Bill Text: NY S02509 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 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requirement (Part O); relates to restrictions on certain cigarette and tobacco retail dealers whose registrations have been revoked or who have been forbidden from selling such products (Part P); relates to the timing and method for filing certain returns (Part Q); relates to determining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-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

            S. 2509--A                                            A. 3009--A

                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 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
          article  seven  of  the  Constitution -- read once and referred to the
          Committee on Ways and Means --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT to amend 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-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12574-02-1

        S. 2509--A                          2                         A. 3009--A

          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-
          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

        S. 2509--A                          3                         A. 3009--A

          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; to
          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-

        S. 2509--A                          4                         A. 3009--A

          ity  redevelopment  program  (Part  JJ); to amend the general business
          law, in relation to requiring the implementation of the secure  choice
          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

        S. 2509--A                          5                         A. 3009--A

     1  computing and remitting estimated tax pursuant to  section  six  hundred
     2  eighty-five  of this article. The credits allowed under this article may
     3  not be used to reduce the surcharge imposed by this section.
     4    § 2. Subsection (c) of section 612 of the tax law is amended by adding
     5  a new paragraph 43 to read as follows:
     6    (43)  Taxpayers who pre-pay the tax surcharge imposed under subsection
     7  (a) of section six hundred two of this article in taxable year two thou-
     8  sand twenty-one shall be allowed a deduction as computed in  this  para-
     9  graph  beginning  in  taxable  year two thousand twenty-four. In taxable
    10  year two thousand twenty-four, the deduction shall be equal to the less-
    11  er of (i) the sum of the  taxpayer's  interest,  dividends  and  capital
    12  gains taxable in this state or (ii) the product of fifty percent and the
    13  pre-payment  income equivalent. For purposes of this paragraph, the pre-
    14  payment income equivalent is the quotient  of  the  amount  of  the  tax
    15  surcharge  pre-payment  the  taxpayer made pursuant to subsection (b) of
    16  section six hundred  two  of  this  article  and  eight  and  eighty-two
    17  hundredths  percent.  The deduction allowed in taxable year two thousand
    18  twenty-five and thereafter shall be equal to the lesser of (i)  the  sum
    19  of  the taxpayer's interest, dividends and capital gains taxable in this
    20  state or (ii) the remaining amount of the taxpayer's pre-payment  income
    21  equivalent.  The  taxpayer  shall  continue to be allowed this deduction
    22  until all of the taxpayer's pre-payment income equivalent is used up  in
    23  calculating this deduction.
    24    §  3. Section 606 of the tax law is amended by adding a new subsection
    25  (www) to read as follows:
    26    (www) Taxpayers who pre-pay the tax surcharge  imposed  under  section
    27  six  hundred  two  of  this  article but die before the remainder of its
    28  pre-payment income equivalent  is  used  up  as  provided  in  paragraph
    29  forty-three  of  subsection  (c)  of  section six hundred twelve of this
    30  article, will be allowed a tax credit on  the  taxpayer's  final  return
    31  equal  to the remaining amount of tax surcharge pre-payment the taxpayer
    32  has available for use that  corresponds  to  the  remaining  pre-payment
    33  income equivalent referred to in paragraph forty-three of subsection (c)
    34  of  section  six hundred twelve of this article. If the amount of credit
    35  allowable under this subsection for any taxable year  shall  exceed  the
    36  taxpayer's tax for such year, the excess shall be treated as an overpay-
    37  ment  to  be  refunded  in accordance with the provisions of section six
    38  hundred eighty-six of this article, provided however, that  no  interest
    39  shall be paid thereon.
    40    §  4. Notwithstanding any provision of law to the contrary, the method
    41  of determining the amount to be deducted  and  withheld  from  wages  on
    42  account  of  taxes imposed by or pursuant to the authority of article 22
    43  of the tax law in connection with the implementation of  the  provisions
    44  of  this  act  shall  be  prescribed by the commissioner of taxation and
    45  finance with due consideration to the effect such withholding tables and
    46  methods would have on the receipt and amount of revenue. The commission-
    47  er of taxation and finance shall  adjust  such  withholding  tables  and
    48  methods  in  regard to taxable years beginning in 2021 and after in such
    49  manner as to result, so far  as  practicable,  in  withholding  from  an
    50  employee's  wages  an amount substantially equivalent to the tax reason-
    51  ably estimated to be due for such taxable  years  as  a  result  of  the
    52  provisions of this act. Any such changes in withholding tables and meth-
    53  ods  for tax year 2021 shall be adopted and effective as soon as practi-
    54  cable. The commissioner of taxation and finance may make similar changes
    55  to withholding tables and methods. The withholding  tables  and  methods

        S. 2509--A                          6                         A. 3009--A

     1  for tax year 2021 shall not be prescribed by regulation, notwithstanding
     2  any provision of the state administrative procedure act to the contrary.
     3    §  5. The additions to tax imposed by subsection (c) of section 685 of
     4  the tax law shall not apply to any installments of estimated tax due  on
     5  or  before September fifteenth, two thousand twenty-one if the underpay-
     6  ment is the result of the enactment of the tax  surcharge  for  the  tax
     7  year two thousand twenty-one prescribed by this act.
     8    §  6.  Severability. The powers granted and the duties imposed by this
     9  act and the applicability thereof to any taxpayers shall be construed to
    10  be  independent  and  severable  and  if  any  one  or  more   sections,
    11  subsections, clauses, sentences or parts of this act, or the applicabil-
    12  ity  thereof  to  any  taxpayers  shall  be adjudged unconstitutional or
    13  invalid, such judgment  shall  not  affect,  impair  or  invalidate  the
    14  remaining  provisions  thereof  or  the  applicability  thereof to other
    15  taxpayers, but shall be  confined  in  its  operation  to  the  specific
    16  provisions  so  held  unconstitutional  and invalid and to the taxpayers
    17  affected thereby. If any provisions under section two or three  of  this
    18  act  shall  be  adjudged  unconstitutional  or  invalid, then the entire
    19  affected section of this act shall be deemed void.
    20    § 7. This act shall take effect immediately.

    21                                   PART B

    22    Section 1.   Clauses (iii), (iv),  (v),  (vi),  (vii)  and  (viii)  of
    23  subparagraph  (B) of paragraph 1 of subsection (a) of section 601 of the
    24  tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by  section
    25  1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added
    26  by section 1 of part R of chapter 59 of the laws of 2017, are amended to
    27  read as follows:
    28    (iii) For taxable years beginning in two thousand twenty and two thou-
    29  sand twenty-one the following rates shall apply:
    30  If the New York taxable income is:    The tax is:
    31  Not over $17,150                      4% of the New York taxable income
    32  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    33                                        $17,150
    34  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    35                                        $23,600
    36  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    37                                        $27,900
    38  Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
    39                                        $43,000
    40  Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
    41                                        $161,550
    42  Over $323,200 but not over            $19,674 plus 6.85% of excess
    43  $2,155,350                            $323,200 over
    44  Over $2,155,350                       $145,177 plus 8.82% of excess over
    45                                        $2,155,350
    46    (iv)  For taxable years beginning in two thousand [twenty-one] twenty-
    47  two the following rates shall apply:
    48  If the New York taxable income is:    The tax is:
    49  Not over $17,150                      4% of the New York taxable income
    50  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    51                                        $17,150
    52  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    53                                        $23,600
    54  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over

        S. 2509--A                          7                         A. 3009--A

     1                                        $27,900
     2  Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
     3                                        $43,000
     4  Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
     5                                        $161,550
     6  Over $323,200 but not over            $19,403 plus 6.85% of excess
     7  $2,155,350                            over  $323,200
     8  Over $2,155,350                       $144,905 plus 8.82% of excess over
     9                                        $2,155,350
    10    (v)  For  taxable years beginning in two thousand [twenty-two] twenty-
    11  three the following rates shall apply:
    12  If the New York taxable income is:    The tax is:
    13  Not over $17,150                      4% of the New York taxable income
    14  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    15                                        $17,150
    16  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    17                                        $23,600
    18  Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over
    19                                        $27,900
    20  Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
    21                                        $161,550
    22  Over $323,200 but not over $2,155,350 $19,124 plus
    23                                        6.85% of excess over $323,200
    24  Over $2,155,350                       $144,626 plus 8.82% of excess over
    25                                        $2,155,350
    26    (vi) For taxable years beginning in two thousand [twenty-three]  twen-
    27  ty-four 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 $161,550    $1,202 plus 5.73% of excess over
    35                                        $27,900
    36  Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over
    37                                        $161,550
    38  Over $323,200 but not over            $18,834 plus 6.85% of
    39  $2,155,350                            excess over $323,200
    40  Over $2,155,350                       $144,336 plus 8.82% of excess over
    41                                        $2,155,350
    42    (vii)  For taxable years beginning in two thousand [twenty-four] twen-
    43  ty-five the following rates shall apply:
    44  If the New York taxable income is:    The tax is:
    45  Not over $17,150                      4% of the New York taxable income
    46  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    47                                        $17,150
    48  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    49                                        $23,600
    50  Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
    51                                        $27,900
    52  Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over
    53                                        $161,550
    54  Over $323,200 [but not over]          $18,544 plus 6.85% of
    55  [$2,155,350]                          excess over $323,200
    56  [Over $2,155,350                      $144,047 plus 8.82% of excess over

        S. 2509--A                          8                         A. 3009--A

     1                                        $2,155,350]
     2    (viii)  For  taxable  years beginning after two thousand [twenty-four]
     3  twenty-five the following rates shall apply:
     4  If the New York taxable income is:    The tax is:
     5  Not over $17,150                      4% of the New York taxable income
     6  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
     7                                        $17,150
     8  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
     9                                        $23,600
    10  Over $27,900 but not over $161,550    $1,202 plus 5.5% of excess over
    11                                        $27,900
    12  Over $161,550 but not over $323,200   $8,553 plus 6.00% of excess over
    13                                        $161,550
    14  Over $323,200                         $18,252 plus 6.85% of excess over
    15                                        $323,200
    16    § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of  subparagraph
    17  (B)  of  paragraph  1  of  subsection (b) of section 601 of the tax law,
    18  clauses (iii), (iv), (v), (vi) and (vii) as amended by section 2 of part
    19  P of chapter 59 of the laws of  2019  and  clause  (viii)  as  added  by
    20  section  2  of  part R of chapter 59 of the laws of 2017, are amended to
    21  read as follows:
    22    (iii) For taxable years beginning in two thousand twenty and two thou-
    23  sand twenty-one the following rates shall apply:
    24  If the New York taxable income is:    The tax is:
    25  Not over $12,800                      4% of the New York taxable income
    26  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
    27  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    28                                        $17,650
    29  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
    30  Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
    31                                        $32,200
    32  Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
    33                                        $107,650
    34  Over $269,300 but not over            $16,524 plus 6.85% of
    35  $1,616,450                            excess over $269,300
    36  Over $1,616,450                       $108,804 plus 8.82% of excess over
    37                                        $1,616,450
    38    (iv) For taxable years beginning in two thousand [twenty-one]  twenty-
    39  two the following rates shall apply:
    40  If the New York taxable income is:    The tax is:
    41  Not over $12,800                      4% of the New York taxable income
    42  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    43                                        $12,800
    44  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    45                                        $17,650
    46  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
    47                                        $20,900
    48  Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
    49                                        $32,200
    50  Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
    51                                        $107,650
    52  Over $269,300 but not over             $16,304 plus 6.85% of
    53  $1,616,450                            excess over $269,300
    54  Over $1,616,450                       $108,584 plus 8.82% of excess over
    55                                        $1,616,450

        S. 2509--A                          9                         A. 3009--A

     1    (v)  For  taxable years beginning in two thousand [twenty-two] twenty-
     2  three the following rates shall apply:
     3  If the New York taxable income is:    The tax is:
     4  Not over $12,800                      4% of the New York taxable income
     5  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
     6                                        $12,800
     7  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
     8                                        $17,650
     9  Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
    10                                        $20,900
    11  Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
    12                                        $107,650
    13  Over $269,300 but not over            $16,079 plus 6.85% of excess
    14  $1,616,450                            over $269,300
    15  Over $1,616,450                       $108,359 plus 8.82% of excess over
    16                                        $1,616,450
    17    (vi)  For taxable years beginning in two thousand [twenty-three] twen-
    18  ty-four the following rates shall apply:
    19  If the New York taxable income is:    The tax is:
    20  Not over $12,800                      4% of the New York taxable income
    21  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    22                                        $12,800
    23  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    24                                        $17,650
    25  Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
    26                                        $20,900
    27  Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over
    28                                        $107,650
    29  Over $269,300 but not over            $15,845 plus 6.85% of excess
    30  $1,616,450                            over $269,300
    31  Over $1,616,450                       $108,125 plus 8.82% of excess over
    32                                        $1,616,450
    33    (vii) For taxable years beginning in two thousand [twenty-four]  twen-
    34  ty-five the following rates shall apply:
    35  If the New York taxable income is:    The tax is:
    36  Not over $12,800                      4% of the New York taxable income
    37  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    38                                        $12,800
    39  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    40                                        $17,650
    41  Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
    42                                        $20,900
    43  Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
    44                                        $107,650
    45  Over $269,300 [but not over]          $15,612 plus 6.85% of excess
    46  [$1,616,450]                          over $269,300
    47  [Over $1,616,450                      $107,892 plus 8.82% of excess over
    48                                        $1,616,450]
    49    (viii)  For  taxable  years beginning after two thousand [twenty-four]
    50  twenty-five the following rates shall apply:
    51  If the New York taxable income is:    The tax is:
    52  Not over $12,800                      4% of the New York taxable income
    53  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    54                                        $12,800
    55  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over

        S. 2509--A                         10                         A. 3009--A

     1                                        $17,650
     2  Over $20,900 but not over $107,650    $901 plus 5.5% of excess over
     3                                        $20,900
     4  Over $107,650 but not over $269,300   $5,672 plus 6.00% of excess over
     5                                        $107,650
     6  Over $269,300                         $15,371 plus 6.85% of excess over
     7                                        $269,300
     8    §  3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph
     9  (B) of paragraph 1 of subsection (c) of section  601  of  the  tax  law,
    10  clauses (iii), (iv), (v), (vi) and (vii) as amended by section 3 of part
    11  P  of  chapter  59  of  the  laws  of 2019 and clause (viii) as added by
    12  section 3 of part R of chapter 59 of the laws of 2017,  are  amended  to
    13  read as follows:
    14    (iii) For taxable years beginning in two thousand twenty and two thou-
    15  sand twenty-one the following rates shall apply:
    16  If the New York taxable income is:    The tax is:
    17  Not over $8,500                       4% of the New York taxable income
    18  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    19                                        $8,500
    20  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    21                                        $11,700
    22  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    23                                        $13,900
    24  Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
    25                                        $21,400
    26  Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
    27                                        $80,650
    28  Over $215,400 but not over            $13,288 plus 6.85% of excess
    29  $1,077,550                            over $215,400
    30  Over $1,077,550                       $72,345 plus 8.82% of excess over
    31                                        $1,077,550
    32    (iv)  For taxable years beginning in two thousand [twenty-one] twenty-
    33  two the following rates shall apply:
    34  If the New York taxable income is:    The tax is:
    35  Not over $8,500                       4% of the New York taxable income
    36  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    37                                        $8,500
    38  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    39                                        $11,700
    40  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    41                                        $13,900
    42  Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
    43                                        $21,400
    44  Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
    45                                        $80,650
    46  Over $215,400 but not over            $13,109 plus 6.85% of excess
    47  $1,077,550                            over $215,400
    48  Over $1,077,550                       $72,166 plus 8.82% of excess over
    49                                        $1,077,550
    50    (v) For taxable years beginning in two thousand  [twenty-two]  twenty-
    51  three the following rates shall apply:
    52  If the New York taxable income is:    The tax is:
    53  Not over $8,500                       4% of the New York taxable income
    54  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    55                                        $8,500
    56  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over

        S. 2509--A                         11                         A. 3009--A

     1                                        $11,700
     2  Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
     3                                        $13,900
     4  Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
     5                                        $80,650
     6  Over $215,400 but not over            $12,926 plus 6.85% of excess
     7  $1,077,550                            over $215,400
     8  Over $1,077,550                       $71,984 plus 8.82% of excess over
     9                                        $1,077,550
    10    (vi)  For taxable years beginning in two thousand [twenty-three] twen-
    11  ty-four the following rates shall apply:
    12  If the New York taxable income is:    The tax is:
    13  Not over $8,500                       4% of the New York taxable income
    14  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    15                                        $8,500
    16  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    17                                        $11,700
    18  Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
    19                                        $13,900
    20  Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
    21                                        $80,650
    22  Over $215,400 but not over            $12,738 plus 6.85% of excess
    23  $1,077,550                            over $215,400
    24  Over $1,077,550                       $71,796 plus 8.82% of excess over
    25                                        $1,077,550
    26    (vii) For taxable years beginning in two thousand [twenty-four]  twen-
    27  ty-five the following rates shall apply:
    28  If the New York taxable income is:    The tax is:
    29  Not over $8,500                       4% of the New York taxable income
    30  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    31                                        $8,500
    32  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    33                                        $11,700
    34  Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
    35                                        $13,900
    36  Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
    37                                        $80,650
    38  Over $215,400 [but not over]          $12,550 plus 6.85% of excess
    39  [$1,077,550]                          over $215,400
    40  [Over $1,077,550                      $71,608 plus 8.82% of excess over
    41                                        $1,077,550]
    42    (viii)  For  taxable  years beginning after two thousand [twenty-four]
    43  twenty-five the following rates shall apply:
    44  If the New York taxable income is:    The tax is:
    45  Not over $8,500                       4% of the New York taxable income
    46  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    47                                        $8,500
    48  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    49                                        $11,700
    50  Over $13,900 but not over $80,650     $600 plus 5.50% of excess over
    51                                        $13,900
    52  Over $80,650 but not over $215,400    $4,271 plus 6.00% of excess over
    53                                        $80,650
    54  Over $215,400                         $12,356 plus 6.85% of excess over
    55                                        $215,400

        S. 2509--A                         12                         A. 3009--A

     1    § 4. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
     2  601  of  the tax law, as amended by section 4 of part P of chapter 59 of
     3  the laws of 2019, is amended to read as follows:
     4    (D)  The tax table benefit is the difference between (i) the amount of
     5  taxable income set forth in the tax table in paragraph one of subsection
     6  (a) of this section not subject to the 8.82 percent rate of tax for  the
     7  taxable year multiplied by such rate and (ii) the dollar denominated tax
     8  for  such amount of taxable income set forth in the tax table applicable
     9  to the taxable year in paragraph one of subsection (a) of  this  section
    10  less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
    11  of  this  paragraph.  The  fraction for this subparagraph is computed as
    12  follows: the numerator is the lesser of fifty thousand  dollars  or  the
    13  excess  of  New York adjusted gross income for the taxable year over two
    14  million dollars and the denominator  is  fifty  thousand  dollars.  This
    15  subparagraph  shall  apply  only  to taxable years beginning on or after
    16  January first, two thousand twelve and before January first,  two  thou-
    17  sand twenty-five.
    18    §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
    19  601 of the tax law, as amended by section 5 of part P of chapter  59  of
    20  the laws of 2019, is amended to read as follows:
    21    (C)  The tax table benefit is the difference between (i) the amount of
    22  taxable income set forth in the tax table in paragraph one of subsection
    23  (b) of this section not subject to the 8.82 percent rate of tax for  the
    24  taxable year multiplied by such rate and (ii) the dollar denominated tax
    25  for  such amount of taxable income set forth in the tax table applicable
    26  to the taxable year in paragraph one of subsection (b) of  this  section
    27  less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
    28  this paragraph. The  fraction  for  this  subparagraph  is  computed  as
    29  follows:  the  numerator  is the lesser of fifty thousand dollars or the
    30  excess of New York adjusted gross income for the taxable year  over  one
    31  million five hundred thousand dollars and the denominator is fifty thou-
    32  sand dollars. This subparagraph shall apply only to taxable years begin-
    33  ning  on  or after January first, two thousand twelve and before January
    34  first, two thousand twenty-five.
    35    § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
    36  601  of  the tax law, as amended by section 6 of part P of chapter 59 of
    37  the laws of 2019, is amended to read as follows:
    38    (C) The tax table benefit is the difference between (i) the amount  of
    39  taxable income set forth in the tax table in paragraph one of subsection
    40  (c)  of this section not subject to the 8.82 percent rate of tax for the
    41  taxable year multiplied by such rate and (ii) the dollar denominated tax
    42  for such amount of taxable income set forth in the tax table  applicable
    43  to  the  taxable year in paragraph one of subsection (c) of this section
    44  less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
    45  this  paragraph.  The  fraction  for  this  subparagraph  is computed as
    46  follows: the numerator is the lesser of fifty thousand  dollars  or  the
    47  excess  of  New York adjusted gross income for the taxable year over one
    48  million dollars and the denominator  is  fifty  thousand  dollars.  This
    49  subparagraph  shall  apply  only  to taxable years beginning on or after
    50  January first, two thousand twelve and before January first,  two  thou-
    51  sand twenty-five.
    52    §  7. Notwithstanding any provision of law to the contrary, the method
    53  of determining the amount to be deducted  and  withheld  from  wages  on
    54  account  of  taxes imposed by or pursuant to the authority of article 22
    55  of the tax law in connection with the implementation of  the  provisions
    56  of  this  act  shall  be prescribed by the commissioner  of taxation and

        S. 2509--A                         13                         A. 3009--A

     1  finance with due consideration to the effect such withholding tables and
     2  methods would have on the receipt and amount of revenue. The commission-
     3  er of taxation and finance shall adjust   such  withholding  tables  and
     4  methods  in  regard to taxable years beginning in 2021 and after in such
     5  manner as to result, so far  as  practicable,  in  withholding  from  an
     6  employee's  wages  an amount substantially equivalent to the tax reason-
     7  ably estimated to be due for such taxable  years  as  a  result  of  the
     8  provisions of this act. Any such changes in withholding tables and meth-
     9  ods  for tax year 2021 shall be adopted and effective as soon as practi-
    10  cable. The commissioner of taxation and finance may make similar changes
    11  to withholding tables and methods. The withholding  tables  and  methods
    12  for tax year 2021 shall not be prescribed by regulation, notwithstanding
    13  any provision of the state administrative procedure act to the contrary.
    14    § 8.  The additions to tax imposed by subsection (c) of section 685 of
    15  the  tax law shall not apply to any installments of estimated tax due on
    16  or before September fifteenth, two thousand twenty-one if the  underpay-
    17  ment  is  the  result of the enactment of the tax rates for the tax year
    18  two thousand twenty-one prescribed by this act.
    19    § 9. This act shall take effect immediately.

    20                                   PART C

    21    Section 1. The tax law is amended by adding a new article 24-A to read
    22  as follows:
    23                                ARTICLE 24-A
    24                           PASS-THROUGH ENTITY TAX
    25  Section 860. Definitions.
    26          861. Pass-through entity tax election.
    27          862. Imposition and rate of tax.
    28          863. Pass-through entity tax credit.
    29          864. Payment of estimated tax.
    30          865. Filing of return and payment of tax.
    31          866. Accounting periods and methods.
    32          867. Procedural provisions.
    33    § 860. Definitions. For purposes of this article:
    34    (a) Eligible partnership.  Eligible partnership means any  partnership
    35  as  provided for in section 7701(a)(2) of the Internal Revenue Code that
    36  consists solely of partners who are individuals.   An eligible  partner-
    37  ship includes any limited liability company treated as a partnership for
    38  federal  income  tax  purposes  that otherwise meets the requirements of
    39  this subdivision.
    40    (b) Eligible S corporation.  Eligible S corporation means any New York
    41  S corporation as defined pursuant to this chapter that  consists  solely
    42  of  shareholders who are individuals. An eligible S corporation includes
    43  any limited liability company treated as an S  corporation  for  federal
    44  income tax purposes that otherwise meets the requirements of this subdi-
    45  vision.
    46    (c)  Electing  partnership.    Electing partnership means any eligible
    47  partnership that made a valid, timely election pursuant to section eight
    48  hundred sixty-one of this article.
    49    (d) Electing S corporation.  Electing S corporation means any eligible
    50  S corporation that made a valid, timely  election  pursuant  to  section
    51  eight hundred sixty-one of this article.
    52    (e)  Taxpayer.  Taxpayer  means any electing partnership or electing S
    53  corporation.

