as reflected on the product label; 15 (2) concentrated cannabis at the rate of one cent per milligram of the 16 amount of total THC, as reflected on the product label; and 17 (3) cannabis edible product at the rate of four cents per milligram of 18 the amount of total THC, as reflected on the product label. This tax 19 shall accrue at the time of such sale or transfer. Where a person who 20 distributes adult-use cannabis is licensed under the cannabis law as a 21 microbusiness, cooperative or registered organization, such person shall 22 be liable for the tax, and such tax shall accrue at the time of the 23 retail sale. 24 (b) In addition to any other tax imposed by this chapter or other law, 25 there is hereby imposed a tax of ten and one-quarter percent on receipts 26 from the retail sale of adult-use cannabis products sold in this state. 27 The tax is imposed on the retail customer and shall be collected at the 28 time of the retail sale by the person who sells adult-use cannabis 29 products at retail, in trust for and on account of the state. 30 § 494. Registration and renewal. (a) (i) Every distributor on whom 31 tax is imposed under this article and every person who sells adult-use 32 cannabis products at retail must file with the commissioner a properly 33 completed application for a certificate of registration before engaging 34 in business. An application for a certificate of registration must be 35 submitted electronically, on a form prescribed by the commissioner, and 36 must be accompanied by a non-refundable application fee of six hundred 37 dollars. A certificate of registration shall not be assignable or trans- 38 ferable and shall be destroyed immediately upon such person ceasing to 39 do business as specified in such certificate, or in the event that such 40 business never commenced. 41 (ii) Provided, however, that the commissioner shall refund or credit 42 an application fee paid with respect to the registration of an adult-use 43 cannabis business in this state if, prior to the beginning of the period 44 with respect to which such registration relates, the certificate of 45 registration described in subparagraph (i) of this paragraph is returned 46 to the department or, if such certificate has been destroyed, the opera- 47 tor of such business satisfactorily accounts to the commissioner for the 48 missing certificate, but such business may not sell adult-use cannabis 49 products in this state during such period, unless it is re-registered. 50 Such refund or credit shall be deemed a refund of tax paid in error, 51 provided, however, no interest shall be allowed or paid on any such 52 refund. 53 (b) The commissioner shall refuse to issue a certificate of registra- 54 tion to any applicant and shall revoke the certificate of registration 55 of any such person who does not possess a valid license from the office 56 of cannabis management or a valid certificate of authority issued pursu-S. 2509 134 A. 3009 1 ant to section eleven hundred thirty-four of this chapter. The commis- 2 sioner may refuse to issue a certificate of registration to any appli- 3 cant where such applicant: 4 (i) has a past-due liability as that term is defined in section one 5 hundred seventy-one-v of this chapter; 6 (ii) has had a certificate of registration under this article, a 7 license from the office of cannabis management, or any license or regis- 8 tration provided for in this chapter revoked or suspended where such 9 revocation or suspension was in effect on the date the application was 10 filed or ended within one year from the date on which such application 11 was filed; 12 (iii) has been convicted of a crime provided for in this chapter with- 13 in one year from the date on which such application was filed or the 14 certificate was issued, as applicable; 15 (iv) willfully fails to file a report or return required by this arti- 16 cle; 17 (v) willfully files, causes to be filed, gives or causes to be given a 18 report, return, certificate or affidavit required by this article which 19 is false; or 20 (vi) willfully fails to collect or truthfully account for or pay over 21 any tax imposed by this article. 22 (c) A certificate of registration shall be valid for the period speci- 23 fied thereon, unless earlier suspended or revoked. Upon the expiration 24 of the term stated on a certificate of registration, such certificate 25 shall be null and void. 26 (d) Every holder of a certificate of registration must notify the 27 commissioner of changes to any of the information stated on the certif- 28 icate, or of changes to any information contained in the application for 29 the certificate of registration. Such notification must be made on or 30 before the last day of the month in which a change occurs and must be 31 made electronically on a form prescribed by the commissioner. 32 (e) Every holder of a certificate of registration under this article 33 shall be required to reapply prior to such certificate's expiration, 34 during a reapplication period established by the commissioner. Such 35 reapplication period shall not occur more frequently than every two 36 years. Such reapplication shall be subject to the same requirements and 37 conditions as an initial application, including grounds for refusal and 38 the payment of the application fee. 39 (f) Any person who is required to obtain a certificate of registration 40 under subdivision (a) of this section who possesses adult-use cannabis 41 products without such certificate shall be subject to a penalty of five 42 hundred dollars for each month or part thereof during which adult-use 43 cannabis products are possessed without such certificate, not to exceed 44 ten thousand dollars in the aggregate. 45 § 495. Returns and payment of tax. (a)(i) Every distributor on whom 46 tax is imposed under this article shall, on or before the twentieth date 47 of each month, file with the commissioner a return on forms to be 48 prescribed by the commissioner, showing the total THC content of adult- 49 use cannabis products subject to tax pursuant to subdivision (a) of 50 section four hundred ninety-three of this article and the total amount 51 of tax due thereon in the preceding calendar month, along with such 52 other information as the commissioner may require. 53 (ii) Every person who sells adult-use cannabis products to retail 54 customers shall file with the commissioner a quarterly return on forms 55 to be prescribed by the commissioner, showing the total amount of tax 56 due under subdivision (b) of section four hundred ninety-three of thisS. 2509 135 A. 3009 1 article in the preceding quarter, along with such other information as 2 the commissioner may require. 3 (b) Every person required to file a return under this section shall, 4 at the time of filing such return, pay to the commissioner the total 5 amount of tax due for the period covered by such return. If a return is 6 not filed when due, the tax shall be due on the day on which the return 7 is required to be filed. 8 § 496. Records to be kept; penalties. (a) Records to be kept. Every 9 distributor on whom tax is imposed under this article and every person 10 who sells adult-use cannabis products at retail shall maintain complete 11 and accurate records in such form as the commissioner may require 12 including, but not limited to, such items as the total THC content of 13 the adult-use cannabis products sold to or produced by such person; 14 complete records of every retail sale of adult-use cannabis, and any 15 other record or information required by the commissioner. Such records 16 must be preserved for a period of three years after the filing of the 17 return to which such records relate and must be provided to the commis- 18 sioner upon request. 19 (b) Penalties. In addition to any other penalty provided in this arti- 20 cle or otherwise imposed by law, every distributor on whom tax is 21 imposed under this article and every person who sells adult-use cannabis 22 products at retail who fails to maintain or make available to the 23 commissioner the records required by this section is subject to a penal- 24 ty not to exceed five hundred dollars for each month or part thereof for 25 which the failure occurs. This penalty may not be imposed more than once 26 for failures for the same monthly period or part thereof. If the 27 commissioner determines that a failure to maintain or make available 28 records in any month was entirely due to reasonable cause and not to 29 willful neglect, the commissioner must remit the penalty for that month. 30 § 496-a. Returns to be secret. (a) Except in accordance with proper 31 judicial order or as in this section or otherwise provided by law, it 32 shall be unlawful for the commissioner, any officer or employee of the 33 department, or any officer or person who, pursuant to this section, is 34 permitted to inspect any return or report or to whom a copy, an abstract 35 or a portion of any return or report is furnished, or to whom any infor- 36 mation contained in any return or report is furnished, or any person who 37 in any manner may acquire knowledge of the contents of a return or 38 report filed pursuant to this article to divulge or make known in any 39 manner the content or any other information contained in any return or 40 report required under this article. The officers charged with the custo- 41 dy of such returns or reports shall not be required to produce any of 42 them or evidence of anything contained in them in any action or preced- 43 ing in any court, except on behalf of the state, the office of cannabis 44 management, or the commissioner in an action or proceeding involving the 45 collection of tax due under this chapter to which the state or the 46 commissioner is a party or a claimant or on behalf of any party to any 47 action or proceeding under the provisions of this article, when the 48 returns or the reports or the facts shown thereby are directly involved 49 in such action or proceeding, or in an action or proceeding related to 50 the regulation or taxation of adult-use cannabis products on behalf of 51 officers to whom information shall have been supplied as provided in 52 this section, in any of which events the court may require the 53 production of, and may admit in evidence so much of said returns or 54 reports or of the facts shown thereby as are pertinent to the action or 55 proceeding and no more. Nothing herein shall be construed to prohibit 56 the commissioner, in his or her discretion, from allowing the inspectionS. 2509 136 A. 3009 1 or delivery of a certified copy of any return or report filed under this 2 article or of any information contained in any such return or report by 3 or to a duly authorized officer or employee of the office of cannabis 4 management; or by or to the attorney general or other legal represen- 5 tatives of the state when an action shall have been recommended or 6 commenced pursuant to this chapter in which such returns or reports or 7 the facts shown thereby are directly involved; or the inspection of the 8 returns or reports required under this article by the comptroller or 9 duly designated officer or employee of the state department of audit and 10 control, for purposes of the audit of a refund of any tax paid by any 11 person under this article; nor to prohibit the delivery to such person 12 or a duly authorized representative of such person, a certified copy of 13 any return or report filed by such person pursuant to this article, nor 14 to prohibit the publication of statistics so classified as to prevent 15 the identification of particular returns or reports and the items there- 16 of. This section shall also not be construed to prohibit the disclosure, 17 for tax administration purposes, to the division of the budget and the 18 office of the state comptroller, of information aggregated from the 19 returns filed by all persons subject to the taxes imposed by the arti- 20 cle, whether the number of such persons is one or more. 21 (b) The commissioner, in his or her discretion, may permit the appro- 22 priate officers of any other state that regulates or taxes cannabis or 23 the duly authorized representatives of any such officers, to inspect 24 returns or reports made pursuant to this article, or may furnish to such 25 other officers, or their duly authorized representatives, a copy of any 26 such return or report or an abstract of the information therein 27 contained, or any portion thereof, or may supply any such officers or 28 such representatives with information relating to the business of a 29 person making returns or reports hereunder solely for purposes of tax 30 administration. The commissioner may refuse to supply information pursu- 31 ant to this subdivision to the officers of any other state if the stat- 32 utes of the state represented by such officers do not grant substantial- 33 ly similar privileges to the commissioner, but such refusal shall not be 34 mandatory. Information shall not be supplied to the officers of any 35 state that regulates or taxes cannabis, or their duly authorized repre- 36 sentatives of any such officers, unless such officer or other represen- 37 tatives shall agree not to divulge or make known in any manner the 38 information so supplied, but such officers may transmit such information 39 to their employees or legal representatives when necessary, who in turn 40 shall be subject to the same restrictions as those hereby imposed upon 41 such officer or other representatives. 42 (c)(1) Any officer or employee of the state who willfully violates the 43 provisions of subdivision (a) or (b) of this section shall be dismissed 44 from office and be incapable of holding any public office in this state 45 for a period of five years thereafter. 46 (2) For criminal penalties, see article thirty-seven of this chapter. 47 § 496-b. Administrative provisions. (a)(1) The provisions of article 48 twenty-seven of this chapter shall apply to the tax imposed by subdivi- 49 sion (a) of section four hundred ninety-three of this article in the 50 same manner and with the same force and effect as if the language of 51 such article had been incorporated in full into this section and had 52 expressly referred to the tax imposed by this article, except to the 53 extent that any provision of such article is either inconsistent with a 54 provision of this article or is not relevant to this article. 55 (2) The tax imposed by subdivision (b) of section four hundred nine- 56 ty-three of this article shall be administered and collected in a likeS. 2509 137 A. 3009 1 manner as and jointly with the taxes imposed by sections eleven hundred 2 five and eleven hundred ten of this chapter. In addition, except as 3 otherwise provided in this article, all of the provisions of article 4 twenty-eight of this chapter (except sections eleven hundred seven, 5 eleven hundred eight, eleven hundred nine, and eleven hundred forty- 6 eight) relating to or applicable to the administration, collection and 7 review of the taxes imposed by such sections eleven hundred five and 8 eleven hundred ten, including, but not limited to, the provisions relat- 9 ing to definitions, returns, exemptions, penalties, personal liability 10 for the tax, and collection of tax from the customer, shall apply to the 11 taxes imposed by this article so far as such provisions can be made 12 applicable to the taxes imposed by this article with such limitations as 13 set forth in full in this article and such modifications as may be 14 necessary in order to adapt such language to the taxes so imposed. Such 15 provisions shall apply with the same force and effect as if the language 16 of those provisions had been set forth in full except to the extent that 17 any provision is either inconsistent with a provision of this article or 18 is not relevant to the taxes imposed by this article. 19 (b)(1) All taxes, interest, and penalties collected or received by the 20 commissioner under this article shall be deposited and disposed of 21 pursuant to the provisions of section one hundred seventy-one-a of this 22 chapter, provided that an amount equal to one hundred percent collected 23 under this article less any amount determined by the commissioner to be 24 reserved by the comptroller for refunds or reimbursements shall be paid 25 by the comptroller to the credit of the cannabis revenue fund estab- 26 lished by section ninety-nine-ii of the state finance law. Of the total 27 revenue collected or received under this article, the comptroller shall 28 retain such amount as the commissioner may determine to be necessary for 29 refunds. The commissioner is authorized and directed to deduct from the 30 registration fees under subdivision (a) of section four hundred ninety- 31 four of this article, before deposit into the cannabis revenue fund 32 designated by the comptroller, a reasonable amount necessary to effectu- 33 ate refunds of appropriations of the department to reimburse the depart- 34 ment for the costs incurred to administer, collect, and distribute the 35 taxes imposed by this article. 36 § 496-c. Illicit cannabis penalty. (a) In addition to any other civil 37 or criminal penalties that may apply, any person in possession of or 38 having control over illicit cannabis, as defined in section four hundred 39 ninety-two of this article, after notice and an opportunity for a hear- 40 ing, shall be liable for a civil penalty of not less than four hundred 41 dollars per ounce of illicit cannabis flower, ten dollars per milligram 42 of the total weight of any illicit cannabis edible product, one hundred 43 dollars per gram of the total weight of any product containing illicit 44 cannabis concentrate, and one thousand dollars per illicit cannabis 45 plant, but not to exceed eight hundred dollars per ounce of illicit 46 cannabis flower, twenty dollars per milligram of the total weight of any 47 illicit cannabis edible product, two hundred dollars per gram of the 48 total weight of any product containing illicit cannabis concentrate, and 49 two thousand dollars per illicit cannabis plant for a first violation, 50 and for a second and subsequent violation within three years following a 51 prior violation shall be liable for a civil penalty of not less than 52 eight hundred dollars per ounce of illicit cannabis flower, twenty 53 dollars per milligram of the total weight of any illicit cannabis edible 54 product, two hundred dollars per gram of the total weight of any product 55 containing illicit cannabis concentrate, and two thousand dollars per 56 illicit cannabis plant, but not to exceed one thousand dollars per ounceS. 2509 138 A. 3009 1 of illicit cannabis flower, forty dollars per milligram of the total 2 weight of any illicit cannabis edible product, four hundred dollars per 3 gram of the total weight of any product containing illicit cannabis 4 concentrate, and four thousand dollars per illicit cannabis plant. 5 (b) No enforcement action taken under this section shall be construed 6 to limit any other criminal or civil liability of anyone in possession 7 of illicit cannabis. 8 (c) The penalty imposed by this section shall not apply to persons in 9 possession of less than two ounces of adult-use cannabis or ten grams of 10 concentrated cannabis. 11 § 38. Subparagraph (A) of paragraph 1 of subdivision (a) of section 12 1115 of the tax law, as amended by section 1 of part CCC of chapter 59 13 of the laws of 2019, is amended to read as follows: 14 (A) Food, food products, beverages, dietary foods and health supple- 15 ments, sold for human consumption but not including (i) candy and 16 confectionery, (ii) fruit drinks which contain less than seventy percent 17 of natural fruit juice, (iii) soft drinks, sodas and beverages such as 18 are ordinarily dispensed at soda fountains or in connection therewith 19 (other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco- 20 holic beverages, and (v) adult-use cannabis products as defined in arti- 21 cle twenty-C of this chapter, all of which shall be subject to the 22 retail sales and compensating use taxes, whether or not the item is sold 23 in liquid form. Nothing in this subparagraph shall be construed as 24 exempting food or drink from the tax imposed under subdivision (d) of 25 section eleven hundred five of this article. 26 § 39. Intentionally omitted. 27 § 39-a. Paragraph 3 of subdivision (a) of section 1115 of the tax law, 28 as amended by chapter 201 of the laws of 1976, is amended to read as 29 follows: 30 (3) Drugs and medicines intended for use, internally or externally, in 31 the cure, mitigation, treatment or prevention of illnesses or diseases 32 in human beings, medical equipment (including component parts thereof) 33 and supplies required for such use or to correct or alleviate physical 34 incapacity, and products consumed by humans for the preservation of 35 health but not including: (i) cosmetics or toilet articles notwithstand- 36 ing the presence of medicinal ingredients therein [or]; (ii) medical 37 equipment (including component parts thereof) and supplies, other than 38 such drugs and medicines, purchased at retail for use in performing 39 medical and similar services for compensation; and (iii) adult-use 40 cannabis products, as defined by article twenty-C of this chapter. 41 § 39-b. Section 471 of the tax law is amended by adding a new subdivi- 42 sion 7 to read as follows: 43 7. The taxes imposed under this section shall not apply to adult-use 44 cannabis products subject to tax under article twenty-C of this chapter. 45 § 39-c. Section 1181 of the tax law, as added by section 1 of part UU 46 of chapter 59 of the laws of 2019, is amended to read as follows: 47 § 1181. Imposition of tax. In addition to any other tax imposed by 48 this chapter or other law, there is hereby imposed a tax of twenty 49 percent on receipts from the retail sale of vapor products sold in this 50 state. The tax is imposed on the purchaser and collected by the vapor 51 products dealer as defined in subdivision (b) of section eleven hundred 52 eighty of this article, in trust for and on account of the state. The 53 taxes imposed under this section shall not apply to adult-use cannabis 54 products subject to tax under article twenty-C of this chapter. 55 § 39-d. Subdivision (b) of section 1116 of the tax law is amended by 56 adding a new paragraph 8 to read as follows:S. 2509 139 A. 3009 1 8. Nothing in this section shall exempt purchases or sales of adult- 2 use cannabis products, as defined by article twenty-C of this chapter, 3 by an organization described in paragraphs four, five, seven, eight, and 4 nine of subdivision (a) of this section. 5 § 40. Section 12 of chapter 90 of the laws of 2014 amending the public 6 health law, the tax law, the state finance law, the general business 7 law, the penal law and the criminal procedure law relating to medical 8 use of marihuana, is amended to read as follows: 9 § 12. This act shall take effect immediately [and]; provided, however 10 that sections one, three, five, seven-a, eight, nine, ten and eleven of 11 this act shall expire and be deemed repealed [seven] fourteen years 12 after such date; provided that sections 490 and 491 of the tax law shall 13 expire and be deemed repealed fourteen years after such date and that 14 the amendments to section 171-a of the tax law made by section seven of 15 this act shall take effect on the same date and in the same manner as 16 section 54 of part A of chapter 59 of the laws of 2014 takes effect and 17 shall not expire and be deemed repealed; and provided, further, that the 18 amendments to subdivision 5 of section 410.91 of the criminal procedure 19 law made by section eleven of this act shall not affect the expiration 20 and repeal of such section and shall expire and be deemed repealed ther- 21 ewith. 22 § 41. The office of cannabis management, in consultation with the 23 division of the budget, the department of taxation and finance and the 24 department of health shall conduct a study of the effectiveness of this 25 act. Such study shall examine all aspects of the program, including the 26 economic and fiscal aspects of the program, the impact of the program on 27 the public health and safety of New York residents and the progress made 28 in achieving social justice goals and toward eliminating the illegal 29 market for cannabis products in New York. The office shall make recom- 30 mendations regarding the appropriate level of taxation as well as any 31 recommended changes to the taxation and regulatory structure of the 32 program. In addition, the office shall also recommend changes, if any, 33 necessary to improve and protect the public health and safety of New 34 Yorkers. Such study shall be conducted two years after the effective 35 date of this act and shall be presented to the governor, the temporary 36 president of the senate and the speaker of the assembly, no later than 37 October 1, 2024. 38 § 42. Section 102 of the alcoholic beverage control law is amended by 39 adding a new subdivision 8 to read as follows: 40 8. No alcoholic beverage retail licensee shall sell cannabis, nor have 41 or possess a license or permit to sell cannabis, on the same premises 42 where alcoholic beverages are sold. 43 § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the 44 general obligations law, as added by chapter 406 of the laws of 2000, 45 are amended to read as follows: 46 1. "Illegal drug" means any controlled substance [or marijuana] the 47 possession of which is an offense under the public health law or the 48 penal law. 49 4. "Grade one violation" means possession of one-quarter ounce or 50 more, but less than four ounces, or distribution of less than one ounce 51 of an illegal drug [other than marijuana, or possession of one pound or52twenty-five plants or more, but less than four pounds or fifty plants,53or distribution of less than one pound of marijuana]. 54 5. "Grade two violation" means possession of four ounces or more, but 55 less than eight ounces, or distribution of one ounce or more, but less 56 than two ounces, of an illegal drug [other than marijuana, or possessionS. 2509 140 A. 3009 1of four pounds or more or fifty plants or distribution of more than one2pound but less than ten pounds of marijuana]. 3 6. "Grade three violation" means possession of eight ounces or more, 4 but less than sixteen ounces, or distribution of two ounces or more, but 5 less than four ounces, of a specified illegal drug [or possession of6eight pounds or more or seventy-five plants or more, but less than7sixteen pounds or one hundred plants, or distribution of more than five8pounds but less than ten pounds of marijuana]. 9 7. "Grade four violation" means possession of sixteen ounces or more 10 or distribution of four ounces or more of a specified illegal drug [or11possession of sixteen pounds or more or one hundred plants or more or12distribution of ten pounds or more of marijuana]. 13 13. "Drug trafficker" means a person convicted of a class A or class B 14 felony controlled substance [or marijuana offense] who, in connection 15 with the criminal conduct for which he or she stands convicted, 16 possessed, distributed, sold or conspired to sell a controlled substance 17 [or marijuana] which, by virtue of its quantity, the person's prominent 18 role in the enterprise responsible for the sale or distribution of such 19 controlled substance and other circumstances related to such criminal 20 conduct indicate that such person's criminal possession, sale or 21 conspiracy to sell such substance was not an isolated occurrence and was 22 part of an ongoing pattern of criminal activity from which such person 23 derived substantial income or resources and in which such person played 24 a leadership role. 25 § 44. Paragraph (g) of subdivision 1 of section 488 of the social 26 services law, as added by section 1 of part B of chapter 501 of the laws 27 of 2012, is amended to read as follows: 28 (g) "Unlawful use or administration of a controlled substance," which 29 shall mean any administration by a custodian to a service recipient of: 30 a controlled substance as defined by article thirty-three of the public 31 health law, without a prescription; or other medication not approved for 32 any use by the federal food and drug administration, except for the 33 administration of medical cannabis when such administration is in 34 accordance with article three of the cannabis law and any regulations 35 promulgated thereunder as well as the rules, regulations, policies, or 36 procedures of the state oversight agency or agencies governing such 37 custodians. It also shall include a custodian unlawfully using or 38 distributing a controlled substance as defined by article thirty-three 39 of the public health law, at the workplace or while on duty. 40 § 44-a. Subdivision 1 of section 151 of the social services law, as 41 amended by section 2 of part F of chapter 58 of the laws of 2014, is 42 amended to read as follows: 43 1. Unauthorized transactions. Except as otherwise provided in subdivi- 44 sion two of this section, no person, firm, establishment, entity, or 45 corporation (a) licensed under the provisions of the alcoholic beverage 46 control law to sell liquor and/or wine at retail for off-premises 47 consumption; (b) licensed to sell beer at wholesale and also authorized 48 to sell beer at retail for off-premises consumption; (c) licensed or 49 authorized to conduct pari-mutuel wagering activity under the racing, 50 pari-mutuel wagering and breeding law; (d) licensed to participate in 51 charitable gaming under article fourteen-H of the general municipal law; 52 (e) licensed to participate in the operation of a video lottery facility 53 under section one thousand six hundred seventeen-a of the tax law; (f) 54 licensed to operate a gaming facility under section one thousand three 55 hundred eleven of the racing, pari-mutuel wagering and breeding law; 56 [or] (g) licensed to operate an adult-use cannabis retail dispensaryS. 2509 141 A. 3009 1 pursuant to the cannabis law: or (h) providing adult-oriented enter- 2 tainment in which performers disrobe or perform in an unclothed state 3 for entertainment, or making available the venue in which performers 4 disrobe or perform in an unclothed state for entertainment, shall cash 5 or accept any public assistance check or electronic benefit transfer 6 device issued by a public welfare official or department, or agent ther- 7 eof, as and for public assistance. 8 § 44-b. Subdivision 3 of section 151 of the social services law is 9 amended by adding a new paragraph (d) to read as follows: 10 (d) A violation of the provisions of subdivision one of this section 11 taking place at the licensed premises by a person, firm, establishment, 12 entity or corporation licensed pursuant to the cannabis law to operate 13 an adult-use cannabis retail dispensary shall subject such person, firm, 14 establishment, entity or corporation to penalties and injunctions pursu- 15 ant to section sixteen of article two of the cannabis law. 16 § 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the 17 social services law, as added by section 1 of part B of chapter 501 of 18 the laws of 2012, are amended and a new paragraph (g) is added to read 19 as follows: 20 (e) information regarding individual reportable incidents, incident 21 patterns and trends, and patterns and trends in the reporting and 22 response to reportable incidents is shared, consistent with applicable 23 law, with the justice center, in the form and manner required by the 24 justice center and, for facilities or provider agencies that are not 25 state operated, with the applicable state oversight agency which shall 26 provide such information to the justice center; [and] 27 (f) incident review committees are established; provided, however, 28 that the regulations may authorize an exemption from this requirement, 29 when appropriate, based on the size of the facility or provider agency 30 or other relevant factors. Such committees shall be composed of members 31 of the governing body of the facility or provider agency and other 32 persons identified by the director of the facility or provider agency, 33 including some members of the following: direct support staff, licensed 34 health care practitioners, service recipients and representatives of 35 family, consumer and other advocacy organizations, but not the director 36 of the facility or provider agency. Such committee shall meet regularly 37 to: (i) review the timeliness, thoroughness and appropriateness of the 38 facility or provider agency's responses to reportable incidents; (ii) 39 recommend additional opportunities for improvement to the director of 40 the facility or provider agency, if appropriate; (iii) review incident 41 trends and patterns concerning reportable incidents; and (iv) make 42 recommendations to the director of the facility or provider agency to 43 assist in reducing reportable incidents. Members of the committee shall 44 be trained in confidentiality laws and regulations, and shall comply 45 with section seventy-four of the public officers law[.]; and 46 (g) safe storage, administration, and diversion prevention policies 47 regarding controlled substances and medical cannabis. 48 § 46. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal 49 law, as added by chapter 90 of the laws of 2014, are amended to read as 50 follows: 51 § 179.00 Criminal diversion of medical [marihuana] cannabis; defi- 52 nitions. 53 The following definitions are applicable to this article: 54 1. "Medical [marihuana] cannabis" means medical [marihuana] cannabis 55 as defined in [subdivision eight of section thirty-three hundred sixty56of the public health law] section three of the cannabis law.S. 2509 142 A. 3009 1 2. "Certification" means a certification, made under section [thirty-2three hundred sixty-one of the public health law] thirty of the cannabis 3 law. 4 § 179.05 Criminal diversion of medical [marihuana] cannabis; limita- 5 tions. 6 The provisions of this article shall not apply to: 7 1. a practitioner authorized to issue a certification who acted in 8 good faith in the lawful course of his or her profession; or 9 2. a registered organization as that term is defined in [subdivision10nine of section thirty-three hundred sixty of the public health law] 11 section thirty-four of the cannabis law who acted in good faith in the 12 lawful course of the practice of pharmacy; or 13 3. a person who acted in good faith seeking treatment for a medical 14 condition or assisting another person to obtain treatment for a medical 15 condition. 16 § 179.10 Criminal diversion of medical [marihuana] cannabis in the first 17 degree. 18 A person is guilty of criminal diversion of medical [marihuana] canna- 19 bis in the first degree when he or she is a practitioner, as that term 20 is defined in [subdivision twelve of section thirty-three hundred sixty21of the public health law] section three of the cannabis law, who issues 22 a certification with knowledge of reasonable grounds to know that (i) 23 the recipient has no medical need for it, or (ii) it is for a purpose 24 other than to treat a serious condition as defined in [subdivision seven25of section thirty-three hundred sixty of the public health law] section 26 three of the cannabis law. 27 Criminal diversion of medical [marihuana] cannabis in the first degree 28 is a class E felony. 29 § 179.11 Criminal diversion of medical [marihuana] cannabis in the 30 second degree. 31 A person is guilty of criminal diversion of medical [marihuana] canna- 32 bis in the second degree when he or she sells, trades, delivers, or 33 otherwise provides medical [marihuana] cannabis to another with know- 34 ledge or reasonable grounds to know that the recipient is not registered 35 under [title five-A of article thirty-three of the public health law] 36 article three of the cannabis law. 37 Criminal diversion of medical [marihuana] cannabis in the second 38 degree is a class B misdemeanor. 39 § 179.15 Criminal retention of medical [marihuana] cannabis. 40 A person is guilty of criminal retention of medical [marihuana] canna- 41 bis when, being a certified patient or designated caregiver, as those 42 terms are defined in [subdivisions three and five of section thirty-43three hundred sixty of the public health law, respectively] section 44 three of the cannabis law, he or she knowingly obtains, possesses, 45 stores or maintains an amount of [marihuana] cannabis in excess of the 46 amount he or she is authorized to possess under the provisions of [title47five-A of article thirty-three of the public health law] article three 48 of the cannabis law. 49 Criminal retention of medical [marihuana] cannabis is a class A misde- 50 meanor. 51 § 47. Section 220.78 of the penal law, as added by chapter 154 of the 52 laws of 2011, is amended to read as follows: 53 § 220.78 Witness or victim of drug or alcohol overdose. 54 1. A person who, in good faith, seeks health care for someone who is 55 experiencing a drug or alcohol overdose or other life threatening 56 medical emergency shall not be charged or prosecuted for a controlledS. 2509 143 A. 3009 1 substance offense under article two hundred twenty or a [marihuana] 2 cannabis offense under article two hundred twenty-one of this title, 3 other than an offense involving sale for consideration or other benefit 4 or gain, or charged or prosecuted for possession of alcohol by a person 5 under age twenty-one years under section sixty-five-c of the alcoholic 6 beverage control law, or for possession of drug paraphernalia under 7 article thirty-nine of the general business law, with respect to any 8 controlled substance, [marihuana] cannabis, alcohol or paraphernalia 9 that was obtained as a result of such seeking or receiving of health 10 care. 11 2. A person who is experiencing a drug or alcohol overdose or other 12 life threatening medical emergency and, in good faith, seeks health care 13 for himself or herself or is the subject of such a good faith request 14 for health care, shall not be charged or prosecuted for a controlled 15 substance offense under this article or a [marihuana] cannabis offense 16 under article two hundred twenty-one of this title, other than an 17 offense involving sale for consideration or other benefit or gain, or 18 charged or prosecuted for possession of alcohol by a person under age 19 twenty-one years under section sixty-five-c of the alcoholic beverage 20 control law, or for possession of drug paraphernalia under article thir- 21 ty-nine of the general business law, with respect to any substance, 22 [marihuana] cannabis, alcohol or paraphernalia that was obtained as a 23 result of such seeking or receiving of health care. 24 3. Definitions. As used in this section the following terms shall have 25 the following meanings: 26 (a) "Drug or alcohol overdose" or "overdose" means an acute condition 27 including, but not limited to, physical illness, coma, mania, hysteria 28 or death, which is the result of consumption or use of a controlled 29 substance or alcohol and relates to an adverse reaction to or the quan- 30 tity of the controlled substance or alcohol or a substance with which 31 the controlled substance or alcohol was combined; provided that a 32 patient's condition shall be deemed to be a drug or alcohol overdose if 33 a prudent layperson, possessing an average knowledge of medicine and 34 health, could reasonably believe that the condition is in fact a drug or 35 alcohol overdose and (except as to death) requires health care. 36 (b) "Health care" means the professional services provided to a person 37 experiencing a drug or alcohol overdose by a health care professional 38 licensed, registered or certified under title eight of the education law 39 or article thirty of the public health law who, acting within his or her 40 lawful scope of practice, may provide diagnosis, treatment or emergency 41 services for a person experiencing a drug or alcohol overdose. 42 4. It shall be an affirmative defense to a criminal sale controlled 43 substance offense under this article or a criminal sale of [marihuana] 44 cannabis offense under article two hundred twenty-one of this title, not 45 covered by subdivision one or two of this section, with respect to any 46 controlled substance or [marihuana] cannabis which was obtained as a 47 result of such seeking or receiving of health care, that: 48 (a) the defendant, in good faith, seeks health care for someone or for 49 him or herself who is experiencing a drug or alcohol overdose or other 50 life threatening medical emergency; and 51 (b) the defendant has no prior conviction for the commission or 52 attempted commission of a class A-I, A-II or B felony under this arti- 53 cle. 54 5. Nothing in this section shall be construed to bar the admissibility 55 of any evidence in connection with the investigation and prosecution of 56 a crime with regard to another defendant who does not independentlyS. 2509 144 A. 3009 1 qualify for the bar to prosecution or for the affirmative defense; nor 2 with regard to other crimes committed by a person who otherwise quali- 3 fies under this section; nor shall anything in this section be construed 4 to bar any seizure pursuant to law, including but not limited to pursu- 5 ant to section thirty-three hundred eighty-seven of the public health 6 law. 7 6. The bar to prosecution described in subdivisions one and two of 8 this section shall not apply to the prosecution of a class A-I felony 9 under this article, and the affirmative defense described in subdivision 10 four of this section shall not apply to the prosecution of a class A-I 11 or A-II felony under this article. 12 § 48. Subdivision 1 of section 260.20 of the penal law, as amended by 13 chapter 362 of the laws of 1992, is amended as follows: 14 1. He knowingly permits a child less than eighteen years old to enter 15 or remain in or upon a place, premises or establishment where sexual 16 activity as defined by article one hundred thirty, two hundred thirty or 17 two hundred sixty-three of this [chapter] part or activity involving 18 controlled substances as defined by article two hundred twenty of this 19 [chapter or involving marihuana as defined by article two hundred twen-20ty-one of this chapter] part is maintained or conducted, and he knows or 21 has reason to know that such activity is being maintained or conducted; 22 or 23 § 49. Section 89-h of the state finance law, as added by chapter 90 of 24 the laws of 2014, is amended to read as follows: 25 § 89-h. Medical [marihuana] cannabis trust fund. 1. There is hereby 26 established in the joint custody of the state comptroller and the 27 commissioner of taxation and finance a special fund to be known as the 28 "medical [marihuana] cannabis trust fund." 29 2. The medical [marihuana] cannabis trust fund shall consist of all 30 moneys required to be deposited in the medical [marihuana] cannabis 31 trust fund pursuant to the provisions of section four hundred ninety of 32 the tax law. 33 3. The moneys in the medical [marihuana] cannabis trust fund shall be 34 kept separate and shall not be commingled with any other moneys in the 35 custody of the commissioner of taxation and finance and the state comp- 36 troller. 37 4. The moneys of the medical [marihuana] cannabis trust fund, follow- 38 ing appropriation by the legislature, shall be allocated upon a certif- 39 icate of approval of availability by the director of the budget as 40 follows: (a) Twenty-two and five-tenths percent of the monies shall be 41 transferred to the counties in New York state in which the medical 42 [marihuana] cannabis was manufactured and allocated in proportion to the 43 gross sales originating from medical [marihuana] cannabis manufactured 44 in each such county; (b) twenty-two and five-tenths percent of the 45 moneys shall be transferred to the counties in New York state in which 46 the medical [marihuana] cannabis was dispensed and allocated in propor- 47 tion to the gross sales occurring in each such county; (c) five percent 48 of the monies shall be transferred to the office of [alcoholism and49substance abuse services] addiction services and supports, which shall 50 use that revenue for additional drug abuse prevention, counseling and 51 treatment services; [and] (d) five percent of the revenue received by 52 the department shall be transferred to the division of criminal justice 53 services, which shall use that revenue for a program of discretionary 54 grants to state and local law enforcement agencies that demonstrate a 55 need relating to [title five-A of article thirty-three of the public56health law] article three of the cannabis law; said grants could be usedS. 2509 145 A. 3009 1 for personnel costs of state and local law enforcement agencies[.]; and 2 (e) forty-five percent of the monies shall be transferred to the New 3 York state cannabis revenue fund. For purposes of this subdivision, the 4 city of New York shall be deemed to be a county. 5 § 50. The state finance law is amended by adding a new section 99-ii 6 to read as follows: 7 § 99-ii. New York state cannabis revenue fund. 1. There is hereby 8 established in the joint custody of the state comptroller and the 9 commissioner of taxation and finance a special fund to be known as the 10 "New York state cannabis revenue fund" (the "fund"). 11 2. Monies in the fund shall be kept separate from and shall not be 12 commingled with any other monies in the custody of the comptroller or 13 the commissioner of taxation and finance. Provided, however that any 14 monies of the fund not required for immediate use may, at the discretion 15 of the comptroller, in consultation with the director of the budget, be 16 invested by the comptroller in obligations of the United States or the 17 state. The proceeds of any such investment shall be retained by the fund 18 as assets to be used for purposes of the fund. 19 3. Except as set forth in subdivisions two and four of this section, 20 monies from the fund shall not be used to make payments for any purpose 21 other than the purposes set forth in subdivisions two and four of this 22 section. 23 4. The "New York state cannabis revenue fund" shall consist of monies 24 received by the commissioner of taxation and finance pursuant to subdi- 25 visions (a) and (b) of section four hundred ninety-three of the tax law 26 and all other monies credited or transferred thereto from any other fund 27 or source. Such monies shall first be allocated to the "cannabis social 28 equity fund" established pursuant to a chapter of the laws of two thou- 29 sand twenty-one that established such fund, according to the following 30 schedule: ten million dollars in fiscal year two thousand twenty-two-- 31 two thousand twenty-three; twenty million dollars in fiscal year two 32 thousand twenty-three--two thousand twenty-four; thirty million dollars 33 in fiscal year two thousand twenty-four--two thousand twenty-five; forty 34 million dollars in fiscal year two thousand twenty-five--two thousand 35 twenty-six; and fifty million dollars in each fiscal year thereafter. 36 All remaining monies shall be expended for the following purposes: 37 administration of the regulated cannabis program, data gathering, moni- 38 toring and reporting, the governor's traffic safety committee, implemen- 39 tation and administration of the initiatives and programs of the social 40 and economic equity plan in the office of cannabis management, substance 41 abuse, harm reduction and mental health treatment and prevention, public 42 health education and intervention, research on cannabis uses and appli- 43 cations, program evaluation and improvements, and any other identified 44 purpose recommended by the executive director of the office of cannabis 45 management and approved by the director of the budget. 46 § 51. Subdivision 2 of section 3371 of the public health law, as 47 amended by chapter 90 of the laws of 2014, is amended to read as 48 follows: 49 2. The prescription monitoring program registry may be accessed, under 50 such terms and conditions as are established by the department for 51 purposes of maintaining the security and confidentiality of the informa- 52 tion contained in the registry, by: 53 (a) a practitioner, or a designee authorized by such practitioner 54 pursuant to paragraph (b) of subdivision two of section thirty-three 55 hundred forty-three-a [or section thirty-three hundred sixty-one] of 56 this article, for the purposes of: (i) informing the practitioner that aS. 2509 146 A. 3009 1 patient may be under treatment with a controlled substance by another 2 practitioner; (ii) providing the practitioner with notifications of 3 controlled substance activity as deemed relevant by the department, 4 including but not limited to a notification made available on a monthly 5 or other periodic basis through the registry of controlled substances 6 activity pertaining to his or her patient; (iii) allowing the practi- 7 tioner, through consultation of the prescription monitoring program 8 registry, to review his or her patient's controlled substances history 9 as required by section thirty-three hundred forty-three-a [or section10thirty-three hundred sixty-one] of this article; and (iv) providing to 11 his or her patient, or person authorized pursuant to paragraph (j) of 12 subdivision one of this section, upon request, a copy of such patient's 13 controlled substance history as is available to the practitioner through 14 the prescription monitoring program registry; or 15 (b) a pharmacist, pharmacy intern or other designee authorized by the 16 pharmacist pursuant to paragraph (b) of subdivision three of section 17 thirty-three hundred forty-three-a of this article, for the purposes of: 18 (i) consulting the prescription monitoring program registry to review 19 the controlled substances history of an individual for whom one or more 20 prescriptions for controlled substances or certifications for [marihua-21na] cannabis is presented to the pharmacist, pursuant to section thir- 22 ty-three hundred forty-three-a of this article; and (ii) receiving from 23 the department such notifications of controlled substance activity as 24 are made available by the department; or 25 (c) an individual employed by a registered organization for the 26 purpose of consulting the prescription monitoring program registry to 27 review the controlled substances history of an individual for whom one 28 or more certifications for [marihuana] cannabis is presented to that 29 registered organization[, pursuant to section thirty-three hundred30sixty-four of this article]. Unless otherwise authorized by this arti- 31 cle, an individual employed by a registered organization will be 32 provided access to the prescription monitoring program in the sole 33 discretion of the commissioner. 34 § 52. Subdivision 3 of section 853 of the general business law, as 35 added by chapter 90 of the laws of 2014, is amended to read as follows: 36 3. This article shall not apply to any sale, furnishing or possession 37 which is for a lawful purpose under [title five-A of article thirty-38three of the public health law] the cannabis law. 39 § 53. Subdivision 5 of section 410.91 of the criminal procedure law, 40 as amended by chapter 90 of the laws of 2014, is amended to read as 41 follows: 42 5. For the purposes of this section, a "specified offense" is an 43 offense defined by any of the following provisions of the penal law: 44 burglary in the third degree as defined in section 140.20, criminal 45 mischief in the third degree as defined in section 145.05, criminal 46 mischief in the second degree as defined in section 145.10, grand larce- 47 ny in the fourth degree as defined in subdivision one, two, three, four, 48 five, six, eight, nine or ten of section 155.30, grand larceny in the 49 third degree as defined in section 155.35 (except where the property 50 consists of one or more firearms, rifles or shotguns), unauthorized use 51 of a vehicle in the second degree as defined in section 165.06, criminal 52 possession of stolen property in the fourth degree as defined in subdi- 53 vision one, two, three, five or six of section 165.45, criminal 54 possession of stolen property in the third degree as defined in section 55 165.50 (except where the property consists of one or more firearms, 56 rifles or shotguns), forgery in the second degree as defined in sectionS. 2509 147 A. 3009 1 170.10, criminal possession of a forged instrument in the second degree 2 as defined in section 170.25, unlawfully using slugs in the first degree 3 as defined in section 170.60, criminal diversion of medical [marihuana] 4 cannabis in the first degree as defined in section 179.10 or an attempt 5 to commit any of the aforementioned offenses if such attempt constitutes 6 a felony offense; or a class B felony offense defined in article two 7 hundred twenty where a sentence is imposed pursuant to paragraph (a) of 8 subdivision two of section 70.70 of the penal law; or any class C, class 9 D or class E controlled substance [or marihuana] cannabis felony offense 10 as defined in article two hundred twenty or two hundred twenty-one. 11 § 54. Subdivision 5 of section 410.91 of the criminal procedure law, 12 as amended by section 8 of part AAA of chapter 56 of the laws of 2009, 13 is amended to read as follows: 14 5. For the purposes of this section, a "specified offense" is an 15 offense defined by any of the following provisions of the penal law: 16 burglary in the third degree as defined in section 140.20, criminal 17 mischief in the third degree as defined in section 145.05, criminal 18 mischief in the second degree as defined in section 145.10, grand larce- 19 ny in the fourth degree as defined in subdivision one, two, three, four, 20 five, six, eight, nine or ten of section 155.30, grand larceny in the 21 third degree as defined in section 155.35 (except where the property 22 consists of one or more firearms, rifles or shotguns), unauthorized use 23 of a vehicle in the second degree as defined in section 165.06, criminal 24 possession of stolen property in the fourth degree as defined in subdi- 25 vision one, two, three, five or six of section 165.45, criminal 26 possession of stolen property in the third degree as defined in section 27 165.50 (except where the property consists of one or more firearms, 28 rifles or shotguns), forgery in the second degree as defined in section 29 170.10, criminal possession of a forged instrument in the second degree 30 as defined in section 170.25, unlawfully using slugs in the first degree 31 as defined in section 170.60, or an attempt to commit any of the afore- 32 mentioned offenses if such attempt constitutes a felony offense; or a 33 class B felony offense defined in article two hundred twenty where a 34 sentence is imposed pursuant to paragraph (a) of subdivision two of 35 section 70.70 of the penal law; or any class C, class D or class E 36 controlled substance or [marihuana] cannabis felony offense as defined 37 in article two hundred twenty or two hundred twenty-one. 38 § 55. The criminal procedure law is amended by adding a new section 39 440.46-a to read as follows: 40 § 440.46-a Motion for resentence; persons convicted of certain marihuana 41 offenses. 42 1. A person currently serving a sentence for a conviction, whether by 43 trial or by open or negotiated plea, who would not have been guilty of 44 an offense or who would have been guilty of a lesser offense on and 45 after the effective date of this section had this section been in effect 46 at the time of his or her conviction may petition for a recall or 47 dismissal of sentence before the trial court that entered the judgment 48 of conviction in his or her case to request resentencing or dismissal in 49 accordance with article two hundred twenty-one of the penal law. 50 2. Upon receiving a motion under subdivision one of this section the 51 court shall presume the movant satisfies the criteria in subdivision one 52 of this section unless the party opposing the motion proves by clear and 53 convincing evidence that the movant does not satisfy the criteria. If 54 the movant satisfies the criteria in subdivision one of this section, 55 the court shall grant the motion to vacate the sentence or to resentence 56 because it is legally invalid. In exercising its discretion, the courtS. 2509 148 A. 3009 1 may consider, but shall not be limited to, the following: (a) the 2 movant's criminal conviction history, including the type of crimes 3 committed, the extent of injury to victims, the length of prior prison 4 commitments, and the remoteness of the crimes. (b) the movant's disci- 5 plinary record and record of rehabilitation while incarcerated. 6 3. A person who is serving a sentence and resentenced pursuant to 7 subdivision two of this section shall be given credit for any time 8 already served and shall be subject to supervision for one year follow- 9 ing completion of his or her time in custody or shall be subject to 10 whatever supervision time he or she would have otherwise been subject to 11 after release, whichever is shorter, unless the court, in its 12 discretion, as part of its resentencing order, releases the person from 13 supervision. Such person is subject to parole supervision under section 14 60.04 of the penal law or post-release supervision under section 70.45 15 of the penal law by the designated agency and the jurisdiction of the 16 court in the county in which the person is released or resides, or in 17 which an alleged violation of supervision has occurred, for the purpose 18 of hearing petitions to revoke supervision and impose a term of custody. 19 4. Under no circumstances may resentencing under this section result 20 in the imposition of a term longer than the original sentence, or the 21 reinstatement of charges dismissed pursuant to a negotiated plea agree- 22 ment. 23 5. A person who has completed his or her sentence for a conviction 24 under the former article two hundred twenty-one of the penal law, wheth- 25 er by trial or open or negotiated plea, who would have been guilty of a 26 lesser offense on and after the effective date of this section had this 27 section been in effect at the time of his or her conviction, may file an 28 application before the trial court that entered the judgment of 29 conviction in his or her case to have the conviction, in accordance with 30 article two hundred twenty-one of the penal law: (a) dismissed because 31 the prior conviction is now legally invalid and sealed in accordance 32 with section 160.50 of this chapter; (b) redesignated (or "reclassi- 33 fied") as a violation and sealed in accordance with section 160.50 of 34 this chapter; or (c) redesignated (reclassified) as a misdemeanor. 35 6. The court shall presume the petitioner satisfies the criteria in 36 subdivision five of this section unless the party opposing the applica- 37 tion proves by clear and convincing evidence that the petitioner does 38 not satisfy the criteria in subdivision five of this section. Once the 39 applicant satisfies the criteria in subdivision five of this section, 40 the court shall redesignate (or "reclassify") the conviction as a misde- 41 meanor, redesignate (reclassify) the conviction as a violation and seal 42 the conviction, or dismiss and seal the conviction as legally invalid 43 under this section had this section been in effect at the time of his or 44 her conviction. 45 7. Unless requested by the applicant, no hearing is necessary to grant 46 or deny an application filed under subdivision five of this section. 47 8. Any felony conviction that is vacated and resentenced under subdi- 48 vision two or designated as a misdemeanor or violation under subdivision 49 six of this section shall be considered a misdemeanor or violation for 50 all purposes. Any misdemeanor conviction that is vacated and resentenced 51 under subdivision two of this section or designated as a violation under 52 subdivision six of this section shall be considered a violation for all 53 purposes. 54 9. If the court that originally sentenced the movant is not available, 55 the presiding judge shall designate another judge to rule on the peti- 56 tion or application.S. 2509 149 A. 3009 1 10. Nothing in this section is intended to diminish or abrogate any 2 rights or remedies otherwise available to the petitioner or applicant. 3 11. Nothing in this and related sections is intended to diminish or 4 abrogate the finality of judgments in any case not falling within the 5 purview of this section. 6 12. The provisions of this section shall apply equally to juvenile 7 delinquency adjudications and dispositions under section five hundred 8 one-e of the executive law if the juvenile would not have been guilty of 9 an offense or would have been guilty of a lesser offense under this 10 section had this section been in effect at the time of his or her 11 conviction. 12 13. The office of court administration shall promulgate and make 13 available all necessary forms to enable the filing of the petitions and 14 applications provided in this section no later than sixty days following 15 the effective date of this section. 16 § 56. Transfer of employees. Notwithstanding any other provision of 17 law, rule, or regulation to the contrary, upon the transfer of any func- 18 tions from the department of health to the office of cannabis management 19 for the regulation and control of medical cannabis pursuant to this act, 20 employees performing those functions shall be transferred to the office 21 of cannabis management pursuant to subdivision 2 of section 70 of the 22 civil service law. Employees transferred pursuant to this section shall 23 be transferred without further examination or qualification and shall 24 retain their respective civil service classifications, status and 25 collective bargaining unit designations and collective bargaining agree- 26 ments. The civil service department may re-classify any person employed 27 in a permanent, classified, competitive, or exempt class position imme- 28 diately prior to being transferred to the office of cannabis management 29 pursuant to subdivision 2 of section 70 of the civil service law, to 30 align with the duties and responsibilities of their positions upon 31 transfer. Employees whose positions are subsequently re-classified to 32 align with the duties and responsibilities of their positions upon being 33 transferred to the office of cannabis management shall hold such posi- 34 tions without further examination or qualification. Notwithstanding any 35 other provision of this act, the names of those competitive permanent 36 employees on promotion eligible lists in their former department shall 37 be added and interfiled on a promotion eligible list in the new office, 38 as the state civil service department deems appropriate. 39 § 57. Transfer of records. All books, papers, and property of the 40 department of health related to the administration of the medical mari- 41 juana program shall be deemed to be in the possession of the executive 42 director of the office of cannabis management and shall continue to be 43 maintained by the office of cannabis management. 44 § 58. Continuity of authority. For the purpose of succession of all 45 functions, powers, duties and obligations transferred and assigned to, 46 devolved upon and assumed by it pursuant to this act, the office of 47 cannabis management shall be deemed and held to constitute the continua- 48 tion of the department of health's medical marijuana program. 49 § 59. Completion of unfinished business. Any business or other matter 50 undertaken or commenced by the department of health pertaining to or 51 connected with the functions, powers, obligations and duties hereby 52 transferred and assigned to the office of cannabis management and pend- 53 ing on the effective date of this act, may be conducted and completed by 54 the office of cannabis management. 55 § 60. Continuation of rules and regulations. All rules, regulations, 56 acts, orders, determinations, and decisions of the department of healthS. 2509 150 A. 3009 1 pertaining to medical marijuana and cannabinoid hemp, including the 2 functions and powers transferred and assigned pursuant to this act, in 3 force at the time of such transfer and assumption, shall continue in 4 full force and effect as rules, regulations, acts, orders, determi- 5 nations and decisions of the office of cannabis management until duly 6 modified or abrogated by the board of the office of cannabis management. 7 § 61. Terms occurring in laws, contracts and other documents. Whenev- 8 er the department of health, or commissioner thereof, is referred to or 9 designated in any law, contract or document pertaining to the functions, 10 powers, obligations and duties hereby transferred to and assigned to the 11 office of cannabis management, such reference or designation shall be 12 deemed to refer to the board of cannabis management, or the executive 13 director thereof, as applicable. 14 § 62. Existing rights and remedies preserved. No existing right or 15 remedy of any character shall be lost, impaired or affected by any 16 provisions of this act. 17 § 63. Pending actions and proceedings. No action or proceeding pending 18 at the time when this act shall take effect, brought by or against the 19 department of health, or the commissioner thereof, shall be affected by 20 any provision of this act, but the same may be prosecuted or defended in 21 the name of the executive director of the office of cannabis management. 22 In all such actions and proceedings, the executive director of the 23 office of cannabis management, upon application to the court, shall be 24 substituted as a party. 25 § 63-a. Severability. If any clause, sentence, paragraph, subdivision, 26 section or part of this act shall be adjudged by any court of competent 27 jurisdiction to be invalid, such judgment shall not affect, impair, or 28 invalidate the remainder thereof, but shall be confined in its operation 29 to the clause, sentence, paragraph, subdivision, section or part thereof 30 directly involved in the controversy in which such judgment shall have 31 been rendered. It is hereby declared to be the intent of the legislature 32 that this act would have been enacted even if such invalid provisions 33 had not been included herein. 