        S. 2509--A                         14                         A. 3009--A

     1    (f) Pass-through entity tax.  Pass-through entity tax means the  total
     2  tax  imposed  by  this  article  on electing partnerships and electing S
     3  corporations.
     4    (g)  Pass-through  adjusted  net  income (not less than zero).   Pass-
     5  through adjusted net income (not less than zero) means:
     6    (1) In the case of an electing partnership, the  sum  of  (i)  federal
     7  taxable  income  (not less than zero), as described in section 702(a)(8)
     8  of the Internal Revenue Code, to the  extent  earned  directly  by  such
     9  partnership;  (ii) taxes paid or incurred during the taxable year pursu-
    10  ant to this article by a partnership to the extent deducted in computing
    11  federal taxable income; (iii) taxes substantially  similar  to  the  tax
    12  imposed  pursuant  to  this  article paid or incurred during the taxable
    13  year to another state of the United States, a political  subdivision  of
    14  such  state,  or  the  District  of  Columbia  to the extent deducted in
    15  computing federal taxable income; and (iv) guaranteed payments  paid  by
    16  the  partnership  to  its partners as described in section 707(c) of the
    17  Internal Revenue Code.
    18    (2) In the case of an electing S corporation, the sum of  (i)  federal
    19  nonseparately  computed  income  (not  less  than zero), as described in
    20  section 1366(a)(2) of the Internal Revenue Code, whether earned by  such
    21  S  corporation or by a partnership of which the S corporation is a part-
    22  ner; (ii) taxes paid or incurred during the  taxable  year  pursuant  to
    23  this  article  by  an  S corporation to the extent deducted in computing
    24  federal ordinary income; and (iii) taxes substantially  similar  to  the
    25  tax imposed pursuant to this article paid or incurred during the taxable
    26  year  to  another state of the United States, a political subdivision of
    27  such state, or the District  of  Columbia  to  the  extent  deducted  in
    28  computing federal taxable income.
    29    (h)  Partnership  taxable  income.    Partnership taxable income of an
    30  electing partnership means the sum of  (1)  the  electing  partnership's
    31  pass-through  adjusted net income (not less than zero), allocated to New
    32  York State pursuant to subdivision (b) of section eight  hundred  sixty-
    33  two  of  this  article; and (2) the electing partnership's proportionate
    34  share of any pass-through adjusted net income (not less than zero)  from
    35  a  partnership  of which it is a partner to the extent it was sourced to
    36  New York by such partnership pursuant to the principles of article twen-
    37  ty-two of this chapter.
    38    (i) S corporation taxable income.  S corporation taxable income of  an
    39  electing  S  corporation means the electing S corporation's pass-through
    40  adjusted net income (not less than zero) allocated  to  New  York  State
    41  pursuant  to  subdivision (c) of section eight hundred sixty-two of this
    42  article.
    43    § 861. Pass-through entity tax election. (a) Any eligible  partnership
    44  or  eligible  S  corporation  doing  business within this state shall be
    45  allowed to make an annual election to be taxed pursuant to this article.
    46    (b) In order to be effective, the annual election must be made (1)  if
    47  the  entity  is an S corporation, by any officer, manager or shareholder
    48  of the S corporation who is authorized under the law of the state  where
    49  the  corporation  is incorporated or under the S corporation's organiza-
    50  tional documents to make the election and who represents to having  such
    51  authorization under penalty of perjury; or (2) if the entity is not an S
    52  corporation,  by  any  member,  partner, owner, or other individual with
    53  authority to bind the entity or sign returns  pursuant  to  section  six
    54  hundred fifty-three of this chapter.
    55    (c) If the eligible partnership or eligible S corporation reports on a
    56  calendar  year basis, the annual election must be made by December first

        S. 2509--A                         15                         A. 3009--A

     1  of each calendar year and will take effect for the immediately  succeed-
     2  ing  calendar  year.    If an election is made after December first of a
     3  calendar year, it will first take effect in the second succeeding calen-
     4  dar year.
     5    (d) If the eligible partnership or eligible S corporation reports on a
     6  fiscal  year basis, the annual election must be made by the first day of
     7  the last full month prior to the start of the fiscal year and will  take
     8  effect  for  the  immediately succeeding fiscal year.  If an election is
     9  made after such date, it will first take effect in the second succeeding
    10  fiscal year.
    11    (e) (1) Termination of election. An election pursuant  to  subdivision
    12  (a) of this section shall be terminated whenever, at any time during the
    13  taxable  year,  the  taxpayer  ceases  to  be an eligible partnership or
    14  eligible S corporation.
    15    (2) Effective date of termination. The termination of an  election  is
    16  effective  immediately upon the taxpayer ceasing to be an eligible part-
    17  nership or eligible S corporation and no tax will  be  due  pursuant  to
    18  this article for the taxable year.
    19    (3)  Abatement of penalties.  If a termination occurs pursuant to this
    20  subdivision solely because a partner, member or shareholder of an other-
    21  wise eligible partnership or eligible  S  corporation  died  during  the
    22  taxable  year  and the successor to the decedent's interest in the part-
    23  nership or S corporation is not an individual, no addition to  tax  will
    24  be imposed pursuant to subsection (c) of section six hundred eighty-five
    25  of  this chapter on the partners, members and shareholders of such part-
    26  nership or S corporation solely for underpayment of  estimated  personal
    27  income  tax as a result of the termination of the election made pursuant
    28  to this article.
    29    § 862. Imposition and rate of tax. (a)  General.    A  tax  is  hereby
    30  imposed for each taxable year on the partnership taxable income of every
    31  electing  partnership  doing  business  within  this  state and on the S
    32  corporation taxable income of every electing S corporation  doing  busi-
    33  ness within this state. This tax shall be in addition to any other taxes
    34  imposed  and  shall  be  at  the  rate of six and eighty-five hundredths
    35  percent for each taxable year beginning on or after January  first,  two
    36  thousand twenty-two.
    37    (b) Allocation to New York by an electing partnership.  In determining
    38  the amount of partnership taxable income, the adjusted net income of the
    39  electing  partnership  shall  be allocated to this state pursuant to the
    40  principles of article twenty-two of this chapter.
    41    (c) Allocation to New York by an electing S corporation.  In determin-
    42  ing the amount of S corporation taxable income, the adjusted net  income
    43  of the electing S corporation shall be allocated to this state by multi-
    44  plying  the  adjusted  net  income  of the electing S corporation by the
    45  business apportionment factor of the electing S  corporation  as  calcu-
    46  lated pursuant to section two hundred ten-A of this chapter.
    47    §  863.  Pass-through  entity tax credit. An individual subject to tax
    48  under article twenty-two of this chapter that is a partner or member  in
    49  an  electing  partnership  or a shareholder of an electing S corporation
    50  subject to tax under this article shall be allowed a credit against  the
    51  tax  imposed  pursuant  to  article twenty-two of this chapter, computed
    52  pursuant to the provisions of subsection (kkk) of  section  six  hundred
    53  six of this chapter.
    54    §  864.  Payment  of  estimated  tax. (a) Definition of estimated tax.
    55  Estimated tax means the amount that an electing partnership or  electing

        S. 2509--A                         16                         A. 3009--A

     1  S  corporation  estimates to be the tax imposed by section eight hundred
     2  sixty-two of this article for the current taxable year.
     3    (b)  General. The estimated tax shall be paid as follows for an elect-
     4  ing partnership and an electing S corporation that reports on a calendar
     5  year basis:
     6    (1) The estimated tax shall be paid  in  four  equal  installments  on
     7  March  fifteenth,  June  fifteenth,  September  fifteenth  and  December
     8  fifteenth.
     9    (2) The amount  of  any  required  installment  shall  be  twenty-five
    10  percent of the required annual payment.
    11    (3)  The  required annual payment is the lesser of: (A) ninety percent
    12  of the tax shown on the return for the taxable year; or (B) one  hundred
    13  percent  of  the  tax shown on the return of the electing partnership or
    14  electing S corporation for the preceding taxable year.
    15    (c) Application to short taxable year.  This section shall apply to  a
    16  taxable  year  of  less than twelve months in accordance with procedures
    17  established by the commissioner.
    18    (d) Fiscal year. This section shall apply to a taxable year other than
    19  a calendar year by the substitution of the months of  such  fiscal  year
    20  for the corresponding months specified in this section.
    21    (e)  Installments paid in advance. An electing partnership or electing
    22  S corporation may elect to pay any  installment  of  its  estimated  tax
    23  prior to the date prescribed for the payment thereof.
    24    §  865. Filing of return and payment of tax. (a) General. On or before
    25  the fifteenth day of the third month following the close of the  taxable
    26  year,  each  electing  partnership  and each electing S corporation must
    27  file a return for the taxable year reporting  the  information  required
    28  pursuant to this article.
    29    (b)  Certification  of  eligibility.    Every return filed pursuant to
    30  subdivision (a) of this section shall include, in a format as prescribed
    31  by the commissioner, a certification by an individual authorized to  act
    32  on behalf of the electing partnership or electing S corporation that the
    33  taxpayer:
    34    (1)  made  a  timely,  valid election to be subject to tax pursuant to
    35  this article;
    36    (2) was at all times during the taxable year eligible to make such  an
    37  election,  unless  such return includes a notification of termination as
    38  provided for in subdivision (c) of this section; and
    39    (3) that all statements contained therein are true.
    40    (c) Notification of termination.  If an election is terminated  during
    41  the  taxable  year  pursuant to subdivision (e) of section eight hundred
    42  sixty-one of this article, the electing partnership or electing S corpo-
    43  ration is required to file a return pursuant to subdivision (a) of  this
    44  section  notifying the commissioner of such termination.  Such notifica-
    45  tion will be considered a claim for a credit or refund of an overpayment
    46  of pass-through entity tax of any estimated payments  made  pursuant  to
    47  this article for the taxable year containing the date of termination.
    48    (d)  Information  on  return. Each electing partnership and electing S
    49  corporation shall report on such return:
    50    (1) The balance of any tax shown on such return, not  previously  paid
    51  as installments of estimated tax, shall be paid with such return;
    52    (2) Identifying information of all partners, members and/or sharehold-
    53  ers eligible to receive a credit pursuant to section eight hundred sixty
    54  three  and such partner's, member's and/or shareholder's distributive or
    55  pro rata share of the pass-through entity tax imposed  on  the  electing
    56  partnership or S corporation; and

        S. 2509--A                         17                         A. 3009--A

     1    (3) Any other information as required by the commissioner.
     2    (e)  Information  provided  to  partners.  Each  electing  partnership
     3  subject to tax under this article shall report to each partner or member
     4  its distributive share of:
     5    (1) the partnership taxable income of the electing partnership;
     6    (2) the pass-through entity tax imposed on the  electing  partnership;
     7  and
     8    (3) any other information as required by the commissioner.
     9    (f)  Information provided to shareholders. Each electing S corporation
    10  subject to tax under this article shall report to each  shareholder  its
    11  pro rata share of:
    12    (1) the S corporation taxable income of the electing S corporation;
    13    (2) the pass-through entity tax imposed on the electing S corporation;
    14  and
    15    (3) any other information as required by the commissioner.
    16    §  866.  Accounting  periods  and  methods. (a) Accounting periods. An
    17  electing partnership's or electing S corporation's taxable year pursuant
    18  to this article shall be the  same  as  the  electing  partnership's  or
    19  electing S corporation's taxable year for federal income tax purposes.
    20    (b) Accounting methods. An electing partnership's or electing S corpo-
    21  ration's method of accounting pursuant to this article shall be the same
    22  as  the  electing  partnership's  or  electing S corporation's method of
    23  accounting for federal income tax purposes.
    24    (c) Change of accounting period or method. (1) If an electing partner-
    25  ship's or electing S corporation's taxable year or method of  accounting
    26  is  changed  for federal income tax purposes, the taxable year or method
    27  of accounting for purposes of this article shall be similarly changed.
    28    (2) If an electing partnership's or electing S corporation's method of
    29  accounting is changed, any additional tax that results from  adjustments
    30  determined  to be necessary solely by reason of such change shall not be
    31  greater than if such adjustments were ratably allocated and included for
    32  the taxable year of the change and the preceding taxable years,  not  in
    33  excess  of  two,  during  which the entity used the method of accounting
    34  from which the change is made.
    35    § 867. Procedural provisions.  (a) General.  All provisions of article
    36  twenty-two of this chapter will apply to the provisions of this  article
    37  in the same manner and with the same force and effect as if the language
    38  of article twenty-two of this chapter had been incorporated in full into
    39  this  article  and  had  been  specifically  adjusted  for and expressly
    40  referred to the tax imposed by this article, except to the  extent  that
    41  any provision is either inconsistent with a provision of this article or
    42  is not relevant to this article. Notwithstanding the preceding sentence,
    43  no  credit against tax in article twenty-two of this chapter can be used
    44  to offset the tax due pursuant to this article.
    45    (b) Cross Article filings. Notwithstanding  any  other  provisions  of
    46  this article:
    47    (1)  The  commissioner  may require the filing of one return which, in
    48  addition to the return provided for in section eight hundred  sixty-five
    49  of  this  article,  may  also  include any of the returns required to be
    50  filed by a taxpayer pursuant to the  provisions  of  subsection  (c)  of
    51  section six hundred fifty-eight or article nine-A of this chapter.
    52    (2)  Where  such return is required, the commissioner may also require
    53  the payment with it of a single amount which shall equal  the  total  of
    54  the  amounts  (total  taxes less any credits or refunds) that would have
    55  been required to be paid with the returns pursuant to the provisions  of
    56  this article and the provisions of article twenty-two of this chapter or

        S. 2509--A                         18                         A. 3009--A

     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--A                         19                         A. 3009--A

     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, or

        S. 2509--A                         20                         A. 3009--A

     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 S
     5  corporation, the term "income tax" in subsection  (a)  of  this  section
     6  shall  not  include  any  such tax imposed upon or payable by the corpo-
     7  ration, but shall include any such tax with respect to the income of the
     8  corporation imposed upon or payable by the shareholder,  without  regard
     9  to  whether  an  election  independent  of  the  federal  S election was
    10  required 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  such

        S. 2509--A                         21                         A. 3009--A

     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--A                         22                         A. 3009--A

     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 that

        S. 2509--A                         23                         A. 3009--A

     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  of

        S. 2509--A                         24                         A. 3009--A

     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 to

        S. 2509--A                         25                         A. 3009--A

     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  such

        S. 2509--A                         26                         A. 3009--A

     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 of

        S. 2509--A                         27                         A. 3009--A

     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, nor

        S. 2509--A                         28                         A. 3009--A

     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 fifteen
     6  dollars 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 forms
    12  as 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  shall
    25  not  apply  to  any  corporation  which  does not file its franchise tax
    26  report in a timely manner (determined with regard to  any  extension  of
    27  time 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 which
    33  an 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 [for
    35  such year], and any such year shall be denominated a "New York S year"[,
    36  and  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--A                         29                         A. 3009--A

     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  to
     3  such  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 such
     9  corporation, there shall be subtracted from federal  unrelated  business
    10  taxable  income any items of income of the corporation included therein,
    11  and there shall be added to federal unrelated  business  taxable  income
    12  any items of loss or deduction included therein, and
    13    (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  six
    28  hundred  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  this

        S. 2509--A                         30                         A. 3009--A

     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  C
    23  corporations].  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.
    33  In the case of a shareholder of an S corporation which is a New  York  C
    34  corporation,  the  modifications  under this section which relate to the
    35  corporation's items of income,  loss  and  deduction  shall  not  apply,
    36  except  for  the  modifications  provided  under  paragraph  nineteen of
    37  subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
    38  section.
    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--A                         31                         A. 3009--A

     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  C
    36  corporations].  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-
    39  ration  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.
    43  In  the  case of a shareholder of an S corporation which is a New York C
    44  corporation, the modifications under this section which  relate  to  the
    45  corporation's items of deduction shall not apply, except for the modifi-
    46  cation 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--A                         32                         A. 3009--A

     1  ration 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 in
    20  effect 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 in
    36  effect], 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 or
    45  reduction is included in entire net income under article nine-A for  the
    46  tax  year]. If a nonresident is a shareholder in an S corporation [where
    47  the 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 gain

        S. 2509--A                         33                         A. 3009--A

     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 article
    26  nine-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  election
    37  provided  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 six
    48  hundred 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. For

        S. 2509--A                         34                         A. 3009--A

     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 the
    28  manner 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  shall
    36  be  effective  unless  all  shareholders  of  the  corporation  have  so
    37  elected.] 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-
    47  ers  of  such parent corporation are entitled to make the election under
    48  this subsection by reason of subparagraph  three  of  paragraph  (k)  of
    49  subdivision nine of section two hundred eight] of this chapter.
    50    (b)  [Requirements  of  election.  An election under subsection (a) of
    51  this section shall be made on such form and in such manner  as  the  tax
    52  commission may prescribe by regulation or instruction.
    53    (1) When made. An election under subsection (a) of this section may be
    54  made at any time during the preceding taxable year of the corporation or
    55  at  any time during the taxable year of the corporation and on or before
    56  the fifteenth day of the third month of such taxable year.

        S. 2509--A                         35                         A. 3009--A

     1    (2) Certain elections made during first two and one-half months. If an
     2  election made under subsection (a) of this section is made for any taxa-
     3  ble year of the corporation during  such  year  and  on  or  before  the
     4  fifteenth  day  of  the third month of such year, such election shall be
     5  treated as made for the following taxable year if
     6    (A)  on  one or more days in such taxable year before the day on which
     7  the election was made the corporation did not meet the  requirements  of
     8  subsection  (b)  of  section  thirteen hundred sixty-one of the internal
     9  revenue code or
    10    (B) one or more of the shareholders who held stock in the  corporation
    11  during  such  taxable  year  and  before  the  election was made did not
    12  consent to the election.
    13    (3) Elections made after first two and one-half months. If an election
    14  under subsection (a) of this section is made for any taxable year of the
    15  corporation and such election is made after the  fifteenth  day  of  the
    16  third  month  of such taxable year and on or before the fifteenth day of
    17  the third month of the following taxable year, such  election  shall  be
    18  treated as made for the following taxable year.
    19    (4)  Taxable years of two and one-half months or less. For purposes of
    20  this subsection, an election for a taxable year made not later than  two
    21  months and fifteen days after the first day of the taxable year shall be
    22  treated as timely made during such year.
    23    (5)  Authority  to  treat  late  elections, etc., as timely. If (A) an
    24  election under subsection (a) of this section is made  for  any  taxable
    25  year  (determined  without regard to paragraph three of this subsection)
    26  after the date prescribed by this subsection for  making  such  election
    27  for  such  taxable  year, or if no such election is made for any taxable
    28  year, and
    29    (B) the commissioner determines that there was  reasonable  cause  for
    30  failure to timely make such election, then
    31    (C)  the  commissioner  may  treat such an election as timely made for
    32  such taxable year (and paragraph three  of  this  subsection  shall  not
    33  apply).
    34    (6)  Years  for  which  effective. An election under subsection (a) of
    35  this section shall be effective for the taxable year of the  corporation
    36  for  which it is made and for all succeeding taxable years of the corpo-
    37  ration until such election is terminated under subsection  (c)  of  this
    38  section.
    39    (c)]  Termination.  An  [election  under] eligible S corporation shall
    40  cease to be subject to subsection (a) of this section [shall cease to be
    41  effective
    42    (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[, or
    45    (2)  if shareholders holding more than one-half of the shares of stock
    46  of the corporation on the day on which the  revocation  is  made  revoke
    47  such  election  in  the manner the tax commission may prescribe by regu-
    48  lation,
    49    (A) on the first day of the taxable year of the  corporation,  if  the
    50  revocation  is  made  during  such  taxable  year  and  on or before the
    51  fifteenth day of the third month thereof, or
    52    (B) on the first day of the following taxable year of the corporation,
    53  if the revocation  is  made  during  the  taxable  year  but  after  the
    54  fifteenth day of the third month thereof, or

        S. 2509--A                         36                         A. 3009--A

     1    (C)  on and after the date so specified, if the revocation specifies a
     2  date for revocation which is on or after the day on which the revocation
     3  is made, or
     4    (3)  if any person who was not a shareholder of the corporation on the
     5  day on which the election is made becomes a shareholder  in  the  corpo-
     6  ration  and  affirmatively  refuses  to  consent to such election in the
     7  manner the tax commission may prescribe by regulation, on the  day  such
     8  person 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  under
    18  subsection (a) of this section was not effective for  the  taxable  year
    19  for which made (determined without regard to paragraph two of subsection
    20  (b)  of  this  section)  by  reason  of  a failure to obtain shareholder
    21  consents,
    22    (2) the commissioner determines that the  circumstances  resulting  in
    23  such ineffectiveness were inadvertent,
    24    (3)  no  later than a reasonable period of time after discovery of the
    25  circumstances resulting in such ineffectiveness,  steps  were  taken  to
    26  acquire the required shareholder consents, and
    27    (4)  the  corporation,  and  each  person who was a shareholder in the
    28  corporation at any time during the period  specified  pursuant  to  this
    29  subsection,  agrees to make such adjustments (consistent with the treat-
    30  ment of the corporation as a New York S corporation) as may be  required
    31  by the commissioner with respect to such period,
    32    (5) then, notwithstanding the circumstances resulting in such ineffec-
    33  tiveness,  such corporation shall be treated as a New York S corporation
    34  during 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 subsection
    51  (a) of this section was made for a taxable year or  years  of  a  corpo-
    52  ration,  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, [and

        S. 2509--A                         37                         A. 3009--A

     1    (2) the corporation, and each person who  was  a  shareholder  in  the
     2  corporation at any time during such taxable year or years agrees to make
     3  such  adjustments (consistent with the treatment of the corporation as a
     4  New York S corporation) as may be  required  by  the  commissioner  with
     5  respect 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 in
    10  effect for  taxable  years  beginning  before  January  first,  nineteen
    11  hundred  eighty-three)  shall  be  treated  as  an  election  made under
    12  subsection (a) of this section.
    13    (h) Cross reference. For definitions relating to S  corporations,  see
    14  subdivision one-A of section two hundred eight of this chapter.
    15    (i) Mandated New York S corporation election.  (1) Notwithstanding the
    16  provisions in subsection (a) of this section, in the case of an eligible
    17  S  corporation  for  which  the  election  under  subsection (a) of this
    18  section is not in effect for the current taxable year, the  shareholders
    19  of  an  eligible  S  corporation  are  deemed to have made that election
    20  effective for the eligible S corporation's entire current taxable  year,
    21  if  the eligible S corporation's investment income for the current taxa-
    22  ble year is more than fifty percent of its federal gross income for such
    23  year. In determining whether an eligible S corporation is deemed to have
    24  made that election, the income of a qualified  subchapter  S  subsidiary
    25  owned  directly  or  indirectly  by  the eligible S corporation shall be
    26  included with the income of the eligible S corporation.
    27    (2) For the purposes of this subsection, the term "eligible  S  corpo-
    28  ration" has the same definition as in subsection (a) of this section.
    29    (3)  For the purposes of this subsection, the term "investment income"
    30  means the sum of an eligible S corporation's gross income from interest,
    31  dividends, royalties, annuities, rents and gains derived  from  dealings
    32  in  property,  including  the  corporation's  share of such items from a
    33  partnership, estate or trust, to the extent such items would be includa-
    34  ble in federal gross income for the taxable year.
    35    (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
    36  required  to  be  made  under  this chapter in the current tax year, the
    37  eligible S corporation and its shareholders may rely on the  eligible  S
    38  corporation's filing status for the prior year. If the eligible S corpo-
    39  ration's  filing  status changes from the prior tax year the corporation
    40  or the shareholders, as the case may be, which made the  payments  shall
    41  be entitled to a refund of such estimated tax payments.  No additions to
    42  tax  with  respect to any required declarations or payments of estimated
    43  tax imposed under this chapter shall be imposed on  the  corporation  or
    44  shareholders, whichever is the taxpayer for the current taxable year, if
    45  the corporation or the shareholders file such declarations and make such
    46  estimated  tax  payments  by January fifteenth of the following calendar
    47  year, regardless of whether the taxpayer's tax year is a calendar  or  a
    48  fiscal 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, 2022

        S. 2509--A                         38                         A. 3009--A

     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-
    20  five]  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-
    42  five]  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 to

        S. 2509--A                         39                         A. 3009--A

     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-
     6  five] 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 of

        S. 2509--A                         40                         A. 3009--A

     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--A                         41                         A. 3009--A

     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-
     5  five] 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  television
    56  pilot,]  whose  majority  of  principal photography shooting days in the

        S. 2509--A                         42                         A. 3009--A

     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  be

        S. 2509--A                         43                         A. 3009--A

     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  an

        S. 2509--A                         44                         A. 3009--A

     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 distributors, microbusinesses, cooper-
    43  atives  or  eligible  registered organizations and who may sell approved
    44  adult-use cannabis products, through a retail outlet, as  determined  by
    45  the executive director.
    46    9.  "Certified medical use" means the acquisition, possession, use, or
    47  transportation of medical cannabis by a certified patient, or the acqui-
    48  sition,  possession,  delivery,  transportation  or  administration   of
    49  medical  cannabis  by  a  designated  caregiver  or designated caregiver
    50  facility, for use as part of the  treatment  of  the  patient's  serious
    51  condition, as authorized in a certification under this chapter including
    52  enabling the patient to tolerate treatment for the serious condition.
    53    10.  "Caring for" means treating a patient, in the course of which the
    54  practitioner has completed a full assessment of  the  patient's  medical
    55  history and current medical condition.