34 § 64. This act shall take effect immediately; provided, however that: 35 (i) the taxes imposed by section thirty-seven of this act shall apply 36 on and after March 1, 2022 to: (1) the sale of adult-use cannabis 37 products from a distributor to the person who sells adult-use cannabis 38 at retail; and (2) the sale of adult-use cannabis products by a person 39 who sells such products at retail; 40 (ii) the amendments to article 179 of the penal law made by section 41 forty-six of this act shall not affect the repeal of such article and 42 shall be deemed to be repealed therewith; 43 (iii) the amendments to section 89-h of the state finance law made by 44 section forty-nine of this act shall not affect the repeal of such 45 section and shall be deemed repealed therewith; 46 (iv) the amendments to section 221.00 of the penal law made by section 47 fourteen of this act shall be subject to the expiration of such section 48 when upon such date the provisions of section fifteen of this act shall 49 take effect; 50 (v) the amendments to subdivision 2 of section 3371 of the public 51 health law made by section fifty-one of this act shall not affect the 52 expiration of such subdivision and shall be deemed to expire therewith; 53 (vi) the amendments to subdivision 3 of section 853 of the general 54 business law made by section fifty-two of this act shall not affect the 55 repeal of such subdivision and shall be deemed to be repealed therewith; 56 andS. 2509 151 A. 3009 1 (vii) the amendments to subdivision 5 of section 410.91 of the crimi- 2 nal procedure law made by section fifty-three of this act shall not 3 affect the repeal of such section and shall be subject to the expiration 4 and reversion of such subdivision when upon such date the provisions of 5 section fifty-four of this act shall take effect. 6 PART I 7 Section 1. Subdivision (c) of section 1101 of the tax law, as added 8 by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended 9 by section 2 and paragraph 8 as added by section 3 of part AA of chapter 10 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the 11 laws of 1965, is amended to read as follows: 12 (c) When used in this article for the purposes of the tax imposed 13 under subdivision (e) of section eleven hundred five of this article, 14 the following terms shall mean: 15 (1) Hotel. A building or portion of it which is regularly used and 16 kept open as such for the lodging of guests. The term "hotel" includes 17 an apartment hotel, a motel, boarding house or club, whether or not 18 meals are served. 19 (2) Occupancy. The use or possession, or the right to the use or 20 possession, of any room in a hotel or vacation rental. "Right to the 21 use or possession" includes the rights of a room remarketer as described 22 in paragraph eight of this subdivision. 23 (3) Occupant. A person who, for a consideration, uses, possesses, or 24 has the right to use or possess, any room in a hotel or vacation rental 25 under any lease, concession, permit, right of access, license to use or 26 other agreement, or otherwise. "Right to use or possess" includes the 27 rights of a room remarketer as described in paragraph eight of this 28 subdivision. 29 (4) Operator. Any person operating a hotel or vacation rental. Such 30 term shall include a room remarketer and such room remarketer shall be 31 deemed to operate a hotel, or portion thereof, with respect to which 32 such person has the rights of a room remarketer. 33 (5) Permanent resident. Any occupant of any room or rooms in a hotel 34 or vacation rental for at least ninety consecutive days shall be consid- 35 ered a permanent resident with regard to the period of such occupancy. 36 (6) Rent. The consideration received for occupancy, including any 37 service or other charge or amount required to be paid as a condition for 38 occupancy, valued in money, whether received in money or otherwise and 39 whether received by the operator or a room remarketer or another person 40 on behalf of either of them. 41 (7) Room. Any room or rooms of any kind in any part or portion of a 42 hotel or vacation rental, which is available for or let out for any 43 purpose other than a place of assembly. 44 (8) Room remarketer. A person who reserves, arranges for, conveys, or 45 furnishes occupancy, whether directly or indirectly, to an occupant for 46 rent in a hotel for an amount determined by the room remarketer, direct- 47 ly or indirectly, whether pursuant to a written or other agreement. Such 48 person's ability or authority to reserve, arrange for, convey, or 49 furnish occupancy, directly or indirectly, and to determine rent there- 50 for, shall be the "rights of a room remarketer". A room remarketer is 51 not a permanent resident with respect to a room for which such person 52 has the rights of a room remarketer. 53 (9) Vacation rental. A building or portion of it that is used for the 54 lodging of guests. The term "vacation rental" includes a house, anS. 2509 152 A. 3009 1 apartment, a condominium, a cooperative unit, a cabin, a cottage, or a 2 bungalow, or one or more rooms therein, where sleeping accommodations 3 are provided for the lodging of paying occupants, the typical occupants 4 are transients or travelers, and the relationship between the operator 5 and occupant is not that of a landlord and tenant. It is not necessary 6 that meals are served. A building or portion of a building may qualify 7 as a vacation rental whether or not amenities, including but not limited 8 to daily housekeeping services, concierge services, or linen services, 9 are provided. 10 (10) (i) Vacation rental marketplace provider. A person who, pursuant 11 to an agreement with an operator, facilitates the occupancy of a vaca- 12 tion rental by such operator or operators. A person "facilitates the 13 occupancy of a vacation rental" for purposes of this paragraph when the 14 person meets both of the following conditions: (A) such person provides 15 the forum in which, or by means of which, the sale of the occupancy 16 takes place or the offer of such sale is accepted, including a shop, 17 store, or booth, an internet website, catalog, or similar forum; and (B) 18 such person or an affiliate of such person collects the rent paid by a 19 customer to an operator for the occupancy of a vacation rental, or 20 contracts with a third party to collect such rent. 21 (ii) For the purposes of this article, the term "vacation rental 22 marketplace provider" shall not include a "room remarketer" as defined 23 in paragraph eight of this subdivision. For purposes of this paragraph, 24 persons are affiliated if one person has an ownership interest of more 25 than five percent, whether direct or indirect, in another, or where an 26 ownership interest of more than five percent, whether direct or indi- 27 rect, is held in each of such persons by another person or by a group of 28 other persons that are affiliated persons with respect to each other. 29 The term "vacation rental marketplace provider" shall not include a 30 "real estate broker" as licensed under article twelve-A of the real 31 property law. 32 § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- 33 ter 3 of the laws of 2004, is amended to read as follows: 34 (a) Imposition. In addition to any other fee or tax imposed by this 35 article or any other law, on and after April first, two thousand five, 36 there is hereby imposed within the territorial limits of a city with a 37 population of a million or more and there shall be paid a unit fee on 38 every occupancy of a unit in a hotel or vacation rental in such city at 39 the rate of one dollar and fifty cents per unit per day, except that 40 such unit fee shall not be imposed upon (1) occupancy by a permanent 41 resident or (2) where the rent per unit is not more than at the rate of 42 two dollars per day. 43 § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as 44 amended by section 1 of part Q of chapter 59 of the laws of 2012, is 45 amended to read as follows: 46 (1) The rent for every occupancy of a room or rooms in a hotel and 47 vacation rental in this state, except that the tax shall not be imposed 48 upon (i) a permanent resident, or (ii) where the rent is not more than 49 at the rate of two dollars per day. 50 § 4. Subdivision 1 of section 1131 of the tax law, as amended by 51 section 2 of part G of chapter 59 of the laws of 2019, is amended to 52 read as follows: 53 (1) "Persons required to collect tax" or "person required to collect 54 any tax imposed by this article" shall include: every vendor of tangible 55 personal property or services; every recipient of amusement charges; 56 every operator of a hotel or vacation rental; every vacation rentalS. 2509 153 A. 3009 1 marketplace provider with respect to the rent for every occupancy of a 2 vacation rental it facilitates as described in paragraph ten of subdivi- 3 sion (c) of section eleven hundred one of this article; and every 4 marketplace provider with respect to sales of tangible personal property 5 it facilitates as described in paragraph one of subdivision (e) of 6 section eleven hundred one of this article. Said terms shall also 7 include any officer, director or employee of a corporation or of a 8 dissolved corporation, any employee of a partnership, any employee or 9 manager of a limited liability company, or any employee of an individual 10 proprietorship who as such officer, director, employee or manager is 11 under a duty to act for such corporation, partnership, limited liability 12 company or individual proprietorship in complying with any requirement 13 of this article, or has so acted; and any member of a partnership or 14 limited liability company. Provided, however, that any person who is a 15 vendor solely by reason of clause (D) or (E) of subparagraph (i) of 16 paragraph [(8)] eight of subdivision (b) of section eleven hundred one 17 of this article shall not be a "person required to collect any tax 18 imposed by this article" until twenty days after the date by which such 19 person is required to file a certificate of registration pursuant to 20 section eleven hundred thirty-four of this part. 21 § 5. Section 1132 of the tax law is amended by adding a new subdivi- 22 sion (m) to read as follows: 23 (m)(l) A vacation rental marketplace provider with respect to a sale 24 for every occupancy of a vacation rental it facilitates: (A) shall have 25 all the obligations and rights of a vendor under this article and arti- 26 cle twenty-nine of this chapter and under any regulations adopted pursu- 27 ant thereto, including, but not limited to, the duty to obtain a certif- 28 icate of authority, to collect tax, file returns, remit tax, and the 29 right to accept a certificate or other documentation from a customer 30 substantiating an exemption or exclusion from tax, the right to receive 31 the refund authorized by subdivision (e) of this section and the credit 32 allowed by subdivision (f) of section eleven hundred thirty-seven of 33 this part subject to the provisions of such subdivisions; and (B) shall 34 keep such records and information and cooperate with the commissioner to 35 ensure the proper collection and remittance of tax imposed, collected or 36 required to be collected under this article and article twenty-nine of 37 this chapter. 38 (2) An operator is relieved from the duty to collect tax in regard to 39 a particular rent for the occupancy of a vacation rental subject to tax 40 under subdivision (e) of section eleven hundred five of this article and 41 shall not include the rent from such occupancy in its taxable sales for 42 purposes of section eleven hundred thirty-six of this part if, in regard 43 to such occupancy: (A) the operator of the vacation rental can show that 44 such occupancy was facilitated by a vacation rental marketplace provider 45 from whom such operator has received in good faith a properly completed 46 certificate of collection in a form prescribed by the commissioner, 47 certifying that the vacation rental marketplace provider is registered 48 to collect sales tax and will collect sales tax on all taxable sales of 49 occupancy of a vacation rental by the operator facilitated by the vaca- 50 tion rental marketplace provider, and with such other information as the 51 commissioner may prescribe; and (B) any failure of the vacation rental 52 marketplace provider to collect the proper amount of tax in regard to 53 such sale was not the result of such operator providing the vacation 54 rental marketplace provider with incorrect information. This provision 55 shall be administered in a manner consistent with subparagraph (i) of 56 paragraph one of subdivision (c) of this section as if a certificate ofS. 2509 154 A. 3009 1 collection were a resale or exemption certificate for purposes of such 2 subparagraph, including with regard to the completeness of such certif- 3 icate of collection and the timing of its acceptance by the operator. 4 Provided that, with regard to any sales of occupancy of a vacation 5 rental by an operator that are facilitated by a vacation rental market- 6 place provider who is affiliated with such operator within the meaning 7 of paragraph ten of subdivision (c) of section eleven hundred one of 8 this article, the operator shall be deemed liable as a person under a 9 duty to act for such vacation rental marketplace provider for purposes 10 of subdivision one of section eleven hundred thirty-one of this part. 11 (3) The commissioner may, at his or her discretion: (A) develop a 12 standard provision, or approve a provision developed by a vacation 13 rental marketplace provider, in which the vacation rental marketplace 14 provider obligates itself to collect the tax on behalf of all operators 15 for whom the vacation rental marketplace provider facilitates sales of 16 occupancy of a vacation rental, with respect to all sales that it facil- 17 itates for such operators where the rental occurs in the state; and (B) 18 provide by regulation or otherwise that the inclusion of such provision 19 in the publicly-available agreement between the vacation rental market- 20 place provider and operator will have the same effect as an operator's 21 acceptance of a certificate of collection from such vacation rental 22 marketplace provider under paragraph two of this subdivision. 23 § 6. Section 1133 of the tax law is amended by adding a new subdivi- 24 sion (g) to read as follows: 25 (g) A vacation rental marketplace provider is relieved of liability 26 under this section for failure to collect the correct amount of tax to 27 the extent that the vacation rental marketplace provider can show that 28 the error was due to incorrect or insufficient information given to the 29 vacation rental marketplace provider by the operator. Provided, however, 30 this subdivision shall not apply if the operator and vacation rental 31 marketplace provider are affiliated within the meaning of paragraph ten 32 of subdivision (c) of section eleven hundred one of this article. 33 § 7. Subdivision (a) of section 1134 of the tax law is amended by 34 adding a new paragraph 6 to read as follows: 35 (6) An operator of a vacation rental, as defined in paragraph nine of 36 subdivision (c) of section eleven hundred one of this article, is 37 relieved of the requirement to register in paragraph one of this subdi- 38 vision if its sales of occupancy are wholly facilitated by one or more 39 vacation rental marketplace providers from whom the operator has 40 received in good faith a certificate of collection that meets the 41 requirements set forth in paragraph two of subdivision (m) of section 42 eleven hundred thirty-two of this part. 43 § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 44 amended by section 5 of part G of chapter 59 of the laws of 2019, is 45 amended to read as follows: 46 (4) The return of a vendor of tangible personal property or services 47 shall show such vendor's receipts from sales and the number of gallons 48 of any motor fuel or diesel motor fuel sold and also the aggregate value 49 of tangible personal property and services and number of gallons of such 50 fuels sold by the vendor, the use of which is subject to tax under this 51 article, and the amount of tax payable thereon pursuant to the 52 provisions of section eleven hundred thirty-seven of this part. The 53 return of a recipient of amusement charges shall show all such charges 54 and the amount of tax thereon, and the return of an operator required to 55 collect tax on rents shall show all rents received or charged and the 56 amount of tax thereon. The return of a marketplace seller shall excludeS. 2509 155 A. 3009 1 the receipts from a sale of tangible personal property facilitated by a 2 marketplace provider if, in regard to such sale: (A) the marketplace 3 seller has timely received in good faith a properly completed certif- 4 icate of collection from the marketplace provider or the marketplace 5 provider has included a provision approved by the commissioner in the 6 publicly-available agreement between the marketplace provider and the 7 marketplace seller as described in subdivision one of section eleven 8 hundred thirty-two of this part, and (B) the information provided by the 9 marketplace seller to the marketplace provider about such tangible 10 personal property is accurate. The return of an operator shall exclude 11 the rent from occupancy of a vacation rental facilitated by a vacation 12 rental marketplace provider if, in regard to such sale: (A) the vacation 13 rental operator has timely received in good faith a properly completed 14 certificate of collection from the vacation rental marketplace provider 15 or the vacation rental marketplace provider has included a provision 16 approved by the commissioner in the publicly-available agreement between 17 the vacation rental marketplace provider and the operator as described 18 in subdivision (m) of section eleven hundred thirty-two of this part, 19 and (B) the information provided by the operator to the vacation rental 20 marketplace provider about such rent and such occupancy is accurate. 21 § 9. Section 1142 of the tax law is amended by adding a new subdivi- 22 sion 16 to read as follows: 23 16. To publish a list on the department's website of vacation rental 24 marketplace providers whose certificates of authority have been revoked 25 and, if necessary to protect sales tax revenue, provide by regulation or 26 otherwise that a vacation rental operator will be relieved of the 27 requirement to register and the duty to collect tax on the rent for 28 occupancy of a vacation rental facilitated by a vacation rental market- 29 place provider only if, in addition to the conditions prescribed by 30 paragraph two of subdivision (m) of section eleven hundred thirty-two 31 and paragraph six of subdivision (a) of section eleven hundred thirty- 32 four of this part being met, such vacation rental marketplace provider 33 is not on such list at the commencement of the quarterly period covered 34 thereby. 35 § 10. This act shall take effect immediately and shall apply to 36 collections of rent by the operator or vacation rental marketplace 37 provider on or after September 1, 2021. 38 PART J 39 Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b 40 of subdivision 4 of section 1008 and paragraph b of subdivision 5 of 41 section 1009 of the racing, pari-mutuel, wagering and breeding law are 42 REPEALED. 43 § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as 44 amended by chapter 32 of the laws of 2016, is amended to read as 45 follows: 46 (1) Any admission charge where such admission charge is in excess of 47 ten cents to or for the use of any place of amusement in the state, 48 except charges for admission to [race tracks or] combative sports which 49 charges are taxed under any other law of this state, or dramatic or 50 musical arts performances, or live circus performances, or motion 51 picture theaters, and except charges to a patron for admission to, or 52 use of, facilities for sporting activities in which such patron is to be 53 a participant, such as bowling alleys and swimming pools. For any person 54 having the permanent use or possession of a box or seat or a lease or aS. 2509 156 A. 3009 1 license, other than a season ticket, for the use of a box or seat at a 2 place of amusement, the tax shall be upon the amount for which a similar 3 box or seat is sold for each performance or exhibition at which the box 4 or seat is used or reserved by the holder, licensee or lessee, and shall 5 be paid by the holder, licensee or lessee. 6 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 7 amended by section 2 of part WW, subparagraph (i) as separately amended 8 by section 5 of part Z of chapter 60 of the laws of 2016, is amended to 9 read as follows: 10 (1) Either, all of the taxes described in article twenty-eight of this 11 chapter, at the same uniform rate, as to which taxes all provisions of 12 the local laws, ordinances or resolutions imposing such taxes shall be 13 identical, except as to rate and except as otherwise provided, with the 14 corresponding provisions in such article twenty-eight, including the 15 definition and exemption provisions of such article, so far as the 16 provisions of such article twenty-eight can be made applicable to the 17 taxes imposed by such city or county and with such limitations and 18 special provisions as are set forth in this article. The taxes author- 19 ized under this subdivision may not be imposed by a city or county 20 unless the local law, ordinance or resolution imposes such taxes so as 21 to include all portions and all types of receipts, charges or rents, 22 subject to state tax under sections eleven hundred five and eleven 23 hundred ten of this chapter, except as otherwise provided. Notwith- 24 standing the foregoing, a tax imposed by a city or county authorized 25 under this subdivision shall not include the tax imposed on charges for 26 admission to race tracks and simulcast facilities under subdivision (f) 27 of section eleven hundred five of this chapter. (i) Any local law, ordi- 28 nance or resolution enacted by any city of less than one million or by 29 any county or school district, imposing the taxes authorized by this 30 subdivision, shall, notwithstanding any provision of law to the contra- 31 ry, exclude from the operation of such local taxes all sales of tangible 32 personal property for use or consumption directly and predominantly in 33 the production of tangible personal property, gas, electricity, refrig- 34 eration or steam, for sale, by manufacturing, processing, generating, 35 assembly, refining, mining or extracting; and all sales of tangible 36 personal property for use or consumption predominantly either in the 37 production of tangible personal property, for sale, by farming or in a 38 commercial horse boarding operation, or in both; and all sales of fuel 39 sold for use in commercial aircraft and general aviation aircraft; and, 40 unless such city, county or school district elects otherwise, shall omit 41 the provision for credit or refund contained in clause six of subdivi- 42 sion (a) or subdivision (d) of section eleven hundred nineteen of this 43 chapter. (ii) Any local law, ordinance or resolution enacted by any 44 city, county or school district, imposing the taxes authorized by this 45 subdivision, shall omit the residential solar energy systems equipment 46 and electricity exemption provided for in subdivision (ee), the commer- 47 cial solar energy systems equipment and electricity exemption provided 48 for in subdivision (ii), the commercial fuel cell electricity generating 49 systems equipment and electricity generated by such equipment exemption 50 provided for in subdivision (kk) and the clothing and footwear exemption 51 provided for in paragraph thirty of subdivision (a) of section eleven 52 hundred fifteen of this chapter, unless such city, county or school 53 district elects otherwise as to such residential solar energy systems 54 equipment and electricity exemption, such commercial solar energy 55 systems equipment and electricity exemption, commercial fuel cell elec-S. 2509 157 A. 3009 1 tricity generating systems equipment and electricity generated by such 2 equipment exemption or such clothing and footwear exemption. 3 § 4. Paragraph 1 of subdivision (b) of section 1210 of the tax law, 4 as amended by section 3 of part WW of chapter 60 of the laws of 2016, is 5 amended to read as follows: 6 (1) Or, one or more of the taxes described in subdivisions (b), (d), 7 (e) and (f) of section eleven hundred five of this chapter, at the same 8 uniform rate, including the transitional provisions in section eleven 9 hundred six of this chapter covering such taxes, but not the taxes 10 described in subdivisions (a) and (c) of section eleven hundred five of 11 this chapter. Provided, further, that where the tax described in subdi- 12 vision (b) of section eleven hundred five of this chapter is imposed, 13 the compensating use taxes described in clauses (E), (G) and (H) of 14 subdivision (a) of section eleven hundred ten of this chapter shall also 15 be imposed. Provided, further, that where the taxes described in subdi- 16 vision (b) of section eleven hundred five of this chapter are imposed, 17 such taxes shall omit: (A) the provision for refund or credit contained 18 in subdivision (d) of section eleven hundred nineteen of this chapter 19 with respect to such taxes described in such subdivision (b) of section 20 eleven hundred five unless such city or county elects to provide such 21 provision or, if so elected, to repeal such provision; (B) the exemption 22 provided in paragraph two of subdivision (ee) of section eleven hundred 23 fifteen of this chapter unless such county or city elects otherwise; (C) 24 the exemption provided in paragraph two of subdivision (ii) of section 25 eleven hundred fifteen of this chapter, unless such county or city 26 elects otherwise; and (D) the exemption provided in paragraph two of 27 subdivision (kk) of section eleven hundred fifteen of this chapter, 28 unless such county or city elects otherwise; and provided further that 29 where the tax described in subdivision (f) of such section eleven 30 hundred five is imposed, such tax shall not apply to charges for admis- 31 sion to race tracks and simulcast facilities. 32 § 5. Notwithstanding any provisions of law to the contrary and 33 notwithstanding the repeal of sections 227, 306 and 406, subparagraph 34 (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of 35 subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and 36 breeding law by section one of this act, all provisions of such sections 37 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of 38 section 1008 and paragraph b of subdivision 5 of section 1009, in 39 respect to the imposition, exemption, assessment, payment, payment over, 40 determination, collection, and credit or refund of tax, interest and 41 penalty imposed thereunder, the filing of forms and returns, the preser- 42 vation of records for the purposes of such tax, the disposition of 43 revenues, and any civil and criminal penalties applicable to the 44 violation of the provisions of such sections 227, 306 and 406, subpara- 45 graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph 46 b of subdivision 5 of section 1009, shall continue in full force and 47 effect with respect to all such tax accrued for periods prior to the 48 effective date of this act in the same manner as they might if such 49 provisions were not repealed. 50 § 6. This act shall take effect September 1, 2021 and shall apply to 51 charges for admissions to race tracks and simulcast facilities on and 52 after such date. 53 PART KS. 2509 158 A. 3009 1 Section 1. Subdivision (d) of section 1139 of the tax law, as amended 2 by section 10 of subpart D of part VI of chapter 57 of the laws of 2009, 3 is amended to read as follows: 4 (d) (1) Except in respect to an overpayment made on a return described 5 in paragraph two of subdivision (a) of section eleven hundred thirty-six 6 of this part [or on a return described in subdivision (c) of section7eleven hundred thirty-seven-A of this part], interest shall be allowed 8 and paid upon any refund made or credit allowed pursuant to this section 9 except as otherwise provided in paragraph two or three of this subdivi- 10 sion or subdivision (e) of this section and except that no interest 11 shall be allowed or paid if the amount thereof would be less than one 12 dollar. Such interest shall be at the overpayment rate set by the 13 commissioner pursuant to section eleven hundred forty-two of this part, 14 or if no rate is set, at the rate of six percent per annum from the date 15 when the tax, penalty or interest refunded or credited was paid to a 16 date preceding the date of the refund check by not more than thirty 17 days, provided, however, that for the purposes of this subdivision any 18 tax paid before the last day prescribed for its payment shall be deemed 19 to have been paid on such last day. In the case of a refund or credit 20 claimed on a return of tax which is filed after the last date prescribed 21 for filing such return (determined with regard to extensions), or 22 claimed on an application for refund or credit, no interest shall be 23 allowed or paid for any day before the date on which the return or 24 application is filed. For purposes of this subdivision, a return or 25 application for refund or credit shall not be treated as filed until it 26 is filed in processible form. A return or application is in a processi- 27 ble form if it is filed on a permitted form, and contains the taxpayer's 28 name, address and identifying number and the required signatures, and 29 sufficient required information (whether on the return or application or 30 on required attachments) to permit the mathematical verification of tax 31 liability shown on the return or refund or credit claimed on the appli- 32 cation. 33 (2) If a refund is made or a credit is allowed in an amount less than 34 one hundred thousand dollars (i) within three months after the last date 35 prescribed or permitted by extension of time for filing a return on 36 which the refund or credit was claimed or within three months after the 37 return was filed, whichever is later, or (ii) within three months after 38 an application for refund or credit is filed on which that refund or 39 credit was claimed, or (iii) within three months after the last date 40 prescribed or permitted by extension of time for filing an application 41 for a refund or credit on which that refund or credit was claimed, no 42 interest will be allowed or paid on that refund or credit. 43 (3) If a refund is made or a credit is allowed in an amount of one 44 hundred thousand dollars or more (i) within six months after the last 45 date prescribed or permitted by extension of time for filing a return on 46 which the refund or credit was claimed or within six months after the 47 return was filed, whichever is later, or (ii) within six months after an 48 application for refund or credit is filed on which that refund or credit 49 was claimed, or (iii) within six months after the last date prescribed 50 or permitted by extension of time for filing an application for refund 51 or credit on which that refund or credit was claimed, no interest will 52 be allowed or paid on that refund or credit. 53 § 2. This act shall take effect immediately and shall apply to refund 54 or credit claims submitted on or after March 1, 2022. 55 PART LS. 2509 159 A. 3009 1 Section 1. Subparagraph (i) of the opening paragraph of section 1210 2 of the tax law is REPEALED and a new subparagraph (i) is added to read 3 as follows: 4 (i) with respect to a city of one million or more and the following 5 counties: (1) any such city having a population of one million or more 6 is hereby authorized and empowered to adopt and amend local laws, ordi- 7 nances or resolutions imposing such taxes in any such city, at the rate 8 of four and one-half percent; 9 (2) the following counties that impose taxes described in subdivision 10 (a) of this section at the rate of three percent as authorized above in 11 this paragraph are hereby further authorized and empowered to adopt and 12 amend local laws, ordinances, or resolutions imposing such taxes at 13 additional rates, in quarter percent increments, not to exceed the 14 following rates, which rates are additional to the three percent rate 15 authorized above in this paragraph: 16 (A) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua, 17 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, 18 Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Jefferson, Lewis, 19 Livingston, Madison, Monroe, Montgomery, Niagara, Onondaga, Ontario, 20 Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. 21 Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, 22 Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, 23 Westchester, Wyoming, Yates; 24 (B) One and one-quarter percent - Herkimer, Nassau; 25 (C) One and one-half percent - Allegany; 26 (D) One and three-quarters percent - Erie, Oneida. 