        S. 2509--A                         45                         A. 3009--A

     1    11.  "Certified patient" means a patient who is a resident of New York
     2  state or receiving care and treatment in New York state as determined by
     3  the executive director in regulation, and  is  certified  under  section
     4  thirty of this chapter.
     5    12. "Certification" means a certification, made under this chapter.
     6    13.  "Adult-use  cultivation"  shall  include,  the planting, growing,
     7  cloning, harvesting, drying, curing, grading and trimming  of  adult-use
     8  cannabis,  or  such other cultivation related processes as determined by
     9  the executive director.
    10    14. "Executive director" means the executive director of the office of
    11  cannabis management.
    12    15. "Convicted" and "conviction" include and mean a finding  of  guilt
    13  resulting  from  a plea of guilty, the decision of a court or magistrate
    14  or the verdict of a jury, irrespective of the pronouncement of  judgment
    15  or the suspension thereof.
    16    16.  "Designated caregiver" means an individual designated by a certi-
    17  fied patient in a registry application. A certified patient  may  desig-
    18  nate up to two designated caregivers or additional designated caregivers
    19  as may be approved by the office.
    20    17.  "Designated caregiver facility" means a general hospital or resi-
    21  dential health care facility operating pursuant to article  twenty-eight
    22  of  the  public health law; an adult care facility operating pursuant to
    23  title two of article seven of  the  social  services  law;  a  community
    24  mental  health  residence  established  pursuant to section 41.44 of the
    25  mental hygiene Law; a hospital operating pursuant to section 7.17 of the
    26  mental hygiene law; a mental  hygiene  facility  operating  pursuant  to
    27  article  thirty-one  of the mental hygiene law; an inpatient or residen-
    28  tial treatment program certified pursuant to article thirty-two  of  the
    29  mental hygiene law; a residential facility for the care and treatment of
    30  persons  with  developmental  disabilities operating pursuant to article
    31  sixteen of the mental hygiene law; a residential treatment facility  for
    32  children  and  youth  operating  pursuant  to  article thirty-one of the
    33  mental hygiene law; a private or  public  school;  research  institution
    34  with  an  internal  review board; or any other facility as determined by
    35  the executive director; that  registers  with  the  office  of  cannabis
    36  management  to  assist  one or more certified patients with the acquisi-
    37  tion, possession, delivery, transportation or administration of  medical
    38  cannabis.
    39    18.  "Felony"  means any criminal offense classified as a felony under
    40  the laws of this state or any criminal offense committed  in  any  other
    41  state,  district,  or territory of the United States and classified as a
    42  felony therein which if committed within this state, would constitute  a
    43  felony in this state.
    44    19.  "Form  of  medical cannabis" means characteristics of the medical
    45  cannabis recommended or limited  for  a  particular  certified  patient,
    46  including  the method of consumption and any particular strain, variety,
    47  and quantity or percentage of cannabis or particular active ingredient.
    48    20. "Government agency" means any  office,  division,  board,  bureau,
    49  commission, office, agency, authority or public corporation of the state
    50  or  federal  government  or  a  county, city, town or village government
    51  within the state.
    52    21. "Hemp" means the plant Cannabis sativa L. and  any  part  of  such
    53  plant, including the seeds thereof and all derivatives, extracts, canna-
    54  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    55  not,  with a delta-9 tetrahydrocannabinol concentration of not more than
    56  three-tenths of one percent on a dry weight or per volume basis.

        S. 2509--A                         46                         A. 3009--A

     1    22. "Cannabinoid hemp product" means any hemp and  any  product  proc-
     2  essed  or derived from hemp, that is used for human consumption provided
     3  that when such product is packaged or  offered  for  retail  sale  to  a
     4  consumer, it shall not have a concentration of more than three-tenths of
     5  one  percent  of  delta-9 tetrahydrocannabinol or more than an amount of
     6  total THC per quantity of cannabinoid hemp product as determined by  the
     7  board in regulation.
     8    23.  "Cannabinoid  hemp  processor license" means a license granted by
     9  the office to process, extract, pack or manufacture cannabinoid hemp  or
    10  hemp  extract into products, whether in intermediate or final form, used
    11  for human consumption.
    12    24. "Cannabinoid hemp retailer license" means a license granted by the
    13  office to sell cannabinoid hemp, in final approved  form,  to  consumers
    14  within the state.
    15    25.  "Individual  dose"  means a single measure of adult-use cannabis,
    16  medical cannabis or cannabinoid hemp product, as determined by the exec-
    17  utive director  in  regulation.  Individual  doses  may  be  established
    18  through  a  measure of raw material, a measure of an individual cannabi-
    19  noid or compound, a measure of total THC, or an equivalency thereof.
    20    26. "Labor peace agreement" means an agreement between an entity and a
    21  labor organization that, at a minimum, protects the state's  proprietary
    22  interests  by  prohibiting labor organizations and members from engaging
    23  in picketing, work stoppages, boycotts, and any other economic interfer-
    24  ence with the registered organization or licensee's business.
    25    27. "License" means a license issued pursuant to this chapter.
    26    28. "Medical cannabis" means cannabis as defined in subdivision  three
    27  of  this  section, intended and approved for a certified medical use, as
    28  determined by the executive director in consultation  with  the  commis-
    29  sioner of health.
    30    30.  "Office"  or  "office  of cannabis management" means the New York
    31  state office of cannabis management.
    32    31. "Permit" means a permit issued pursuant to this chapter.
    33    32. "Permittee" means any person to whom  a  permit  has  been  issued
    34  pursuant to this chapter.
    35    33. "Person" means individual, institution, corporation, government or
    36  governmental subdivision or agency, business trust, estate, trust, part-
    37  nership or association, or any other legal entity.
    38    34.  "Practitioner"  means  a practitioner who:   (i) is authorized to
    39  prescribe controlled substances within the state, (ii)  by  training  or
    40  experience  is  qualified  to  treat  a  serious condition as defined in
    41  subdivision forty-three of this section; and (iii) completes, at a mini-
    42  mum, a two-hour  course  as  determined  by  the  board  in  regulation;
    43  provided  however,  the  executive  director may revoke a practitioner's
    44  ability to certify patients for cause.
    45    35. "Processing" includes, blending, extracting, infusing,  packaging,
    46  labeling, branding and otherwise making or preparing adult-use cannabis,
    47  medical  cannabis  and cannabinoid hemp, or such other related processes
    48  as determined by the executive director.  Processing shall  not  include
    49  the cultivation of cannabis.
    50    36.  "Registered  organization" means an organization registered under
    51  article three of this chapter.
    52    37. "Registry application" means an application properly completed and
    53  filed with the office of cannabis  management  by  a  certified  patient
    54  under article three of this chapter.

        S. 2509--A                         47                         A. 3009--A

     1    38.  "Registry identification card" means a document that identifies a
     2  certified patient or designated caregiver,  as  provided  under  section
     3  thirty-two of this chapter.
     4    39. "Retail sale" or "sale at retail" means a sale to a consumer or to
     5  any person for any purpose other than for resale.
     6    40.  "Retailer"  means  any  licensed  person  who sells at retail any
     7  approved adult-use cannabis product.
     8    41. "Sale" means any transfer, exchange or barter in any manner or  by
     9  any  means  whatsoever,  and  includes  and  means all sales made by any
    10  person, whether principal, proprietor, agent, servant or employee of any
    11  cannabis product.
    12    42. "To sell" includes to solicit or receive an order for, to keep  or
    13  expose  for  sale, and to keep with intent to sell and shall include the
    14  transportation or delivery of any cannabis product in the state.
    15    43. "Serious condition" means  having  one  of  the  following  severe
    16  debilitating or life-threatening conditions: cancer, positive status for
    17  human  immunodeficiency  virus  or  acquired immune deficiency syndrome,
    18  amyotrophic lateral sclerosis, Parkinson's disease, multiple  sclerosis,
    19  damage to the nervous tissue of the spinal cord with objective neurolog-
    20  ical  indication of intractable spasticity, epilepsy, inflammatory bowel
    21  disease,  neuropathies,  Huntington's  disease,  post-traumatic   stress
    22  disorder,  pain that degrades health and functional capability where the
    23  use of medical cannabis is an alternative to opioid use,  substance  use
    24  disorder,  Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri-
    25  tis, autism, any condition authorized as part  of  a  cannabis  research
    26  license, or any other condition as added by the executive director.
    27    44. "Traffic in" includes to cultivate, process, manufacture, distrib-
    28  ute or sell any cannabis, adult-use cannabis product or medical cannabis
    29  at wholesale or retail.
    30    45.  "Terminally ill" means an individual has a medical prognosis that
    31  the individual's life expectancy is approximately one year  or  less  if
    32  the illness runs its normal course.
    33    46. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna-
    34  binol and the optical isomers of such substances.
    35    47.  "Total THC" means the sum of the percentage by weight of tetrahy-
    36  drocannabinolic acid multiplied by 0.877 plus the percentage  by  weight
    37  of THC.
    38    48. "Wholesale sale" or "sale at wholesale" means a sale to any person
    39  for purposes of resale.
    40    49.  "Distributor"  means any person who sells at wholesale any adult-
    41  use cannabis product, except medical  cannabis,  the  sale  of  which  a
    42  license is required under the provisions of this chapter.
    43    50.  "Warehouse" means and includes a place in which cannabis products
    44  are housed or stored.

    45                                  ARTICLE 2
    46                NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
    47  Section 7.  Establishment of an office of cannabis management.
    48          8.  Establishment of the cannabis control board.
    49          9.  Functions, powers and duties of the cannabis control board.
    50          10. Executive director.
    51          11. Functions, powers and duties of  the  office  and  executive
    52                director.
    53          12. Rulemaking authority.
    54          13. Deputies; employees.
    55          14. Disposition of moneys received for license fees.

        S. 2509--A                         48                         A. 3009--A

     1          15. Violations  of  cannabis  laws or regulations; penalties and
     2                injunctions.
     3          16. Formal hearings; notice and procedure.
     4          17. Ethics, transparency and accountability.
     5          18. Public health and education campaign.
     6          19. Traffic safety oral fluid or other roadside detection method
     7                pilot program.
     8          20. Establish uniform policies and best practices.
     9    § 7. Establishment of an office of cannabis management. There is here-
    10  by  established,  within  the division of alcoholic beverage control, an
    11  independent office of cannabis management, which  shall  have  exclusive
    12  jurisdiction to exercise the powers and duties provided by this chapter.
    13  The  office  shall  exercise  its  authority  by  and through a cannabis
    14  control board and executive director.
    15    § 8. Establishment of the cannabis control board.    1.  The  cannabis
    16  control  board  or "board" is created and shall consist of a chairperson
    17  with one vote, and four other voting board members, all of whom shall be
    18  citizens and residents of this state.
    19    2. The governor shall appoint all members of the  board,    and  shall
    20  designate  one  member to serve as chairperson. All members of the board
    21  shall serve for a term of three years and shall  continue  to  serve  in
    22  office  until  the  expiration of their terms and until their successors
    23  are appointed and have qualified. The members,  other  than  the  chair-
    24  person,  shall be compensated at a rate of two hundred sixty dollars per
    25  day when performing the work of the board, together  with  an  allowance
    26  for  actual  and  necessary  expenses incurred in the discharge of their
    27  duties. No person shall be appointed to or employed  by  the  board  if,
    28  during the period commencing three years prior to appointment or employ-
    29  ment, such person held any direct or indirect interest in, or employment
    30  by, any corporation, association or person engaged in regulated activity
    31  within the state.  The chairperson shall also be designated as the exec-
    32  utive director of the office of cannabis management.
    33    3. Prior to appointment or employment, each member, officer or employ-
    34  ee of the board shall swear or affirm that he or she possesses no inter-
    35  est  in  any corporation or association holding a license, registration,
    36  certificate or permit issued by the  board.  Thereafter,  no  member  or
    37  officer of the board shall hold any direct interest in or be employed by
    38  any applicant for or by any corporation, association or person holding a
    39  license,  registration,  certificate or permit issued by the board for a
    40  period of four years commencing on the date his or her  membership  with
    41  the  board terminates. Further, no employee of the board may acquire any
    42  direct or indirect interest in, or accept employment with, any applicant
    43  for or any person holding a license, registration, certificate or permit
    44  issued by the board for a period of two years commencing at  the  termi-
    45  nation  of  employment  with  the  board.  The  board may, by resolution
    46  adopted by unanimous vote at a properly noticed  public  meeting,  waive
    47  for good cause the pre-employment restrictions enumerated in this subdi-
    48  vision  for a prospective employee whose duties and responsibilities are
    49  not policy-making. Such adopted resolution shall state the  reasons  for
    50  waiving  the  pre-employment  conditions  for  the prospective employee,
    51  including a finding that there were no other qualified  candidates  with
    52  the desired experience for the specified position.
    53    4.  Any  member  of the board may be removed by the governor for cause
    54  after notice and an opportunity to be heard. A statement  of  the  cause
    55  for  their  removal  shall be filed by the governor in the office of the
    56  secretary of state.

        S. 2509--A                         49                         A. 3009--A

     1    5. In the event of a vacancy caused by the death, resignation, removal
     2  or disability of any board member, the vacancy shall be  filled  in  the
     3  same  manner as the original appointment; provided that in such instance
     4  the governor may appoint a member of the board to serve  as  chairperson
     5  for the remainder of their term without consultation with the Senate and
     6  the Assembly.
     7    6. A majority of the board members of the authority shall constitute a
     8  quorum  for  the  purpose of conducting business, and a majority vote of
     9  those present shall be required for action.
    10    7. The board shall meet as frequently as its business may require, and
    11  at least four times in each year. The board may enact and from  time  to
    12  time  amend  by-laws in relation to its meetings and the transactions of
    13  its business.
    14    § 9. Functions, powers and duties of the cannabis control  board.  The
    15  cannabis  control  board  shall  have  such powers and duties as are set
    16  forth in this chapter and shall:
    17    1. approve the office's social and economic equity  plan  pursuant  to
    18  section eighty-four of this chapter;
    19    2.  approve  the  type  and number of available licenses issued by the
    20  office;
    21    3. approve the opening of new license application periods and when new
    22  or additional licenses are made available;
    23    4. approve the creation of any new type of license;
    24    5. approve any price quotas or price controls  set  by  the  executive
    25  director as provided by this chapter;
    26    6.  at  the request of the executive director, appoint advisory groups
    27  or committees necessary to provide assistance to the office to carry out
    28  the policy of the state and purpose of this chapter;
    29    7. when an administrative decision is appealed by an applicant, regis-
    30  tered organization, licensee or permittee, issue a  final  determination
    31  of the office; and
    32    8.  promulgate  any rules and regulations necessary to effectuate this
    33  chapter.
    34    § 10. Executive director.  The office shall  exercise  its  authority,
    35  through  its executive director. The executive director shall receive an
    36  annual salary within the amounts appropriated therefor.
    37    § 11.  Functions, powers and duties of the office and executive direc-
    38  tor. The office of cannabis management, by  and  through  its  executive
    39  director, shall have the following powers and duties:
    40    1.  To  issue  or  refuse to issue any registration, license or permit
    41  provided for in this chapter.
    42    2. To limit the number, scope, and/or availability  of  registrations,
    43  licenses  and permits of each class to be issued within any political or
    44  geographic subdivision of the state,  and  in  connection  therewith  to
    45  prohibit the acceptance of applications for such classes which have been
    46  so limited, as set out in regulation and approved by the board.
    47    3.  To  revoke, cancel or suspend for cause any registration, license,
    48  or permit issued under this chapter and/or to impose a civil penalty for
    49  cause against any holder of a registration, license,  or  permit  issued
    50  pursuant  to  this chapter or any person engaged in activities without a
    51  license or permit for which a license or  permit  is  required  by  this
    52  chapter.  Any civil penalty so imposed shall be in addition to and sepa-
    53  rate and apart from the terms and provisions of the bond required pursu-
    54  ant to section thirty-five of this chapter.
    55    4. To fix by regulation the standards and requirements for the  culti-
    56  vation,  processing, packaging, marketing, and sale of medical cannabis,

        S. 2509--A                         50                         A. 3009--A

     1  adult-use cannabis and cannabinoid hemp, including but not  limited  to,
     2  the  ability to regulate potency, excipients, and the types and forms of
     3  products which may be manufactured and/or processed, in order to  ensure
     4  the  health  and  safety of the public and the use of proper ingredients
     5  and methods in the manufacture of all cannabis and cannabinoid  hemp  to
     6  be  sold  or  consumed  in the state and to ensure that products are not
     7  packaged, marketed, or otherwise  trafficked  in  a  way  which  targets
     8  minors  or  promotes increased use or cannabis use disorders, as set out
     9  in regulation and approved by the board.
    10    5. To limit or prohibit, at any time of public emergency  and  without
    11  previous  notice or advertisement, the cultivation, processing, distrib-
    12  ution or sale of any or all adult-use cannabis products, medical  canna-
    13  bis or cannabinoid hemp, for and during the period of such emergency.
    14    6.  To  inspect or provide for the inspection at any time of any prem-
    15  ises where adult-use cannabis, medical cannabis or cannabinoid  hemp  is
    16  cultivated,  processed,  stored,  distributed  or sold including but not
    17  limited to compelling the production and review of all relevant business
    18  records and financial statements and corporate documents.
    19    7. To prescribe forms of applications, criteria of review  and  method
    20  of  selection  or issuance for registrations, licenses and permits under
    21  this chapter and of all reports deemed necessary by the office.
    22    8. To delegate the powers provided in this section to such other offi-
    23  cers or employees or other state agencies as may be  deemed  appropriate
    24  by  the executive director, provided however, that any duty delegated to
    25  the executive director by the board shall not be further delegated with-
    26  out approval by the board.
    27    9. To exercise the powers and perform the duties in  relation  to  the
    28  administration of the office as are necessary but not specifically vest-
    29  ed  by  this  chapter, including but not limited to budgetary and fiscal
    30  matters.
    31    10. To develop and establish minimum criteria for certifying employees
    32  to work in the cannabis industry, which may include the establishment of
    33  a cannabis workers certification program.
    34    11. To enter into contracts, memoranda of  understanding,  and  agree-
    35  ments  as deemed appropriate by the executive director to effectuate the
    36  policy and purpose of this chapter.
    37    12. To establish and implement a  social  and  economic  equity  plan,
    38  subject to approval of the board, to ensure access to, and participation
    39  in,  the  cannabis  industry  by  social equity and economic empowerment
    40  applicants as prescribed in section eighty-four of this chapter.
    41    13. If the executive director finds that  public  health,  safety,  or
    42  welfare imperatively requires emergency action, and incorporates a find-
    43  ing  to  that  effect  in  an  order, summary suspension of a license or
    44  administrative hold of products and a product  recall  may  be  ordered,
    45  effective  on  the  date  specified  in  such order or upon service of a
    46  certified copy of such order on the licensee, whichever shall be  later,
    47  pending  proceedings  for  revocation or other action. These proceedings
    48  shall be promptly instituted and determined. In addition, the  executive
    49  director  may  order the administrative seizure of product, issue a stop
    50  order, or take any other action necessary to effectuate and enforce  the
    51  policy and purpose of this chapter.
    52    14. To issue guidance and industry advisories.
    53    15.  To recommend that the state enter into tribal-state compacts with
    54  the New York state Indian nations and tribes, as defined by section  two
    55  of the Indian law, authorizing such Indian nations or tribes to acquire,

        S. 2509--A                         51                         A. 3009--A

     1  possess,  manufacture,  sell, deliver, transport, distribute or dispense
     2  adult-use cannabis and/or medical cannabis.
     3    16.  To  coordinate  across state agencies and departments in order to
     4  research and study any changes in  cannabis  use  and  the  impact  that
     5  cannabis  use  and the regulated cannabis industry may have on access to
     6  cannabis products, public health, and public safety.
     7    § 12. Rulemaking authority. 1. The  board  shall  perform  such  acts,
     8  prescribe  such  forms and promulgate such rules, regulations and orders
     9  as it may deem necessary or proper to fully effectuate the provisions of
    10  this chapter, in accordance with the state administrative procedure act.
    11    2. The board shall promulgate any and all necessary  rules  and  regu-
    12  lations  governing  the production, processing, transportation, distrib-
    13  ution, marketing, advertising and sale of  medical  cannabis,  adult-use
    14  cannabis and cannabinoid hemp, the registration of organizations author-
    15  ized  to traffic in medical cannabis, the licensing and/or permitting of
    16  adult-use cannabis cultivators, processors, cooperatives,  distributors,
    17  and  retail dispensaries, and the licensing of cannabinoid hemp process-
    18  ors and retailers, including but not limited to:
    19    (a) establishing application, registration, reinstatement, and renewal
    20  fees;
    21    (b)  the  qualifications  and  selection  criteria  for  registration,
    22  licensing, or permitting;
    23    (c)  the  books and records to be created and maintained by registered
    24  organizations, licensees, and permittees, including the  reports  to  be
    25  made  thereon  to  the  office,  and inspection of any and all books and
    26  records maintained by any registered organization, licensee, or  permit-
    27  tee  and  on  the  premise  of any registered organization, licensee, or
    28  permittee;
    29    (d) methods of producing, processing, and packaging  adult-use  canna-
    30  bis,  medical  cannabis, and cannabinoid hemp; conditions of sanitation,
    31  standards of ingredients, quality, and identity  of  adult-use  cannabis
    32  and  medical  cannabis products cultivated, processed, packaged, or sold
    33  by registered organizations and licensees, and standards for the devices
    34  used to consume adult-use cannabis,  medical  cannabis  and  cannabinoid
    35  hemp;
    36    (e)  security  requirements for adult-use cannabis retail dispensaries
    37  and premises where cannabis products or medical cannabis are cultivated,
    38  produced, processed, or stored,  and  safety  protocols  for  registered
    39  organizations, licensees and their employees;
    40    (f) hearing procedures and additional causes for cancellation, revoca-
    41  tion, and/or civil penalties against any person registered, licensed, or
    42  permitted by the office; and
    43    (g)  the circumstances under and manner and process by which an appli-
    44  cant, registered organization, licensee,  or  permittee,  may  apply  to
    45  change  or  alter its previously submitted or approved owners, managers,
    46  members, directors, financiers, or interest holders.
    47    3. The board shall promulgate rules and regulations to:
    48    (a) prevent the distribution of adult-use cannabis  to  persons  under
    49  twenty-one  years of age including the marketing, packaging and branding
    50  of adult-use cannabis;
    51    (b) prevent the revenue from the sale of cannabis from going to crimi-
    52  nal enterprises, gangs, and cartels;
    53    (c) prevent the diversion and  inversion  of  adult-use  cannabis  and
    54  medical  cannabis  from this state to other states and from other states
    55  into this state insofar as cannabis remains federally prohibited;

        S. 2509--A                         52                         A. 3009--A

     1    (d) prevent cannabis activity that is legal under state law from being
     2  used as a cover or pretext for the trafficking of other illegal drugs or
     3  other illegal activity;
     4    (e)  prevent  violence  and the use of firearms in the cultivation and
     5  distribution of cannabis;
     6    (f) prevent drugged driving and  the  exacerbation  of  other  adverse
     7  public health consequences associated with the use of cannabis;
     8    (g)  prevent the growing of cannabis on public lands and the attendant
     9  public safety and environmental dangers posed by cannabis production  on
    10  public lands;
    11    (h)  prevent  the possession and use of adult-use cannabis and medical
    12  cannabis on federal  property  insofar  as  cannabis  remains  federally
    13  prohibited;
    14    (i)  regulate  and restrict the use of cannabis and prohibit the traf-
    15  ficking of dangerous cannabis products in order to reduce  the  rate  of
    16  cannabis  abuse,  cannabis dependency, cannabis use disorders, and other
    17  adverse public health and safety consequences of cannabis use;
    18    (j) educate the  public  and  at-risk  populations  about  responsible
    19  cannabis use and the potential dangers of cannabis use;
    20    (k)  prevent  predatory  marketing  and advertising practices targeted
    21  toward at-risk populations such as  minors,  pregnant  or  breastfeeding
    22  women,  and demographics which disproportionately engage in higher rates
    23  of cannabis use and display higher rates of cannabis use disorders;
    24    (l) notwithstanding any other section of state law,   adopt rules  and
    25  regulations  based  on  federal  guidance provided those rules and regu-
    26  lations are designed to comply with federal guidance and mitigate feder-
    27  al enforcement against the registrations, licenses,  or  permits  issued
    28  under  this  chapter,  or  the  cannabis  industry  as a whole. This may
    29  include regulations which permit the sharing of licensee, registrant, or
    30  permit-holder information with designated banking  or  financial  insti-
    31  tutions; and
    32    (m)  establish  application, licensing, and permitting processes which
    33  ensure all material owners and interest holders are disclosed  and  that
    34  officials  or  other  individuals  with  control over the approval of an
    35  application, permit, or license do not themselves have any  interest  in
    36  an application, license, or permit.
    37    4.  The  board, in consultation with the department of agriculture and
    38  markets and the department of environmental conservation, shall  promul-
    39  gate  necessary  rules  and regulations governing the safe production of
    40  adult-use cannabis and medical cannabis, including but  not  limited  to
    41  environmental and energy standards and restrictions on the use of pesti-
    42  cides.
    43    5.  The  board  shall  have  the  authority  to promulgate regulations
    44  governing the appropriate use and  licensure  of  the  manufacturing  of
    45  cannabinoids,  or  other  compounds contained within the cannabis plant,
    46  through any method other than planting, growing, cloning, harvesting, or
    47  other traditional means of plant agriculture.
    48    § 13. Deputies; employees. 1. The executive director shall  appoint  a
    49  deputy  director  for  health  and safety who shall be a licensed health
    50  care practitioner within the state and who shall  oversee  all  clinical
    51  aspects of the office. The executive director shall also appoint a depu-
    52  ty  director for social and economic equity who shall oversee the social
    53  and economic equity plan. The executive director may appoint such  other
    54  deputies as he or she deems necessary to fulfill the responsibilities of
    55  the office.