27 Provided, however, that (I) the county of Rockland may impose addi- 28 tional rates of five-eighths percent and three-eighths percent, in lieu 29 of imposing such additional rate in quarter percent increments; (II) the 30 county of Ontario may impose additional rates of one-eighth percent and 31 three-eighths percent, in lieu of imposing such additional rate in quar- 32 ter percent increments; (III) three-quarters percent of the additional 33 rate authorized to be imposed by the county of Nassau shall be subject 34 to the limitation set forth in section twelve hundred sixty-two-e of 35 this article. 36 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the 37 tax law is REPEALED and a new subparagraph (ii) is added to read as 38 follows: 39 (ii) the following cities that impose taxes described in subdivision 40 (a) of this section at the rate of one and one-half percent or higher as 41 authorized above in this paragraph for such cities are hereby further 42 authorized and empowered to adopt and amend local laws, ordinances, or 43 resolutions imposing such taxes at additional rates, in quarter percent 44 increments, not to exceed the following rates, which rates are addi- 45 tional to the one and one-half percent or higher rates authorized above 46 in this paragraph: 47 (1) One percent - Mount Vernon; New Rochelle; Oswego; White Plains; 48 (2) One and one quarter percent - None; 49 (3) One and one-half percent - Yonkers. 50 § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 51 1210 of the tax law are REPEALED and a new subparagraph (iii) is added 52 to read as follows: 53 (iii) the maximum rate referred to in section twelve hundred twenty- 54 four of this article shall be calculated without reference to the addi- 55 tional rates authorized for counties, other than the counties of Cayuga,S. 2509 160 A. 3009 1 Cortland, Fulton, Madison, and Otsego, in clause two of subparagraph (i) 2 and the cities in subparagraph (ii) of this paragraph. 3 § 4. Section 1210 of the tax law is amended by adding a new subdivi- 4 sion (p) to read as follows: 5 (p) Notwithstanding any provision of this section or other law to the 6 contrary, a county authorized to impose an additional rate or rates of 7 sales and compensating use taxes by clause two of subparagraph (i) of 8 the opening paragraph of this section, or a city, other than the city of 9 Mount Vernon, authorized to impose an additional rate of such taxes by 10 subparagraph (ii) of such opening paragraph, may adopt a local law, 11 ordinance or resolution by a majority vote of its governing body impos- 12 ing such rate or rates for a period not to exceed two years, and any 13 such period must end on November thirtieth of an odd-numbered year. 14 Notwithstanding the preceding sentence, the city of White Plains is 15 authorized to exceed such two-year limitation to impose the tax author- 16 ized by subparagraph (ii) of such opening paragraph for the period 17 commencing on September first, two thousand twenty-one and ending on 18 November thirtieth, two thousand twenty-three. Any such local law, ordi- 19 nance, or resolution shall also be subject to the provisions of subdivi- 20 sions (d) and (e) of this section. 21 § 5. Section 1210-E of the tax law is REPEALED. 22 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), 23 (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), 24 (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 25 1224 of the tax law are REPEALED. 26 § 7. Section 1224 of the tax law is amended by adding three new subdi- 27 visions (d), (e), and (f) to read as follows: 28 (d) For purposes of this section, the term "prior right" shall mean 29 the preferential right to impose any tax described in sections twelve 30 hundred two and twelve hundred three, or twelve hundred ten and twelve 31 hundred eleven, of this article and thereby to preempt such tax and to 32 preclude another municipal corporation from imposing or continuing the 33 imposition of such tax to the extent that such right is exercised. 34 However, the right of preemption shall only apply within the territorial 35 limits of the taxing jurisdiction having the right of preemption. 36 (e) Each of the following counties and cities shall have the sole 37 right to impose the following additional rate of sales and compensating 38 use taxes in excess of three percent that such county or city is author- 39 ized to impose pursuant to clause two of subparagraph (i) or subpara- 40 graph (ii) of the opening paragraph of section twelve hundred ten of 41 this article. Such additional rates of tax shall not be subject to 42 preemption. 43 (1) Counties: 44 (A) One percent - Albany, Broome, Cattaraugus, Chautauqua, Chemung, 45 Chenango, Clinton, Columbia, Delaware, Dutchess, Essex, Franklin, Gene- 46 see, Greene, Hamilton, Jefferson, Lewis, Livingston, Monroe, Montgomery, 47 Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Putnam, Rensselaer, 48 Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, 49 Seneca, Steuben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren, 50 Washington, Wayne, Westchester, Wyoming, Yates; 51 (B) One and one-quarter percent - Herkimer, Nassau; 52 (C) One and one-half percent - Allegany; 53 (D) One and three-quarters percent - Erie, Oneida; 54 Provided, however that the county of Westchester shall have the sole 55 right to impose the additional one percent rate of tax authorized by 56 clause two of subparagraph (i) of the opening paragraph of sectionS. 2509 161 A. 3009 1 twelve hundred ten of this article in the area of such county outside 2 the cities of Mount Vernon, New Rochelle, White Plains and Yonkers. 3 (2) Cities: 4 (A) One-quarter of one percent - Rome; 5 (B) One-half of one percent - None; 6 (C) Three-quarters of one percent - None; 7 (D) One percent - Mount Vernon, New Rochelle, White Plains; 8 (E) One and one quarter percent - None; 9 (F) One and one-half percent - Yonkers. 10 (f) Each of the following cities is authorized to preempt the taxes 11 imposed by the county in which it is located pursuant to the authority 12 of section twelve hundred ten of this article, to the extent of one-half 13 the maximum aggregate rate authorized under section twelve hundred ten 14 of this article, including the additional rate that the county in which 15 such city is located is authorized to impose: Auburn, in Cayuga county; 16 Cortland, in Cortland county; Gloversville and Johnstown, in Fulton 17 county; Oneida, in Madison county; Oneonta, in Otsego county. As of the 18 date this subdivision takes effect, any such preemption by such a city 19 in effect on such date shall continue in full force and effect until the 20 effective date of a local law, ordinance, or resolution adopted or 21 amended by the city to change such preemption. Any preemption by such a 22 city pursuant to this subdivision that takes effect after the effective 23 date of this subdivision shall be subject to the notice requirements in 24 section twelve hundred twenty-three of this subpart and to the other 25 requirements of this article. 26 § 8. Section 1262-g of the tax law, as amended by section 2 of item DD 27 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 28 to read as follows: 29 § 1262-g. Oneida county allocation and distribution of net collections 30 from the additional [one percent rate] rates of sales and compensating 31 use taxes. Notwithstanding any contrary provision of law, (a) if the 32 county of Oneida imposes sales and compensating use taxes at a rate 33 which is one percent additional to the three percent rate authorized by 34 section twelve hundred ten of this article, as authorized by such 35 section, [(a)] (i) where a city in such county imposes tax pursuant to 36 the authority of subdivision (a) of such section twelve hundred ten, 37 such county shall allocate, distribute and pay in cash quarterly to such 38 city one-half of the net collections attributable to such additional one 39 percent rate of the county's taxes collected in such city's boundaries; 40 [(b)] (ii) where a city in such county does not impose tax pursuant to 41 the authority of such subdivision (a) of such section twelve hundred 42 ten, such county shall allocate, distribute and pay in cash quarterly to 43 such city not so imposing tax a portion of the net collections attribut- 44 able to one-half of the county's additional one percent rate of tax 45 calculated on the basis of the ratio which such city's population bears 46 to the county's total population, such populations as determined in 47 accordance with the latest decennial federal census or special popu- 48 lation census taken pursuant to section twenty of the general municipal 49 law completed and published prior to the end of the quarter for which 50 the allocation is made, which special census must include the entire 51 area of the county; [and (c)] provided, however, that such county shall 52 dedicate the first one million five hundred thousand dollars of net 53 collections attributable to such additional one percent rate of tax 54 received by such county after the county receives in the aggregate eigh- 55 teen million five hundred thousand dollars of net collections from such 56 additional one percent rate of tax [imposed for any of the periods:S. 2509 162 A. 3009 1September first, two thousand twelve through August thirty-first, two2thousand thirteen; September first, two thousand thirteen through August3thirty-first, two thousand fourteen; and September first, two thousand4fourteen through August thirty-first, two thousand fifteen; September5first, two thousand fifteen through August thirty-first, two thousand6sixteen; and September first, two thousand sixteen through August thir-7ty-first, two thousand seventeen; September first, two thousand seven-8teen through August thirty-first, two thousand eighteen; September9first, two thousand eighteen through August thirty-first, two thousand10twenty; and September first, two thousand twenty through August thirty-11first, two thousand twenty-three,] to an allocation on a per capita 12 basis, utilizing figures from the latest decennial federal census or 13 special population census taken pursuant to section twenty of the gener- 14 al municipal law, completed and published prior to the end of the year 15 for which such allocation is made, which special census must include the 16 entire area of such county, to be allocated and distributed among the 17 towns of Oneida county by appropriation of its board of legislators; 18 provided, further, that nothing herein shall require such board of 19 legislators to make any such appropriation until it has been notified by 20 any town by appropriate resolution and, in any case where there is a 21 village wholly or partly located within a town, a resolution of every 22 such village, embodying the agreement of such town and village or 23 villages upon the amount of such appropriation to be distributed to such 24 village or villages out of the allocation to the town or towns in which 25 it is located. 26 (b) if the county of Oneida imposes sales and compensating use taxes 27 at a rate which is one and three-quarters percent additional to the 28 three percent rate authorized by section twelve hundred ten of this 29 article, as authorized pursuant to clause two of subparagraph (i) of the 30 opening paragraph of section twelve hundred ten of this article, net 31 collections attributable to the additional three-quarters percent of 32 such additional rate shall not be subject to any revenue distribution 33 agreement entered into by the county and the cities in the county pursu- 34 ant to the authority of subdivision (c) of section twelve hundred 35 sixty-two of this part. 36 § 9. The opening paragraph of section 1262-r of the tax law, as added 37 by chapter 37 of the laws of 2006, is amended to read as follows: 38 (1) Notwithstanding any contrary provision of law, if the county of 39 Ontario imposes the additional one-eighth of one percent and the addi- 40 tional three-eighths of one percent rates of tax authorized pursuant to 41 clause two of subparagraph (i) of the opening paragraph of section 42 twelve hundred ten of this article, net collections from the such addi- 43 tional three-eighths of one percent rate of such taxes shall be set 44 aside for county purposes and shall not be subject to any agreement 45 entered into by the county and the cities in the county pursuant to the 46 authority of subdivision (c) of section twelve hundred sixty-two of this 47 part or this section. 48 (2) Notwithstanding the provisions of subdivision (c) of section 49 twelve hundred sixty-two of this part to the contrary, if the cities of 50 Canandaigua and Geneva in the county of Ontario do not impose sales and 51 compensating use taxes pursuant to the authority of section twelve 52 hundred ten of this article and such cities and county enter into an 53 agreement pursuant to the authority of subdivision (c) of section twelve 54 hundred sixty-two of this part to be effective March first, two thousand 55 six, such agreement may provide that:S. 2509 163 A. 3009 1 § 10. The tax law is amended by adding a new section 1262-v to read as 2 follows: 3 § 1262-v. Disposition of net collections from the additional rate of 4 sales and compensating use tax in Clinton county. Notwithstanding any 5 contrary provision of law, if the county of Clinton imposes the addi- 6 tional one percent rate of sales and compensating use taxes authorized 7 pursuant to clause two of subparagraph (i) of the opening paragraph of 8 section twelve hundred ten of this article, net collections from such 9 additional rate shall be paid to the county and the county shall set 10 aside such net collections and use them solely for county purposes. Such 11 net collections shall not be subject to any revenue distribution agree- 12 ment entered into by the county and the city in the county pursuant to 13 the authority of subdivision (c) of section twelve hundred sixty-two of 14 this part. 15 § 11. Section 1262-s of the tax law, as amended by section 3 of item U 16 of subpart C of part XXX of chapter 58 of the laws of 2020, is amended 17 to read as follows: 18 § 1262-s. Disposition of net collections from the additional one-quar- 19 ter of one percent rate of sales and compensating use taxes in the coun- 20 ty of Herkimer. Notwithstanding any contrary provision of law, if the 21 county of Herkimer imposes [the additional] sales and compensating use 22 tax at a rate that is one and one-quarter [of one] percent [rate of23sales and compensating use taxes] additional to the three percent rate 24 authorized by section twelve hundred ten of this article, as authorized 25 by [section twelve hundred ten-E] clause two of subparagraph (i) of the 26 opening paragraph of section twelve hundred ten of this article [for all27or any portion of the period beginning December first, two thousand28seven and ending November thirtieth, two thousand twenty-three], the 29 county shall use all net collections [from such] attributable to the 30 additional one-quarter [of one] percent of such additional rate to pay 31 the county's expenses for the construction of additional correctional 32 facilities. The net collections from [the] such additional one-quarter 33 percent of such additional rate [imposed pursuant to section twelve34hundred ten-E of this article] shall be deposited in a special fund to 35 be created by such county separate and apart from any other funds and 36 accounts of the county. Any and all remaining net collections from such 37 additional tax, after the expenses of such construction are paid, shall 38 be deposited by the county of Herkimer in the general fund of such coun- 39 ty for any county purpose. 40 § 12. The tax law is amended by adding a new section 1265 to read as 41 follows: 42 § 1265. References to certain provisions authorizing additional rates 43 or to expirations of a period. Notwithstanding any provision of law to 44 the contrary: (a) any reference in any section of this chapter or other 45 law, or in any local law, ordinance, or resolution adopted pursuant to 46 the authority of this article, to net collections or revenues from a tax 47 imposed by a county or city pursuant to the authority of a clause, or to 48 a subclause of a clause, of subparagraph (i) or (ii) of the opening 49 paragraph of section twelve hundred ten of this article repealed by 50 section one or two of the chapter of the laws of two thousand twenty-one 51 that added this section or pursuant to section twelve hundred ten-E of 52 this article repealed by section five of such chapter shall be deemed to 53 be a reference to net collections or revenues from a tax imposed by that 54 county or city pursuant to the authority of the equivalent provision of 55 clause two of subparagraph (i) or to subparagraph (ii) of the opening 56 paragraph of such section twelve hundred ten as added by such sectionS. 2509 164 A. 3009 1 one or two of such chapter of the laws of two thousand twenty-one; (b) 2 any reference in this chapter or in any other law relating to the expi- 3 ration of a provision concerning the distribution of revenue from the 4 taxes authorized to be imposed by the opening paragraph of section 5 twelve hundred ten of this article shall be disregarded, and such 6 provision shall continue in effect unless later amended or repealed. 7 § 13. This act shall take effect immediately. 8 PART M 9 Section 1. Subdivision (jj) of section 1115 of the tax law, as amended 10 by section 1 of part V of chapter 59 of the laws of 2019, is amended to 11 read as follows: 12 (jj) Tangible personal property or services otherwise taxable under 13 this article sold to a related person shall not be subject to the taxes 14 imposed by section eleven hundred five of this article or the compensat- 15 ing use tax imposed under section eleven hundred ten of this article 16 where the purchaser can show that the following conditions have been met 17 to the extent they are applicable: (1)(i) the vendor and the purchaser 18 are referenced as either a "covered company" as described in section 19 243.2(f) or a "material entity" as described in section 243.2(l) of the 20 Code of Federal Regulations in a resolution plan that has been submitted 21 to an agency of the United States for the purpose of satisfying subpara- 22 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 23 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 24 successor law, or (ii) the vendor and the purchaser are separate legal 25 entities pursuant to a divestiture directed pursuant to subparagraph 5 26 of paragraph (d) of section one hundred sixty-five of such act or any 27 successor law; (2) the sale would not have occurred between such related 28 entities were it not for such resolution plan or divestiture; and (3) in 29 acquiring such property or services, the vendor did not claim an 30 exemption from the tax imposed by this state or another state based on 31 the vendor's intent to resell such services or property. A person is 32 related to another person for purposes of this subdivision if the person 33 bears a relationship to such person described in section two hundred 34 sixty-seven of the internal revenue code. The exemption provided by this 35 subdivision shall not apply to sales made, services rendered, or uses 36 occurring after June thirtieth, two thousand [twenty-one] twenty-four, 37 except with respect to sales made, services rendered, or uses occurring 38 pursuant to binding contracts entered into on or before such date; but 39 in no case shall such exemption apply after June thirtieth, two thousand 40 [twenty-four] twenty-seven. 41 § 2. This act shall take effect immediately. 42 PART N 43 Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of 44 section 1134 of the tax law, as amended by section 160 of part A of 45 chapter 389 of the laws of 1997, is amended to read as follows: 46 (vi) every person described in subparagraph (i), (ii), (iii), (iv) or 47 (v) of this paragraph or every person who is a vendor solely by reason 48 of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of 49 subdivision (b) of section eleven hundred one of this article who or 50 which has had its certificate of authority revoked under paragraph four 51 of this subdivision, shall file with the commissioner a certificate of 52 registration, in a form prescribed by the commissioner, at least twentyS. 2509 165 A. 3009 1 days prior to commencing business or opening a new place of business or 2 such purchasing, selling or taking of possession or payment, whichever 3 comes first. Every person who is a vendor solely by reason of clause (D) 4 of subparagraph (i) of paragraph eight of subdivision (b) of section 5 eleven hundred one of this article shall file with the commissioner a 6 certificate of registration, in a form prescribed by such commissioner, 7 within thirty days after the day on which the cumulative total number of 8 occasions that such person came into the state to deliver property or 9 services, for the immediately preceding four quarterly periods ending on 10 the last day of February, May, August and November, exceeds twelve. 11 Every person who is a vendor solely by reason of clause (E) of subpara- 12 graph (i) of paragraph eight of subdivision (b) of section eleven 13 hundred one of this article shall file with the commissioner a certif- 14 icate of registration, in a form prescribed by such commissioner, within 15 thirty days after the day on which the cumulative total, for the imme- 16 diately preceding four quarterly periods ending on the last day of 17 February, May, August and November, of such person's gross receipts from 18 sales of property delivered in this state exceeds [three] five hundred 19 thousand dollars and number of such sales exceeds one hundred. Every 20 person who is a vendor solely by reason of clause (F) of subparagraph 21 (i) of paragraph eight of subdivision (b) of section eleven hundred one 22 of this article shall file with the commissioner a certificate of regis- 23 tration, in a form prescribed by such commissioner, within thirty days 24 after the day on which tangible personal property in which such person 25 retains an ownership interest is brought into this state by the person 26 to whom such property is sold, where the person to whom such property is 27 sold becomes or is a resident or uses such property in any manner in 28 carrying on in this state any employment, trade, business or profession. 29 Information with respect to the notice requirements of a purchaser, 30 transferee or assignee and such person's liability pursuant to the 31 provisions of subdivision (c) of section eleven hundred forty-one of 32 this chapter shall be included in or accompany the certificate of regis- 33 tration form furnished the applicant. The commissioner shall also 34 include with such information furnished to each applicant general infor- 35 mation about the tax imposed under this article including information on 36 records to be kept, returns and payments, notification requirements and 37 forms. Such certificate of registration may be amended in accordance 38 with rules promulgated by the commissioner. 39 § 2. This act shall take effect immediately. 40 PART O 41 Section 1. Subdivision (a) of section 1401 of the tax law, as amended 42 by chapter 576 of the laws of 1994, is amended to read as follows: 43 (a) (1) "Person" means an individual, partnership, limited liability 44 company, society, association, joint stock company, corporation, estate, 45 receiver, trustee, assignee, referee or any other person acting in a 46 fiduciary or representative capacity, whether appointed by a court or 47 otherwise, any combination of individuals, and any other form of unin- 48 corporated enterprise owned or conducted by two or more persons. 49 (2) "Person" shall include any individual, corporation, partnership or 50 limited liability company or an officer or employee of any corporation 51 (including a dissolved corporation), or a member or employee of any 52 partnership, or a member, manager or employee of a limited liability 53 company, who as such officer, employee, manager or member is under a 54 duty to act for such corporation, partnership, limited liability companyS. 2509 166 A. 3009 1 or individual proprietorship in complying with any requirement of this 2 article, or has so acted. 3 § 2. Subdivision (a) of section 1404 of the tax law, as amended by 4 chapter 61 of the laws of 1989, is amended to read as follows: 5 (a) The real estate transfer tax imposed pursuant to section fourteen 6 hundred two of this article shall be paid by the grantor and such tax 7 shall not be payable, directly or indirectly, by the grantee except as 8 otherwise provided in this section. If the grantor has failed to pay 9 the tax imposed by this article at the time required by section fourteen 10 hundred ten of this article or if the grantor is exempt from such tax, 11 the grantee shall have the duty to pay the tax. Where the grantee has 12 the duty to pay the tax because the grantor has failed to pay, such tax 13 shall be the joint and several liability of the grantor and the grantee; 14 provided that in the event of such failure, the grantee shall have a 15 cause of action against the grantor for recovery of payment of such tax 16 by the grantee. 17 § 3. Subdivision (a) of section 1409 of the tax law, as amended by 18 chapter 297 of the laws of 2019, is amended to read as follows: 19 (a) (1) A joint return shall be filed by both the grantor and the 20 grantee for each conveyance whether or not a tax is due thereon other 21 than a conveyance of an easement or license to a public utility as 22 defined in subdivision two of section one hundred eighty-six-a of this 23 chapter or to a public utility which is a provider of telecommunication 24 services as defined in subdivision one of section one hundred eighty- 25 six-e of this chapter, where the consideration is two dollars or less 26 and is clearly stated as actual consideration in the instrument of 27 conveyance. 28 (2) When the grantor or grantee of a deed for a building used as resi- 29 dential real property containing [one- to four-] up to four family 30 dwelling units is a limited liability company, the joint return shall 31 not be accepted for filing unless it is accompanied by a document which 32 identifies the names and business addresses of all members, managers, 33 and any other authorized persons, if any, of such limited liability 34 company and the names and business addresses or, if none, the business 35 addresses of all shareholders, directors, officers, members, managers 36 and partners of any limited liability company or other business entity 37 that are to be the members, managers or authorized persons, if any, of 38 such limited liability company. The identification of such names and 39 addresses shall not be deemed an unwarranted invasion of personal priva- 40 cy pursuant to article six of the public officers law. If any such 41 member, manager or authorized person of the limited liability company is 42 itself a limited liability company or other business entity other than a 43 publicly traded entity, a REIT, a UPREIT, or a mutual fund, the names 44 and addresses of the shareholders, directors, officers, members, manag- 45 ers and partners of the limited liability company or other business 46 entity shall also be disclosed until full disclosure of ultimate owner- 47 ship by natural persons is achieved. For purposes of this subdivision, 48 the terms "members", "managers", "authorized person", "limited liability 49 company" and "other business entity" shall have the same meaning as 50 those terms are defined in section one hundred two of the limited 51 liability company law. 52 (3) The return shall be filed with the recording officer before the 53 instrument effecting the conveyance may be recorded. However, if the tax 54 is paid to the commissioner pursuant to section fourteen hundred ten of 55 this article, the return shall be filed with such commissioner at the 56 time the tax is paid. In that instance, a receipt evidencing the filingS. 2509 167 A. 3009 1 of the return and the payment of tax shall be filed with the recording 2 officer before the instrument effecting the conveyance may be recorded. 3 The recording officer shall handle such receipt in the same manner as a 4 return filed with the recording officer. 5 § 4. Subdivision (h) of section 1418 of the tax law, as added by 6 section 7 of part X of chapter 56 of the laws of 2010 and as further 7 amended by subdivision (c) of section 1 of part W of chapter 56 of the 8 laws of 2010, is amended to read as follows: 9 (h) Notwithstanding the provisions of subdivision (a) of this section, 10 the commissioner may furnish information relating to real property 11 transfers obtained or derived from returns filed pursuant to this arti- 12 cle in relation to the real estate transfer tax, to the extent that such 13 information is also required to be reported to the commissioner by 14 section three hundred thirty-three of the real property law and section 15 five hundred seventy-four of the real property tax law and the rules 16 adopted thereunder, provided such information was collected through a 17 combined process established pursuant to an agreement entered into with 18 the commissioner pursuant to paragraph viii of subdivision one-e of 19 section three hundred thirty-three of the real property law. The commis- 20 sioner may redisclose such information to the extent authorized by 21 section five hundred seventy-four of the real property tax law. The 22 commissioner may also disclose any information reported pursuant to 23 paragraph two of subdivision (a) of section fourteen hundred nine of 24 this article. 25 § 5. This act shall take effect immediately; provided however that 26 sections one and two of this act shall take effect July 1, 2021, and 27 shall apply to conveyances occurring on or after such date other than 28 conveyances that are made pursuant to binding written contracts entered 29 into on or before April 1, 2021, provided that the date of execution of 30 such contract is confirmed by independent evidence, such as the record- 31 ing of the contract, payment of a deposit or other facts and circum- 32 stances as determined by the commissioner of taxation and finance. 33 PART P 34 Section 1. Section 480-a of the tax law is amended by adding a new 35 subdivision 6 to read as follows: 36 6. (a) No retail dealer who has its retail dealer registration 37 cancelled, suspended or revoked pursuant to this section or has been 38 forbidden from selling cigarettes or tobacco products pursuant to para- 39 graph (j) of subdivision one of section four hundred eighty of this 40 article shall possess cigarettes or tobacco products in any place of 41 business, cart, stand, truck or other merchandising device in this state 42 beginning on the tenth day after such cancellation, suspension, revoca- 43 tion, or forbiddance and continuing for the duration of the same; 44 provided however, such retail dealer shall not be prohibited before the 45 tenth day after such cancellation, suspension, revocation, or forbid- 46 dance from selling or transferring its inventory of lawfully stamped 47 cigarettes or tobacco products on which the taxes imposed by this arti- 48 cle have been assumed or paid to a properly registered retail dealer 49 whose registration is not cancelled, suspended, or revoked or who has 50 not been forbidden from selling cigarettes or tobacco products. 51 (b) No retail dealer shall possess cigarettes or tobacco products in 52 any place of business, cart, stand, truck or other merchandising device 53 in this state unless it has obtained a valid retail dealer registration 54 from the commissioner.S. 2509 168 A. 3009 1 (c) The possession of cigarettes or tobacco products in violation of 2 paragraph (a) or (b) of this subdivision shall be presumptive evidence 3 that such cigarettes or tobacco products are being sold in violation of 4 this section and section four hundred eighty of this article and, in 5 addition to any other applicable penalties, shall be subject to the 6 penalties authorized by subdivision three of this section. 7 § 2. Any retail dealer who, prior to the effective date of this act, 8 had its retail dealer registration cancelled, suspended, or revoked 9 pursuant to section four hundred eighty-a of the tax law or was forbid- 10 den from selling cigarettes or tobacco products pursuant to paragraph 11 (j) of subdivision one of section four hundred eighty of the tax law and 12 such cancellation, suspension, revocation, or forbiddance remains in 13 effect as of the effective date of this act, shall be prohibited from 14 possessing cigarettes and tobacco products beginning on the tenth day 15 after the effective date of this act and continuing for as long as such 16 cancellation, suspension, revocation, or forbiddance shall remain in 17 effect; provided however, such retail dealer shall not be prohibited 18 before the tenth day after the effective date of this act from selling 19 or transferring its inventory of lawfully stamped cigarettes or tobacco 20 products on which the taxes imposed by this article have been assumed or 21 paid to a properly registered retail dealer whose registration is not 22 cancelled, suspended, or revoked or who has not been forbidden from 23 selling cigarettes or tobacco products. 24 § 3. This act shall take effect immediately. 25 PART Q 26 Section 1. Subdivision 1 of section 429 of the tax law, as amended by 27 chapter 433 of the laws of 1978, is amended to read as follows: 28 1. Every distributor, noncommercial importer or other person shall, on 29 or before the twentieth day of each month, file with the department of 30 taxation and finance a return, on forms to be prescribed by the [tax31commission] commissioner and furnished by such department, stating sepa- 32 rately the number of gallons, or lesser quantity, of beers, and the 33 number of liters, or lesser quantity, of wines and liquors sold or used 34 by such distributor, noncommercial importer or other person in this 35 state during the preceding calendar month, except that the [tax commis-36sion] commissioner may, if [it] he or she deems it necessary [in order] 37 to [insure] facilitate the efficient reporting and payment of the tax 38 imposed by this article, require returns to be made at such times and 39 covering such periods as [it] he or she may deem necessary. Such return 40 shall contain such further information as the [tax commission] commis- 41 sioner shall require. The fact that the name of the distributor, noncom- 42 mercial importer or other person is signed to a filed return shall be 43 prima facie evidence for all purposes that the return was actually 44 signed by such distributor, noncommercial importer or other person. 45 § 2. Section 505 of the tax law, as amended by section 2 of part E of 46 chapter 60 of the laws of 2007, is amended to read as follows: 47 § 505. Returns. Every carrier subject to this article and every carri- 48 er to whom a certificate of registration was issued shall file on or 49 before the last day of each month a return for the preceding calendar 50 month where a carrier's total tax liability under this article for the 51 preceding calendar year exceeded [four] twelve thousand dollars. Where a 52 carrier's total tax liability under this article for the preceding 53 calendar year did not exceed [four] twelve thousand dollars or where a 54 carrier was not subject to such tax in the preceding calendar year,S. 2509 169 A. 3009 1 returns shall be filed quarterly, on or before the last day of the 2 calendar month following each of the calendar quarters: January through 3 March, April through June, July through September and October through 4 December. Provided, however, if the commissioner consents thereto in 5 writing, any carrier may file a return on or before the thirtieth day 6 after the close of any different period, if the carrier's books are 7 regularly kept on a periodic basis other than a calendar month or quar- 8 ter. The commissioner may permit the filing of returns on an annual 9 basis, provided the carrier was subject to the tax under this article 10 during the entire preceding calendar year and the carrier's total tax 11 liability under this article for such year did not exceed [two hundred12fifty] twelve hundred dollars. Such annual returns shall be filed on or 13 before January thirty-first of the succeeding calendar year. Returns 14 shall be filed with the commissioner on forms to be furnished by such 15 commissioner for such purpose and shall contain such data, information 16 or matter as the commissioner may require to be included therein. The 17 fact that a carrier's name is signed to a filed return shall be prima 18 facie evidence for all purposes that the return was actually signed by 19 such carrier. The commissioner may grant a reasonable extension of time 20 for filing returns whenever good cause exists and may waive the filing 21 of returns if a carrier is not subject to the tax imposed by this arti- 22 cle for the period covered by the return. Every return shall have 23 annexed thereto a certification to the effect that the statements 24 contained therein are true. 25 § 3. This act shall take effect immediately; provided, however, that 26 section two of this act shall apply to tax returns required to be filed 27 on or after January 1, 2022. 28 PART R 29 Section 1. Section 1280 of the tax law is amended by adding a new 30 subdivision (v) to read as follows: 31 (v) "Technology service provider" or "TSP" means a person that acts by 32 employment, contract or otherwise on behalf of one or more taxicab 33 owners or HAIL vehicle owners to collect the trip record for a taxicab 34 trip or HAIL vehicle trip. 35 § 2. Subdivision (b) of section 1283 of the tax law, as amended by 36 chapter 9 of the laws of 2012, is amended to read as follows: 37 (b) (1) If the taxicab owner has designated an agent, then the agent 38 shall be jointly liable with the taxicab owner for the tax on trips 39 occurring during the period that such designation is in effect. Even if 40 the TLC has specified that the taxicab owner's agent cannot operate as 41 an agent, that agent shall be jointly liable with the taxicab owner if 42 the agent has acted for the taxicab owner. During the period that a 43 taxicab owner's designation of an agent is in effect, the agent shall 44 file the returns required by this article and pay any tax due with such 45 return, but the taxicab owner shall not be relieved of liability for 46 tax, penalty or interest due under this article, or for the filing of 47 returns required to be filed, unless the agent has timely filed accurate 48 returns and timely paid the tax required to be paid under this article. 49 If a taxicab owner has designated an agent, then the agent must perform 50 any act this article requires the taxicab owner to perform, but the 51 failure of such agent to perform any such act shall not relieve the 52 taxicab owner from the obligation to perform such act or from any 53 liability that may arise from failure to perform the act.S. 2509 170 A. 3009 1 (2) (A) Notwithstanding the foregoing, a TSP that collects the trip 2 record and the trip fare on behalf of a taxicab owner or a HAIL vehicle 3 owner shall be jointly liable with the taxicab owner or HAIL vehicle 4 owner for the tax due on such trips. For any period that the TSP 5 collects trip records on behalf of a taxicab owner or HAIL vehicle 6 owner, the TSP shall file returns reporting all trip records and, after 7 retaining any fees to which it is entitled pursuant to a contract with 8 such taxicab owner or HAIL vehicle owner, shall remit the taxes due on 9 all fares collected by the TSP. 10 (B) The TSP, after retaining the fees described in subparagraph (A) of 11 this paragraph, shall also remit the taxes due on any taxicab trip or 12 HAIL vehicle trip for which it maintained the trip record but did not 13 collect the fare, from any fares it collected on behalf of any such 14 taxicab owner or HAIL vehicle owner, before it releases any proceeds to 15 the taxicab owner or HAIL vehicle owner. If the TSP fails to comply 16 with the requirements of this subparagraph, such TSP shall be liable for 17 the taxes due on such trips up to the amount it released to the taxicab 18 owner or HAIL vehicle owner, or any person on behalf of such taxicab 19 owner or HAIL vehicle owner. However, the taxicab owner, HAIL vehicle 20 owner or their agents shall not be relieved of any liability for the 21 tax, penalty or interest due under this article, or for filing of 22 returns required to be filed, unless the TSP has timely filed accurate 23 returns and timely paid the tax required to be paid under this article. 24 § 3. Subdivision (a) of section 1299-B of the tax law, as added by 25 section 2 of part NNN of chapter 59 of the laws of 2018, is amended to 26 read as follows: 27 (a) Notwithstanding any provision of law to the contrary, any person 28 that dispatches a motor vehicle by any means that provides transporta- 29 tion that is subject to a surcharge imposed by this article, including 30 transportation network companies as defined in article forty-four-B of 31 the vehicle and traffic law, shall be liable for the surcharge imposed 32 by this article, except that in the case of taxicab trips and HAIL vehi- 33 cle trips that are also subject to tax pursuant to article twenty-nine-A 34 of this chapter[, only the taxicab owner or HAIL base liable for that35tax shall be the person liable for the surcharge imposed by this arti-36cle]: (1) the TSP shall be liable for the surcharge imposed by this 37 article for all trips for which the TSP collected the trip record and 38 the surcharge, and shall be responsible for filing returns; and, after 39 retaining any fees to which it is entitled pursuant to a contract with 40 such taxicab owner or HAIL vehicle owner, shall remit the surcharges on 41 such trips to the department. 42 (2) the TSP, after retaining the fees described in paragraph one of 43 this subdivision, shall also remit the surcharges due on any taxicab 44 trip or HAIL vehicle trip for which it maintained the trip record but 45 did not collect the fare, from any fares it collected on behalf of any 46 such taxicab owner or HAIL vehicle owner, before it releases any 47 proceeds to the taxicab owner or HAIL vehicle owner. Whenever the TSP 48 fails to comply with the requirements of the preceding sentence, the TSP 49 shall be liable for the surcharges due on such trips up to the amount it 50 released to the taxicab owner or HAIL vehicle owner, or any person on 51 behalf of such taxicab owner or HAIL vehicle owner. However, the taxi- 52 cab owner or HAIL base shall be jointly and severally liable with the 53 TSP for such surcharges. For purposes of this section, the terms "taxi- 54 cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", 55 and "TSP" shall have the same meaning as they do in section twelve 56 hundred eighty of this chapter.S. 2509 171 A. 3009 1 § 4. Section 1299-F of the tax law is amended by adding a new subdivi- 2 sion (e) to read as follows: 3 (e) Notwithstanding the provisions of subdivision (a) of this section, 4 the commissioner may, in his or her discretion, permit the proper offi- 5 cer of the taxi and limousine commission of the city of New York (TLC) 6 or the duly authorized representative of such officer, to inspect any 7 return filed under this article, or may furnish to such officer or such 8 officer's authorized representative an abstract of any such return or 9 supply such person with information concerning an item contained in any 10 such return, or disclosed by any investigation of tax liability under 11 this article; but such permission shall be granted or such information 12 furnished only if the TLC shall have furnished the commissioner with all 13 information requested by the commissioner pursuant to this article and 14 shall have permitted the commissioner or the commissioner's authorized 15 representative to make any inspection of any records or reports concern- 16 ing for-hire transportation trips subject to the surcharge imposed by 17 this article, and any persons required to collect such surcharge, filed 18 with or possessed by the TLC that the commissioner may have requested 19 from the TLC. Provided, further, that the commissioner may disclose to 20 the TLC whether or not a person liable for the surcharge imposed by this 21 article has paid all of the surcharges due under this article as of any 22 given date. 23 § 5. This act shall take effect immediately and shall apply to trips 24 occurring on or after July 1, 2021. 25 PART S 26 Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax 27 law, as added by section 2 of part VV of chapter 59 of the laws of 2009, 28 is amended to read as follows: 29 (1) If a tax return preparer or facilitator is required to register or 30 re-register with the department pursuant to paragraph one or three of 31 subdivision (b) of this section, as applicable, and fails to do so in 32 accordance with the terms of this section, then the tax return preparer 33 [of] or facilitator must pay a penalty of [two] five hundred [fifty] 34 dollars for the first day of non-compliance and two hundred dollars for 35 each subsequent day of non-compliance thereafter. The maximum penalty 36 that may be imposed under this paragraph on any tax return preparer or 37 facilitator during any calendar year must not exceed ten thousand 38 dollars. [Provided, however, that if the tax return preparer or facili-39tator complies with the registration requirements of this section within40ninety calendar days after notification of assessment of this penalty is41sent by the department, then this penalty must be abated. If the tax42return preparer or facilitator continues to fail to register or re-re-43gister after the ninety calendar day period, the tax return preparer or44facilitator must pay an additional penalty of five hundred dollars if45the failure is for not more than one month, with an additional five46hundred dollars for each additional month or fraction thereof during47which the failure continues. Once the ninety calendar days specified in48this paragraph have expired, the] The penalty can be waived only for 49 good cause shown by the tax return preparer or facilitator. 50 § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as 51 added by section 2 of part VV of chapter 59 of the laws of 2009, is 52 amended to read as follows: 53 (2) If a commercial tax return preparer fails to pay the fee as 54 required in paragraph one of subdivision (c) of this section, for aS. 2509 172 A. 3009 1 calendar year, then the commercial tax return preparer must pay a penal- 2 ty of fifty dollars for each return the commercial tax return preparer 3 has filed with the department in that calendar year. [Provided however,4that if the commercial tax return preparer complies with the payment5requirements of paragraph one of subdivision (c) of this section, within6ninety calendar days after notification of the assessment of this penal-7ty is sent by the department, then this penalty must be abated.] The 8 maximum penalty that may be imposed under this paragraph on any commer- 9 cial tax return preparer during any calendar year must not exceed [five] 10 ten thousand dollars. [Once the ninety calendar days specified in this11paragraph have expired, the] The penalty can be waived only for good 12 cause shown by the commercial tax return preparer. 13 § 3. Section 32 of the tax law is amended by adding a new subdivision 14 (h) to read as follows: 15 (h) (1) Tax return preparers and facilitators must prominently and 16 conspicuously display a copy of their registration certificate issued 17 pursuant to this section, for the current registration period, at their 18 place of business and at any other location where they provide tax 19 return preparation and/or facilitation services, in an area where 20 taxpayers using their services are able to see and review such registra- 21 tion certificate. 22 (2) Tax return preparers and facilitators must prominently and 23 conspicuously display at their place of business and at any other 24 location where they provide tax return preparation and/or facilitation 25 services the following documents: 26 (A) a current price list, in at least fourteen-point type, that 27 includes, but is not limited to, a list of all services offered by the 28 tax return preparer and/or facilitator; the minimum fee charged for each 29 service, including the fee charged for each type of federal or New York 30 state tax return to be prepared and facilitation service to be provided; 31 and a list of each factor that may increase a stated fee and the specif- 32 ic additional fees or range of possible additional fees when each factor 33 applies; and 34 (B) a copy of the most recent Consumer Bill of Rights Regarding Tax 35 Preparers published by the department pursuant to section three hundred 36 seventy-two of the general business law. 37 (3) A tax return preparer or facilitator who fails to comply with any 38 of the requirements of this subdivision must pay a penalty of five 39 hundred dollars for the first day of non-compliance and two hundred 40 dollars for each subsequent day of non-compliance thereafter. The maxi- 41 mum penalty that may be imposed under this subdivision on any tax return 42 preparer or facilitator during any calendar year must not exceed ten 43 thousand dollars. The penalty can be waived only for good cause shown by 44 the tax return preparer or facilitator. 45 § 4. Subdivision (g) of section 32 of the tax law, as added by section 46 2 of part VV of chapter 59 of the laws of 2009, is relettered subdivi- 47 sion (i). 48 § 5. This act shall take effect immediately; provided, however, that 49 paragraph (3) of subdivision (h) of section 32 of the tax law, as added 50 by section three of this act, shall take effect January 1, 2022. 51 PART T 52 Section 1. Section 2016 of the tax law, as amended by chapter 401 of 53 the laws of 1987, is amended to read as follows:S. 2509 173 A. 3009 1 § 2016. Judicial review. A decision of the tax appeals tribunal, which 2 is not subject to any further administrative review, shall finally and 3 irrevocably decide all the issues which were raised in proceedings 4 before the division of tax appeals upon which such decision is based 5 unless, within four months after notice of such decision is served by 6 the tax appeals tribunal upon every party to the proceeding before such 7 tribunal by certified mail or personal service, the petitioner who 8 commenced the proceeding [petitions] or the commissioner, or both, peti- 9 tion for judicial review in the manner provided by article seventy-eight 10 of the civil practice law and rules, except as otherwise provided in 11 this [section] chapter. Such service by certified mail shall be 12 complete upon deposit of such notice, enclosed in a post-paid properly 13 addressed wrapper, in a post office or official depository under the 14 exclusive care and custody of the United States postal service. [The] 15 Where the petitioner who commenced the proceeding before the division of 16 tax appeals files a petition for judicial review, the petition shall 17 designate the tax appeals tribunal and the commissioner [of taxation and18finance] as respondents in the proceeding for judicial review. Where 19 the commissioner files a petition for judicial review, the petition 20 shall designate the tax appeals tribunal and the petitioner who 21 commenced the proceeding before the division of tax appeals as respond- 22 ents in the proceeding for judicial review. The tax appeals tribunal 23 shall not participate in proceedings for judicial review of its deci- 24 sions and such proceedings for judicial review shall be commenced in the 25 appellate division of the supreme court, third department. In all other 26 respects the provisions and standards of article seventy-eight of the 27 civil practice law and rules shall apply. The record to be reviewed in 28 such proceedings for judicial review shall include the determination of 29 the administrative law judge, the decision of the tax appeals tribunal, 30 the stenographic transcript of the hearing before the administrative law 31 judge, the transcript of any oral proceedings before the tax appeals 32 tribunal and any exhibit or document submitted into evidence at any 33 proceeding in the division of tax appeals upon which such decision is 34 based. 35 § 2. This act shall take effect immediately and shall apply to deci- 36 sions and orders issued by the tax appeals tribunal on or after such 37 date. 38 PART U 39 Section 1. Paragraphs i and v of subdivision 1-e of section 333 of the 40 real property law, as amended by section 5 of part X of chapter 56 of 41 the laws of 2010 and as further amended by subdivision (d) of section 1 42 of part W of chapter 56 of the laws of 2010, are amended to read as 43 follows: 44 i. A recording officer shall not record or accept for [record] record- 45 ing any conveyance of real property affecting land in New York state 46 unless accompanied by one of the following: 47 (1) a receipt issued by the commissioner of taxation and finance 48 pursuant to subdivision (c) of section fourteen hundred twenty-three of 49 the tax law; or 50 (2) a transfer report form prescribed by the commissioner of taxation 51 and finance [or in lieu thereof, confirmation from the commissioner that52the required data has been reported to it pursuant to paragraph vii of53this subdivision], and the fee prescribed pursuant to subdivision three 54 of this section.S. 2509 174 A. 3009 1 v. (1) The provisions of this subdivision shall not operate to invali- 2 date any conveyance of real property where one or more of the items 3 designated as subparagraphs one through eight of paragraph ii of this 4 subdivision, have not been reported or which has been erroneously 5 reported, nor affect the record contrary to the provisions of this 6 subdivision, nor impair any title founded on such conveyance or record. 7 [Such] 8 (2) Subject to the provisions of section fourteen hundred twenty-three 9 of the tax law, such form shall contain an affirmation as to the accura- 10 cy of the contents made both by the transferor or transferors and by the 11 transferee or transferees. Provided, however, that if the conveyance of 12 real property occurs as a result of a taking by eminent domain, tax 13 foreclosure, or other involuntary proceeding such affirmation may be 14 made only by either the condemnor, tax district, or other party to whom 15 the property has been conveyed, or by that party's attorney. The affir- 16 mations required by this paragraph shall be made in the form and manner 17 prescribed by the commissioner, provided that notwithstanding any 18 provision of law to the contrary, affirmants may be allowed, but shall 19 not be required, to sign such affirmations electronically. 20 § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the 21 real property law are REPEALED. 22 § 3. Subdivision 3 of section 333 of the real property law, as amended 23 by section 2 of part JJ of chapter 56 of the laws of 2009 and as further 24 amended by subdivision (d) of section 1 of part W of chapter 56 of the 25 laws of 2010, is amended to read as follows: 26 3. [The] (i) When a recording officer [of every county and the city of27New York] is presented with a conveyance for recording that is accompa- 28 nied by a receipt issued by the commissioner of taxation and finance 29 pursuant to subdivision (c) of section fourteen hundred twenty-three of 30 the tax law, such recording officer shall be relieved of the responsi- 31 bility to collect the fee described by this subdivision. He or she 32 shall nonetheless be entitled to the portion of such fee that he or she 33 would otherwise have deducted pursuant to this subdivision, as provided 34 by subdivision (b) of section fourteen hundred twenty-three of the tax 35 law. 36 (ii) When a recording officer is presented with a conveyance for 37 recording that is not accompanied by such a receipt, he or she shall 38 impose a fee of two hundred fifty dollars, or in the case of a transfer 39 involving qualifying residential or farm property as defined by para- 40 graph iv of subdivision one-e of this section, a fee of one hundred 41 twenty-five dollars, for every real property transfer reporting form 42 submitted for recording as required under subparagraph two of paragraph 43 i of subdivision one-e of this section. In the city of New York, the 44 recording officer shall impose a fee of one hundred dollars for each 45 real property transfer tax form filed in accordance with chapter twen- 46 ty-one of title eleven of the administrative code of the city of New 47 York, except where a real property transfer reporting form is also 48 submitted for recording for the transfer as required under subparagraph 49 two of paragraph i of subdivision one-e of this section. The recording 50 officer shall deduct nine dollars from such fee and remit the remainder 51 of the revenue collected to the commissioner of taxation and finance 52 every month for deposit into the general fund. The amount duly deducted 53 by the recording officer shall be retained by the county or by the city 54 of New York.S. 2509 175 A. 3009 1 § 4. Subsection (d) of section 663 of the tax law, as amended by 2 section 1 of part P of chapter 686 of the laws of 2003, is amended to 3 read as follows: 4 (d) A recording officer shall not record or accept for [record] 5 recording any deed unless one of the following conditions is satisfied: 6 (1) it is accompanied by a receipt issued by the commissioner indicat- 7 ing that the estimated tax required by this section has been paid to the 8 commissioner either electronically or as otherwise prescribed by him or 9 her; 10 (2) it is accompanied by a form prescribed by the commissioner pursu- 11 ant to subsection (b) of this section and the payment of any estimated 12 tax shown as payable on such form[,]; or [unless] 13 (3) such receipt or form includes a certification by the transferor 14 that this section is inapplicable to the sale or transfer. 15 § 5. Subdivision (c) of section 1407 of the tax law, as amended by 16 chapter 61 of the laws of 1989, is amended to read as follows: 17 (c) [Every] 1. When a recording officer designated to act as such 18 agent is presented with a conveyance for recording that is accompanied 19 by a receipt issued by the commissioner pursuant to subdivision (c) of 20 section fourteen hundred twenty-three of this article, such recording 21 officer shall be relieved of the responsibility to collect the real 22 estate transfer tax thereon. He or she shall nonetheless be entitled to 23 the portion of such tax that he or she would otherwise have retained 24 pursuant to this subdivision, as provided by subdivision (b) of section 25 fourteen hundred twenty-three of the tax law. 26 2. When a recording officer is presented with a conveyance for record- 27 ing that is not accompanied by a receipt described in paragraph one of 28 this subdivision, he or she shall collect the applicable real estate 29 transfer tax and shall retain, from the real estate transfer tax which 30 he or she collects, the sum of one dollar for each of the first five 31 thousand conveyances accepted for recording and for which he or she has 32 issued a documentary stamp or metering machine stamp or upon which 33 instrument effecting the conveyance he or she has noted payment of the 34 tax or that no tax is due, pursuant to any other method for payment of 35 the tax provided for in the regulations of the commissioner of taxation 36 and finance, during each annual period commencing on the first day of 37 August and ending on the next succeeding thirty-first day of July and 38 seventy-five cents for each conveyance in excess of five thousand 39 accepted for recording and for which he or she has issued such a stamp 40 or upon which instrument effecting the conveyance he or she has noted 41 payment of the tax or that no tax is due, pursuant to such other method, 42 during such annual period. Such fee shall be payable even though the 43 stamp issued or such notation shows that no tax is due. Such a fee paid 44 to the register of the city of New York shall belong to the city of New 45 York and such a fee paid to a recording officer of a county outside such 46 city shall belong to such officer's county. With respect to any other 47 agents designated to act pursuant to subdivision (a) of this section, 48 the commissioner of taxation and finance shall have the power to 49 provide, at his or her discretion, for payment of a fee to such agent, 50 in such manner and amount and subject to such limitations as he or she 51 may determine, but any such fee for any annual period shall not be 52 greater than the sum of one dollar for each of the first five thousand 53 conveyances for which such agent has issued a documentary stamp or 54 metering machine stamp or upon which instrument effecting the conveyance 55 he or she has noted payment of the tax or that no tax is due, pursuant 56 to any other method for payment of the tax provided for in the regu-S. 2509 176 A. 3009 1 lations of the commissioner of taxation and finance, during such annual 2 period and seventy-five cents for each conveyance in excess of five 3 thousand for which such agent has issued such a stamp or upon which 4 instrument effecting the conveyance such agent has noted payment of the 5 tax or that no tax is due, pursuant to such other method, during such 6 annual period. 7 § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 61 of 8 the laws of 1989, is amended to read as follows: 9 (b) [The] Subject to the provisions of section fourteen hundred twen- 10 ty-three of this article, the return shall be signed by both the grantor 11 and the grantee. Where a conveyance has more than one grantor or more 12 than one grantee, the return shall be signed by all of such grantors and 13 grantees. Where any or all of the grantors or any or all of the grantees 14 have failed to sign a return, it shall be accepted as a return if signed 15 by any one of the grantors or by any one of the grantees. Provided, 16 however, those not signing the return shall not be relieved of any 17 liability for the tax imposed by this article and the period of limita- 18 tions for assessment of tax or of additional tax shall not apply to any 19 such party. 20 § 7. Subdivision (b) of section 1410 of the tax law, as added by chap- 21 ter 61 of the laws of 1989, is amended to read as follows: 22 (b) A recording officer shall not record an instrument effecting a 23 conveyance unless one of the following conditions is satisfied: 24 (1) the instrument is accompanied by a receipt issued by the commis- 25 sioner pursuant to subdivision (c) of section fourteen hundred twenty- 26 three of this article; or 27 (2) the return required by section fourteen hundred nine of this arti- 28 cle has been filed and the real estate transfer tax due, if any, shall 29 have been paid as provided in this section. 30 § 8. The tax law is amended by adding a new section 1423 to read as 31 follows: 32 § 1423. Modernization of real property transfer reporting. (a) 33 Notwithstanding any provision of law to the contrary, the commissioner 34 is hereby authorized to implement a system for the electronic collection 35 of data relating to transfers of real property. In connection therewith, 36 the commissioner may combine the two forms referred to in paragraph one 37 of this subdivision into a consolidated real property transfer form to 38 be filed with him or her electronically; provided: 39 (1) The two forms that may be so combined are the real estate transfer 40 tax return required by section fourteen hundred nine of this article, 41 and the real property transfer report required by subdivision one-e of 42 section three hundred thirty-three of the real property law. However, 43 the commissioner shall continue to maintain both such return and such 44 report as separate forms, so that a party who prefers not to file a 45 consolidated real property transfer form with the commissioner electron- 46 ically shall have the option of filing both such return and such report 47 with the recording officer, as otherwise provided by law. Under no 48 circumstances shall a consolidated real property transfer form be filed 49 with, or accepted by, the recording officer. 50 (2) Notwithstanding the provisions of section fourteen hundred eigh- 51 teen of this article, any information appearing on a consolidated real 52 property transfer form that is required to be included on the real prop- 53 erty transfer report required by subdivision one-e of section three 54 hundred thirty-three of the real property law shall be subject to public 55 disclosure.S. 2509 177 A. 3009 1 (3) When a consolidated real property transfer form is electronically 2 submitted to the department by either the grantor or grantee or a duly 3 authorized agent thereof, the act of submitting such form shall be 4 deemed to be the signing of the return as required by paragraph (v) of 5 subdivision one-e of the real property law or subdivision (b) of section 6 fourteen hundred nine of this article, and the requirement that all the 7 grantors and grantees shall sign the return shall not apply. However, 8 the fact that a grantor or grantee has not electronically submitted the 9 form shall not relieve that grantor or grantee of any liability for the 10 tax imposed by this article. 