        S. 2509--A                         53                         A. 3009--A

     1    2. The executive director may appoint and remove from time to time, in
     2  accordance  with law and any applicable rules of the state civil service
     3  commission, such additional employees, under such titles as  the  execu-
     4  tive  director  may assign, as the executive director may deem necessary
     5  for  the efficient administration of the office. They shall perform such
     6  duties as the executive director shall assign to them. The  compensation
     7  of such employees shall be within the amounts appropriated therefor.
     8    3.  Investigators  employed  by the office shall be deemed to be peace
     9  officers for the purpose of enforcing the provisions of this chapter  or
    10  judgments  or orders obtained for violation thereof, with all the powers
    11  set forth in section 2.20 of the criminal procedure law.
    12    § 14. Disposition of moneys received for license  fees.    The  office
    13  shall  establish  a  scale  of application, licensing, and renewal fees,
    14  based upon the cost of enforcing this chapter which may  vary  based  on
    15  the  nature,  size,  class,  or  scope  of  the  cannabis business being
    16  licensed or the classification of the applicant, as follows:
    17    1. The office shall charge each registered organization, licensee  and
    18  permittee  a  registration, licensure or permit fee, and renewal fee, as
    19  applicable.  The fees may vary depending upon the nature, size, class or
    20  scope of the different registration, licensure and permit activities, or
    21  the classification of the applicant.
    22    2. The total fees assessed pursuant to this chapter may be set  at  an
    23  amount  that  will  generate sufficient total revenue to fully cover the
    24  total costs of administering this chapter.
    25    3. The office shall deposit all fees collected in the New  York  state
    26  cannabis  revenue fund established pursuant to section ninety-nine-ii of
    27  the state finance law.
    28    § 15. Violations  of  cannabis  laws  or  regulations;  penalties  and
    29  injunctions.    1. A person who willfully violates any provision of this
    30  chapter, or any regulation lawfully made or established  by  any  public
    31  officer  under  authority  of this chapter, the punishment for violating
    32  which is not otherwise prescribed by this chapter or any other  law,  is
    33  punishable  by a fine not exceeding five thousand dollars per violation,
    34  per day, or by both.
    35    2. Any person  who  violates,  disobeys  or  disregards  any  term  or
    36  provision  of  this chapter or of any lawful notice, order or regulation
    37  pursuant thereto for which a civil penalty is  not  otherwise  expressly
    38  prescribed  by  law,  shall  be  liable to the people of the state for a
    39  civil penalty of not to exceed five thousand dollars per violation,  per
    40  day.
    41    3.  The penalty provided for in subdivision one of this section may be
    42  recovered by an action brought by the executive director in any court of
    43  competent jurisdiction.
    44    4. Nothing in this section shall be construed to alter or  repeal  any
    45  existing  provision  of law declaring such violations to be misdemeanors
    46  or felonies or prescribing the penalty therefor.
    47    5. Such civil penalty may be released or compromised by the  executive
    48  director  before  the  matter has been referred to the attorney general,
    49  and where such matter has been referred to  the  attorney  general,  any
    50  such  penalty may be released or compromised and any action commenced to
    51  recover the same may be settled and discontinued by the attorney general
    52  with the consent of the executive director.
    53    6. It shall be the duty of the attorney general upon  the  request  of
    54  the  executive director to bring an action for an injunction against any
    55  person who violates, disobeys or disregards any  term  or  provision  of
    56  this chapter or of any lawful notice, order or regulation pursuant ther-

        S. 2509--A                         54                         A. 3009--A

     1  eto;  provided,  however,  that the executive director shall furnish the
     2  attorney general with such material, evidentiary matter or proof as  may
     3  be  requested  by  the  attorney  general for the prosecution of such an
     4  action.
     5    7. It is the purpose of this section to provide additional and cumula-
     6  tive  remedies,  and  nothing  herein  contained  shall abridge or alter
     7  rights of action or remedies now or hereafter existing,  nor  shall  any
     8  provision  of  this  section,  nor  any  action  done  by virtue of this
     9  section, be construed as estopping the state, persons or  municipalities
    10  in the exercising of their respective rights.
    11    §  16.  Formal  hearings; notice and procedure.   1. The board, or any
    12  person designated by the board for this purpose, may issue subpoenas and
    13  administer oaths in connection with any hearing or  investigation  under
    14  or  pursuant  to this chapter, and it shall be the duty of the board and
    15  any persons designated by the board for such purpose to issue  subpoenas
    16  at the request of and upon behalf of the respondent.
    17    2.  The  board and those designated by the board shall not be bound by
    18  the laws of evidence in the conduct  of  hearing  proceedings,  but  the
    19  determination shall be founded upon substantial evidence to sustain it.
    20    3.  Notice  of  hearing shall be served at least fifteen days prior to
    21  the date of the hearing, provided that, whenever because  of  danger  to
    22  the  public  health,  safety  or  welfare  it appears prejudicial to the
    23  interests of the people of the state to delay action for  fifteen  days,
    24  the  executive director may serve the respondent with an order requiring
    25  certain action or the cessation of  certain  activities  immediately  or
    26  within a specified period of less than fifteen days.
    27    4.  Service  of  notice  of hearing or order shall be made by personal
    28  service or by registered or certified mail. Where  service,  whether  by
    29  personal  service  or  by  registered or certified mail, is made upon an
    30  incompetent, partnership, or corporation, it  shall  be  made  upon  the
    31  person  or  persons  designated  to  receive personal service by article
    32  three of the civil practice law and rules.
    33    5. At a hearing, the respondent may appear personally, shall have  the
    34  right of counsel, and may cross-examine witnesses against him or her and
    35  produce evidence and witnesses in his or her behalf.
    36    6. Following a hearing, the board or its designee may make appropriate
    37  determinations and issue a final order in accordance therewith.
    38    7.  The  board  may  adopt,  amend and repeal administrative rules and
    39  regulations governing the procedures to  be  followed  with  respect  to
    40  hearings,  such  rules  to  be consistent with the policy and purpose of
    41  this chapter and the effective and fair enforcement of its provisions.
    42    8. The provisions of this section shall be applicable to all  hearings
    43  held  pursuant  to  this  chapter, except where other provisions of this
    44  chapter applicable thereto are inconsistent therewith,  in  which  event
    45  such other provisions shall apply.
    46    § 17. Ethics, transparency and accountability. Except as authorized by
    47  the  board  no  member  of the office or any officer, deputy, assistant,
    48  inspector or employee thereof shall have any interest, direct  or  indi-
    49  rect,  either  proprietary or by means of any loan, mortgage or lien, or
    50  in any other manner, in or  on  any  premises  registered,  licensed  or
    51  permitted  under  this chapter; nor shall they have any interest, direct
    52  or indirect, in any business wholly  or  substantially  devoted  to  the
    53  cultivation,  processing, distribution, sale, transportation, marketing,
    54  testing, or storage of adult-use cannabis, medical cannabis or  cannabi-
    55  noid  hemp,  or own any stock in any corporation which has any interest,
    56  proprietary or otherwise, direct or  indirect,  in  any  premises  where

        S. 2509--A                         55                         A. 3009--A

     1  adult-use  cannabis, medical cannabis or cannabinoid hemp is cultivated,
     2  processed, distributed or sold, or in any business wholly  or  partially
     3  devoted  to the cultivation, processing, distribution, sale, transporta-
     4  tion  or  storage of adult-use cannabis, medical cannabis or cannabinoid
     5  hemp, or receive any commission or profit whatsoever,  direct  or  indi-
     6  rect, from any person applying for, receiving, managing or operating any
     7  license  or  permit  provided  for  in  this  chapter, or hold any other
     8  elected or appointed public office in the  state  or  in  any  political
     9  subdivision  to  which a registered organization, licensee, permittee or
    10  applicant would appear. Anyone who violates any  of  the  provisions  of
    11  this  section  shall  be  removed or shall divest him or herself of such
    12  direct or indirect interests.
    13    § 18. Public health and education campaign. The office,  in  consulta-
    14  tion  with  the  commissioners  of  the  department of health, office of
    15  addiction services and supports, and  office  of  mental  health,  shall
    16  develop and implement a comprehensive public health monitoring, surveil-
    17  lance  and  education  campaign  regarding the legalization of adult-use
    18  cannabis and the impact of cannabis use on  public  health  and  safety.
    19  The  public  health  and  education  campaign shall also include general
    20  education to the public about the cannabis law.
    21    § 19. Traffic safety oral fluid or  other  roadside  detection  method
    22  pilot  program. The office, in consultation with the commissioner of the
    23  department of motor vehicles and the superintendent of the state police,
    24  shall develop and implement a workgroup together with  other  states  to
    25  outline  goals  and  standard  operating  procedures  for a statewide or
    26  regional oral fluid or other roadside detection pilot program. The work-
    27  group may include, but not be limited to, representatives from  district
    28  attorney  offices,  local and county police departments, and other rele-
    29  vant public safety experts.
    30    § 20. Establish uniform policies and best practices. The office  shall
    31  engage in activities with other states, territories, or jurisdictions in
    32  order  to  coordinate and establish, uniform policies and best practices
    33  in cannabis regulation. These activities shall  prioritize  coordination
    34  with neighboring and regional states, and may include, but not be limit-
    35  ed  to  establish working groups related to laboratory testing, products
    36  safety, taxation, road safety, compliance  and  adherence  with  federal
    37  policies  which promote or facilitate cannabis research, commerce and/or
    38  regulation, and any other issues identified by the  executive  director.
    39  The  executive  director  may  enter into any contracts, or memoranda of
    40  understanding necessary to effectuate this provision.

    41                                  ARTICLE 3
    42                              MEDICAL CANNABIS
    43  Section 30. Certification of patients.
    44          31. Lawful medical use.
    45          32. Registry identification cards.
    46          33. Registration as a designated caregiver facility.
    47          34. Registered organizations.
    48          35. Registering of registered organizations.
    49          36. Intentionally omitted.
    50          37. Reports of registered organizations.
    51          38. Evaluation; research programs; report by office.
    52          39. Cannabis research license.
    53          40. Registered organizations and adult-use cannabis.
    54          41. Intentionally omitted.
    55          42. Relation to other laws.

        S. 2509--A                         56                         A. 3009--A

     1          43. Protections for the medical use of cannabis.
     2          44. Regulations.
     3          45. Suspend; terminate.
     4          46. Pricing.
     5          47. Severability.
     6    §  30. Certification of patients.  1. A patient certification may only
     7  be issued if:
     8    (a) the patient has a serious condition, which shall be  specified  in
     9  the patient's health care record;
    10    (b)  the  practitioner by training or experience is qualified to treat
    11  the serious condition;
    12    (c) the patient is under the practitioner's continuing  care  for  the
    13  serious condition; and
    14    (d)  in  the  practitioner's  professional  opinion and review of past
    15  treatments, the patient is likely to receive therapeutic  or  palliative
    16  benefit  from  the  primary  or adjunctive treatment with medical use of
    17  cannabis for the serious condition.
    18    2. The certification shall include: (a) the name, date  of  birth  and
    19  address  of  the patient; (b) a statement that the patient has a serious
    20  condition and the patient is under the practitioner's care for the seri-
    21  ous condition; (c) a statement attesting that all requirements of subdi-
    22  vision one of this section have been satisfied; (d) the  date;  and  (e)
    23  the name, address, telephone number, and the signature of the certifying
    24  practitioner.  The executive director may require by regulation that the
    25  certification shall be on a form provided by the office. The practition-
    26  er may state in the certification that, in  the  practitioner's  profes-
    27  sional  opinion,  the  patient  would benefit from medical cannabis only
    28  until a specified date. The practitioner may state in the  certification
    29  that,  in the practitioner's professional opinion, the patient is termi-
    30  nally ill and that the certification shall not expire until the  patient
    31  dies.
    32    3.  In  making  a  certification,  the  practitioner  may consider any
    33  approved form of medical cannabis the patient should consume,  including
    34  the  method of consumption and any particular strain, variety, and quan-
    35  tity or percentage of cannabis  or  particular  active  ingredient,  and
    36  appropriate  dosage. The practitioner may state in the certification any
    37  recommendation or limitation the  practitioner  makes,  in  his  or  her
    38  professional  opinion,  concerning  the  appropriate  form  or  forms of
    39  medical cannabis and dosage.
    40    4.  Every  practitioner  shall  consult  the  prescription  monitoring
    41  program  registry  prior  to  making or issuing a certification, for the
    42  purpose of reviewing  a  patient's  controlled  substance  history.  For
    43  purposes  of  this  section,  a practitioner may authorize a designee to
    44  consult the prescription monitoring  program  registry  on  his  or  her
    45  behalf,  provided  that  such  designation is in accordance with section
    46  thirty-three hundred forty-three-a of the public health law.
    47    5. The practitioner shall give  the  certification  to  the  certified
    48  patient, and place a copy in the patient's health care record.
    49    6.  No practitioner shall issue a certification under this section for
    50  himself or herself.
    51    7. A registry identification  card  based  on  a  certification  shall
    52  expire  one year after the date the certification is signed by the prac-
    53  titioner.
    54    8. (a) If the practitioner states in the certification  that,  in  the
    55  practitioner's  professional  opinion,  the  patient  would benefit from
    56  medical cannabis only until a specified earlier date, then the  registry

        S. 2509--A                         57                         A. 3009--A

     1  identification  card  shall expire on that date; (b) if the practitioner
     2  states in the certification  that  in  the  practitioner's  professional
     3  opinion  the  patient is terminally ill and that the certification shall
     4  not expire until the patient dies, then the registry identification card
     5  shall state that the patient is terminally ill and that the registration
     6  card  shall  not  expire until the patient dies; (c) if the practitioner
     7  re-issues the certification to terminate the certification on an earlier
     8  date, then the registry identification card shall expire  on  that  date
     9  and  shall  be  promptly  destroyed by the certified patient; (d) if the
    10  certification so provides, the registry identification card shall  state
    11  any  recommendation  or limitation by the practitioner as to the form or
    12  forms of medical cannabis or dosage for the certified patient;  and  (e)
    13  the board shall make regulations to implement this subdivision.
    14    9.  A practitioner who offers patient certification shall not have any
    15  business relationship with, or own any stock in  any  corporation  which
    16  has  any  interest, proprietary or otherwise, direct or indirect, in any
    17  registered organization, or other business  or  premises  where  medical
    18  cannabis  is  cultivated, processed, distributed or sold. This provision
    19  shall not be construed to prohibit a  practitioner  who  offers  patient
    20  certification  from providing their medical expertise to, or engaging in
    21  medical cannabis research with, a registered organization or a  licensee
    22  that  traffics in medical cannabis provided that the practitioner is not
    23  compensated for or offered any consideration for  these  educational  or
    24  research activities.
    25    §  31. Lawful medical use. The possession, acquisition, use, delivery,
    26  transfer, transportation, or administration of  medical  cannabis  by  a
    27  certified  patient, designated caregiver or designated caregiver facili-
    28  ty, for certified medical  use,  shall  be  lawful  under  this  article
    29  provided that:
    30    (a)  the  cannabis  that may be possessed by a certified patient shall
    31  not exceed quantities determined by the board in regulation;
    32    (b) the cannabis that may be possessed by designated  caregivers  does
    33  not  exceed  the  quantities  determined by the executive director under
    34  paragraph (a) of this subdivision for any certified patient for whom the
    35  caregiver is issued a valid registry identification card;
    36    (c) the cannabis that may be possessed by designated caregiver facili-
    37  ties does not exceed the quantities determined by the board under  para-
    38  graph  (a) of this subdivision for each certified patient under the care
    39  or treatment of the facility;
    40    (d) the form or forms of medical cannabis that may be possessed by the
    41  certified patient, designated caregiver or designated caregiver facility
    42  pursuant to a certification shall be in compliance with any  recommenda-
    43  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    44  medical cannabis or dosage for the  certified  patient  in  the  certif-
    45  ication  and  consistent  with  any guidance or limitation issued by the
    46  executive director or regulation issued by the board; and
    47    (e) the medical cannabis shall be kept  in  the  original  package  in
    48  which  it  was  dispensed  under  this  article,  except for the portion
    49  removed for immediate consumption  for  certified  medical  use  by  the
    50  certified patient.
    51    §  32. Registry identification cards.  1. Upon approval of the certif-
    52  ication, the office shall issue registry identification cards for certi-
    53  fied patients and designated caregivers. A registry identification  card
    54  shall  expire  as  provided  in this article or as otherwise provided in
    55  this section.  The office shall begin  issuing  registry  identification
    56  cards  as  soon as practicable after the certifications required by this

        S. 2509--A                         58                         A. 3009--A

     1  chapter are granted. The office may specify a form for a registry appli-
     2  cation, in which case the office shall  provide  the  form  on  request,
     3  reproductions  of  the form may be used, and the form shall be available
     4  for downloading from the office's website.
     5    2.  To obtain, amend or renew a registry identification card, a certi-
     6  fied patient or designated caregiver shall file a  registry  application
     7  with  the  office,  unless otherwise exempted by the executive director.
     8  The registry application  or  renewal  application  shall  include  such
     9  information  as  prescribed by the office which shall include but not be
    10  limited to:
    11    (a) in the case of a certified patient:
    12    (i) the patient's certification, a new written certification shall  be
    13  provided with a renewal application if required by the office;
    14    (ii) the name, address, and date of birth of the patient;
    15    (iii) the date of the certification;
    16    (iv)  if  the  patient  has  a registry identification card based on a
    17  current valid certification,  the  registry  identification  number  and
    18  expiration date of that registry identification card;
    19    (v)  the  specified  date  until  which the patient would benefit from
    20  medical cannabis, if the certification states such a date;
    21    (vi) the name, address, and telephone number of the certifying practi-
    22  tioner;
    23    (vii) any recommendation or limitation by the practitioner as  to  the
    24  form or forms of medical cannabis or dosage for the certified patient;
    25    (viii)  if  the  certified  patient  applies to designate a designated
    26  caregiver, the name, address, and date of birth of the designated  care-
    27  giver,  and  other  individual  identifying  information required by the
    28  office; and
    29    (ix) other individual identifying information required by the office;
    30    (b) in the case of a designated caregiver:
    31    (i) the name, address, and date of birth of the designated caregiver;
    32    (ii) if the designated caregiver has a registry  identification  card,
    33  the  registry identification number and expiration date of that registry
    34  identification card; and
    35    (iii) other individual identifying information required by the office;
    36    (c) a statement that a false statement  made  in  the  application  is
    37  punishable under section 210.45 of the penal law;
    38    (d)  the  date  of  the application and the signature of the certified
    39  patient or designated caregiver, as the case may be;
    40    (e) any other requirements determined by the executive director.
    41    3. Where a certified patient is under the age of eighteen or otherwise
    42  incapable of consent:
    43    (a) The application for a registry identification card shall  be  made
    44  by  an  appropriate  person  over eighteen years of age. The application
    45  shall state facts demonstrating that the person is appropriate.
    46    (b) The designated caregiver shall be: (i) a parent or legal  guardian
    47  of  the certified patient; (ii) a person designated by a parent or legal
    48  guardian; (iii) a designated caregiver facility; or (iv) an  appropriate
    49  person  approved  by the office upon a sufficient showing that no parent
    50  or legal guardian is appropriate or available.
    51    4. No person may be a designated caregiver  if  the  person  is  under
    52  twenty-one  years  of  age  unless  a  sufficient showing is made to the
    53  office that the person should be permitted  to  serve  as  a  designated
    54  caregiver.  The  requirements  for such a showing shall be determined by
    55  the executive director.

        S. 2509--A                         59                         A. 3009--A

     1    5. No person may be a designated caregiver for more than one certified
     2  patient at one time, unless approved by the office. The office may allow
     3  a designated caregiver to serve more than one  patient  in  cases  where
     4  additional  designating  patients  are  immediate family members, in the
     5  immediate  and continuous care of the caregiver, or satisfy other eligi-
     6  bility requirements determined by the board in regulation.
     7    6. If a certified patient wishes to change or  terminate  his  or  her
     8  designated  caregiver,  for whatever reason, the certified patient shall
     9  notify the office as soon as  practicable.  The  office  shall  issue  a
    10  notification to the designated caregiver that their registration card is
    11  invalid  and  must be promptly destroyed. The newly designated caregiver
    12  must comply with all requirements set forth in this section.
    13    7. If the certification so provides, the registry identification  card
    14  shall contain any recommendation or limitation by the practitioner as to
    15  the  form  or  forms  of  medical  cannabis  or dosage for the certified
    16  patient.
    17    8. The office shall issue separate registry identification  cards  for
    18  certified patients and designated caregivers as soon as reasonably prac-
    19  ticable  after receiving and approving a complete application under this
    20  section, unless it determines that the application is incomplete, factu-
    21  ally inaccurate, or fails to satisfy any applicable regulation, in which
    22  case it shall promptly notify the applicant.
    23    9. If the application of a certified patient designates an  individual
    24  as a designated caregiver who is not authorized to be a designated care-
    25  giver, that portion of the application shall be denied by the office but
    26  that shall not affect the approval of the balance of the application.
    27    10. A registry identification card shall:
    28    (a)  contain the name of the certified patient or the designated care-
    29  giver as the case may be;
    30    (b) contain the date of issuance and expiration date,  as  applicable,
    31  of the registry identification card;
    32    (c) contain a registry identification number for the certified patient
    33  or  designated  caregiver, as the case may be and a registry identifica-
    34  tion number;
    35    (d) contain a photograph of the individual to whom the registry  iden-
    36  tification  card  is being issued, which shall be obtained by the office
    37  in a manner specified by the executive director; provided, however, that
    38  if the office requires certified patients to submit photographs for this
    39  purpose, there shall be a reasonable accommodation of certified patients
    40  who are confined to their homes due to their medical conditions and  may
    41  therefore have difficulty procuring photographs;
    42    (e) be a secure document as determined by the office;
    43    (f) plainly state any recommendation or limitation by the practitioner
    44  as  to the form or forms of medical cannabis or dosage for the certified
    45  patient; and
    46    (g) contain any other requirements determined by the executive  direc-
    47  tor.
    48    11.  A certified patient or designated caregiver who has been issued a
    49  registry identification card shall notify the office of  any  change  in
    50  his or her name or address or, with respect to the patient, if he or she
    51  ceases  to  have the serious condition noted on the certification within
    52  ten  days  of  such  change.  The  certified  patient's  or   designated
    53  caregiver's  registry  identification  card  shall be deemed invalid and
    54  shall be promptly destroyed.
    55    12. If a certified patient or designated caregiver loses  his  or  her
    56  registry  identification  card, he or she shall notify the office within

        S. 2509--A                         60                         A. 3009--A

     1  ten days of losing the card. The office shall issue a new registry iden-
     2  tification card as soon as practicable, which may contain a new registry
     3  identification number, to the certified patient or designated caregiver,
     4  as the case may be.
     5    13.  The  office  shall maintain a confidential list of the persons to
     6  whom it has issued registry identification cards. Individual identifying
     7  information obtained by the office under this article shall be confiden-
     8  tial and exempt from disclosure under article six of the public officers
     9  law.  Notwithstanding this subdivision, the office may notify any appro-
    10  priate law enforcement agency of information relating to  any  violation
    11  or suspected violation of this article.
    12    14.  The office shall verify to law enforcement personnel in an appro-
    13  priate case whether a registry identification  card  is  valid  and  any
    14  other  information  necessary  to  protect  patients'  rights to medical
    15  cannabis by confirming compliance with this article.
    16    15. If a certified patient or designated caregiver willfully  violates
    17  any  provision  of  this article or regulations promulgated hereunder as
    18  determined by the executive  director,  his  or  her  certification  and
    19  registry  identification  card  may  be suspended or revoked. This is in
    20  addition to any other penalty that may apply.
    21    § 33. Registration as a designated caregiver facility.  1. To  obtain,
    22  amend  or  renew  a registration as a designated caregiver facility, the
    23  facility shall file a registry application with the office. The registry
    24  application or renewal application shall include:
    25    (a) the facility's full name and address;
    26    (b) operating certificate or license number where appropriate;
    27    (c) name, title, and signature of  an  authorized  facility  represen-
    28  tative;
    29    (d)  a  statement that the facility agrees to secure and ensure proper
    30  handling of all medical cannabis products;
    31    (e) an acknowledgement that a false statement in  the  application  is
    32  punishable under section 210.45 of the penal law; and
    33    (f) any other information that may be required by the executive direc-
    34  tor.
    35    2. Prior to issuing or renewing a designated caregiver facility regis-
    36  tration,  the  office may verify the information submitted by the appli-
    37  cant. The applicant shall provide, at the office's request, such  infor-
    38  mation  and documentation, including any consents or authorizations that
    39  may be necessary for the office to verify the information.
    40    3. The office shall approve, deny or  reject  an  initial  or  renewal
    41  application.  If  the  application is approved within the 30-day period,
    42  the office shall issue a registration as soon as is reasonably practica-
    43  ble.
    44    4. Registrations issued under this section shall remain valid for  two
    45  years from the date of issuance.
    46    § 34. Registered organizations.  1. A registered organization shall be
    47  a for-profit business entity or not-for-profit corporation organized for
    48  the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
    49  ing, transporting, distributing, or dispensing  cannabis  for  certified
    50  medical  use,  in  accordance  with  minimum operating and recordkeeping
    51  requirements determined by the board in regulation.
    52    2. The acquiring, possession, manufacture,  testing,  sale,  delivery,
    53  transporting,  distributing,  or  dispensing  of  medical  cannabis by a
    54  registered organization under this article in accordance with its regis-
    55  tration under this article or a renewal thereof shall  be  lawful  under
    56  this chapter.

        S. 2509--A                         61                         A. 3009--A

     1    3.  Each  registered  organization  shall contract with an independent
     2  laboratory permitted by the office to test the medical cannabis produced
     3  by the registered organization. The executive director, in  consultation
     4  with  the  commissioner  of health, shall approve the laboratory used by
     5  the  registered  organization, including but not limited to sampling and
     6  testing protocols and standards used by the laboratory, and may  require
     7  that the registered organization use a particular testing laboratory.
     8    4.  (a)  A registered organization may only sell, deliver, distribute,
     9  or dispense medical cannabis to a certified patient or designated  care-
    10  giver  upon  presentation to the registered organization of  valid iden-
    11  tification for that certified patient or  designated  caregiver.    When
    12  presented  with  the registry identification card, the registered organ-
    13  ization shall provide to the certified patient or designated caregiver a
    14  receipt, which shall state: the name, address, and registry  identifica-
    15  tion  number of the registered organization; the name and registry iden-
    16  tification number of the certified patient and the designated caregiver,
    17  if any; the date the cannabis was sold; any recommendation or limitation
    18  by the practitioner as to the form  or  forms  of  medical  cannabis  or
    19  dosage  for  the  certified  patient;  and  the form and the quantity of
    20  medical cannabis sold. The registered organization shall retain  a  copy
    21  of  the  registry identification card and the receipt for six years, and
    22  shall make such records available to the office upon demand.
    23    (b) The proprietor of a registered organization shall file or cause to
    24  be filed any receipt and certification information with  the  office  by
    25  electronic  means  on  a  real-time  basis as the executive director may
    26  require. When filing receipt  and  certification  information  electron-
    27  ically  pursuant  to  this  paragraph,  the proprietor of the registered
    28  organization shall dispose of any electronically  recorded  prescription
    29  information in such manner as the executive director shall require.
    30    5.  (a)  No  registered  organization may sell, deliver, distribute or
    31  dispense to any certified patient or designated caregiver a quantity  of
    32  medical cannabis larger than that individual would be allowed to possess
    33  as set out in regulation by the board.
    34    (b)  When dispensing medical cannabis to a certified patient or desig-
    35  nated caregiver, the registered organization:  (i) shall not dispense an
    36  amount greater than an amount established by the  board  in  regulation;
    37  and  (ii) shall verify the information in subparagraph (i) of this para-
    38  graph by consulting the prescription monitoring program  registry  under
    39  this article.
    40    (c)  Medical  cannabis  dispensed to a certified patient or designated
    41  caregiver by a registered organization shall conform to any  recommenda-
    42  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    43  medical cannabis or dosage for the certified patient,  and  any  medical
    44  cannabis  product  or form limitations or restrictions determined by the
    45  executive director.
    46    6. When a registered  organization  sells,  delivers,  distributes  or
    47  dispenses medical cannabis to a certified patient or designated caregiv-
    48  er,  it  shall  provide to that individual a safety insert, which may be
    49  developed by the registered organization and shall include, but  not  be
    50  limited to, information on:
    51    (a) methods for administering medical cannabis in individual doses,
    52    (b) any potential dangers stemming from the use of medical cannabis,
    53    (c) how to recognize what may be problematic usage of medical cannabis
    54  and obtain appropriate services or treatment for problematic usage, and
    55    (d) other information as determined by the executive director.

        S. 2509--A                         62                         A. 3009--A

     1    7.  Registered  organizations shall not be managed by or employ anyone
     2  who has been convicted  of  any  felony  other  than  for  the  sale  or
     3  possession  of  drugs, narcotics, or controlled substances, and provided
     4  that this subdivision only applies to (a) managers or employees who come
     5  into  contact with or handle medical cannabis, and (b) a conviction less
     6  than ten years, not counting time spent in incarceration, prior to being
     7  employed, for which the person has not received a certificate of  relief
     8  from  disabilities,  a certificate of good conduct under article twenty-
     9  three of the correction law, or an executive pardon.
    10    8. Manufacturing of medical  cannabis  by  a  registered  organization
    11  shall only be done in a secure facility located in New York state, which
    12  may  include a greenhouse. The board shall promulgate regulations estab-
    13  lishing requirements for such facilities.
    14    9. Dispensing of medical cannabis by a registered  organization  shall
    15  only be done in an indoor, enclosed, secure facility located in New York
    16  state.  The board shall promulgate regulations establishing requirements
    17  for such facilities.
    18    10. A registered organization shall determine the quality, safety, and
    19  clinical  strength  of medical cannabis manufactured or dispensed by the
    20  registered organization, and shall provide documentation of that  quali-
    21  ty,  safety  and  clinical  strength  to the office and to any person or
    22  entity to which the medical cannabis is sold or dispensed.
    23    11. A registered organization shall be deemed to  be  a  "health  care
    24  provider"  for  the purposes of title two-D of article two of the public
    25  health law.
    26    12. Medical cannabis shall be dispensed  to  a  certified  patient  or
    27  designated  caregiver in a sealed and properly labeled package as deter-
    28  mined by the executive director.  The labeling shall  contain:  (a)  the
    29  information  required  to  be  included  in  the receipt provided to the
    30  certified patient or designated caregiver by  the  registered  organiza-
    31  tion;  (b)  the  packaging  date;  (c)  any applicable date by which the
    32  medical cannabis should be used; (d) a warning stating, "This product is
    33  for medicinal use only. Women should not  consume  during  pregnancy  or
    34  while  breastfeeding  except on the advice of the certifying health care
    35  practitioner, and in the case of breastfeeding  mothers,  including  the
    36  infant's  pediatrician.  This product might impair the ability to drive.
    37  Keep out of reach of children."; (e)  the  amount  of  individual  doses
    38  contained  within;  (f) a warning that the medical cannabis must be kept
    39  in the original container in which it was dispensed; and (g)  any  other
    40  information required by the office.
    41    13.  The board is authorized to make rules and regulations restricting
    42  the advertising and marketing of medical cannabis.
    43    14. The board is authorized to make rules and  regulations  regulating
    44  the packaging, labeling, form and method of administration or ingestion,
    45  branding  and  marketing  of medical cannabis products to prohibit acci-
    46  dental or overconsumption.
    47    § 35. Registering of registered organizations.    1.  Application  for
    48  initial  registration. (a) An applicant for registration as a registered
    49  organization under section thirty-four of  this  article  shall  include
    50  such  information  prepared  in  such manner and detail as the executive
    51  director may require, including but not limited to:
    52    (i) a description of the activities in which it intends to engage as a
    53  registered organization;
    54    (ii) that the applicant:
    55    (A) is of good moral character;

        S. 2509--A                         63                         A. 3009--A

     1    (B) possesses or has the right to use sufficient land, buildings,  and
     2  other  premises, which shall be specified in the application, and equip-
     3  ment to properly carry on the activity described in the application,  or
     4  in the alternative posts a bond of not less than two million dollars;
     5    (C)  is  able  to  maintain  effective security and control to prevent
     6  diversion, abuse, and other illegal conduct relating  to  the  cannabis;
     7  and
     8    (D)  is  able to comply with all applicable state laws and regulations
     9  relating to the activities in which it is applying to  engage  in  under
    10  the registration;
    11    (iii) that the applicant has entered into a labor peace agreement with
    12  a  bona fide labor organization that is actively engaged in representing
    13  or attempting to represent the applicant's employees and the maintenance
    14  of such a labor peace agreement shall be an ongoing  material  condition
    15  of certification;
    16    (iv)  the  applicant's  status as a for-profit business entity or not-
    17  for-profit corporation; and
    18    (v) the application shall include  the  name,  residence  address  and
    19  title  of  each of the officers and directors and the name and residence
    20  address of any person or entity  that  is  a  member  of  the  applicant
    21  including  those  of  the  applicant's parent companies, subsidiaries or
    22  affiliates.  Each such person, if an  individual,  or  lawful  represen-
    23  tative if a legal entity, shall submit an affidavit with the application
    24  setting forth:
    25    (A)  any  position  of  management,  interest, or ownership during the
    26  preceding ten years of a ten per centum or greater interest in any other
    27  cannabis business or applicant, located in or  outside  of  this  state,
    28  manufacturing or distributing drugs, including indirect interest manage-
    29  ment or ownership of parent companies, subsidiaries, or affiliates;
    30    (B)  whether such person or any such business has had a cannabis busi-
    31  ness application denied or withdrawn or been convicted of  a  felony  or
    32  had  a registration or license subject to administrative action, includ-
    33  ing but not limited to violations, penalties, or consent agreements,  or
    34  had  any registration or license suspended or revoked in any administra-
    35  tive or judicial proceeding; and
    36    (C) such other information as the executive  director  may  reasonably
    37  require to enforce the licensing restrictions of this chapter.
    38    2.  The  applicant shall be under a continuing duty to obtain approval
    39  from the office prior to any material changes in ownership,  management,
    40  or financial or managerial interest, or prior to substantive operational
    41  changes,  and to disclose any change in facts or circumstances reflected
    42  in the application or any newly discovered or occurring fact or  circum-
    43  stance which is required to be included in the application.
    44    3. (a) The executive director may grant a registration, approve one or
    45  more  activities  permitted  under  a registration, or grant a requested
    46  amendment to a registration under this section  if  they  are  satisfied
    47  that:
    48    (i)  the  applicant will be able to maintain effective control against
    49  diversion of cannabis;
    50    (ii) the applicant will be able to comply with  all  applicable  state
    51  laws and regulations;
    52    (iii)  the  applicant  and its officers are ready, willing and able to
    53  properly carry on the manufacturing or distributing activity for which a
    54  registration is sought;

        S. 2509--A                         64                         A. 3009--A

     1    (iv) the applicant possesses or has the right to use sufficient  land,
     2  buildings  and  equipment to properly carry on the activity described in
     3  the application;
     4    (v)  it  is  in the public interest that such registration be granted,
     5  including but not limited to:
     6    (A) whether the number of registered organizations in an area will  be
     7  adequate  or  excessive  to reasonably serve the state or area's patient
     8  need and demand;
     9    (B) whether the registered organization is  a  minority  and/or  woman
    10  owned business enterprise or a service-disabled veteran-owned business;
    11    (C)   whether  the  registered  organization  provides  education  and
    12  outreach to practitioners;
    13    (D) whether the registered  organization  promotes  the  research  and
    14  development of medical cannabis and/or patient outreach; and
    15    (E)  the affordability medical cannabis products offered by the regis-
    16  tered organization;
    17    (vi) the applicant and its managing officers and interest holders  are
    18  of  good  moral  character and have demonstrated a record and history of
    19  compliance with cannabis laws and regulations in the jurisdictions where
    20  they operate or have operated cannabis licenses and/or registrations;
    21    (vii) the applicant has entered into a labor peace  agreement  with  a
    22  bona fide labor organization that is actively engaged in representing or
    23  attempting  to  represent the applicant's employees; and the maintenance
    24  of such a labor peace agreement shall be an ongoing  material  condition
    25  of registration; and
    26    (viii)  the  applicant satisfies any other conditions as determined by
    27  the executive director.
    28    (b) If the executive director is  not  satisfied  that  the  applicant
    29  should be issued a registration or granted approval to amend an existing
    30  registration,  he  or she shall notify the applicant in writing of those
    31  factors upon which the denial  is  based.  Within  thirty  days  of  the
    32  receipt of such notification, the applicant may submit a written request
    33  to the board to appeal the decision.
    34    (c)  The  fee for a registration under this section shall be an amount
    35  determined by the office in regulations.
    36    (d) Registrations issued under this section shall  be  effective  only
    37  for the registered organization and shall specify:
    38    (i) the name and address of the registered organization;
    39    (ii)  which  activities  of a registered organization are permitted by
    40  the registration;
    41    (iii) the land, buildings and facilities that  may  be  used  for  the
    42  permitted activities of the registered organization; and
    43    (iv) such other information as the executive director shall reasonably
    44  provide to assure compliance with this article.
    45    (e)  Upon application of a registered organization, a registration may
    46  be amended to allow the registered organization to relocate  within  the
    47  state  or  to add or delete permitted registered organization activities
    48  or facilities. The fee for such amendment request shall be determined by
    49  the executive director.
    50    4. A registration issued under this section shall  be  valid  for  two
    51  years from the date of issue.
    52    5.    (a)  An  application  for the renewal of any registration issued
    53  under this section shall be filed with the  office  not  more  than  six
    54  months  nor  less  than  four  months prior to the expiration thereof. A
    55  late-filed application for the renewal of a  registration  may,  in  the

        S. 2509--A                         65                         A. 3009--A

     1  discretion  of  the executive director, be treated as an application for
     2  an initial license.
     3    (b)  The  application  for  renewal  shall  include  such  information
     4  prepared in the manner and detail as the executive director may require,
     5  including but not limited to:
     6    (i) any material change in the  circumstances  or  factors  listed  in
     7  subdivision one of this section; and
     8    (ii)  every known charge or investigation, pending or concluded during
     9  the period of the registration, by any  governmental  or  administrative
    10  agency with respect to:
    11    (A)  each  incident  or alleged incident involving the theft, loss, or
    12  possible diversion of cannabis manufactured or distributed by the appli-
    13  cant; and
    14    (B) compliance by the applicant with the laws of any state or territo-
    15  ry with respect to the cultivation, manufacture, distribution or sale of
    16  adult-use cannabis or medical cannabis.
    17    (c) An applicant for renewal shall  be  under  a  continuing  duty  to
    18  report  to  the office any change in facts or circumstances reflected in
    19  the application or any newly discovered or  occurring  fact  or  circum-
    20  stance  which  is  required  to  be  included in the application, and to
    21  obtain approval prior to any  material  change  in  ownership  interest,
    22  management or operations.
    23    (d)  If  the  executive  director is not satisfied that the registered
    24  organization applicant is entitled to a renewal of the registration,  he
    25  or  she  shall within a reasonably practicable time as determined by the
    26  executive director, serve upon the registered organization or its attor-
    27  ney of record in person or by registered  or  certified  mail  an  order
    28  directing  the registered organization to show cause why its application
    29  for renewal should not be denied. The order shall specify in detail  the
    30  respects in which the applicant has not satisfied the executive director
    31  that the registration should be renewed.
    32    6.  (a) The executive director shall renew a registration unless he or
    33  she determines and finds that:
    34    (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
    35  effective control against diversion;
    36    (ii) the applicant is unlikely to comply with all state laws and regu-
    37  lations  applicable  to  the  registration application and activities in
    38  which it may engage under the registration;
    39    (iii) it is not in the  public  interest  to  renew  the  registration
    40  because  the  number of registered organizations in an area is excessive
    41  to reasonably serve the state or area and patient need;
    42    (iv) the applicant has either violated or terminated its  labor  peace
    43  agreement; or
    44    (v) the applicant has substantively violated this chapter, regulations
    45  promulgated  thereunder,  or  the  laws of another jurisdiction in which
    46  they operate or have operated a cannabis license or registration.
    47    (b) For purposes of this section, proof that  a  registered  organiza-
    48  tion,  during  the  period  of  its registration, has failed to maintain
    49  effective control against diversion,  violated  any  provision  of  this
    50  article,  or has knowingly or negligently failed to comply with applica-
    51  ble state laws relating to the activities in which it engages under  the
    52  registration, may constitute grounds for suspension, revocation or limi-
    53  tation of the registered organization's registration or as determined by
    54  the  executive director. The registered organization shall also be under
    55  a continuing duty to report to the office and obtain prior approval  for

        S. 2509--A                         66                         A. 3009--A

     1  any  material change or fact or circumstance to the information provided
     2  in the registered organization's application.
     3    7.  The  office may suspend or revoke the registration of a registered
     4  organization, on grounds and using procedures under this article  relat-
     5  ing  to  a  license,  to  the extent consistent with this article.   The
     6  office shall suspend or revoke the registration  in  the  event  that  a
     7  registered  organization  violates  or  terminates  the applicable labor
     8  peace agreement. Conduct in  compliance  with  this  article  which  may
     9  violate  conflicting  federal law, shall not in and of itself be grounds
    10  to suspend or terminate a registration.
    11    8. The office shall begin issuing registrations for registered  organ-
    12  izations  as  soon  as  practicable after the certifications required by
    13  this article are given.
    14    9. The office shall register at  least  ten  registered  organizations
    15  that  manufacture  medical  cannabis  with  no more than four dispensing
    16  sites wholly owned and operated by  such  registered  organization.  The
    17  executive  director  shall  ensure  that  such  registered organization,
    18  dispensing sites or  approved  delivery  activities  are  geographically
    19  distributed  across  the  state to satisfy patient and program need. The
    20  executive director may register additional registered organizations.
    21    § 36. Intentionally omitted.
    22    § 37. Reports of registered organizations.  1. The executive  director
    23  shall require each registered organization to file reports by the regis-
    24  tered  organization  during  a particular period. The executive director
    25  shall determine the information to be reported and the forms, time,  and
    26  manner of the reporting.
    27    2.  The  executive director shall require each registered organization
    28  to  adopt  and  maintain  security,  tracking,  record  keeping,  record
    29  retention  and surveillance systems, relating to all medical cannabis at
    30  every stage  of  acquiring,  possession,  manufacture,  sale,  delivery,
    31  transporting,  distributing,  or  dispensing by the registered organiza-
    32  tion, subject to regulations of the board.
    33    § 38. Evaluation; research programs; report by office.  1. The  execu-
    34  tive  director may provide for the analysis and evaluation of the opera-
    35  tion of this article.  The executive director may enter into  agreements
    36  with one or more persons, not-for-profit corporations or other organiza-
    37  tions, for the performance of an evaluation of, or to aid in, the imple-
    38  mentation and effectiveness of this article.
    39    2.  The  office  may develop, seek any necessary federal approval for,
    40  and carry out research programs relating to  medical  use  of  cannabis.
    41  Participation  in  any  such  research program shall be voluntary on the
    42  part of practitioners, patients, and designated caregivers.
    43    3. The office shall report every two years, beginning two years  after
    44  the  effective date of this chapter, to the governor and the legislature
    45  on the medical use of cannabis under this article and  make  appropriate
    46  recommendations.
    47    §  39.  Cannabis  research  license.    1. The board shall establish a
    48  cannabis research license that permits a licensee to  produce,  process,
    49  purchase  and/or  possess  cannabis  for  the following limited research
    50  purposes:
    51    (a) to test chemical potency and composition levels;
    52    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    53  products;
    54    (c)  to  conduct  research on the efficacy and safety of administering
    55  cannabis as part of medical treatment; and
    56    (d) to conduct genomic or agricultural research.