11 (b) When a consolidated real property transfer form is filed with the 12 commissioner electronically pursuant to this section, the real estate 13 transfer tax imposed under this article, and the fee that would other- 14 wise be retained by the recording officer pursuant to subdivision three 15 of section three hundred thirty-three of the real property law, shall be 16 paid to the commissioner therewith. The commissioner shall retain on 17 behalf of the recording officer the portion of such tax that would 18 otherwise have been retained by the recording officer pursuant to subdi- 19 vision (c) of section fourteen hundred seven of this article, and the 20 portion of such fee that would otherwise have been retained by the 21 recording officer pursuant to subdivision three of section three hundred 22 thirty-three of the real property law. The moneys so retained by the 23 commissioner on behalf of the recording officer, hereinafter referred to 24 as the recording officer's fees, shall be deposited daily with such 25 responsible banks, banking houses, or trust companies as may be desig- 26 nated by the state comptroller. Of the recording officer's fees so 27 deposited, the comptroller shall retain in the comptroller's hands such 28 amount as the commissioner may determine to be necessary for refunds or 29 reimbursements of such fees collected or received pursuant to this 30 section, out of which the comptroller shall pay any refunds or 31 reimbursements of such fees to which persons shall be entitled under the 32 provisions of this section. The comptroller, after reserving such refund 33 and reimbursement fund shall, on or before the twelfth day of each 34 month, pay to the appropriate recording officers an amount equal to the 35 recording officer's fees reserved on their behalf. Provided, however, 36 that the commissioner is authorized to request that the comptroller 37 refrain from making such a payment of such fees to a recording officer 38 until the commissioner has certified to the comptroller that the record- 39 ing officer has supplied the commissioner with the liber and page 40 numbers of the recorded instruments that gave rise to such fees. 41 (c) The system for the electronic submission of consolidated real 42 property transfer forms shall be designed so that upon the successful 43 electronic filing of such a form and the payment of the associated taxes 44 and fees, the party submitting the same shall be provided with an elec- 45 tronic receipt in a form prescribed by the commissioner that confirms 46 such filing and payment. Such party may file a printed copy of such 47 receipt with the recording officer when offering the associated instru- 48 ment for recording, in lieu of submitting to the recording officer the 49 return, report, tax and fee that would otherwise have been required 50 under this article and subdivisions one-e and three of section three 51 hundred thirty-three of the real property law. The recording officer 52 shall retain such receipt for a minimum of three years, unless otherwise 53 directed by the commissioner, and shall provide a copy thereof to the 54 commissioner for inspection upon his or her request. 55 (d) Upon recording the instrument to which the consolidated real prop- 56 erty transfer form pertains, the recording officer shall provide theS. 2509 178 A. 3009 1 commissioner with the liber and page thereof at such time and in such 2 manner as the commissioner shall prescribe. 3 (e) The provisions of this section shall not be applicable within a 4 city or county that has implemented its own electronic system for the 5 recording of deeds, the filing of the real estate transfer tax returns 6 and the real property transfer reports prescribed by the commissioner, 7 and the payment of the associated taxes and fees, unless such city or 8 county shall notify the commissioner that such jurisdiction will follow 9 the system authorized pursuant to this section to be used therein, in 10 writing. 11 § 9. This act shall take effect immediately. 12 PART V 13 Section 1. This Part enacts into law components of legislation relat- 14 ing to the administration of the STAR program authorized by section 425 15 of the real property tax law and subsection (eee) of section 606 of the 16 tax law. Each component is wholly contained within a Subpart identified 17 as Subparts A through E. The effective date for each particular 18 provision contained within such Subpart is set forth in the last section 19 of such Subpart. Any provision in any section contained within a 20 Subpart, including the effective date of the Subpart, which makes refer- 21 ence to a section "of this act", when used in connection with that 22 particular component, shall be deemed to mean and refer to the corre- 23 sponding section of the Subpart in which it is found. Section three of 24 this Part sets forth the general effective date of this Part. 25 SUBPART A 26 Section 1. Paragraphs (a) and (b) of subdivision 16 of section 425 of 27 the real property tax law, as amended by section 5 of part A of chapter 28 73 of the laws of 2016, are amended to read as follows: 29 (a) Beginning with assessment rolls used to levy school district taxes 30 for the two thousand sixteen--two thousand seventeen school year, no 31 application for an exemption under this section may be approved unless 32 at least one of the applicants held title to the property on the taxable 33 status date of the assessment roll that was used to levy school district 34 taxes for the two thousand fifteen--two thousand sixteen school year and 35 the property was granted an exemption pursuant to this section on that 36 assessment roll. In addition, beginning with assessment rolls used to 37 levy school district taxes for the two thousand twenty-one--two thousand 38 twenty-two school year, no application for a new enhanced exemption 39 under subdivision four of this section may be approved. In the event 40 that an application is submitted to the assessor that cannot be approved 41 due to this restriction, the assessor shall notify the applicant that he 42 or she is required by law to deny the application, but that, in lieu of 43 a STAR exemption, the applicant may claim the personal income tax credit 44 authorized by subsection (eee) of section six hundred six of the tax law 45 if eligible, and that the applicant may contact the department of taxa- 46 tion and finance for further information. The commissioner shall 47 provide a form for assessors to use, at their option, when making this 48 notification. No STAR exemption may be granted on the basis of an appli- 49 cation that is not approvable due to this restriction. 50 (b) Where property received an exemption pursuant to this section on 51 an assessment roll used to levy school district taxes for the two thou- 52 sand fifteen--two thousand sixteen school year, and at least one of itsS. 2509 179 A. 3009 1 owners held title to the property on the taxable status date of such 2 assessment roll, the exemption shall continue to be granted on subse- 3 quent assessment rolls without regard to the provisions of this subdivi- 4 sion as long as all applicable requirements of this section are satis- 5 fied. In addition, such exemption shall be subject to modification as 6 follows: 7 (i) A basic STAR exemption shall be changed to an enhanced STAR 8 exemption on an assessment roll used to levy school district taxes for a 9 school year prior to the two thousand twenty-one--two thousand twenty- 10 two school year if the owners and spouses primarily residing on the 11 property file a timely application showing that their ages and incomes 12 meet the requirements of subdivision four of this section. Beginning 13 with assessment rolls used to levy school district taxes for the two 14 thousand twenty-one--two thousand twenty-two school year, no application 15 for a new enhanced exemption under this section may approved. In the 16 event that an application is submitted to the assessor that cannot be 17 approved due to this restriction, the assessor shall notify the appli- 18 cant that he or she is required by law to deny the application, but that 19 the applicant may apply for an enhanced STAR credit pursuant to para- 20 graph four of subsection (eee) of section six hundred six of the tax law 21 if eligible, and that the applicant may contact the department of taxa- 22 tion and finance for information on how to apply for the credit. The 23 assessor shall further notify the applicant that if he or she does not 24 wish to switch to the credit, he or she may continue receiving the basic 25 STAR exemption as long as the eligibility requirements for that 26 exemption continue to be satisfied. The commissioner shall provide a 27 form for assessors to use, at their option, when making this notifica- 28 tion. No enhanced STAR exemption may be granted on the basis of an 29 application that is not approvable due to this restriction. Nothing 30 contained herein shall be construed to preclude the restoration of a 31 previously-granted enhanced STAR exemption pursuant to subparagraphs 32 (ii) or (iii) of this paragraph. 33 (ii) An enhanced STAR exemption shall be changed to a basic STAR 34 exemption if the combined income of the owners and spouses primarily 35 residing on the property increases above the limit set by subdivision 36 four of this section, subject to the provisions of subparagraph (iii) of 37 this paragraph, provided that if their combined income falls below the 38 limit set by subdivision four of this section in the future, and they 39 have not switched to the STAR credit, their enhanced STAR exemption may 40 be resumed upon timely application. 41 (iii) A STAR exemption shall be discontinued if the combined income of 42 the owners and spouses primarily residing on the property increases 43 above the limit set by subdivision three of this section, provided that 44 if their income falls below such limit in the future, and they have not 45 switched to the STAR credit, their STAR exemption may be resumed upon 46 timely application. 47 (iv) A STAR exemption shall be permanently discontinued if the owners 48 fail to satisfy the applicable residency or ownership requirement, or 49 both. 50 § 2. This act shall take effect immediately. 51 SUBPART B 52 Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of 53 section 425 of the real property tax law, as added by section 2 of part 54 G of chapter 39 of the laws of 2019, is amended to read as follows:S. 2509 180 A. 3009 1 (i) A STAR credit switch may be deferred if the application for the 2 credit is submitted after a cutoff date set by the commissioner. When 3 setting a cutoff date, the commissioner shall take into account the time 4 required to ensure that the STAR exemptions of all STAR credit appli- 5 cants in the assessing unit will be removed before school tax bills are 6 prepared. The commissioner shall specify the applicable cutoff dates 7 after taking into account local assessment calendars, provided that 8 different cutoff dates may be set for municipalities with different 9 assessment calendars, and provided further that any such cutoff date may 10 be no earlier than the [fifteenth] sixty-first day prior to the date on 11 which the applicable final assessment roll is required by law to be 12 completed and filed. 13 § 2. This act shall take effect immediately. 14 SUBPART C 15 Section 1. Subsection (c) of section 651 of the tax law, as amended by 16 section 3 of part QQ of chapter 59 of the laws of 2019, is amended to 17 read as follows: 18 (c) Decedents. The return for any deceased individual shall be made 19 and filed by his or her executor, administrator, or other person charged 20 with his or her property. If a final return of a decedent is for a frac- 21 tional part of a year, the due date of such return shall be the 22 fifteenth day of the fourth month following the close of the twelve- 23 month period which began with the first day of such fractional part of 24 the year. Notwithstanding any provision of law to the contrary, when a 25 return has been filed for a decedent, the commissioner may disclose the 26 decedent's name, address, and the date of death to the director of real 27 property tax services of the county and to the assessor of the assessing 28 unit in which the address reported on such return is located. 29 § 2. This act shall take effect immediately. 30 SUBPART D 31 Section 1. Paragraphs (b) and (c) of subdivision 2 of section 200-a of 32 the real property tax law, as amended by section 2 of part J of chapter 33 57 of the laws of 2013, are amended to read as follows: 34 (b) The power to hear and determine reviews relating to determinations 35 made by county equalization agencies, as provided by sections eight 36 hundred sixteen and eight hundred eighteen of this chapter[; and37(c) The power to hear and determine reviews relating to determinations38of STAR eligibility made by the department of taxation and finance as39provided by section four hundred twenty five of this chapter]. 40 § 2. Subdivision 3 of section 200-a of the real property tax law, as 41 added by section 7 of part W of chapter 56 of the laws of 2010, is 42 amended to read as follows: 43 3. The provisions of section five hundred twenty-five of this chapter 44 shall apply so far as practicable to a hearing conducted by the board of 45 real property tax services pursuant to sections eight hundred sixteen 46 and eight hundred eighteen of this chapter. 47 § 3. Paragraph (a-2) of subdivision 6 of section 425 of the real prop- 48 erty tax law, as amended by section 1 of part TT of chapter 59 of the 49 laws of 2019, is amended to read as follows: 50 (a-2) Notwithstanding any provision of law to the contrary, where an 51 application for the "enhanced" STAR exemption authorized by subdivision 52 four of this section has not been filed on or before the taxable statusS. 2509 181 A. 3009 1 date, and the owner believes that good cause existed for the failure to 2 file the application by that date, the owner may, no later than the last 3 day for paying school taxes without incurring interest or penalty, 4 submit a written request to the commissioner asking him or her to extend 5 the filing deadline and grant the exemption. Such request shall contain 6 an explanation of why the deadline was missed, and shall be accompanied 7 by an application, reflecting the facts and circumstances as they 8 existed on the taxable status date. After consulting with the assessor, 9 the commissioner may extend the filing deadline and grant the exemption 10 if the commissioner is satisfied that (i) good cause existed for the 11 failure to file the application by the taxable status date, and that 12 (ii) the applicant is otherwise entitled to the exemption. The commis- 13 sioner shall mail notice of his or her determination to such owner and 14 the assessor. If the determination states that the commissioner has 15 granted the exemption, the [assessor shall thereupon be authorized and16directed to correct the assessment roll accordingly, or, if another17person has custody or control of the assessment roll, to direct that18person to make the appropriate corrections. If the correction is not19made before school taxes are levied, the school district authorities20shall be authorized and directed to take account of the fact that the21commissioner has granted the exemption by correcting the applicant's tax22bill and/or issuing a refund accordingly] determination shall be imple- 23 mented in the manner provided by subdivision fifteen of this section. 24 § 4. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of 25 subdivision 4 of section 425 of the real property tax law are REPEALED 26 and a new clause (C) is added to read as follows: 27 (C) If the commissioner determines that the enhanced exemption should 28 be replaced with a basic exemption because the property is only eligible 29 for a basic exemption, or determines that the enhanced exemption should 30 be removed or denied without being replaced with a basic exemption 31 because the property is not eligible for either exemption, his or her 32 determination shall be implemented in the manner provided by subdivision 33 fifteen of this section. 34 § 5. Paragraphs (c) and (d) of subdivision 14 of section 425 of the 35 real property tax law are REPEALED and a new paragraph (c) is added to 36 read as follows: 37 (c) If the commissioner determines that a STAR exemption should be 38 removed or denied for one or more of the reasons specified in paragraph 39 (b) of this subdivision, his or her determination shall be implemented 40 in the manner provided by subdivision fifteen of this section. 41 § 6. Subdivisions 14-a, 15 and 15-a of section 425 of the real proper- 42 ty tax law are REPEALED and a new subdivision 15 is added to read as 43 follows: 44 15. Review by commissioner. (a) When the commissioner determines 45 pursuant to this section that a STAR exemption should be granted, denied 46 or modified, the assessor or other person having custody or control of 47 the assessment roll or tax roll shall be authorized and directed upon 48 receipt of the commissioner's determination to correct such roll accord- 49 ingly. Such correction shall be made without regard to the provisions 50 of title three of article five of this chapter or any comparable laws 51 governing the correction of errors on assessment rolls and tax rolls, 52 and shall be made without requesting additional documentation or the 53 approval of any other party. In addition: 54 (b) If the commissioner's determination directs the granting of a STAR 55 exemption to a property owner, or is otherwise favorable to the property 56 owner:S. 2509 182 A. 3009 1 (i) The assessor or other person having custody or control of the 2 assessment roll or tax roll shall attempt to implement the commission- 3 er's determination prior to the levy of school taxes if possible. If 4 the correction is not made before school taxes are levied, the school 5 district authorities shall be authorized and directed to implement the 6 commissioner's determination by correcting the property owner's school 7 tax bill or by providing the property owner with a credit for the amount 8 at issue; provided that if the school tax bill has already been paid, 9 the school district authorities shall implement the commissioner's 10 determination by issuing a refund of the amount at issue. For purposes 11 of this subdivision, the "amount at issue" means the additional tax 12 savings that would have appeared on the property owner's school tax bill 13 if the commissioner's determination had been implemented prior to the 14 school tax levy. 15 (ii) Alternatively, the commissioner is authorized in his or her 16 discretion to remit directly to the property owner or owners the amount 17 at issue. When the commissioner does so, he or she shall so notify the 18 assessor and county director of real property tax services. In such 19 cases, no correction shall be made to the assessment roll or tax roll 20 for that school year, and no credit or refund shall be provided by the 21 school authorities to the property owner or his or her agent for the 22 excessive amount of school taxes paid for that school year. 23 (c) If the commissioner's determination directs the denial of a STAR 24 exemption to a property owner, or is otherwise unfavorable to the prop- 25 erty owner: 26 (i) The commissioner shall mail the property owner notice of his or 27 her determination and an opportunity to be heard thereon. If the owner 28 fails to respond to such notice within forty-five days from the mailing 29 thereof, the commissioner's determination shall stand and no further 30 review shall be available. If the owner responds to such notice within 31 the forty-five day period, the commissioner shall review the response 32 and any documentation provided in support thereof and shall notify the 33 owner of his or her final determination. If dissatisfied with the 34 commissioner's final determination, the owner may seek judicial review 35 thereof pursuant to article seventy-eight of the civil practice law and 36 rules. The property owner shall otherwise have no right to challenge 37 such final determination in a court action, administrative proceeding or 38 any other form of legal recourse against the commissioner, the depart- 39 ment, the assessor or other person having custody or control of the 40 assessment roll or tax roll regarding such action. 41 (ii) Notwithstanding any provision of law to the contrary, neither an 42 assessor nor a board of assessment review has the authority to consider 43 an objection to the denial or reduction of an exemption pursuant to this 44 subdivision, nor may such an action be reviewed in a proceeding to 45 review an assessment pursuant to title one or one-A of article seven of 46 this chapter. Such an action may only be challenged before the depart- 47 ment in the manner described in this paragraph. 48 (iii) If a STAR exemption should appear on a property owner's school 49 tax bill despite the fact that the commissioner had determined the prop- 50 erty owner to be ineligible for that exemption, the commissioner is 51 authorized to recover the amount at issue directly from the owners of 52 the property by utilizing any of the procedures for collection, levy, 53 and lien of personal income tax set forth in article twenty-two of the 54 tax law, and any other relevant procedures referenced within the 55 provisions of such article. When the commissioner implements the deter- 56 mination in this manner, he or she shall so notify the assessor andS. 2509 183 A. 3009 1 county director of real property tax services, but no correction shall 2 be made to the assessment roll or tax roll for that school year, and no 3 corrected school tax bill shall be sent to the taxpayer for that school 4 year. 5 § 7. Section 171-u of the tax law, as added by section 2 of part FF of 6 chapter 57 of the laws of 2010, and subdivision 5 as added by section 7 7 of part N of chapter 58 of the laws of 2011, is amended to read as 8 follows: 9 § 171-u. Verification of income eligibility for basic STAR exemption. 10 (1) [On or after August fifteenth of each year, beginning in two thou-11sand ten, the commissioner shall procure a report or reports identifying12all parcels receiving the basic STAR exemption authorized by section13four hundred twenty-five of the real property tax law. The commissioner14is authorized to develop procedures necessary to ascertain to the best15of his or her ability whether the parcels satisfy the income eligibility16requirements for such exemption. Such determination shall be based upon17the affiliated income of the parcel for the applicable income tax year,18as defined by paragraph (b-1) of subdivision three of section four19hundred twenty-five of the real property tax law.20(2) The commissioner shall further develop procedures by which each21assessor shall be notified of his or her findings, stating in each case22either that the parcel does or does not meet the income eligibility23standard prescribed by law, or that the income-eligibility of such24parcel cannot be ascertained, whichever is appropriate. The commissioner25shall provide no other information about the income of any person to an26assessor. Such reports shall be furnished to assessors prior to the27applicable taxable status date or as soon thereafter as is possible.28(3) Upon receiving such a report, the assessor shall grant the29exemption to those parcels which the commissioner determined to be30income-eligible (assuming the assessor finds that the remaining eligi-31bility requirements continue to be satisfied), shall deny the exemption32to those which the commissioner determined not to be income-eligible,33and shall solicit income documentation from the owners of those parcels34as to which the commissioner was unable to make a determination. Where35the assessor denies the exemption based upon the commissioner's report,36a notice of denial shall be mailed as provided by paragraph (b) of37subdivision six of section four hundred twenty-five of the real property38tax law, giving the findings of such department as a reason for such39denial.40(4) Where a STAR exemption has been improperly granted on a final41assessment roll to a property where the affiliated income exceeds the42limitations established by paragraph (b-1) of subdivision three of43section four hundred twenty-five of the real property tax law, the44improperly granted exemption shall be corrected in the manner provided45by subdivision twelve of section four hundred twenty-five of the real46property tax law.47(5)] The commissioner shall verify the income eligibility of recipi- 48 ents of the basic STAR exemption authorized by section four hundred 49 twenty-five of the real property tax law in the manner provided therein. 50 (2)(a) Notwithstanding any provision of law to the contrary, the 51 commissioner may adopt rules prescribing a uniform statewide system of 52 parcel identification numbers applicable to all "assessing units", as 53 that term is defined by section one hundred two of the real property tax 54 law, provided that no such rule shall apply to an assessment roll with a 55 taxable status date occurring prior to January first, two thousand thir- 56 teen.S. 2509 184 A. 3009 1 (b) Notwithstanding the foregoing provisions of this subdivision, the 2 commissioner may, at his or her discretion, adopt rules that are appli- 3 cable only to "special assessing units," as that term is defined by 4 section eighteen hundred one of the real property tax law, which 5 prescribe an alternative system of parcel identification numbers solely 6 for such special assessing units. 7 § 8. This act shall take effect immediately. 8 SUBPART E 9 Section 1. Paragraph 2 of subdivision w of section 233 of the real 10 property law is REPEALED. 11 § 2. Paragraph 3 of subdivision w of section 233 of the real property 12 law, as amended by section 18 of part B of chapter 389 of the laws of 13 1997, is amended to read as follows: 14 3. A manufactured home park owner or operator providing a reduction in 15 rent as required by paragraph one [or two] of this subdivision may 16 retain, in consideration for record keeping expenses, two percent of the 17 amount of such reduction. 18 § 3. The opening paragraph of paragraph 3-a of subdivision w of 19 section 233 of the real property law, as added by chapter 405 of the 20 laws of 2001, is amended to read as follows: 21 Any reduction required to be provided pursuant to paragraph one [or22two] of this subdivision shall be provided as follows: 23 § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- 24 ty tax law is amended by adding a new subparagraph (iv) to read as 25 follows: 26 (iv) Beginning with assessment rolls used to levy school district 27 taxes for the two thousand twenty-two--two thousand twenty-three school 28 year, no exemption shall be granted pursuant to this section to a mobile 29 home that is described in this paragraph. Owners of such property may 30 claim the credit authorized by subsection (eee) of section six hundred 31 six of the tax law in the manner prescribed therein. 32 § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 33 606 of the tax law is amended by adding a new clause (iii) to read as 34 follows: 35 (iii) Beginning with the two thousand twenty-two taxable year, to 36 receive the credit authorized by this subsection, an owner of a mobile 37 home described by clause (i) of this subparagraph shall register for 38 such credit in the manner prescribed by the commissioner and claim the 39 credit upon his or her personal income tax return for the taxable year 40 in question. Notwithstanding the provisions of paragraph ten of this 41 subsection, the commissioner shall not make advance payments of the 42 credit to such owners. 43 § 6. This act shall take effect immediately; provided, however, that 44 the amendments to subdivision w of section 233 of the real property law 45 made by sections one, two and three of this act shall be applicable 46 beginning with assessment rolls used to levy school district taxes for 47 the 2022--2023 school year. 48 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 49 sion, section, item, subpart or part of this act shall be adjudged by 50 any court of competent jurisdiction to be invalid, such judgment shall 51 not affect, impair, or invalidate the remainder thereof, but shall be 52 confined in its operation to the clause, sentence, paragraph, subdivi- 53 sion, section, item, subpart or part thereof directly involved in the 54 controversy in which such judgment shall have been rendered. It is here-S. 2509 185 A. 3009 1 by declared to be the intent of the legislature that this act would have 2 been enacted even if such invalid provisions had not been included here- 3 in. 4 § 3. This act shall take effect immediately, provided, however, that 5 the applicable effective date of Subparts A through E of this act shall 6 be as specifically set forth in the last section of such Subparts. 7 PART W 8 Section 1. Section 200 of the real property tax law, as amended by 9 section 4-a of part W of chapter 56 of the laws of 2010, is amended to 10 read as follows: 11 § 200. State board. There is hereby created in the department of taxa- 12 tion and finance a separate and independent state board of real property 13 tax services, to consist of five members to be appointed by the gover- 14 nor, by and with the advice and consent of the senate. Of those five 15 members appointed by the governor, one such person shall be an individ- 16 ual actively engaged in the commercial production for sale of agricul- 17 tural crops, livestock and livestock products of an average gross sales 18 value of ten thousand dollars or more. Said individual shall be 19 appointed in the first instance to a term of eight years upon expiration 20 of an existing term. Said initial term shall commence on the first day 21 of January next succeeding the year in which the existing term shall 22 expire. The governor shall designate one of the members as the chairman 23 of the board, who shall serve as chairman at the pleasure of the gover- 24 nor. A majority of the duly appointed members shall constitute a quorum 25 and not less than a majority of such members concurring may transact 26 any business, perform any duty or exercise any power of the board. The 27 members of the board shall be appointed for terms of eight years, 28 commencing on the first day of January next following the year in which 29 the term of his predecessor expired, except that the terms of the 30 members first appointed shall expire as follows: one on December thir- 31 ty-first, nineteen hundred sixty-one, one on December thirty-first, 32 nineteen hundred sixty-three, one on December thirty-first, nineteen 33 hundred sixty-five, one on December thirty-first, nineteen hundred 34 sixty-seven, and one on December thirty-first, nineteen hundred eighty- 35 two. Vacancies occurring otherwise than by expiration of term shall be 36 filled for the unexpired term. All members shall receive necessary 37 expenses incurred in the performance of their duties. 38 § 2. Section 307 of the real property tax law is REPEALED. 39 § 3. Subdivision 4 of section 483 of the real property tax law, as 40 amended by chapter 72 of the laws of 1979 and as further amended by 41 subdivision (b) of section 1 of part W of chapter 56 of the laws of 42 2010, and as renumbered by chapter 797 of the laws of 1992, is amended 43 to read as follows: 44 4. Such exemption from taxation shall be granted only upon an applica- 45 tion by the owner of the building or structure on a form prescribed by 46 the commissioner. The applicant shall furnish such information as [such47board] the commissioner shall require. Such application shall be filed 48 with the assessor of the city, town, village or county having the power 49 to assess property for taxation on or before the appropriate taxable 50 status date of such city, town, village or county and within one year 51 from the date of completion of such construction or reconstruction. 52 § 4. Subdivision 3 of section 489-n of the real property tax law, as 53 added by chapter 86 of the laws of 1963 and as further amended by subdi-S. 2509 186 A. 3009 1 vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is 2 amended to read as follows: 3 3. The commissioner shall meet at the time and place specified in such 4 notice to hear complaints in relation to the tentative determination of 5 the railroad ceiling. The provisions of section five hundred twelve of 6 this chapter shall apply so far as may be practicable to a hearing under 7 this section. Nothing contained in this subdivision shall be construed 8 to require a hearing to be conducted when no complaints have been filed. 9 § 5. Subdivision 3 of section 489-kk of the real property tax law, as 10 added by chapter 920 of the laws of 1977 and as further amended by 11 subdivision (b) of section 1 of part W of chapter 56 of the laws of 12 2010, is amended to read as follows: 13 3. The commissioner shall meet at the time and place specified in such 14 notice to hear complaints in relation to the tentative determination of 15 the railroad ceiling. The provisions of section five hundred twelve of 16 this chapter shall apply so far as may be practicable to a hearing under 17 this section. Nothing contained in this subdivision shall be construed 18 to require a hearing to be conducted when no complaints have been filed. 19 § 6. The real property tax law is amended by adding a new section 497 20 to read as follows: 21 § 497. Construction of certain local option provisions in exemption 22 statutes. 1. Population restrictions. When an exemption statute makes 23 one or more options available to municipal corporations having a popu- 24 lation within a specified range, and the governing body of a municipal 25 corporation adopts a local law or resolution exercising such an option 26 while its population is within the specified range, a subsequent change 27 in the population of the municipal corporation that places it outside 28 the specified range shall not render such local law or resolution inef- 29 fective or invalid, nor shall it impair the ability of the governing 30 body to amend or repeal such local law or resolution to the same extent 31 as if its population were still within the specified range. Provided, 32 however, that this subdivision shall not apply to any exemption statute 33 that expressly provides that a local law or resolution adopted there- 34 under shall become ineffective or invalid if the population of the 35 municipal corporation subsequently experiences a change that places it 36 outside the specified range. 37 2. Filing provisions. When an exemption statute makes one or more 38 options available to some or all municipal corporations, and further 39 provides that a municipal corporation adopting a local law or resolution 40 exercising such an option shall file a copy thereof with one or more 41 state agencies other than the department of state, but if such statute 42 does not expressly provide that a local law or resolution exercising 43 such an option shall not take effect until a copy thereof is filed with 44 the specified state agency or agencies, then a failure to comply with 45 such filing provision shall not render such local law or resolution 46 ineffective or invalid. 47 § 7. Subdivision 3 of section 499-oooo of the real property tax law, 48 as added by chapter 475 of the laws of 2013, is amended to read as 49 follows: 50 3. The commissioner or his or her designee shall meet at the time and 51 place specified in such notice set forth in subdivision one of this 52 section to hear complaints in relation to the tentative determination of 53 the assessment ceiling. The provisions of section five hundred twelve of 54 this chapter shall apply so far as may be practicable to a hearing under 55 this section. Nothing contained in this subdivision shall be construed 56 to require a hearing to be conducted when no complaints have been filed.S. 2509 187 A. 3009 1 § 8. Section 612 of the real property tax law, as further amended by 2 subdivision (b) of section 1 of part W of chapter 56 of the laws of 3 2010, is amended to read as follows: 4 § 612. Hearing of complaints. The commissioner or a duly authorized 5 representative thereof shall meet at the time and place specified in the 6 notice required by section six hundred eight of this chapter to hear 7 complaints in relation to assessments of special franchises. The 8 provisions of section five hundred twelve of this chapter shall apply so 9 far as practicable to the hearing of complaints pursuant to this 10 section. Nothing contained in this section shall be construed to 11 require a hearing to be conducted when no complaints have been filed. 12 § 9. Section 1208 of the real property tax law, as amended by chapter 13 385 of the laws of 1990 and as further amended by subdivision (b) of 14 section 1 of part W of chapter 56 of the laws of 2010, is amended to 15 read as follows: 16 § 1208. Hearing of complaints. The commissioner or a duly authorized 17 representative thereof shall meet at the time and place specified in the 18 notice required by section twelve hundred four of this chapter to hear 19 complaints in relation to equalization rates, class ratios or class 20 equalization rates. The provisions of section five hundred twenty-five 21 of this chapter shall apply so far as practicable to a hearing under 22 this section. Nothing contained in this section shall be construed to 23 require a hearing to be conducted when no complaints have been filed. 24 § 10. This act shall take effect immediately; provided, however, that 25 notwithstanding the provisions of subdivision 2 of section 497 of the 26 real property tax law as added by section six of this act, the decision 27 issued by the Appellate Division, Third Department on April 16, 2020, in 28 the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, 29 cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, 30 motion for leave to appeal dismissed in part and otherwise denied by the 31 Court of Appeals on November 19, 2020, shall remain binding upon the 32 parties thereto; and provided further that the amendments made to 33 section 489-oooo of the real property tax law made by section seven of 34 this act shall not affect the repeal of such section and shall be deemed 35 to be repealed therewith. 36 PART X 37 Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property 38 tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, 39 subdivision 7 as amended by chapter 515 and subdivision 9 as added by 40 chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as 41 amended by chapter 344 of the laws of 2014, are amended to read as 42 follows: 43 5. The exemption granted pursuant to this section shall only be appli- 44 cable to (a) solar or wind energy systems or farm waste energy systems 45 which are (i) existing or constructed prior to July first, nineteen 46 hundred eighty-eight or (ii) constructed subsequent to January first, 47 nineteen hundred ninety-one and prior to January first, two thousand 48 [twenty-five] thirty, and (b) micro-hydroelectric energy systems, fuel 49 cell electric generating systems, micro-combined heat and power generat- 50 ing equipment systems, electric energy storage equipment or electric 51 energy storage system, or fuel-flexible linear generator electric gener- 52 ating system which are constructed subsequent to January first, two 53 thousand eighteen and prior to January first, two thousand [twenty-five] 54 thirty.S. 2509 188 A. 3009 1 7. If the assessor is satisfied that the applicant is entitled to an 2 exemption pursuant to this section, he or she shall approve the applica- 3 tion and enter the taxable assessed value of the parcel for which an 4 exemption has been granted pursuant to this section on the assessment 5 roll with the taxable property, with the amount of the exemption set 6 forth in a separate column as computed pursuant to subdivision two of 7 this section in a separate column. In the event that real property 8 granted an exemption pursuant to this section ceases to be used primari- 9 ly for eligible purposes, the exemption granted pursuant to this section 10 shall cease. 11 9. (a) A county, city, town, village or school district, except a 12 school district under article fifty-two of the education law, that has 13 not acted to remove the exemption under this section may require the 14 owner of a property which includes a solar or wind energy system which 15 meets the requirements of subdivision four of this section, to enter 16 into a contract for payments in lieu of taxes. Such contract may require 17 annual payments in an amount not to exceed the amounts which would 18 otherwise be payable but for the exemption under this section. If the 19 owner or developer of such a system provides written notification to a 20 taxing jurisdiction of its intent to construct such a system, then in 21 order to require the owner or developer of such system to enter into a 22 contract for payments in lieu of taxes, such taxing jurisdiction must 23 notify such owner or developer in writing of its intent to require a 24 contract for payments in lieu of taxes within sixty days of receiving 25 the written notification. Written notification to a taxing jurisdiction 26 for this purpose shall include a hard copy letter sent to the highest- 27 ranking official of the taxing jurisdiction. Such letter shall explicit- 28 ly reference subdivision nine of section four hundred eighty-seven of 29 the real property tax law, and clearly state that, unless the taxing 30 jurisdiction responds within sixty days in writing with its intent to 31 require a contract for payments in lieu of taxes, and such project shall 32 not be obligated to make such payments. 33 (b) Notwithstanding paragraph (a) of this subdivision, should a taxing 34 jurisdiction adopt a law or resolution at any time within or prior to 35 the sixty day window, indicating the taxing jurisdiction's ongoing 36 intent to require a contract for payments in lieu of taxes for such 37 systems, such law or resolution shall be considered notification to 38 owners or developers and no further action is required on the part of 39 the taxing jurisdiction, provided that such law or resolution remains in 40 effect through the end of the sixty day notification period. 41 [The] (c) Any payment in lieu of a tax agreement shall not operate for 42 a period of more than fifteen years, commencing in each instance from 43 the date on which the benefits of such exemption first become available 44 and effective. 45 § 2. Subdivision 1 of section 575-a of the real property tax law, as 46 added by section 1 of subpart F of part J of chapter 59 of the laws of 47 2019, is amended to read as follows: 48 1. Every corporation, company, association, joint stock association, 49 partnership and person, their lessees, trustees or receivers appointed 50 by any court whatsoever, owning, operating or managing any electric 51 generating facility in the state shall annually file with the commis- 52 sioner, by April thirtieth, a report showing the inventory, revenue, and 53 expenses associated therewith for the most recent fiscal year, and such 54 other information as the commissioner may reasonably require. Such 55 report shall be in the form and manner prescribed by the commissioner.S. 2509 189 A. 3009 1 § 3. The real property tax law is amended by adding a new section 2 575-b to read as follows: 3 § 575-b. Solar or wind energy systems. 1. The assessed value for solar 4 or wind energy system, as defined in section four hundred eighty-seven 5 of this chapter, shall be determined by an income capitalization or 6 discounted cash flow approach that: 7 (a) Considers an appraisal model identified and published by the New 8 York state department of taxation and finance, in consultation with the 9 New York state energy research and development authority, within one 10 hundred eighty days of the effective date of this section, and period- 11 ically thereafter as appropriate; and 12 (b) Includes a solar or wind energy system discount rate published 13 annually by the New York state department of taxation and finance. 14 2. In addition to the reports required by section five hundred seven- 15 ty-five-a of this title, and notwithstanding any provision to the 16 contrary contained in such section, the commissioner may require the 17 owner or operator of a solar or wind energy system, as defined in 18 section four hundred eighty-seven of this chapter, to annually file with 19 the commissioner, by April thirtieth, a report showing such information 20 as the commissioner may reasonably require for the development and main- 21 tenance of an appraisal model and discount rate. 22 3. The provisions of this section shall only apply to solar or wind 23 energy systems with a nameplate capacity equal to or greater than one 24 megawatt. 25 § 4. The third undesignated paragraph of section 852 of the general 26 municipal law, as amended by chapter 630 of the laws of 1977, is amended 27 to read as follows: 28 It is hereby further declared to be the policy of this state to 29 protect and promote the health of the inhabitants of this state and to 30 increase trade through promoting the development of facilities to 31 provide recreation for the citizens of the state and to attract tourists 32 from other states and to promote the development of renewable energy 33 projects to support the state's renewable energy goals as may be estab- 34 lished or amended from time to time. 35 § 5. Subdivision 4 of section 854 of the general municipal law, as 36 amended by section 6 of part J of chapter 59 of the laws of 2013, is 37 amended and a new subdivision 21 is added to read as follows: 38 (4) "Project" - shall mean any land, any building or other improve- 39 ment, and all real and personal properties located within the state of 40 New York and within or outside or partially within and partially outside 41 the municipality for whose benefit the agency was created, including, 42 but not limited to, machinery, equipment and other facilities deemed 43 necessary or desirable in connection therewith, or incidental thereto, 44 whether or not now in existence or under construction, which shall be 45 suitable for manufacturing, warehousing, research, commercial, renewable 46 energy or industrial purposes or other economically sound purposes iden- 47 tified and called for to implement a state designated urban cultural 48 park management plan as provided in title G of the parks, recreation and 49 historic preservation law and which may include or mean an industrial 50 pollution control facility, a recreation facility, educational or 51 cultural facility, a horse racing facility, a railroad facility, a 52 renewable energy project or an automobile racing facility, provided, 53 however, no agency shall use its funds or provide financial assistance 54 in respect of any project wholly or partially outside the municipality 55 for whose benefit the agency was created without the prior consent ther- 56 eto by the governing body or bodies of all the other municipalities inS. 2509 190 A. 3009 1 which a part or parts of the project is, or is to be, located, and such 2 portion of the project located outside such municipality for whose bene- 3 fit the agency was created shall be contiguous with the portion of the 4 project inside such municipality. 5 (21) "Renewable energy project" shall mean any project and associated 6 real property on which the project is situated, that utilizes any system 7 or equipment as set forth in section four hundred eighty-seven of the 8 real property tax law or as defined pursuant to paragraph b of subdivi- 9 sion one of section sixty-six-p of the public service law as added by 10 chapter one hundred six of the laws of two thousand nineteen. 11 § 6. The opening paragraph of section 858 of the general municipal 12 law, as amended by chapter 478 of the laws of 2011, is amended to read 13 as follows: 14 The purposes of the agency shall be to promote, develop, encourage and 15 assist in the acquiring, constructing, reconstructing, improving, main- 16 taining, equipping and furnishing industrial, manufacturing, warehous- 17 ing, commercial, research, renewable energy and recreation facilities 18 including industrial pollution control facilities, educational or 19 cultural facilities, railroad facilities, horse racing facilities, auto- 20 mobile racing facilities, renewable energy projects and continuing care 21 retirement communities, provided, however, that, of agencies governed by 22 this article, only agencies created for the benefit of a county and the 23 agency created for the benefit of the city of New York shall be author- 24 ized to provide financial assistance in any respect to a continuing care 25 retirement community, and thereby advance the job opportunities, health, 26 general prosperity and economic welfare of the people of the state of 27 New York and to improve their recreation opportunities, prosperity and 28 standard of living; and to carry out the aforesaid purposes, each agency 29 shall have the following powers: 30 § 7. Paragraph (b) of subdivision 5 of section 859-a of the general 31 municipal law, as added by chapter 563 of the laws of 2015, is amended 32 to read as follows: 33 (b) a written cost-benefit analysis by the agency that identifies the 34 extent to which a project will create or retain permanent, private 35 sector jobs; the estimated value of any tax exemptions to be provided; 36 the amount of private sector investment generated or likely to be gener- 37 ated by the proposed project; the contribution of the project to the 38 state's renewable energy goals and emission reduction targets as set 39 forth in the state energy plan adopted pursuant to section 6-104 of the 40 energy law; the likelihood of accomplishing the proposed project in a 41 timely fashion; and the extent to which the proposed project will 42 provide additional sources of revenue for municipalities and school 43 districts; and any other public benefits that might occur as a result of 44 the project; 45 § 8. This act shall take effect immediately. 46 PART Y 47 Section 1. Legislative intent. Article 1 Section 9 of the New York 48 State Constitution was recently amended and provides "casino gambling at 49 no more than seven facilities as authorized and prescribed by the legis- 50 lature shall hereafter be authorized or allowed within this state." It 51 is the sense of the legislature that this provision is not contravened 52 by a statute which authorizes the acceptance of a wager by an individual 53 who is betting by virtual or electronic means; provided that it meets 54 other safeguards ensuring that the plain text of this provision isS. 2509 191 A. 3009 1 honored in such structure. Sports wagering is now legal online in 14 2 states, including the bordering states of New Jersey and Pennsylvania, 3 while it is only permitted in person in New York at four upstate commer- 4 cial gaming facilities and Native American Class III gaming facilities. 5 An industry study found that nearly 20 percent of New Jersey's online 6 sports wagering revenue comes from New York residents, costing the state 7 millions of dollars in lost tax revenue. 8 § 2. Section 1367 of the racing, pari-mutuel wagering and breeding law 9 is amended by adding a new subdivision 7 to read as follows: 10 7. (a) A licensed gaming facility operating a sports pool pursuant to 11 subdivision three of this section may offer mobile sports wagering when 12 conducted in conformance with section one thousand three hundred sixty- 13 seven-a of this title. 14 (b) Notwithstanding section one thousand three hundred fifty-one of 15 this article, mobile sports wagering revenue shall be excluded from 16 gross gaming revenue and shall be separately maintained and returned to 17 the state for deposit into the state lottery fund for education aid, on 18 a schedule determined by the commission. 19 § 3. The racing, pari-mutuel wagering and breeding law is amended by 20 adding a new section 1367-a to read as follows: 21 § 1367-a. Mobile sports wagering. Mobile sports wagering shall be 22 permitted by the commission through a platform provider or providers 23 selected pursuant to a competitive bidding process conducted by the 24 commission. The winning platform provider or providers shall use the 25 technology necessary to ensure all bettors are physically within 26 approved locations within the state and ensure the necessary safeguards 27 against abuses and addictions are in place. Any such contracts entered 28 by the commission are subject to applicable state laws, regulations and 29 practices. 30 § 4. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering 31 and breeding law, as added by chapter 174 of the laws of 2013, is 32 amended to read as follows: 33 1. (a) For a gaming facility in zone two, there is hereby imposed a 34 tax on gross gaming revenues. The amount of such tax imposed shall be 35 as follows[; provided, however, should a licensee have agreed within its36application to supplement the tax with a binding supplemental fee37payment exceeding the aforementioned tax rate, such tax and supplemental38fee shall apply for a gaming facility]: 39 [(a)] (1) in region two, forty-five percent of gross gaming revenue 40 from slot machines and ten percent of gross gaming revenue from all 41 other sources. 42 [(b)] (2) in region one, thirty-nine percent of gross gaming revenue 43 from slot machines and ten percent of gross gaming revenue from all 44 other sources. 45 [(c)] (3) in region five, thirty-seven percent of gross gaming revenue 46 from slot machines and ten percent of gross gaming revenue from all 47 other sources. 48 (b) (1) Notwithstanding the rates in paragraph (a) of this subdivi- 49 sion, a gaming facility may petition the commission to lower their slot 50 tax rate to no lower than twenty-five percent. The commission shall 51 evaluate the petition using the following criteria: 52 (i) the ability of the licensee to satisfy the license criterion of 53 financial stability absent the tax rate reduction; 54 (ii) a complete examination of all financial projections, as well as 55 gaming revenues generated for the prior annual period;S. 2509 192 A. 3009 1 (iii) the licensee's intended use of the funds resulting from a tax 2 adjustment; 3 (iv) the inability of the operator to remain competitive under the 4 current tax structure; 5 (v) positions advanced by other gaming operators in the state in 6 response to the petition; 7 (vi) the impact on the competitive landscape; 8 (vii) other economic factors such as employment and the potential 9 impact upon other businesses in the region; and 10 (viii) the public interest to be served by a tax adjustment, including 11 the impact upon the state in the event the operator is unable to remain 12 financially viable. 13 (2) The commission shall report their recommendation to the director 14 of the division of budget who will make a final determination. 15 § 5. This act shall take effect immediately; provided, however, that 16 section four of this act shall take effect sixty days after mobile 17 sports wagering commences and shall expire and be deemed repealed one 18 year after such date. 19 PART Z 20 Section 1. The gaming commission shall issue a request for information 21 for the purpose of soliciting interest regarding the three unawarded 22 gaming facility licenses authorized by the state constitution. Such 23 request shall seek information from parties interested in developing 24 and/or operating such gaming facilities which shall inform the commis- 25 sion for the purposes of determining: the appropriate size and scope of 26 development, the value of the gaming facility license, and the process 27 that should be used in award consideration. 28 § 2. This act shall take effect immediately. 29 PART AA 30 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax 31 law, as amended by chapter 174 of the laws of 2013, is amended to read 32 as follows: 33 (1) sixty percent of the total amount for which tickets have been sold 34 for [a lawful lottery] the Quick Draw game [introduced on or after the35effective date of this paragraph,] subject to [the following provisions:36(A) such game shall be available only on premises occupied by licensed37lottery sales agents, subject to the following provisions:38(i) if the licensee does not hold a license issued pursuant to the39alcoholic beverage control law to sell alcoholic beverages for consump-40tion on the premises, then the premises must have a minimum square41footage greater than two thousand five hundred square feet;42(ii) notwithstanding the foregoing provisions, television equipment43that automatically displays the results of such drawings may be44installed and used without regard to the square footage if such premises45are used as:46(I) a commercial bowling establishment, or47(II) a facility authorized under the racing, pari-mutuel wagering and48breeding law to accept pari-mutuel wagers;49(B) the] rules for the operation of such game [shall be] as prescribed 50 by regulations promulgated and adopted by the [division, provided howev-51er, that such rules shall provide that no person under the age of twen-52ty-one may participate in such games on the premises of a licensee whoS. 2509 193 A. 3009 1holds a license issued pursuant to the alcoholic beverage control law to2sell alcoholic beverages for consumption on the premises; and, provided,3further, that such regulations may be revised on an emergency basis not4later than ninety days after the enactment of this paragraph in order to5conform such regulations to the requirements of this paragraph] commis- 6 sion; or 7 § 2. This act shall take effect immediately. 8 PART BB 9 Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the 10 tax law, as amended by chapter 174 of the laws of 2013, are amended to 11 read as follows: 12 (4) fifty percent of the total amount for which tickets have been sold 13 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete 14 games in which the participants select no more than three or four of 15 their own numbers to match with three or four numbers drawn by the 16 [division] commission for purposes of determining winners of such games, 17 (B) "Pick 10", [offered no more than once daily,] in which participants 18 select from a specified field of numbers a subset of ten numbers to 19 match against a subset of numbers to be drawn by the [division] commis- 20 sion from such field of numbers for the purpose of determining winners 21 of such game, (C) "Take 5", [offered no more than once daily,] in which 22 participants select from a specified field of numbers a subset of five 23 numbers to match against a subset of five numbers to be drawn by the 24 [division] commission from such field of numbers for purposes of deter- 25 mining winners of such game; or 26 (5) forty percent of the total amount for which tickets have been sold 27 for: (A) "Lotto", [offered no more than once daily,] a discrete game in 28 which all participants select a specific subset of numbers to match a 29 specific subset of numbers, as prescribed by rules and regulations 30 promulgated and adopted by the [division] commission, from a larger 31 specific field of numbers, as also prescribed by such rules and regu- 32 lations and (B) with the exception of the game described in paragraph 33 one of this subdivision, such other state-operated lottery games [which] 34 that the [division] commission may introduce, [offered no more than once35daily,] commencing on or after forty-five days following the official 36 publication of the rules and regulations for such game. 37 § 2. This act shall take effect immediately. 38 PART CC 39 Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- 40 tuel wagering and breeding law are renumbered sections 130, 131, 132 and 41 133. 42 § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and 43 breeding law is REPEALED. 44 § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, 45 as added by chapter 174 of the laws of 2013 and as renumbered by section 46 one of this act, is amended to read as follows: 47 § 130. [Establishment of the] The office of gaming inspector general. 48 [There is hereby created within the commission the office of gaming49inspector general. The head of the office shall be the gaming inspector50general who shall be appointed by the governor by and with the advice51and consent of the senate. The inspector general shall serve at the52pleasure of the governor. The inspector general shall report directly toS. 2509 194 A. 3009 1the governor. The person appointed as inspector general shall, upon his2or her appointment, have not less than ten years professional experience3in law, investigation, or auditing. The inspector general shall be4compensated within the limits of funds available therefor, provided,5however, such salary shall be no less than the salaries of certain state6officers holding the positions indicated in paragraph (a) of subdivision7one of section one hundred sixty-nine of the executive law.] The duties 8 and responsibilities of the former office of the gaming inspector gener- 9 al are transferred to and encompassed by the office of the state inspec- 10 tor general as expressly referenced in article four-A of the executive 11 law. 12 § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, 13 as added by chapter 174 of the laws of 2013 and as renumbered by section 14 one of this act, is amended to read as follows: 15 § 131. [State gaming] Gaming inspector general; functions and duties. 16 The [state] gaming inspector general shall have the following duties and 17 responsibilities: 18 1. receive and investigate complaints from any source, or upon his or 19 her own initiative, concerning allegations of corruption, fraud, crimi- 20 nal activity, conflicts of interest or abuse in the commission; 21 2. [inform the commission members of such allegations and the progress22of investigations related thereto, unless special circumstances require23confidentiality;243.] determine with respect to such allegations whether disciplinary 25 action, civil or criminal prosecution, or further investigation by an 26 appropriate federal, state or local agency is warranted, and to assist 27 in such investigations; 28 [4.] 3. prepare and release to the public written reports of such 29 investigations, as appropriate and to the extent permitted by law, 30 subject to redaction to protect the confidentiality of witnesses. The 31 release of all or portions of such reports may be deferred to protect 32 the confidentiality of ongoing investigations; 33 [5.] 4. review and examine periodically the policies and procedures of 34 the commission with regard to the prevention and detection of 35 corruption, fraud, criminal activity, conflicts of interest or abuse; 36 [6.] 5. recommend remedial action to prevent or eliminate corruption, 37 fraud, criminal activity, conflicts of interest or abuse in the commis- 38 sion; and 39 [7.] 6. establish programs for training commission officers and 40 employees [regarding] in regard to the prevention and elimination of 41 corruption, fraud, criminal activity, conflicts of interest or abuse in 42 the commission. 43 § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, 44 as added by chapter 174 of the laws of 2013 and as renumbered by section 45 one of this act, is amended to read as follows: 46 § 132. Powers. The [state] gaming inspector general shall have the 47 power to: 48 1. subpoena and enforce the attendance of witnesses; 49 2. administer oaths or affirmations and examine witnesses under oath; 50 3. require the production of any books and papers deemed relevant or 51 material to any investigation, examination or review; 52 4. notwithstanding any law to the contrary, examine and copy or remove 53 documents or records of any kind prepared, maintained or held by the 54 commission; 55 5. require any commission officer or employee to answer questions 56 concerning any matter related to the performance of his or her officialS. 2509 195 A. 3009 1 duties. No statement or other evidence derived therefrom may be used 2 against such officer or employee in any subsequent criminal prosecution 3 other than for perjury or contempt arising from such testimony. The 4 refusal of any officer or employee to answer questions shall be cause 5 for removal from office or employment or other appropriate penalty; 6 6. monitor the implementation by the commission of any recommendations 7 made by the state inspector general; and 8 7. perform any other functions that are necessary or appropriate to 9 fulfill the duties and responsibilities of the office. 10 § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, 11 as added by chapter 174 of the laws of 2013 and as renumbered by section 12 one of this act, is amended to read as follows: 13 § 133. Responsibilities of the commission and its officers and employ- 14 ees. 1. Every commission officer or employee shall report promptly to 15 the [state] gaming inspector general any information concerning 16 corruption, fraud, criminal activity, conflicts of interest or abuse by 17 another state officer or employee relating to his or her office or 18 employment, or by a person having business dealings with the commission 19 relating to those dealings. The knowing failure of any officer or 20 employee to so report shall be cause for removal from office or employ- 21 ment or other appropriate penalty under this article. Any officer or 22 employee who acts pursuant to this subdivision by reporting to the 23 [state] gaming inspector general or other appropriate law enforcement 24 official improper governmental action as defined in section seventy- 25 five-b of the civil service law shall not be subject to dismissal, 26 discipline or other adverse personnel action. 27 2. The commission chair shall advise the governor within ninety days 28 of the issuance of a report by the [state] gaming inspector general as 29 to the remedial action that the commission has taken in response to any 30 recommendation for such action contained in such report. 31 § 7. The racing, pari-mutuel wagering and breeding law is amended by 32 adding a new section 134 to read as follows: 33 § 134. Transfer of employees. Upon the transfer of functions, 34 powers, duties and obligations to the office of the state inspector 35 general pursuant to this article, provision shall be made for the 36 transfer of all gaming inspector general employees from within the 37 gaming commission into the office of the state inspector general. 38 Employees so transferred shall be transferred without further exam- 39 ination or qualification to the same or similar titles, shall 40 remain in the same collective bargaining units and shall retain their 41 respective civil service classifications, status and rights pursuant to 42 their collective bargaining units and collective bargaining agree- 43 ments. 44 § 8. The racing, pari-mutuel wagering and breeding law is amended by 45 adding a new section 135 to read as follows: 46 § 135. Transfer of records. All books, papers, records and property of 47 the gaming inspector general within the gaming commission with respect 48 to the functions, powers, duties and obligations transferred by 49 section one hundred thirty of this article, are to be delivered to the 50 appropriate successor offices within the office of the state inspector 51 general, at such place and time, and in such manner as the office of 52 the state inspector general may require. 