        S. 2509--A                         67                         A. 3009--A

     1    2. As part of the application process for a cannabis research license,
     2  an applicant shall submit to the office a description  of  the  research
     3  that is intended to be conducted as well as the amount of cannabis to be
     4  grown  or  purchased.  The  office  shall review an applicant's research
     5  project  and  determine whether it meets the requirements of subdivision
     6  one of this section. In addition, the office shall assess  the  applica-
     7  tion based on the following criteria:
     8    (a) project quality, study design, value, and impact;
     9    (b)  whether  the  applicant has the appropriate personnel, expertise,
    10  facilities and infrastructure, funding,  and  human,  animal,  or  other
    11  approvals in place to successfully conduct the project; and
    12    (c)  whether  the  amount  of cannabis to be grown or purchased by the
    13  applicant is consistent with the  project's  scope  and  goals.  If  the
    14  office  determines  that the research project does not meet the require-
    15  ments of subdivision one  of  this  section,  the  application  must  be
    16  denied.
    17    3. A cannabis research licensee may only sell cannabis grown or within
    18  its  operation  to  other  cannabis  research  licensees. The office may
    19  revoke a cannabis research license for violations of this subdivision.
    20    4. A cannabis research licensee may contract with the higher education
    21  institutions to perform research in conjunction with the university. All
    22  research projects, entered into under this section shall be approved  by
    23  the office and meet the requirements of subdivision one of this section.
    24    5.  In  establishing  a cannabis research license, the board may adopt
    25  regulations on the following:
    26    (a) application requirements;
    27    (b) cannabis research license renewal requirements, including  whether
    28  additional research projects may be added or considered;
    29    (c) conditions for license revocation;
    30    (d)  security  measures to ensure cannabis is not diverted to purposes
    31  other than research;
    32    (e) amount of plants, useable cannabis,  or  concentrated  cannabis  a
    33  licensee may have on its premises;
    34    (f) licensee reporting requirements;
    35    (g)  conditions  under  which cannabis grown by licensed or registered
    36  cannabis producers  and  other  product  types  from  licensed  cannabis
    37  processors may be donated to cannabis research licensees; and
    38    (h) any additional requirements deemed necessary by the office.
    39    6.  A  cannabis research license issued pursuant to this section shall
    40  be issued in the name of the applicant, specify the  location  at  which
    41  the  cannabis  researcher  intends to operate, which shall be within the
    42  state of New York unless otherwise permitted under federal law, and  the
    43  holder thereof may not allow any other person to use the license.
    44    7.  The  application  and license fees for a cannabis research license
    45  shall be determined by the executive director on an annual basis and may
    46  be based on the size, scope and duration of the research proposed.
    47    8. Each cannabis research licensee shall issue an annual report to the
    48  office. The office shall review such report and make a determination  as
    49  to  whether  the  research project continues to meet the research quali-
    50  fications under this section.
    51    § 40. Registered organizations and adult-use cannabis.   1. The  board
    52  shall  have the authority to hold a competitive bidding process, includ-
    53  ing, in its discretion the ability to set price by an auction, to deter-
    54  mine the registered organization(s) authorized to be licensed to  culti-
    55  vate,  process, distribute and/or sell adult-use cannabis and to collect
    56  the fees generated from such auction to administer the  office's  social

        S. 2509--A                         68                         A. 3009--A

     1  and  economic  equity  plan and other duties prescribed by this chapter,
     2  and notwithstanding the prohibitions in article four of this chapter the
     3  board may permit such bidders to continue to  participate  in  adult-use
     4  cannabis  as  a vertically integrated entity if such competitive process
     5  permits.
     6    2. Alternatively, registered organizations may apply for licensure  as
     7  an  adult-use  cannabis  cultivator,  adult-use  cannabis processor, and
     8  adult-use cannabis distributor, or apply for licensure as  an  adult-use
     9  cannabis retail dispensary, subject to all of the restrictions and limi-
    10  tations set forth in article four of this chapter.
    11    3.  Any  registered organization which is licensed to cultivate, proc-
    12  ess, distribute and sell adult-use cannabis and cannabis products pursu-
    13  ant to this section and article four of this chapter, shall be  required
    14  to  maintain  sufficient  supply  and  distribution  of medical cannabis
    15  products for certified patients pursuant to regulations  promulgated  by
    16  the board.
    17    § 41. Intentionally omitted.
    18    §  42. Relation to other laws. 1. The provisions of this article shall
    19  apply, except that where a provision  of  this  article  conflicts  with
    20  another provision of this chapter, this article shall apply.
    21    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    22  article one hundred thirty-seven of the education law.
    23    §  43.  Protections  for  the  medical  use  of cannabis. 1. Certified
    24  patients, designated caregivers, designated caregiver facilities,  prac-
    25  titioners,  registered  organizations  and  the  employees of registered
    26  organizations, and cannabis researchers shall not be subject to  arrest,
    27  prosecution, or penalty in any manner, or denied any right or privilege,
    28  including  but  not limited to civil penalty or disciplinary action by a
    29  business or occupational or  professional  licensing  board  or  bureau,
    30  solely  for the certified medical use or manufacture of cannabis, or for
    31  any other action or conduct, in accordance with this article.
    32    2. Being a certified patient shall be deemed to be having a "disabili-
    33  ty" under article fifteen of the executive law, section forty-c  of  the
    34  civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,
    35  and section 200.50 of the criminal procedure law. This subdivision shall
    36  not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
    37  performing  his  or her employment duties while impaired by or under the
    38  influence of a controlled substance. This subdivision shall not  require
    39  any  person  or entity to do any act that would put the person or entity
    40  in direct violation of federal  law  or  cause  it  to  lose  a  federal
    41  contract or funding.
    42    3.  The  fact  that  a  person is a certified patient and/or acting in
    43  accordance with this article, shall not be a consideration in a proceed-
    44  ing pursuant to applicable sections of the domestic relations  law,  the
    45  social services law and the family court act.
    46    4.  (a) Certification applications, certification forms, any certified
    47  patient information contained within a database, and copies of  registry
    48  identification cards shall be deemed exempt from public disclosure under
    49  sections  eighty-seven and eighty-nine of the public officers law.  Upon
    50  specific request by a certified patient to the office,  the  office  may
    51  verify  the  requesting patient's status as a valid certified patient to
    52  the  patient's  school  or  employer,  to  ensure  compliance  with  the
    53  protections afforded by this section.
    54    (b)  The  name, contact information, and other information relating to
    55  practitioners registered with the office under  this  article  shall  be
    56  public  information and shall be maintained by the executive director on

        S. 2509--A                         69                         A. 3009--A

     1  the office's website accessible to the public in searchable form. Howev-
     2  er, if a practitioner notifies the office in writing that he or she does
     3  not want his or her name and other information disclosed,  that  practi-
     4  tioner's  name  and  other  information  shall  thereafter not be public
     5  information or maintained on the office's website,  unless  the  practi-
     6  tioner cancels the request.
     7    § 44. Regulations.  The board shall make regulations to implement this
     8  article.
     9    § 45. Suspend; terminate.  Based upon the recommendation of the execu-
    10  tive  director and/or the superintendent of state police that there is a
    11  risk to the public health or safety, the governor may immediately termi-
    12  nate all licenses issued to registered organizations.
    13    § 46. Pricing.   1. The executive director may  require  the  sale  of
    14  medical  cannabis to be at or below an approved price established by the
    15  executive director.  Every charge made or demanded for medical  cannabis
    16  not in accordance with an approved price, is prohibited.
    17    2.  In  reviewing the per dose price of each form of medical cannabis,
    18  the executive director may consider the  fixed  and  variable  costs  of
    19  producing the form of cannabis and any other factor the executive direc-
    20  tor,  in his or her discretion, deems relevant in reviewing the per dose
    21  price of each form of medical cannabis.
    22    § 47. Severability.  If any clause, sentence,  paragraph,  section  or
    23  part  of this article shall be adjudged by any court of competent juris-
    24  diction to be invalid, the judgment shall not affect, impair, or invali-
    25  date the remainder thereof, but shall be confined in  its  operation  to
    26  the  clause,  sentence,  paragraph,  section  or  part  thereof directly
    27  involved in the controversy  in  which  the  judgment  shall  have  been
    28  rendered.

    29                                  ARTICLE 4
    30                             ADULT-USE CANNABIS

    31  Section 60. Licenses issued.
    32          61. Awarding of licenses.
    33          62. Information  to  be requested in response to the request for
    34                proposals.
    35          63. Fees.
    36          64. Approval and selection criteria.
    37          65. Limitations of licensure; duration.
    38          66. License renewal.
    39          67. Amendments; changes in ownership and  organizational  struc-
    40                ture.
    41          68. Adult-use cultivator license.
    42          69. Adult-use processor license.
    43          70. Adult-use cooperative license.
    44          71. Adult-use distributor license.
    45          72. Adult-use retail dispensary license.
    46          73. Intentionally omitted.
    47          74. Intentionally omitted.
    48          75. Record keeping and tracking.
    49          76. Inspections and ongoing requirements.
    50          77. Adult-use  cultivators, processors or distributors not to be
    51                interested in retail dispensaries.
    52          78. Packaging, labeling, form and  administration  of  adult-use
    53                cannabis products.
    54          79. Laboratory testing.

        S. 2509--A                         70                         A. 3009--A

     1          80. Provisions  governing  the  cultivation  and  processing  of
     2                adult-use cannabis.
     3          81. Provisions governing the distribution of adult-use cannabis.
     4          82. Provisions governing adult-use cannabis retail dispensaries.
     5          83. Adult-use cannabis advertising and marketing.
     6          84. Minority,  women-owned businesses and disadvantaged farmers;
     7                social and economic equity plan.
     8          85. Regulations.
     9    § 60. Licenses issued.   The following  kinds  of  licenses  shall  be
    10  issued  by  the  executive  director  for  the  cultivation, processing,
    11  distribution and sale of cannabis to cannabis consumers:
    12    1. Adult-use cultivator license;
    13    2. Adult-use processor license;
    14    3. Adult-use cooperative license;
    15    4. Adult-use distributor license;
    16    5. Adult-use retail dispensary license; and
    17    6. Any other type of license as prescribed by the  executive  director
    18  in regulation.
    19    §  61.  Awarding  of  licenses. 1. The board shall issue a request for
    20  proposals for licenses authorized pursuant  to  this  section,  and  may
    21  award  as  many  licenses  in such classes as the board sets out in such
    22  request.
    23    2. Except as otherwise provided in this article,  a  separate  license
    24  shall  be  required  for each facility at which cultivation, processing,
    25  distribution or retail dispensing is conducted.
    26    3. An award shall not be denied for a license under this article based
    27  solely on a conviction for a violation of article two hundred twenty  or
    28  section  240.36  of the penal law, prior to the date article two hundred
    29  twenty-one of the penal law took effect, or a conviction for a violation
    30  of article two hundred twenty-one of the penal law after  the  effective
    31  date of this chapter.
    32    §  62.  Information  to  be  requested  in response to the request for
    33  proposals. 1. The office shall  have  the  authority  to  prescribe  the
    34  manner  and  form  in  which a response must be submitted to the office.
    35  Such information may include, but is not limited to:  information  about
    36  the  applicant's identity, including racial and ethnic diversity; owner-
    37  ship and investment  information,  including  the  corporate  structure;
    38  evidence  of  good  moral character, including the submission of finger-
    39  prints by the applicant to the division of  criminal  justice  services;
    40  information about the premises to be licensed; financial statements; and
    41  any other information prescribed in regulation.
    42    2.  All responses shall be signed by the applicant (if an individual),
    43  by a managing partner (if a limited liability corporation), by an  offi-
    44  cer  (if  a  corporation),  or  by all partners (if a partnership). Each
    45  person signing such response shall verify it or affirm it as true  under
    46  the penalties of perjury.
    47    3. All responses shall be accompanied by a check, draft or other forms
    48  of payment as the office may require or authorize in the amount required
    49  by this article for such license or permit.
    50    4.  If  there be any proposed change, after the filing of the response
    51  or the award of a license, in any of the facts required to be set  forth
    52  in  such  application,  a  supplemental statement requesting approval of
    53  such change, cost and source of money involved in the change, duly veri-
    54  fied, shall be submitted to the office at least  thirty  days  prior  to
    55  such proposed change. Failure to do so shall, if willful and deliberate,
    56  be cause for revocation of the license.

        S. 2509--A                         71                         A. 3009--A

     1    5. In giving any notice, or taking any action in reference to a regis-
     2  tered  organization  or  licensee of a licensed premises, the office may
     3  rely upon the information furnished in such response and in any  supple-
     4  mental  statement  or  request connected therewith, and such information
     5  may  be  presumed  to be correct, and shall be binding upon a registered
     6  organization, licensee or licensed premises as if correct. All  informa-
     7  tion required to be furnished in such response, requests or supplemental
     8  statements  shall be deemed material in any prosecution for perjury, any
     9  proceeding to revoke or suspend any license, or impose a fine and in the
    10  office's determination to approve or deny the license.
    11    6. The office may, in its discretion,  waive  the  submission  of  any
    12  category  of  information  described in this section for any category of
    13  license or permit, provided that it shall not be permitted to waive  the
    14  requirement  for  submission  of any such category of information solely
    15  for an individual proposer or proposers.
    16    7. The office may, in its discretion, wholly prohibit and/or prescribe
    17  specific criteria under which it will consider and allow limited  trans-
    18  fers  or changes of ownership, interest, or control during the registra-
    19  tion or license application period and/or  up  to  two  years  after  an
    20  approved applicant commences licensed activities.
    21    § 63. Fees. 1. The office shall have the authority to charge proposers
    22  under  this  article  a non-refundable application fee and/or to auction
    23  licenses to bidders determined by the office to be  qualified  for  such
    24  licensure  based on the selection criteria in section sixty-four of this
    25  article. Such fee may be based on the type of licensure  sought,  culti-
    26  vation  and/or  production  volume, sequence or priority of issuance, or
    27  any other factors deemed necessary, reasonable and  appropriate  by  the
    28  office to achieve the policy and purpose of this chapter.
    29    2.  The office shall have the authority to charge licensees a biennial
    30  or annual license fee which shall be non-refundable.  Such  fee  may  be
    31  based on the amount of cannabis to be cultivated, processed, distributed
    32  and/or  dispensed  by  the  licensee or the gross annual receipts of the
    33  licensee for the previous license period, or any  other  factors  deemed
    34  reasonable and appropriate by the office.
    35    3.  The office shall have the authority to waive or reduce fees pursu-
    36  ant to this section for social and economic equity applicants.
    37    § 64. Approval and selection criteria.  1.  The  board  shall  develop
    38  regulations for use by the office in determining whether or not a propo-
    39  ser shall be awarded a license and subsequently granted the privilege of
    40  holding an adult-use cannabis license. The criteria for such approval or
    41  subsequent issuance shall be based on, but not limited to, the following
    42  criteria:
    43    (a)  the  proposer  will be able to maintain effective control against
    44  the illegal diversion or inversion of cannabis;
    45    (b) the proposer will be able to comply with all applicable state laws
    46  and regulations;
    47    (c) the proposer and its officers are  ready,  willing,  and  able  to
    48  properly carry on the activities for which a license is sought;
    49    (d)  where  appropriate  and applicable, the proposer possesses or has
    50  the right to use, or opportunity to acquire, sufficient land, buildings,
    51  and equipment to properly carry on the activity described in the  appli-
    52  cation;
    53    (e)  it is in the public interest that such license be granted, taking
    54  into consideration, but not limited to, the following criteria:
    55    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    56  distribute, and sell cannabis;

        S. 2509--A                         72                         A. 3009--A

     1    (ii)  the  number,  classes,  scope and character of other licenses or
     2  approved applicants in proximity to the location or in the state, county
     3  or particular municipality or subdivision thereof as appropriate;
     4    (iii)  evidence  that  all  necessary  licenses  and permits have been
     5  obtained from the state and all other governing bodies;
     6    (iv) the history of cannabis or other relevant  regulatory  violations
     7  at  the  proposed location or by the applicant in any relevant jurisdic-
     8  tion, as well as any pattern  of  violations  under  this  chapter,  and
     9  reported criminal activity at the proposed premises;
    10    (v)  the  effect on the production, price and availability of cannabis
    11  and cannabis products; and
    12    (vi) any other factors specified by law or regulation that  are  rele-
    13  vant  to  determine  that granting a license would promote public health
    14  and safety and the public interest of the state, county or community;
    15    (f) the proposer and its managing officers are of good moral character
    16  and do not have an ownership or controlling interest in  more  licenses,
    17  registrations,  permits,  or the scope of activity allowed by this chap-
    18  ter, or any regulations promulgated hereunder;
    19    (g) the proposer has entered into a labor peace agreement with a bona-
    20  fide labor organization that is  actively  engaged  in  representing  or
    21  attempting to represent the proposer's employees, and the maintenance of
    22  such  a  labor peace agreement shall be an ongoing material condition of
    23  licensure.
    24    (h) the proposer will contribute to  communities,  the  workforce  and
    25  people  disproportionately  harmed  by  cannabis law enforcement through
    26  participation in the social and economic equity plan implemented by  the
    27  office or other suitable means;
    28    (i)  if the response is for an adult-use cultivator license, the envi-
    29  ronmental impact of the facility to be licensed; and
    30    (j) the proposer satisfies any other conditions as determined  by  the
    31  executive director.
    32    2.  If  the  executive  director is not satisfied that the proposer is
    33  eligible to be approved, or subsequently should be issued a license, the
    34  executive director shall notify the proposer in writing of the  specific
    35  reason or reasons for denial.
    36    §  65.  Limitations of licensure; duration.  1. No license of any kind
    37  may be issued to a person under the age of twenty-one years,  nor  shall
    38  any licensee employ anyone under the age of eighteen years.
    39    2.  No  person  shall sell, deliver or give away or cause or permit or
    40  procure to be sold, delivered or given away any cannabis to any  person,
    41  actually  or apparently, under the age of twenty-one years, or any visi-
    42  bly intoxicated person.
    43    3. No licensee, registrant or permittee shall knowingly sell,  deliver
    44  or  give  away  or  cause  or permit or procure to be sold, delivered or
    45  given away to a lawful cannabis consumer any amount  of  cannabis  which
    46  would  cause  the  lawful  cannabis  consumer  to be in violation of the
    47  possession limits established by this chapter, or  their  equivalent  as
    48  determined by the executive director.
    49    4.  The  office  shall  have  the authority to limit, by canopy, plant
    50  count, square footage or other means, the amount of cannabis allowed  to
    51  be grown, processed, distributed or sold by a licensee.
    52    5.  All  licenses  under this article shall expire two years after the
    53  date of issue.
    54    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    55  cle, may be approved for renewal upon application therefor by the licen-
    56  see and the payment of the fee for such license as  prescribed  by  this

        S. 2509--A                         73                         A. 3009--A

     1  article.  In  the  case  of  applications  for  renewals, the office may
     2  dispense with the requirements of such statements as it  deems  unneces-
     3  sary in view of those contained in the application made for the original
     4  license,  but in any event the submission of photographs of the licensed
     5  premises may be dispensed with, provided the applicant for such  renewal
     6  shall file a statement with the office to the effect that there has been
     7  no  alteration  of  such premises since the original license was issued.
     8  The office may make such rules as it deems necessary,  not  inconsistent
     9  with  this  chapter, regarding applications for renewals of licenses and
    10  permits and the time for making the same.
    11    2. The office shall create a social responsibility framework agreement
    12  and make the adherence to and fulfillment of  such  agreement  a  condi-
    13  tional requirement of license renewal.
    14    3.  The  office  shall provide an application for renewal of a license
    15  issued under this article not less than ninety days prior to the expira-
    16  tion of the current license.
    17    4. The office may only issue a renewal license  upon  receipt  of  the
    18  prescribed  renewal  application  and renewal fee from a licensee if, in
    19  addition to the criteria in this section, the licensee's license is  not
    20  under suspension and has not been revoked.
    21    5.  Each  applicant must maintain a labor peace agreement with a bona-
    22  fide labor organization that is  actively  engaged  in  representing  or
    23  attempting to represent the applicant's employees and the maintenance of
    24  such  a  labor peace agreement shall be an ongoing material condition of
    25  licensure.
    26    § 67. Amendments; changes in ownership and  organizational  structure.
    27  1. Licenses issued pursuant to this article shall specify:
    28    (a) the name and address of the licensee;
    29    (b) the activities permitted by the license;
    30    (c)  the  land,  buildings, facilities, locations or areas that may be
    31  used for the licensed activities of the licensee;
    32    (d) a unique license number issued by the office to the licensee; and
    33    (e) such other information as the executive director shall deem neces-
    34  sary to assure compliance with this chapter.
    35    2. Upon application to  the  office,  a  response  to  a  request  for
    36  proposals  or  license may be amended to allow the applicant or licensee
    37  to relocate within the state, to add or delete  licensed  activities  or
    38  facilities, or to amend the ownership or organizational structure of the
    39  entity that is the applicant or licensee, upon approval by the executive
    40  director.   The fee for such amendment shall be determined by the execu-
    41  tive director.
    42    3. A license shall become void by a change in  ownership,  management,
    43  interest, substantial corporate change, location, or material changes in
    44  operations without prior written approval of the executive director. The
    45  executive  director  may  specify the process for amendment requests and
    46  allowing for certain types of changes in ownership without the need  for
    47  prior written approval.
    48    4.  For purposes of this section, "substantial corporate change" shall
    49  mean:
    50    (a) for a corporation, a change of five percent or more of  the  offi-
    51  cers and/or directors, or a transfer of five percent or more of stock of
    52  such  corporation,  or an existing stockholder obtaining five percent or
    53  more of the stock of such corporation; or
    54    (b) for a limited liability company, a change of five percent or  more
    55  of the managing members of the company, or a transfer of five percent or
    56  more  of  ownership  interest  in  said  company,  or an existing member

        S. 2509--A                         74                         A. 3009--A

     1  obtaining a cumulative of five percent or more of the ownership interest
     2  in said company.
     3    §  68.  Adult-use  cultivator  license.   1. An adult-use cultivator's
     4  license shall authorize the  acquisition,  possession,  cultivation  and
     5  sale  of cannabis from the licensed premises of the adult-use cultivator
     6  by such licensee to duly licensed processors in this  state.  The  board
     7  may  establish  regulations  allowing  licensed adult-use cultivators to
     8  perform certain types of  minimal  processing,  defined  in  regulation,
     9  without the need for an adult-use processor license.
    10    2. For purposes of this section, cultivation shall include, but not be
    11  limited  to, the planting, growing, cloning, harvesting, drying, curing,
    12  grading and trimming of cannabis.
    13    3. A person holding an adult-use cultivator's license may  apply  for,
    14  and  obtain, not more than one processor's license and one distributor's
    15  license.
    16    4. A person holding an adult-use cultivator's  license  may  not  also
    17  hold  a retail dispensary license pursuant to this article and no adult-
    18  use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
    19  including  by stock ownership, interlocking directors, mortgage or lien,
    20  personal or real property, management agreement, share parent  companies
    21  or affiliate organizations, or any other means, in any premises licensed
    22  as  an  adult-use cannabis retail dispensary or in any business licensed
    23  as an adult-use cannabis retail dispensary pursuant to this article.
    24    5. No person may have a direct or indirect  financial  or  controlling
    25  interest  in  more than one adult-use cultivator license issued pursuant
    26  to this chapter, provided that  one  adult-use  cultivator  license  may
    27  authorize  adult-use  cultivation  in more than one location pursuant to
    28  criteria established by the board in regulation.
    29    6. The executive director shall have the authority to issue microbusi-
    30  ness licenses, allowing microbusiness licensees to  cultivate,  process,
    31  distribute  and  retail  adult-use  cannabis direct to licensed cannabis
    32  retailers and consumers, under a single license.  The board  may  estab-
    33  lish  through  regulation microbusiness license eligibility criteria and
    34  production  limits  of  total  cannabis  cultivated,  processed   and/or
    35  distributed annually for microbusiness licenses.
    36    §  69.  Adult-use  processor license.   1. A processor's license shall
    37  authorize the acquisition, possession, processing and sale  of  cannabis
    38  from  the licensed premises of the adult-use cultivator by such licensee
    39  to duly licensed distributors.
    40    2. For purposes of this section, processing shall include, but not  be
    41  limited  to, blending, extracting, infusing, packaging, labeling, brand-
    42  ing or otherwise making or preparing cannabis products. Processing shall
    43  not include the cultivation of cannabis.
    44    3. No processor shall be engaged in any other business on the premises
    45  to be licensed; except that a person issued an adult-use cannabis culti-
    46  vator, processor, and/or distributor license may hold  and  operate  all
    47  issued licenses on the same premises.
    48    4.  No  cannabis  processor  licensee  may hold more than one cannabis
    49  processor license, provided a single  license  may  authorize  processor
    50  activities at multiple locations.
    51    5.  No  adult-use  cannabis  processor shall have a direct or indirect
    52  interest, including by stock ownership, interlocking directors, mortgage
    53  or lien, personal or real property,  management  agreement,  or  through
    54  parent  organizations  or affiliate entities, or any other means, in any
    55  premises licensed as an adult-use cannabis retail dispensary or  in  any

        S. 2509--A                         75                         A. 3009--A

     1  business licensed as an adult-use cannabis retail dispensary pursuant to
     2  this article.
     3    §  70.  Adult-use cooperative license.  1. A cooperative license shall
     4  authorize the acquisition, possession, cultivation, processing  or  sale
     5  from the licensed premises of the adult-use cooperative by such licensee
     6  to  duly  licensed  distributors  and/or  retail  dispensaries;  but not
     7  directly to cannabis consumers.
     8    2. To be licensed as an adult-use cooperative, the cooperative must:
     9    (a) be comprised of residents of the state of New York  as  a  limited
    10  liability company or limited liability partnership under the laws of the
    11  state, or an appropriate business structure as determined by the board;
    12    (b)  subordinate capital, both as regards control over the cooperative
    13  undertaking, and as regards the  ownership  of  the  pecuniary  benefits
    14  arising therefrom;
    15    (c)  be  democratically  controlled  by  the members themselves on the
    16  basis of one vote per member;
    17    (d) vest in and allocate with priority to and among the members of all
    18  increases arising from their cooperative endeavor in proportion  to  the
    19  members' active participation in the cooperative endeavor; and
    20    (e) operate according to the seven cooperative principles published by
    21  the International Cooperative Alliance in nineteen hundred ninety-five.
    22    3.  No person shall be a member of more than one adult-use cooperative
    23  licensed pursuant to this section.
    24    4. No person or member of an adult-use cooperative license may have  a
    25  direct  or  indirect  financial  or  controlling  interest  in any other
    26  adult-use cannabis license issued pursuant to this chapter.
    27    5. No adult-use cannabis cooperative shall have a direct  or  indirect
    28  interest, including by stock ownership, interlocking directors, mortgage
    29  or  lien, personal or real property, or any other means, in any premises
    30  licensed as an adult-use cannabis retail dispensary or in  any  business
    31  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
    32  article.
    33    6.  The  board  shall  promulgate  regulations  governing  cooperative
    34  licenses,  including,  but  not  limited to, the establishment of canopy
    35  limits and other restrictions on  the  size  and  scope  of  cooperative
    36  licensees.
    37    § 71. Adult-use distributor license.  1. A distributor's license shall
    38  authorize the acquisition, possession, distribution and sale of cannabis
    39  from the licensed premises of a licensed adult-use processor, microbusi-
    40  ness  cultivator,  adult-use  cooperative,  or  registered  organization
    41  authorized to sell adult-use cannabis, or  any  other  person  licensed,
    42  registered or permitted by the office to sell or transfer cannabis to or
    43  within the state, to duly licensed retail dispensaries.
    44    2. No distributor shall have a direct or indirect economic interest in
    45  any  microbusiness  or  adult-use retail dispensary licensed pursuant to
    46  this article, or in any registered organization registered  pursuant  to
    47  article  three  of  this  chapter. This restriction shall not prohibit a
    48  registered organization authorized pursuant to  section  forty  of  this
    49  chapter,  from  being  granted  licensure  by  the  office to distribute
    50  adult-use cannabis products cultivated and processed by  the  registered
    51  organization  to  the  registered  organization's own licensed adult-use
    52  retail dispensaries.
    53    3. Nothing in subdivision two of this section shall prevent a distrib-
    54  utor from charging an appropriate fee for the distribution of  cannabis,
    55  including based on the volume of cannabis distributed.

        S. 2509--A                         76                         A. 3009--A

     1    4.  Adult-use  distributor  licensees are subject to minimum operating
     2  requirements as determined by the board in regulation.
     3    §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
     4  license shall authorize the acquisition, possession and sale of cannabis
     5  from the licensed premises of the retail dispensary by such licensee  to
     6  cannabis consumers.
     7    2.  No  person  may have a direct or indirect financial or controlling
     8  interest in more than three retail dispensary licenses  issued  pursuant
     9  to this chapter. This restriction shall not prohibit a registered organ-
    10  ization,  authorized  pursuant  to  section  forty of this chapter, from
    11  being granted licensure by the office  to  sell  adult-use  cannabis  at
    12  locations  previously registered by the department of health; subject to
    13  any conditions, limitations or restrictions established by the office.
    14    3. No person holding a retail dispensary license may also hold or have
    15  any interest in  an  adult-use  cultivation,  processor,  microbusiness,
    16  cooperative or distributor license pursuant to this article.
    17    4.  No  retail  license  shall be granted for any premises, unless the
    18  applicant shall be the owner thereof, or shall be in possession of  said
    19  premises  under  a lease, management agreement or other agreement giving
    20  the applicant control over the premises, in writing, for a term not less
    21  than the license period.
    22    5. No cannabis retail licensee shall locate a storefront  within  five
    23  hundred feet of a building occupied exclusively as a school.
    24    § 73. Intentionally omitted.
    25    § 74. Intentionally omitted.
    26    §  75.  Record  keeping  and tracking. The board shall, by regulation,
    27  require each licensee pursuant to this article  to  adopt  and  maintain
    28  security,  tracking,  record  keeping, record retention and surveillance
    29  systems,  relating  to  all  cannabis  at  every  stage  of   acquiring,
    30  possession,  manufacture,  sale, delivery, transporting, or distributing
    31  by the licensee.
    32    § 76. Inspections and ongoing requirements. All licensed or  permitted
    33  premises,  regardless of the type of premises, and records including but
    34  not limited to financial statements and corporate  documents,  shall  be
    35  subject  to  inspection  by the office, by the duly authorized represen-
    36  tatives of the office, by any peace officer acting pursuant  to  his  or
    37  her  special  duties,  or  by  a police officer.   The office shall make
    38  reasonable accommodations so that ordinary business is  not  interrupted
    39  and   safety   and  security  procedures  are  not  compromised  by  the
    40  inspection. A person who holds a license or permit must make himself  or
    41  herself,  or  an agent thereof, available and present for any inspection
    42  required by the office.  Such inspection may include, but is not limited
    43  to, ensuring compliance by the licensee or permittee  with  all  of  the
    44  requirements of this article, the regulations promulgated pursuant ther-
    45  eto,  and  other  applicable  building  codes, fire, health, safety, and
    46  governmental regulations, including at the municipal, county, and  state
    47  level and include any inspector or official of relevant jurisdiction.
    48    §  77.  Adult-use  cultivators,  processors  or distributors not to be
    49  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    50  vator, processor, microbusiness,  cooperative  or  distributor  licensed
    51  under this article to:
    52    (a)  be  interested  directly  or indirectly in any premises where any
    53  cannabis product is sold at retail; or in any business devoted wholly or
    54  partially to the sale of any cannabis product at retail by stock  owner-
    55  ship,  interlocking  directors, mortgage or lien or any personal or real
    56  property, or by any other means.

        S. 2509--A                         77                         A. 3009--A

     1    (b) make, or cause to be made, any loan to any person engaged  in  the
     2  manufacture or sale of any cannabis product at wholesale or retail.
     3    (c)  make  any  gift  or  render  any  service of any kind whatsoever,
     4  directly or indirectly, to any person licensed under this chapter  which
     5  in  the  judgment  of  the office may tend to influence such licensee to
     6  purchase or promote the product  of  such  cultivator  or  processor  or
     7  distributor.
     8    (d)  enter  into  any  contract  or agreement with any retail licensee
     9  whereby such licensee agrees to confine his sales to  cannabis  products
    10  manufactured  or  sold  by  one or more such cultivator or processors or
    11  distributors. Any such contract shall be void and subject  the  licenses
    12  of  all  parties  concerned  to  revocation for cause and any applicable
    13  administrative enforcement and penalties.
    14    2. The provisions of this section shall not prohibit a  microbusiness,
    15  or  registered organization authorized pursuant to section forty of this
    16  chapter, from cultivating, processing, distributing and  selling  adult-
    17  use cannabis under this article, at facilities wholly owned and operated
    18  by  such microbusiness or registered organization, subject to any condi-
    19  tions, limitations or restrictions established by the office.
    20    3. The board shall have the authority to create rules and  regulations
    21  in regard to this section.
    22    § 78. Packaging, labeling, form and administration of adult-use canna-
    23  bis  products. 1. The board is hereby authorized to promulgate rules and
    24  regulations governing the packaging, labeling, form and method of admin-
    25  istration or ingestion, branding and  marketing  of  cannabis  products,
    26  sold or possessed for sale in New York state.
    27    2.  Such  regulations  shall include, but not be limited to, requiring
    28  that:
    29    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    30  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    31    (b)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
    32  products shall be labeled according  to  regulations  and  placed  in  a
    33  resealable, child-resistant package; and
    34    (c)  packages,  labels,  forms  and  products  shall not be made to be
    35  attractive to or target persons under the age of twenty-one.
    36    3. Such regulations shall include requiring labels  warning  consumers
    37  of  any  potential impact on human health resulting from the consumption
    38  of cannabis products that shall be affixed to those products when  sold,
    39  if  such  labels  are  deemed  warranted by the office and may establish
    40  standardized  and/or  uniform  packaging  requirements   for   adult-use
    41  products.
    42    4. Such rules and regulations shall determine serving sizes for canna-
    43  bis products, active cannabis concentration per serving size, and number
    44  of  servings  per  container. Such regulations may also require a nutri-
    45  tional fact panel that incorporates data  regarding  serving  sizes  and
    46  potency thereof.
    47    5.  Such  rules and regulations shall establish approved product types
    48  and forms and establish an application and review process  to  determine
    49  the  suitability  of  new product types and forms, taking into consider-
    50  ation the consumer and public health and safety implications of  differ-
    51  ent product varieties, manufacturing processes, product types and forms,
    52  the means and methods of administration associated with specific product
    53  types, and any other criteria identified by the office for consideration
    54  to protect public health and safety.
    55    6.  Such  regulations  shall also require product labels to accurately
    56  display the total THC of each product.

        S. 2509--A                         78                         A. 3009--A

     1    7. The packaging, sale, labeling, marketing, branding, advertising  or
     2  possession  by  any  licensee  of  any  cannabis  product not labeled or
     3  offered in conformity with rules and regulations promulgated in  accord-
     4  ance  with  this  section shall be grounds for the imposition of a fine,
     5  and/or  the  suspension, revocation or cancellation of a license.  Fines
     6  may be imposed on a per violation, per day basis.
     7    § 79. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
     8  shall  contract  with  an  independent  laboratory permitted pursuant to
     9  section one hundred twenty-nine of this chapter, to  test  the  cannabis
    10  products it produces pursuant to rules and regulations prescribed by the
    11  office.  The executive director may assign an approved testing laborato-
    12  ry,  which  the processor of adult-use cannabis must use, and may estab-
    13  lish consortia with neighboring states, to inform  best  practices,  and
    14  share data.
    15    2.  Adult-use  cannabis  processors,  cooperatives and microbusinesses
    16  shall make laboratory test reports available  to  licensed  distributors
    17  and  retail  dispensaries  for all cannabis products manufactured by the
    18  processor or licensee.
    19    3. Licensed retail dispensaries shall maintain accurate  documentation
    20  of laboratory test reports for each cannabis product offered for sale to
    21  cannabis  consumers. Such documentation shall be made publicly available
    22  by the licensed retail dispensary.
    23    4. Onsite laboratory testing by licensees is  permissible  subject  to
    24  regulation;  however,  such testing shall not be certified by the office
    25  and does not exempt the licensee from the requirements of quality assur-
    26  ance testing at a testing laboratory pursuant to this section.
    27    5. An owner of a cannabis laboratory testing permit shall not  hold  a
    28  license,  or  interest  in  a license, in any other category within this
    29  article and shall not own or have ownership  interest  in  a  registered
    30  organization  registered pursuant to article three of this chapter, or a
    31  cannabinoid hemp processor license pursuant  to  article  five  of  this
    32  chapter.
    33    6.  The  office shall have the authority to require any licensee under
    34  this article to submit cannabis or cannabis  products  to  one  or  more
    35  independent  laboratories for testing and the board may promulgate regu-
    36  lations related to all aspects of third-party testing and quality assur-
    37  ance including but not limited to:
    38    (a) minimum testing and sampling requirements;
    39    (b) testing and sampling methodologies;
    40    (c) testing reporting requirements;
    41    (d) retesting; and
    42    (e) product quarantine, hold, recall, and remediation.
    43    § 80. Provisions governing the cultivation and processing of adult-use
    44  cannabis. 1. Cultivation  of  cannabis  shall  comply  with  regulations
    45  promulgated by the board governing minimum requirements.
    46    2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
    47  agree to sell or deliver in the state any cannabis products, as the case
    48  may be, except in sealed containers containing quantities in  accordance
    49  with  size standards pursuant to regulations adopted by the office. Such
    50  containers shall have affixed thereto such  labels  or  other  means  of
    51  tracking and identification as may be required by the rules of the exec-
    52  utive director.
    53    3.  No  cultivator or processor of adult-use cannabis shall furnish or
    54  cause to be furnished to any licensee, any exterior  or  interior  sign,
    55  printed,  painted,  electric  or  otherwise, except as authorized by the

        S. 2509--A                         79                         A. 3009--A

     1  office. The office may make such rules as it deems  necessary  to  carry
     2  out the purpose and intent of this subdivision.
     3    4.  The  board,  in  conjunction  with the department of environmental
     4  conservation, shall promulgate all necessary rules and  regulations,  as
     5  well  as a process for approval, governing the safe production of canna-
     6  bis including, but not limited to, environmental  and  energy  standards
     7  and restrictions on the use of pesticides.
     8    5.  No cultivator or processor of adult-use cannabis shall deliver any
     9  cannabis products, except in vehicles owned and operated by such  culti-
    10  vator,  processor, or hired and operated by such cultivator or processor
    11  from a trucking or transportation company registered  with  the  office,
    12  and  shall only make deliveries at the licensed premises of the purchas-
    13  er.
    14    6. No cultivator or processor  of  adult-use  cannabis,  including  an
    15  adult-use  cannabis  cooperative  or microbusiness, may offer any incen-
    16  tive, payment or other benefit to a licensed cannabis retail  dispensary
    17  in  return for carrying the cultivator, processor, cooperative or micro-
    18  business's products, or preferential shelf placement.
    19    7. All cannabis products shall be processed in  accordance  with  good
    20  manufacturing  practices  for  the  product category, pursuant to either
    21  Part 111 or Part 117 of Title 21 of the Code of Federal Regulations,  as
    22  may  be  defined and modified by the board in regulation, which shall to
    23  the extent  practicable  and  possible,  align  with  neighboring  state
    24  requirements.
    25    8. No processor of adult-use cannabis shall produce any product which,
    26  in  the  discretion of the office, is designed to appeal to anyone under
    27  the age of twenty-one years.
    28    9. The use or integration of wine, beer, liquor  or  nicotine  or  any
    29  other substance identified in regulation in cannabis products is prohib-
    30  ited.
    31    10.  The  board  shall  promulgate  regulations  governing the minimum
    32  requirements for the secure transport of adult-use cannabis.
    33    § 81. Provisions governing the distribution of adult-use cannabis.  1.
    34  No distributor shall sell, or agree to  sell  or  deliver  any  cannabis
    35  products, as the case may be, in any container, except in a sealed pack-
    36  age.  Such  containers  shall have affixed thereto such labels as may be
    37  required by the rules of the office.
    38    2. No distributor shall deliver any cannabis products, except in vehi-
    39  cles owned and operated by such distributor, or hired  and  operated  by
    40  such  distributor from a trucking or transportation company permitted by
    41  the office, and shall only make deliveries at the licensed  premises  of
    42  the purchaser.
    43    3.  Each  distributor  shall keep and maintain upon the licensed prem-
    44  ises, adequate books and records of all transactions involving the busi-
    45  ness transacted by such distributor, which  shall  show  the  amount  of
    46  cannabis  products  purchased  by  such  distributor  and  the total THC
    47  content of purchased cannabis  products  as  reflected  on  the  product
    48  labels,  together with the names, license numbers and places of business
    49  of the persons from whom the same was purchased and the amount  involved
    50  in  such  purchases,  as well as the amount of cannabis products sold by
    51  such distributor together and the total THC content of cannabis products
    52  sold  as  reflected  on  the  final  product  labels,  with  the  names,
    53  addresses, and license numbers of such purchasers and any other informa-
    54  tion required in regulation. Each sale shall be recorded separately on a
    55  numbered  invoice, which shall have printed thereon the number, the name
    56  of the licensee, the address of the licensed premises, and  the  current

        S. 2509--A                         80                         A. 3009--A

     1  license  number  and  any other information required in regulation. Such
     2  distributor shall deliver to the  purchaser  a  true  duplicate  invoice
     3  stating  the name and address of the purchaser, the quantity of cannabis
     4  products,  the  total  THC  content  of  purchased  cannabis products as
     5  reflected on the product labels, description by brands and the price  of
     6  such  cannabis  products, and a true, accurate and complete statement of
     7  the terms and conditions on which such sale is made. Such books, records
     8  and invoices shall be kept for a period of six years and shall be avail-
     9  able for inspection by any authorized representative of the office.
    10    4. No distributor shall furnish or cause to be furnished to any licen-
    11  see, any exterior or interior sign, printed, painted, electric or other-
    12  wise, unless authorized by the office.
    13    5. No distributor shall provide any discount, rebate, customer loyalty
    14  program or other consideration  to  any  licensed  retailer,  except  as
    15  otherwise allowed by the office.
    16    6.  The  board  is authorized to promulgate regulations establishing a
    17  minimum margin for which a distributor may mark up  a  cannabis  product
    18  for  sale to a retail dispensary. Any adult-use cannabis product sold by
    19  a distributor in violation of the established markup  allowed  in  regu-
    20  lation, shall be unlawful.
    21    7.  Each  distributor  shall keep and maintain upon the licensed prem-
    22  ises, adequate books and records to demonstrate the distributor's actual
    23  cost of doing business, using accounting standards and methods regularly
    24  employed in the determination of costs for the purpose of federal income
    25  tax reporting, for the total operation  of  the  licensee.  Such  books,
    26  records,  financial  statements,  contracts,  corporate  documents,  and
    27  invoices shall be kept for a period of six years and shall be  available
    28  for  inspection  by any authorized representative of the office, includ-
    29  ing, for use in determining the minimum  markup  allowed  in  regulation
    30  pursuant to subdivision six of this section.
    31    § 82. Provisions governing adult-use cannabis retail dispensaries.  1.
    32  No  cannabis  retail licensee shall sell or give away or cause or permit
    33  or procure to be sold, delivered or  given  away  any  cannabis  to  any
    34  person, actually or apparently, under the age of twenty-one years or any
    35  visibly intoxicated person.
    36    2.  No  cannabis  retail  licensee  shall  sell more than one ounce of
    37  adult-use cannabis, or its equivalent  amount  as  determined  in  regu-
    38  lation, per cannabis consumer per day.
    39    3.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
    40  have or possess a license or permit to sell alcoholic beverages, on  the
    41  same premises where cannabis products are sold.
    42    4.  No  sign of any kind printed, painted or electric, advertising any
    43  brand shall be permitted on the exterior or interior of  such  premises,
    44  except as permitted by the office.
    45    5. No cannabis retail licensee shall sell any cannabis products to any
    46  person  with knowledge of, or with reasonable cause to believe, that the
    47  person to whom such cannabis products are being sold, has  acquired  the
    48  same for the purpose of peddling them from place to place, or of selling
    49  or giving them away in violation of the provisions of this chapter or in
    50  violation of the rules and regulations of the board.
    51    6.  All  premises  licensed  under  this  section  shall be subject to
    52  reasonable inspection by any peace officer described in subdivision four
    53  of section 2.10 of the criminal procedure law acting pursuant to his  or
    54  her  special  duties, or police officer or any duly authorized represen-
    55  tative of the office.

        S. 2509--A                         81                         A. 3009--A

     1    7. No cannabis retail licensee shall be interested, directly or  indi-
     2  rectly, in any cultivator, processor or distributor licensed pursuant to
     3  this  article,  by  stock ownership, interlocking directors, mortgage or
     4  lien on any personal or real property or by any other means.
     5    8. No cannabis retail licensee shall make or cause to be made any loan
     6  to  any person engaged in the cultivation, processing or distribution of
     7  cannabis pursuant to this article.
     8    9. Each cannabis retail licensee shall designate  the  price  of  each
     9  item  of  cannabis  by  attaching to or otherwise displaying immediately
    10  adjacent to each such item displayed in the  interior  of  the  licensed
    11  premises where sales are made a price tag, sign or placard setting forth
    12  the price at which each such item is offered for sale therein.
    13    10.  No  person  licensed  to  sell cannabis products at retail, shall
    14  allow or permit any gambling, or offer  any  gambling  on  the  licensed
    15  premises, or allow or permit illicit drug activity on the licensed prem-
    16  ises.  The use of the licensed premises or any part thereof for the sale
    17  of lottery tickets, when duly authorized and lawfully conducted thereon,
    18  shall not constitute gambling within the meaning of this subdivision.
    19    11. All adult-use dispensing facilities shall make educational materi-
    20  als and resources available to cannabis consumers at the point of  sale,
    21  as prescribed by the office, encouraging such cannabis consumers to seek
    22  the  help  of  a state licensed facility or program for the treatment of
    23  cannabis use disorder.
    24    12. The  board  is  authorized  to  promulgate  regulations  governing
    25  licensed  adult-use dispensing facilities, including but not limited to,
    26  minimum general operating requirements, the hours of operation, size and
    27  location of the licensed facility, potency and types of products offered
    28  and establishing a minimum margin for which  a  retail  dispensary  must
    29  markup  a cannabis product(s) before selling to a cannabis consumer. Any
    30  adult-use cannabis product sold by a retail dispensary for less than the
    31  minimum markup allowed in regulation, shall be unlawful.
    32    13. No adult-use retail dispensary may engage in the home delivery  or
    33  retail  delivery  of adult-use cannabis products unless they are specif-
    34  ically approved and licensed to do so, or have contracted with a  third-
    35  party home delivery licensee. All home delivery operations must be sepa-
    36  rately  approved and licensed by the office and must comply with minimum
    37  application, licensing and operation requirements required by the  board
    38  in regulation. The board may approve adult-use retail dispensaries which
    39  engage  solely  in  the  retail  delivery of adult-use cannabis products
    40  without an approved storefront location.
    41    § 83. Adult-use cannabis advertising and marketing.  1. The  board  is
    42  hereby   authorized  to  promulgate  rules  and  regulations  governing,
    43  restricting, and prohibiting various forms and content of the  advertis-
    44  ing  and  marketing of licensed adult-use cannabis cultivators, process-
    45  ors, cooperatives, distributors, retailers, and any cannabis products or
    46  services.
    47    2. The office shall promulgate regulations  for  appropriate  content,
    48  warnings,  and  means  of  advertising  and marketing, including but not
    49  limited to prohibiting advertising that:
    50    (a) is false, deceptive, or misleading;
    51    (b) promotes overconsumption;
    52    (c) depicts consumption;
    53    (d) is designed in any way to appeal to children or other minors;
    54    (e) is within or is readily observed within five hundred feet  of  the
    55  perimeter  of  a  school  grounds, playground, child care center, public
    56  park, or library;