53 § 9. This act shall take effect on the sixtieth day after it shall 54 have become a law. 55 PART DDS. 2509 196 A. 3009 1 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 2 racing, pari-mutuel wagering and breeding law, as amended by section 1 3 of part Z of chapter 59 of the laws of 2020, is amended to read as 4 follows: 5 (a) Any racing association or corporation or regional off-track 6 betting corporation, authorized to conduct pari-mutuel wagering under 7 this chapter, desiring to display the simulcast of horse races on which 8 pari-mutuel betting shall be permitted in the manner and subject to the 9 conditions provided for in this article may apply to the commission for 10 a license so to do. Applications for licenses shall be in such form as 11 may be prescribed by the commission and shall contain such information 12 or other material or evidence as the commission may require. No license 13 shall be issued by the commission authorizing the simulcast transmission 14 of thoroughbred races from a track located in Suffolk county. The fee 15 for such licenses shall be five hundred dollars per simulcast facility 16 and for account wagering licensees that do not operate either a simul- 17 cast facility that is open to the public within the state of New York or 18 a licensed racetrack within the state, twenty thousand dollars per year 19 payable by the licensee to the commission for deposit into the general 20 fund. Except as provided in this section, the commission shall not 21 approve any application to conduct simulcasting into individual or group 22 residences, homes or other areas for the purposes of or in connection 23 with pari-mutuel wagering. The commission may approve simulcasting into 24 residences, homes or other areas to be conducted jointly by one or more 25 regional off-track betting corporations and one or more of the follow- 26 ing: a franchised corporation, thoroughbred racing corporation or a 27 harness racing corporation or association; provided (i) the simulcasting 28 consists only of those races on which pari-mutuel betting is authorized 29 by this chapter at one or more simulcast facilities for each of the 30 contracting off-track betting corporations which shall include wagers 31 made in accordance with section one thousand fifteen, one thousand 32 sixteen and one thousand seventeen of this article; provided further 33 that the contract provisions or other simulcast arrangements for such 34 simulcast facility shall be no less favorable than those in effect on 35 January first, two thousand five; (ii) that each off-track betting 36 corporation having within its geographic boundaries such residences, 37 homes or other areas technically capable of receiving the simulcast 38 signal shall be a contracting party; (iii) the distribution of revenues 39 shall be subject to contractual agreement of the parties except that 40 statutory payments to non-contracting parties, if any, may not be 41 reduced; provided, however, that nothing herein to the contrary shall 42 prevent a track from televising its races on an irregular basis primari- 43 ly for promotional or marketing purposes as found by the commission. For 44 purposes of this paragraph, the provisions of section one thousand thir- 45 teen of this article shall not apply. Any agreement authorizing an 46 in-home simulcasting experiment commencing prior to May fifteenth, nine- 47 teen hundred ninety-five, may, and all its terms, be extended until June 48 thirtieth, two thousand [twenty-one] twenty-two; provided, however, that 49 any party to such agreement may elect to terminate such agreement upon 50 conveying written notice to all other parties of such agreement at least 51 forty-five days prior to the effective date of the termination, via 52 registered mail. Any party to an agreement receiving such notice of an 53 intent to terminate, may request the commission to mediate between the 54 parties new terms and conditions in a replacement agreement between the 55 parties as will permit continuation of an in-home experiment until June 56 thirtieth, two thousand [twenty-one] twenty-two; and (iv) no in-homeS. 2509 197 A. 3009 1 simulcasting in the thoroughbred special betting district shall occur 2 without the approval of the regional thoroughbred track. 3 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 4 1007 of the racing, pari-mutuel wagering and breeding law, as separately 5 amended by chapter 243 and section 2 of part Z of chapter 59 of the laws 6 of 2020, is amended to read as follows: 7 (iii) Of the sums retained by a receiving track located in Westchester 8 county on races received from a franchised corporation, for the period 9 commencing January first, two thousand eight and continuing through June 10 thirtieth, two thousand [twenty-one] twenty-two, the amount used exclu- 11 sively for purses to be awarded at races conducted by such receiving 12 track shall be computed as follows: of the sums so retained, two and 13 one-half percent of the total pools. Such amount shall be increased or 14 decreased in the amount of fifty percent of the difference in total 15 commissions determined by comparing the total commissions available 16 after July twenty-first, nineteen hundred ninety-five to the total 17 commissions that would have been available to such track prior to July 18 twenty-first, nineteen hundred ninety-five. 19 § 3. The opening paragraph of subdivision 1 of section 1014 of the 20 racing, pari-mutuel wagering and breeding law, as separately amended by 21 section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 22 is amended to read as follows: 23 The provisions of this section shall govern the simulcasting of races 24 conducted at thoroughbred tracks located in another state or country on 25 any day during which a franchised corporation is conducting a race meet- 26 ing in Saratoga county at Saratoga thoroughbred racetrack until June 27 thirtieth, two thousand [twenty-one] twenty-two and on any day regard- 28 less of whether or not a franchised corporation is conducting a race 29 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 30 thirtieth, two thousand [twenty-one] twenty-two. On any day on which a 31 franchised corporation has not scheduled a racing program but a 32 thoroughbred racing corporation located within the state is conducting 33 racing, each off-track betting corporation branch office and each simul- 34 casting facility licensed in accordance with section one thousand seven 35 (that has entered into a written agreement with such facility's repre- 36 sentative horsemen's organization, as approved by the commission), one 37 thousand eight, or one thousand nine of this article shall be authorized 38 to accept wagers and display the live simulcast signal from thoroughbred 39 tracks located in another state or foreign country subject to the 40 following provisions: 41 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 42 and breeding law, as amended by section 4 of part Z of chapter 59 of the 43 laws of 2020, is amended to read as follows: 44 1. The provisions of this section shall govern the simulcasting of 45 races conducted at harness tracks located in another state or country 46 during the period July first, nineteen hundred ninety-four through June 47 thirtieth, two thousand [twenty-one] twenty-two. This section shall 48 supersede all inconsistent provisions of this chapter. 49 § 5. The opening paragraph of subdivision 1 of section 1016 of the 50 racing, pari-mutuel wagering and breeding law, as amended by section 5 51 of part Z of chapter 59 of the laws of 2020, is amended to read as 52 follows: 53 The provisions of this section shall govern the simulcasting of races 54 conducted at thoroughbred tracks located in another state or country on 55 any day during which a franchised corporation is not conducting a race 56 meeting in Saratoga county at Saratoga thoroughbred racetrack until JuneS. 2509 198 A. 3009 1 thirtieth, two thousand [twenty-one] twenty-two. Every off-track 2 betting corporation branch office and every simulcasting facility 3 licensed in accordance with section one thousand seven that have entered 4 into a written agreement with such facility's representative horsemen's 5 organization as approved by the commission, one thousand eight or one 6 thousand nine of this article shall be authorized to accept wagers and 7 display the live full-card simulcast signal of thoroughbred tracks 8 (which may include quarter horse or mixed meetings provided that all 9 such wagering on such races shall be construed to be thoroughbred races) 10 located in another state or foreign country, subject to the following 11 provisions; provided, however, no such written agreement shall be 12 required of a franchised corporation licensed in accordance with section 13 one thousand seven of this article: 14 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 15 wagering and breeding law, as amended by section 6 of part Z of chapter 16 59 of the laws of 2020, is amended to read as follows: 17 Notwithstanding any other provision of this chapter, for the period 18 July twenty-fifth, two thousand one through September eighth, two thou- 19 sand [twenty] twenty-one, when a franchised corporation is conducting a 20 race meeting within the state at Saratoga Race Course, every off-track 21 betting corporation branch office and every simulcasting facility 22 licensed in accordance with section one thousand seven (that has entered 23 into a written agreement with such facility's representative horsemen's 24 organization as approved by the commission), one thousand eight or one 25 thousand nine of this article shall be authorized to accept wagers and 26 display the live simulcast signal from thoroughbred tracks located in 27 another state, provided that such facility shall accept wagers on races 28 run at all in-state thoroughbred tracks which are conducting racing 29 programs subject to the following provisions; provided, however, no such 30 written agreement shall be required of a franchised corporation licensed 31 in accordance with section one thousand seven of this article. 32 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 33 racing, pari-mutuel wagering and breeding law and other laws relating to 34 simulcasting, as amended by section 7 of part Z of chapter 59 of the 35 laws of 2020, is amended to read as follows: 36 § 32. This act shall take effect immediately and the pari-mutuel tax 37 reductions in section six of this act shall expire and be deemed 38 repealed on July 1, [2021] 2022; provided, however, that nothing 39 contained herein shall be deemed to affect the application, qualifica- 40 tion, expiration, or repeal of any provision of law amended by any 41 section of this act, and such provisions shall be applied or qualified 42 or shall expire or be deemed repealed in the same manner, to the same 43 extent and on the same date as the case may be as otherwise provided by 44 law; provided further, however, that sections twenty-three and twenty- 45 five of this act shall remain in full force and effect only until May 1, 46 1997 and at such time shall be deemed to be repealed. 47 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 48 racing, pari-mutuel wagering and breeding law and other laws relating to 49 simulcasting and the imposition of certain taxes, as amended by section 50 8 of part Z of chapter 59 of the laws of 2020, is amended to read as 51 follows: 52 § 54. This act shall take effect immediately; provided, however, 53 sections three through twelve of this act shall take effect on January 54 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 55 ing law, as added by section thirty-eight of this act, shall expire and 56 be deemed repealed on July 1, [2021] 2022; and section eighteen of thisS. 2509 199 A. 3009 1 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 2 two of this act shall take effect as of the same date as chapter 772 of 3 the laws of 1989 took effect. 4 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 5 pari-mutuel wagering and breeding law, as separately amended by section 6 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, is 7 amended to read as follows: 8 (a) The franchised corporation authorized under this chapter to 9 conduct pari-mutuel betting at a race meeting or races run thereat shall 10 distribute all sums deposited in any pari-mutuel pool to the holders of 11 winning tickets therein, provided such tickets are presented for payment 12 before April first of the year following the year of their purchase, 13 less an amount that shall be established and retained by such franchised 14 corporation of between twelve to seventeen percent of the total deposits 15 in pools resulting from on-track regular bets, and fourteen to twenty- 16 one percent of the total deposits in pools resulting from on-track 17 multiple bets and fifteen to twenty-five percent of the total deposits 18 in pools resulting from on-track exotic bets and fifteen to thirty-six 19 percent of the total deposits in pools resulting from on-track super 20 exotic bets, plus the breaks. The retention rate to be established is 21 subject to the prior approval of the commission. 22 Such rate may not be changed more than once per calendar quarter to be 23 effective on the first day of the calendar quarter. "Exotic bets" and 24 "multiple bets" shall have the meanings set forth in section five 25 hundred nineteen of this chapter. "Super exotic bets" shall have the 26 meaning set forth in section three hundred one of this chapter. For 27 purposes of this section, a "pick six bet" shall mean a single bet or 28 wager on the outcomes of six races. The breaks are hereby defined as the 29 odd cents over any multiple of five for payoffs greater than one dollar 30 five cents but less than five dollars, over any multiple of ten for 31 payoffs greater than five dollars but less than twenty-five dollars, 32 over any multiple of twenty-five for payoffs greater than twenty-five 33 dollars but less than two hundred fifty dollars, or over any multiple of 34 fifty for payoffs over two hundred fifty dollars. Out of the amount so 35 retained there shall be paid by such franchised corporation to the 36 commissioner of taxation and finance, as a reasonable tax by the state 37 for the privilege of conducting pari-mutuel betting on the races run at 38 the race meetings held by such franchised corporation, the following 39 percentages of the total pool for regular and multiple bets five percent 40 of regular bets and four percent of multiple bets plus twenty percent of 41 the breaks; for exotic wagers seven and one-half percent plus twenty 42 percent of the breaks, and for super exotic bets seven and one-half 43 percent plus fifty percent of the breaks. 44 For the period April first, two thousand one through December thirty- 45 first, two thousand [twenty-one] twenty-two, such tax on all wagers 46 shall be one and six-tenths percent, plus, in each such period, twenty 47 percent of the breaks. Payment to the New York state thoroughbred breed- 48 ing and development fund by such franchised corporation shall be one- 49 half of one percent of total daily on-track pari-mutuel pools resulting 50 from regular, multiple and exotic bets and three percent of super exotic 51 bets and for the period April first, two thousand one through December 52 thirty-first, two thousand [twenty-one] twenty-two, such payment shall 53 be seven-tenths of one percent of regular, multiple and exotic pools. 54 § 10. This act shall take effect immediately. 55 PART EES. 2509 200 A. 3009 1 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 2 amending the tax law and other laws relating to providing exemptions, 3 reimbursements and credits from various taxes for certain alternative 4 fuels, as amended by section 1 of part U of chapter 60 of the laws of 5 2016, is amended to read as follows: 6 § 19. This act shall take effect immediately; provided, however, that 7 sections one through thirteen of this act shall take effect September 1, 8 2006 and shall be deemed repealed on September 1, [2021] 2026 and such 9 repeal shall apply in accordance with the applicable transitional 10 provisions of sections 1106 and 1217 of the tax law, and shall apply to 11 sales made, fuel compounded or manufactured, and uses occurring on or 12 after such date, and with respect to sections seven through eleven of 13 this act, in accordance with applicable transitional provisions of 14 sections 1106 and 1217 of the tax law; provided, however, that the 15 commissioner of taxation and finance shall be authorized on and after 16 the date this act shall have become a law to adopt and amend any rules 17 or regulations and to take any steps necessary to implement the 18 provisions of this act; provided further that sections fourteen through 19 sixteen of this act shall take effect immediately and shall apply to 20 taxable years beginning on or after January 1, 2006. 21 § 2. This act shall take effect immediately. 22 PART FF 23 Section 1. Subsection (e) of section 42 of the tax law, as added by 24 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 25 read as follows: 26 (e) For taxable years beginning on or after January first, two thou- 27 sand seventeen and before January first, two thousand eighteen, the 28 amount of the credit allowed under this section shall be equal to the 29 product of the total number of eligible farm employees and two hundred 30 fifty dollars. For taxable years beginning on or after January first, 31 two thousand eighteen and before January first, two thousand nineteen, 32 the amount of the credit allowed under this section shall be equal to 33 the product of the total number of eligible farm employees and three 34 hundred dollars. For taxable years beginning on or after January first, 35 two thousand nineteen and before January first, two thousand twenty, the 36 amount of the credit allowed under this section shall be equal to the 37 product of the total number of eligible farm employees and five hundred 38 dollars. For taxable years beginning on or after January first, two 39 thousand twenty and before January first, two thousand twenty-one, the 40 amount of the credit allowed under this section shall be equal to the 41 product of the total number of eligible farm employees and four hundred 42 dollars. For taxable years beginning on or after January first, two 43 thousand twenty-one and before January first, two thousand [twenty-two] 44 twenty-five, the amount of the credit allowed under this section shall 45 be equal to the product of the total number of eligible farm employees 46 and six hundred dollars. 47 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 48 the tax law relating to creating a farm workforce retention credit is 49 amended to read as follows: 50 § 5. This act shall take effect immediately and shall apply only to 51 taxable years beginning on or after January 1, 2017 and before January 52 1, [2022] 2025. 53 § 3. This act shall take effect immediately.S. 2509 201 A. 3009 1 PART GG 2 Section 1. Subdivision 4 of section 22 of the public housing law, as 3 amended by section 5 of part H of chapter 60 of the laws of 2016, is 4 amended to read as follows: 5 4. Statewide limitation. The aggregate dollar amount of credit which 6 the commissioner may allocate to eligible low-income buildings under 7 this article shall be one hundred [four] twelve million dollars. The 8 limitation provided by this subdivision applies only to allocation of 9 the aggregate dollar amount of credit by the commissioner, and does not 10 apply to allowance to a taxpayer of the credit with respect to an eligi- 11 ble low-income building for each year of the credit period. 12 § 2. Subdivision 4 of section 22 of the public housing law, as amended 13 by section one of this act, is amended to read as follows: 14 4. Statewide limitation. The aggregate dollar amount of credit which 15 the commissioner may allocate to eligible low-income buildings under 16 this article shall be one hundred [twelve] twenty million dollars. The 17 limitation provided by this subdivision applies only to allocation of 18 the aggregate dollar amount of credit by the commissioner, and does not 19 apply to allowance to a taxpayer of the credit with respect to an eligi- 20 ble low-income building for each year of the credit period. 21 § 3. Subdivision 4 of section 22 of the public housing law, as amended 22 by section two of this act, is amended to read as follows: 23 4. Statewide limitation. The aggregate dollar amount of credit which 24 the commissioner may allocate to eligible low-income buildings under 25 this article shall be one hundred [twenty] twenty-eight million dollars. 26 The limitation provided by this subdivision applies only to allocation 27 of the aggregate dollar amount of credit by the commissioner, and does 28 not apply to allowance to a taxpayer of the credit with respect to an 29 eligible low-income building for each year of the credit period. 30 § 4. Subdivision 4 of section 22 of the public housing law, as amended 31 by section three of this act, is amended to 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 [twenty-eight] thirty-six million 35 dollars. The limitation provided by this subdivision applies only to 36 allocation of the aggregate dollar amount of credit by the commissioner, 37 and does not apply to allowance to a taxpayer of the credit with respect 38 to an eligible low-income building for each year of the credit period. 39 § 5. Subdivision 4 of section 22 of the public housing law, as amended 40 by section four of this act, is amended to read as follows: 41 4. Statewide limitation. The aggregate dollar amount of credit which 42 the commissioner may allocate to eligible low-income buildings under 43 this article shall be one hundred [thirty-six] forty-four million 44 dollars. The limitation provided by this subdivision applies only to 45 allocation of the aggregate dollar amount of credit by the commissioner, 46 and does not apply to allowance to a taxpayer of the credit with respect 47 to an eligible low-income building for each year of the credit period. 48 § 6. This act shall take effect immediately; provided, however, 49 section two of this act shall take effect April 1, 2022; section three 50 of this act shall take effect April 1, 2023; section four of this act 51 shall take effect April 1, 2024; and section five of this act shall take 52 effect April 1, 2025. 53 PART HHS. 2509 202 A. 3009 1 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 2 amending the tax law relating to a musical and theatrical production 3 credit, as amended by section 1 of part III of chapter 59 of the laws of 4 2018, is amended to read as follows: 5 § 5. This act shall take effect immediately, provided that section two 6 of this act shall take effect on January 1, 2015, and shall apply to 7 taxable years beginning on or after January 1, 2015, with respect to 8 "qualified production expenditures" and "transportation expenditures" 9 paid or incurred on or after such effective date, regardless of whether 10 the production of the qualified musical or theatrical production 11 commenced before such date, provided further that this act shall expire 12 and be deemed repealed [8 years after such date] January 1, 2026. 13 § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as 14 added by section 1 of part HH of chapter 59 of the laws of 2014, is 15 amended to read as follows: 16 (1) The aggregate amount of tax credits allowed under this section, 17 subdivision forty-seven of section two hundred ten-B and subsection (u) 18 of section six hundred six of this chapter in any calendar year shall be 19 [four] eight million dollars. Such aggregate amount of credits shall be 20 allocated by the department of economic development among taxpayers in 21 order of priority based upon the date of filing an application for allo- 22 cation of musical and theatrical production credit with such department. 23 If the total amount of allocated credits applied for in any particular 24 year exceeds the aggregate amount of tax credits allowed for such year 25 under this section, such excess shall be treated as having been applied 26 for on the first day of the subsequent year. 27 § 3. This act shall take effect immediately, provided, however, that 28 the amendments to section 24-a of the tax law made by section two of 29 this act shall not affect the expiration and repeal of such section and 30 shall be deemed to expire and repeal therewith. 31 PART II 32 Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi- 33 vision 29 of section 210-B of the tax law, as amended by section 1 of 34 part B of chapter 59 of the laws of 2020, are amended to read as 35 follows: 36 (a) Allowance of credit. For taxable years beginning on or after Janu- 37 ary first, two thousand fifteen and before January first, two thousand 38 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 39 computed as provided in this subdivision, against the tax imposed by 40 this article, for hiring and employing, for not less than one year and 41 for not less than thirty-five hours each week, a qualified veteran with- 42 in the state. The taxpayer may claim the credit in the year in which 43 the qualified veteran completes one year of employment by the taxpayer. 44 If the taxpayer claims the credit allowed under this subdivision, the 45 taxpayer may not use the hiring of a qualified veteran that is the basis 46 for this credit in the basis of any other credit allowed under this 47 article. 48 (2) who commences employment by the qualified taxpayer on or after 49 January first, two thousand fourteen, and before January first, two 50 thousand [twenty-one] twenty-three; and 51 § 2. Paragraph 1 and subparagraph (B) of paragraph 2 of subsection 52 (a-2) of section 606 of the tax law, as amended by section 2 of part B 53 of chapter 59 of the laws of 2020, are amended to read as follows:S. 2509 203 A. 3009 1 (1) Allowance of credit. For taxable years beginning on or after Janu- 2 ary first, two thousand fifteen and before January first, two thousand 3 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 4 computed as provided in this subsection, against the tax imposed by this 5 article, for hiring and employing, for not less than one year and for 6 not less than thirty-five hours each week, a qualified veteran within 7 the state. The taxpayer may claim the credit in the year in which the 8 qualified veteran completes one year of employment by the taxpayer. If 9 the taxpayer claims the credit allowed under this subsection, the 10 taxpayer may not use the hiring of a qualified veteran that is the basis 11 for this credit in the basis of any other credit allowed under this 12 article. 13 (B) who commences employment by the qualified taxpayer on or after 14 January first, two thousand fourteen, and before January first, two 15 thousand [twenty-one] twenty-three; and 16 § 3. Paragraph 1 and subparagraph (B) of paragraph 2 of subdivision 17 (g-1) of section 1511 of the tax law, as amended by section 3 of part B 18 of chapter 59 of the laws of 2020, are amended to read as follows: 19 (1) Allowance of credit. For taxable years beginning on or after Janu- 20 ary first, two thousand fifteen and before January first, two thousand 21 [twenty-two] twenty-four, a taxpayer shall be allowed a credit, to be 22 computed as provided in this subdivision, against the tax imposed by 23 this article, for hiring and employing, for not less than one year and 24 for not less than thirty-five hours each week, a qualified veteran with- 25 in the state. The taxpayer may claim the credit in the year in which 26 the qualified veteran completes one year of employment by the taxpayer. 27 If the taxpayer claims the credit allowed under this subdivision, the 28 taxpayer may not use the hiring of a qualified veteran that is the basis 29 for this credit in the basis of any other credit allowed under this 30 article. 31 (B) who commences employment by the qualified taxpayer on or after 32 January first, two thousand fourteen, and before January first, two 33 thousand [twenty-one] twenty-three; and 34 § 4. This act shall take effect immediately. 35 PART JJ 36 Section 1. Section 12 of part V of chapter 61 of the laws of 2011, 37 amending the economic development law, the tax law and the real property 38 tax law, relating to establishing the economic transformation and facil- 39 ity redevelopment program and providing tax benefits under that program, 40 is amended to read as follows: 41 § 12. This act shall take effect immediately and shall expire and be 42 deemed repealed December 31, [2021] 2026. 43 § 2. Paragraph (a) of subdivision 11 of section 400 of the economic 44 development law, as amended by section 1 of part GG of chapter 58 of the 45 laws of 2020, is amended to read as follows: 46 (a) a correctional facility, as defined in paragraph (a) of subdivi- 47 sion four of section two of the correction law, that has been selected 48 by the governor of the state of New York for closure after April first, 49 two thousand eleven but no later than March thirty-first, two thousand 50 [twenty-one] twenty-six; or 51 § 3. This act shall take effect immediately; provided, however, that 52 the amendments to section 400 of the economic development law made by 53 section two of this act shall not affect the repeal of such section and 54 shall be deemed repealed therewith.S. 2509 204 A. 3009 1 PART KK 2 Section 1. The opening paragraph of section 1310 of the general busi- 3 ness law, as added by section 2 of part X of chapter 55 of the laws of 4 2018, is amended to read as follows: 5 Except as otherwise provided in this article, the program shall be 6 implemented, and enrollment of employees shall begin[, within twenty-7four months after the effective date of this article] no later than 8 December thirty-first, two thousand twenty-one. The provisions of this 9 section shall be in force after the board opens the program for enroll- 10 ment. 11 § 2. Section 1315 of the general business law, as added by section 2 12 of part X of chapter 55 of the laws of 2018, is amended to read as 13 follows: 14 § 1315. Delayed implementation. The board may delay the implementation 15 of the program an additional twelve months beyond the [twenty-four16months] date established in section thirteen hundred ten of this article 17 if the board determines that further delay is necessary to address 18 legal, financial or other programmatic concerns impacting the viability 19 of the program. The board shall provide reasonable notice of such delay 20 to the governor, the commissioner, the speaker of the assembly, the 21 temporary president of the senate, the chair of the assembly ways and 22 means committee, the chair of the senate finance committee, the chair of 23 the assembly labor committee, and the chair of the senate labor commit- 24 tee. 25 § 3. This act shall take effect immediately. 26 PART LL 27 Section 1. For the period from and after March 1, 2020 until such time 28 as the licensee and the video lottery gaming facility that are each 29 subject to subdivision 2 of section 1355 of the racing, pari-mutuel 30 wagering and breeding law, as added by the Upstate New York Gaming 31 Economic Development Act of 2013, as amended, have each been continuous- 32 ly operating without any restrictions related to Covid-19 for at least 33 six full and consecutive calendar months, the payments to the relevant 34 horsemen and breeders required by subdivision 2 of section 1355 of the 35 racing, pari-mutuel wagering and breeding law, as added by the Upstate 36 New York Gaming Economic Development Act of 2013, as amended, shall not 37 accrue and shall be permanently waived and forgiven. The accrual and 38 obligation to make payments under such subdivision 2 of such section 39 1355 shall recommence at such time as the licensee and the video lottery 40 gaming facility that are each subject to such subdivision 2 of such 41 section 1355 have each been continuously operating without any 42 restrictions related to Covid-19 for at least six full and consecutive 43 calendar months. Payments to the relevant horsemen and breeders for the 44 period beginning January 1, 2020 through February 28, 2020 shall be 45 payable in six equal monthly installments of $106,407 per month over a 46 six-month period beginning with the first month after the licensee has 47 been continuously operating without any restrictions related to Covid-19 48 for at least six full and consecutive calendar months. 49 § 2. This act shall take effect immediately. 50 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 51 sion, section or part of this act shall be adjudged by any court of 52 competent jurisdiction to be invalid, such judgment shall not affect, 53 impair, or invalidate the remainder thereof, but shall be confined inS. 2509 205 A. 3009 1 its operation to the clause, sentence, paragraph, subdivision, section 2 or part thereof directly involved in the controversy in which such judg- 3 ment shall have been rendered. It is hereby declared to be the intent of 4 the legislature that this act would have been enacted even if such 5 invalid provisions had not been included herein. 6 § 3. This act shall take effect immediately provided, however, that 7 the applicable effective date of Parts A through LL of this act shall be 8 as specifically set forth in the last section of such Parts.