        S. 2509--A                         82                         A. 3009--A

     1    (f) is in public transit vehicles and stations;
     2    (g) is in the form of an unsolicited internet pop-up;
     3    (h) is on publicly owned or operated property;
     4    (i)  makes medical claims or promotes adult-use cannabis for a medical
     5  or wellness purpose;
     6    (j) promotes or implements discounts, coupons, or other means of sell-
     7  ing adult-use cannabis products below market  value  or  whose  discount
     8  would subvert local and state tax collections;
     9    (k)  the  content  and  primary  purpose  of which is not to alert and
    10  educate lawful cannabis consumers about the  availability  of  regulated
    11  adult-use cannabis and displace the illicit market but to solely promote
    12  cannabis use; or
    13    (l)  fails to satisfy any other advertising or marketing rule or regu-
    14  lations promulgated by the office related to marketing or advertising.
    15    3. The office shall promulgate regulations prohibiting  all  marketing
    16  strategies  and  implementation including, but not limited to, branding,
    17  packaging, labeling, location of cannabis retailers, and  advertisements
    18  that are designed to:
    19    (a)  appeal  to  persons  under twenty-one years of age and/or at-risk
    20  populations; or
    21    (b) disseminate false or misleading information to customers.
    22    4. The office shall promulgate regulations requiring that:
    23    (a) all advertisements and marketing accurately and  legibly  identify
    24  the  licensee  responsible  for its content and contain recognizable and
    25  legible warnings associated with cannabis use; and
    26    (b) any broadcast,  cable,  radio,  print  and  digital  communication
    27  advertisements  only be placed where the audience is reasonably expected
    28  to be twenty-one years of age  or  older,  as  determined  by  reliable,
    29  up-to-date  audience  composition  data.  The  burden  of  proving  this
    30  requirement lies with the party that has paid  for  or  facilitated  the
    31  advertisement.
    32    5.  The  office  shall  establish procedures to review and enforce all
    33  advertising and marketing requirements.
    34    § 84. Minority,  women-owned  businesses  and  disadvantaged  farmers;
    35  social and economic equity plan.  1. The office shall implement a social
    36  and  economic  equity  plan  that  actively promotes racial, ethnic, and
    37  gender diversity in the  adult-use  cannabis  industry  and  prioritizes
    38  applicants  who  qualify  as a minority and women-owned business, social
    39  equity applicant, or disadvantaged farmer and which  positively  impacts
    40  areas  that have been harmed through disproportionate enforcement of the
    41  war on drugs.
    42    2. The office shall create a social and  economic  equity  plan  which
    43  promotes diversity in ownership and employment in the adult-use cannabis
    44  industry and the inclusion of:
    45    (a) minority-owned businesses;
    46    (b) women-owned businesses;
    47    (c)  social  equity  applicants as defined in subdivision four of this
    48  section;
    49    (d) minority and women-owned businesses,  as  defined  in  subdivision
    50  four of this section; and
    51    (e)  disadvantaged  farmers,  as  defined  in subdivision four of this
    52  section.
    53    3. (a) The social and economic equity plan implemented by  the  office
    54  shall  promote participation and hiring of qualified social and economic
    55  equity applicants. These applicants shall be  deemed  qualified  by  the
    56  office  through  criteria  determined  in this section and by regulation

        S. 2509--A                         83                         A. 3009--A

     1  promulgated hereunder. Once qualified,  a  social  and  economic  equity
     2  applicant  shall  be  eligible  to  access all or some of this available
     3  social and economic equity plan programs based  on  their  qualification
     4  criteria, which may include but not be limited to:
     5    (i) priority in submission and review for adult-use cannabis licenses;
     6    (ii)  priority in specific classes or categories of adult-use cannabis
     7  licenses and licensed activities, geographic areas or license location;
     8    (iii) reduced or deferred fees  for  adult-use  cannabis  applications
     9  and/or licenses;
    10    (iv)  access  to  low  or zero interest small business loans for entry
    11  into the adult-use cannabis market;
    12    (v) access to incubator programs pairing qualified and eligible social
    13  and economic equity applicants with support in the  form  of  counseling
    14  services,  education, small business development, and compliance assist-
    15  ance;
    16    (vi) access to cannabis workforce development and  hiring  initiatives
    17  which  incentivize  hiring of qualified social and economic equity staff
    18  members; and
    19    (vii) any other available program or initiative  developed  under  the
    20  office's social and economic equity plan.
    21    (b)  The  executive  director shall have the ability to alter or amend
    22  the social and economic equity plan, and its programs, to meet the needs
    23  of qualified social and economic equity  applicants  and  areas  as  the
    24  industry grows and evolves.
    25    (c)  Under  the  social and economic equity plan, the board shall also
    26  have the authority to create and distribute local  social  and  economic
    27  equity  impact grants to community-based organizations which are located
    28  or operate in areas of disproportionate  enforcement  from  the  war  on
    29  drugs.  The  application  for, and administration of social and economic
    30  equity impact grants shall be determined  by  the  board  through  regu-
    31  lations, provided sufficient funds are available.
    32    4.  For  the purposes of this section, the following definitions shall
    33  apply:
    34    (a) A minority-owned business, minority group member, and  women-owned
    35  business shall have the same meaning as defined in section three hundred
    36  ten of the executive law.
    37    (b) A firm owned by a minority group member who is also a woman may be
    38  defined as a minority-owned business, a women-owned business, or both.
    39    (c)  "Disadvantaged  farmer"  shall  mean a New York state resident or
    40  business  enterprise,  including  a  sole  proprietorship,  partnership,
    41  limited  liability  company  or  corporation, that has reported at least
    42  two-thirds of its federal gross income as income  from  farming,  in  at
    43  least one of the five preceding tax years, and who:
    44    (i) farms in a county that has greater than ten percent rate of pover-
    45  ty  according  to  the  latest U.S. census bureau's american communities
    46  survey;
    47    (ii) has been disproportionately impacted by low commodity  prices  or
    48  faces the loss of farmland through development or suburban sprawl; and
    49    (iii)  meets  any other qualifications as defined in regulation by the
    50  board.
    51    (d) "Social equity applicants" shall mean an applicant  for  licensure
    52  or employment that:
    53    (i)  is  or  has  been a member of a community group or resident of an
    54  area that has been disproportionately impacted  by  the  enforcement  of
    55  cannabis prohibition, as determined by the board in regulation;

        S. 2509--A                         84                         A. 3009--A

     1    (ii)  has  an income lower than eighty percent of the median income of
     2  the county in which the applicant resides; and
     3    (iii) was convicted of a marihuana-related offense prior to the effec-
     4  tive  date  of  this chapter or had a parent, guardian, child, or spouse
     5  who, prior to the effective date of this chapter,  was  convicted  of  a
     6  marihuana-related offense.
     7    5. Licenses issued to minority and women-owned businesses or under the
     8  social  and  economic equity plan shall not be transferable for a period
     9  of two years except to qualified minority and women-owned businesses  or
    10  social  and  economic  equity  applicants  and  only  upon prior written
    11  approval of the executive director.
    12    § 85. Regulations.  The board shall make regulations to implement this
    13  article.

    14                                  ARTICLE 5
    15                      CANNABINOID HEMP AND HEMP EXTRACT
    16  Section 90.  Definitions.
    17          91.  Rulemaking authority.
    18          92.  Cannabinoid hemp processor license.
    19          93.  Cannabinoid hemp retailer license.
    20          94.  Cannabinoid license applications.
    21          95.  Information to be requested in applications for licenses.
    22          96.  Fees.
    23          97.  Selection criteria.
    24          98.  License renewal.
    25          99.  Form of license.
    26          100. Transferability; amendment to license; change in  ownership
    27                 or control.
    28          101. Granting, suspending or revoking licenses.
    29          102. Record keeping and tracking.
    30          103. Packaging   and  labeling  of  cannabinoid  hemp  and  hemp
    31                 extract.
    32          104. Processing of cannabinoid hemp and hemp extract.
    33          105. Laboratory testing.
    34          106. New York hemp product.
    35          107. Penalties.
    36          108. Hemp workgroup.
    37          109. Prohibitions.
    38          110. Special use permits.
    39          111. Severability.
    40    § 90. Definitions. As used in this article, the following terms  shall
    41  have  the following meanings, unless the context clearly requires other-
    42  wise:
    43    1. "Cannabinoid" means the phytocannabinoids found in  hemp  and  does
    44  not  include  synthetic cannabinoids as that term is defined in subdivi-
    45  sion (g) of schedule I of section thirty-three hundred six of the public
    46  health law.
    47    2. "Cannabinoid hemp product" means any hemp and any product processed
    48  or derived from hemp, that is used for human consumption  provided  that
    49  when  such product is packaged or offered for retail sale to a consumer,
    50  it shall not have a concentration  of  more  than  three-tenths  of  one
    51  percent  delta-9 tetrahydrocannabinol or a final total THC concentration
    52  which exceeds an amount determined by the board in regulation.
    53    3. "Used for human consumption" means intended by the manufacturer  or
    54  distributor  to  be:  (a) used for human consumption for its cannabinoid

        S. 2509--A                         85                         A. 3009--A

     1  content; or (b) used in, on or by the human  body  for  its  cannabinoid
     2  content.
     3    4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
     4  plant, including the seeds thereof and all derivatives, extracts, canna-
     5  binoids, isomers, acids, salts, and salts of isomers, whether growing or
     6  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
     7  than three-tenths of one percent on a dry weight  basis.  It  shall  not
     8  include  "medical  cannabis"  as  defined in subdivision twenty-eight of
     9  section three of this chapter.
    10    5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
    11  ers, acids, salts, and salts of  isomers  derived  from  hemp,  used  or
    12  intended  for  human  consumption,  for  its cannabinoid content, with a
    13  total THC concentration of not more than an  amount  determined  by  the
    14  board  in  regulation.  For  the  purpose  of this article, hemp extract
    15  excludes (a) any food, food ingredient or food additive that is general-
    16  ly recognized as safe pursuant to federal law; or (b) any  hemp  extract
    17  that  is  not used for human consumption. Such excluded substances shall
    18  not be regulated pursuant to the provisions  of  this  article  but  are
    19  subject  to  other  provisions  of applicable state law, rules and regu-
    20  lations.
    21    6. "License" means a license issued pursuant to this article.
    22    7. "Cannabinoid hemp processor license" means a license granted by the
    23  office to process, extract, pack or manufacture cannabinoid hemp or hemp
    24  extract into products, whether in intermediate or final form,  used  for
    25  human consumption.
    26    8.  "Processing"  means  extracting,  preparing,  treating, modifying,
    27  compounding, manufacturing or otherwise manipulating cannabinoid hemp to
    28  concentrate or extract its cannabinoids, or creating product, whether in
    29  intermediate or final form, used for human consumption. For purposes  of
    30  this  article,  processing  does  not include: (a) growing, cultivation,
    31  cloning, harvesting, drying, curing, grinding or trimming  when  author-
    32  ized pursuant to article twenty-nine of the agriculture and markets law;
    33  or
    34    (b)  mere  transportation, such as by common carrier or another entity
    35  or individual.
    36    § 91. Rulemaking authority. The board may make regulations pursuant to
    37  this article for the processing, distribution, marketing, transportation
    38  and sale of cannabinoid hemp and hemp extracts used for  human  consump-
    39  tion, which may include, but not be limited to:
    40    1.  Specifying  forms,  establishing  application, reasonable adminis-
    41  tration and renewal fees, or license duration;
    42    2. Establishing the qualifications  and  criteria  for  licensing,  as
    43  authorized by law;
    44    3. The books and records to be created and maintained by licensees and
    45  lawful procedures for their inspection;
    46    4. Any reporting requirements;
    47    5.  Methods  and  standards  of  processing,  labeling,  packaging and
    48  marketing of cannabinoid hemp, hemp extract and products derived  there-
    49  from;
    50    6.  Procedures  for how cannabinoid hemp, hemp extract or ingredients,
    51  additives, or products derived therefrom can be deemed as acceptable for
    52  sale in the state;
    53    7. Provisions governing the modes and forms of administration, includ-
    54  ing inhalation;
    55    8. Procedures for determining whether cannabinoid hemp,  hemp  extract
    56  or  ingredients,  additives,  or  products  derived  therefrom  produced

        S. 2509--A                         86                         A. 3009--A

     1  outside the state or within the state meet the  standards  and  require-
     2  ments of this article and can therefore be sold within the state;
     3    9. Procedures for the granting, cancellation, revocation or suspension
     4  of licenses, consistent with the state administrative procedures act;
     5    10.  Restrictions  governing the advertising and marketing of cannabi-
     6  noid hemp, hemp extract and products derived therefrom; and
     7    11. Any other regulations necessary to implement this article.
     8    § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
     9  binoid hemp or hemp extract  used  for  human  consumption,  whether  in
    10  intermediate  or  final  form, shall be required to obtain a cannabinoid
    11  hemp processor license from the office.
    12    2. A cannabinoid hemp processor license authorizes one or more specif-
    13  ic activities  related  to  the  processing  of  cannabinoid  hemp  into
    14  products  used  for  human consumption, whether in intermediate or final
    15  form, and the distribution or sale thereof by  the  licensee.    Nothing
    16  herein  shall  prevent  a  cannabinoid  hemp  processor from processing,
    17  extracting and processing  hemp  products  not  to  be  used  for  human
    18  consumption.
    19    3.  Persons authorized to grow hemp pursuant to article twenty-nine of
    20  the agriculture and markets law are not authorized to engage in process-
    21  ing of cannabinoid hemp or hemp extract without first being licensed  as
    22  a cannabinoid hemp processor under this article.
    23    4.  This  article  shall  not  apply  to  hemp, cannabinoid hemp, hemp
    24  extracts or products derived therefrom  that  are  not  used  for  human
    25  consumption.  This  article  also  shall  not apply to hemp, cannabinoid
    26  hemp, hemp extracts or products derived therefrom that have been  deemed
    27  generally recognized as safe pursuant to federal law.
    28    5.  The  executive director shall have the authority to set reasonable
    29  fees for such  license,  to  limit  the  activities  permitted  by  such
    30  license,  to  establish  the period during which such license is author-
    31  ized, which shall be two years or more. The board shall make  rules  and
    32  regulations necessary to implement this section.
    33    6.  Any  person  holding an active research partnership agreement with
    34  the department of agriculture and markets, authorizing  that  person  to
    35  process cannabinoid hemp, shall be awarded licensure under this section,
    36  provided  that  the  research  partner  is  actively performing research
    37  pursuant to such agreement and is able to  demonstrate  compliance  with
    38  this  article, as determined by the office, after notice and an opportu-
    39  nity to be heard.
    40    § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
    41  noid hemp, in final  form  to  consumers  within  the  state,  shall  be
    42  required to obtain a cannabinoid hemp retailer license from the office.
    43    2.  The  executive director shall have the authority to set reasonable
    44  fees for such license, to establish the period during which such license
    45  is authorized, which shall be one year or more.  The  board  shall  make
    46  rules and regulations necessary to implement this section.
    47    § 94. Cannabinoid  license  applications. 1. Persons shall apply for a
    48  license under this article by submitting  an  application  upon  a  form
    49  supplied  by  the  office, providing all the relevant requested informa-
    50  tion, verified by the applicant or an authorized representative  of  the
    51  applicant.
    52    2.  A  separate  license  shall be required for each facility at which
    53  processing or retail sales are  conducted;  however,  an  applicant  may
    54  submit one application for separate licensure at multiple locations.
    55    3.  Each  applicant  shall remit with its application the fee for each
    56  requested license, which shall be a reasonable fee.

        S. 2509--A                         87                         A. 3009--A

     1    § 95. Information to be requested in applications for licenses. 1. The
     2  executive director may specify the manner and form in which an  applica-
     3  tion shall be submitted to the office for licensure under this article.
     4    2.  The  executive  director shall prescribe what relevant information
     5  shall be included on an application for licensure  under  this  article.
     6  Such  information  may include, but is not limited to: information about
     7  the applicant's identity; ownership and investment information,  includ-
     8  ing the corporate structure; evidence of good moral character; financial
     9  statements;  information  about the premises to be licensed; information
    10  about the activities to be licensed; and any other relevant  information
    11  prescribed by the executive director.
    12    3.  All  license  applications  shall be signed by the applicant if an
    13  individual, by a managing partner if a limited liability company, by  an
    14  officer  if  a  corporation,  or  by all partners if a partnership. Each
    15  person signing such application shall verify it as true under the penal-
    16  ties of perjury.
    17    4. All license applications shall be accompanied by a check, draft  or
    18  other  forms  of  payment  as the office may require or authorize in the
    19  reasonable amount required by this article for such license.
    20    5. If there be any change, after the filing of the application or  the
    21  granting,  modification  or renewal of a license, in any of the material
    22  facts required to be set  forth  in  such  application,  a  supplemental
    23  statement  giving  notice  of such change, duly verified, shall be filed
    24  with the office within ten days after such change. Failure to do so,  if
    25  willful and deliberate, may be grounds for revocation of the license.
    26    § 96. Fees.  The office may charge licensees a reasonable license fee.
    27  Such fee may be based on the activities permitted by  the  license,  the
    28  amount  of cannabinoid hemp or hemp extract to be processed or extracted
    29  by the licensee, the gross annual  receipts  of  the  licensee  for  the
    30  previous  license  period, or any other factors reasonably deemed appro-
    31  priate by the office.
    32    § 97. Selection criteria. 1. The applicant, if an individual or  indi-
    33  viduals,  shall  furnish evidence of the individual's good moral charac-
    34  ter, and if an entity, the applicant shall furnish evidence of the  good
    35  moral  character  of  the  individuals who have or will have substantial
    36  responsibility for the licensed or  authorized  activity  and  those  in
    37  control  of  the  entity, including principals, officers, or others with
    38  such control.
    39    2. The applicant shall furnish evidence of the applicant's  experience
    40  and competency, and that the applicant has or will have adequate facili-
    41  ties,  equipment,  process  controls,  and  security  to undertake those
    42  activities for which licensure is sought.
    43    3. The applicant shall furnish evidence of his, her or its ability  to
    44  comply with all applicable state and local laws, rules and regulations.
    45    4.  If  the  executive  director  is  not satisfied that the applicant
    46  should be issued a license, the  executive  director  shall  notify  the
    47  applicant in writing of the specific reason or reasons for denial.
    48    5.  No license pursuant to this article may be issued to an individual
    49  under the age of eighteen years.
    50    § 98. License renewal. 1. Each license, issued pursuant to this  arti-
    51  cle,  may  be  renewed upon application therefor by the licensee and the
    52  payment of the reasonable fee for such  license  as  specified  by  this
    53  article.
    54    2.  In  the case of applications for renewals, the office may dispense
    55  with the requirements of such statements as it deems unnecessary in view
    56  of those contained in the application made for the original license.

        S. 2509--A                         88                         A. 3009--A

     1    3. The office shall provide an application for renewal of any  license
     2  issued under this article not less than ninety days prior to the expira-
     3  tion of the current license.
     4    4.  The  office  may  only issue a renewal license upon receipt of the
     5  specified renewal application and renewal fee from  a  licensee  if,  in
     6  addition  to  the  selection  criteria  set  out  in  this  article, the
     7  licensee's license is not under suspension and has not been revoked.
     8    § 99. Form of license. Licenses issued pursuant to this article  shall
     9  specify:
    10    1. The name and address of the licensee;
    11    2. The activities permitted by the license;
    12    3.  The  land,  buildings  and  facilities  that  may  be used for the
    13  licensed activities of the licensee;
    14    4. A unique license number issued by the office to the licensee; and
    15    5. Such other information as the office shall deem necessary to assure
    16  compliance with this chapter.
    17    § 100. Transferability; amendment to license; change in  ownership  or
    18  control.  1.  Licenses  issued  under this article are not transferable,
    19  absent written consent of the office.
    20    2. Upon application of a licensee, a license may be amended to add  or
    21  delete permitted activities.
    22    3.  A  license shall become void by a change in ownership, substantial
    23  corporate change or change of location without prior written approval of
    24  the office. The board may make regulations allowing for certain types of
    25  changes in ownership without the need for prior written approval.
    26    § 101. Granting, suspending or revoking licenses. After due notice and
    27  an opportunity to be heard, which process shall be established by  rules
    28  and  regulations,  the office may decline to grant a new license, impose
    29  conditions or limits with respect to the grant of a license,  modify  an
    30  existing  license  or  decline  to  renew  a license, and may suspend or
    31  revoke a license already granted after due notice and an opportunity  to
    32  be  heard,  as established by rules and regulations, whenever the execu-
    33  tive director finds that:
    34    1. A material statement contained in an application is or was false or
    35  misleading;
    36    2. The applicant or licensee, or a person in a position of  management
    37  and  control  thereof  or  of  the licensed activity, does not have good
    38  moral character, necessary experience or  competency,  adequate  facili-
    39  ties,  equipment,  process controls, or security to process, distribute,
    40  transport or sell cannabinoid hemp, hemp  extract  or  products  derived
    41  therefrom;
    42    3. After appropriate notice and opportunity, the applicant or licensee
    43  has  failed or refused to produce any records or provide any information
    44  required by this article or the regulations promulgated pursuant  there-
    45  to;
    46    4.  The  licensee has conducted activities outside of those activities
    47  permitted on its license; or
    48    5. The applicant or licensee, or any officer,  director,  partner,  or
    49  any other person exercising any position of management or control there-
    50  of  or  of the licensed activity has willfully failed to comply with any
    51  of the provisions of this article or regulations under it and other laws
    52  of this state applicable to the licensed activity.
    53    § 102. Record keeping and tracking. Every licensee shall keep, in such
    54  form as the executive director may direct, such relevant records as  may
    55  be required pursuant to regulations under this article.

        S. 2509--A                         89                         A. 3009--A

     1    § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
     2  Cannabinoid  hemp  processors  shall  be required to provide appropriate
     3  label warning to consumers, and restricted from making unapproved  label
     4  claims,  as determined by the office, concerning the potential impact on
     5  or  benefit  to human health resulting from the use of cannabinoid hemp,
     6  hemp extract and products derived therefrom for human consumption, which
     7  labels shall be affixed to those products when sold, pursuant  to  rules
     8  and regulations that the board may adopt.
     9    2.  The  board  may,  by  rules and regulations, require processors to
    10  establish a code, including, but not limited to QR code, for labels  and
    11  establish  methods  and  procedures for determining, among other things,
    12  serving sizes or dosages for cannabinoid hemp, hemp extract and products
    13  derived therefrom, active cannabinoid concentration  per  serving  size,
    14  number of servings per container, and the growing region, state or coun-
    15  try  of origin if not from the United States. Such rules and regulations
    16  may require an appropriate fact panel that incorporates  data  regarding
    17  serving sizes and potency thereof.
    18    3.  The packaging, sale, or possession of products derived from canna-
    19  binoid hemp or hemp extract used for human consumption  not  labeled  or
    20  offered  in  conformity  with  regulations  under  this section shall be
    21  grounds for the seizure or quarantine of the product, the imposition  of
    22  a  civil  penalty  against  a processor or retailer, and the suspension,
    23  revocation or suspension of a license, in accordance with this article.
    24    § 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
    25  or shall sell or agree to sell or deliver in the state  any  cannabinoid
    26  hemp, hemp extract or product derived therefrom, used for human consump-
    27  tion,  except  in  sealed containers containing quantities in accordance
    28  with size standards pursuant to rules  adopted  by  the  office.    Such
    29  containers  shall have affixed thereto such labels as may be required by
    30  the rules of the office.
    31    2. Processors shall take such  steps  necessary  to  ensure  that  the
    32  cannabinoid  hemp or hemp extract used in their processing operation has
    33  only been grown with pesticides that are registered by the department of
    34  environmental conservation or that specifically meet the  United  States
    35  environmental  protection  agency  registration  exemption  criteria for
    36  minimum risk, used in compliance with rules, regulations, standards  and
    37  guidelines  issued  by  the department of environmental conservation for
    38  pesticides.
    39    3. All cannabinoid hemp, hemp extract and products  derived  therefrom
    40  used  for  human consumption shall be extracted and processed in accord-
    41  ance with good manufacturing processes for the product category pursuant
    42  to Part 117 or Part 111 of title 21 of the code of federal  regulations,
    43  as  may  be  defined,  modified and decided upon by the office, provided
    44  that such rules shall be in conformity to the  extent  practicable  with
    45  neighboring states.
    46    4.  As  necessary  to  protect human health, the office shall have the
    47  authority to: (a) regulate and prohibit specific ingredients, excipients
    48  or methods  used  in  processing  cannabinoid  hemp,  hemp  extract  and
    49  products  derived  therefrom;  and  (b)  prohibit,  or  expressly allow,
    50  certain products or product classes derived  from  cannabinoid  hemp  or
    51  hemp extract, to be processed.
    52    § 105. Laboratory  testing.  Every  cannabinoid  hemp  processor shall
    53  contract with an independent commercial  laboratory  to  test  the  hemp
    54  extract  and products produced by the licensed processor.  The executive
    55  director, in consultation with the commissioner  of  the  department  of
    56  health,  shall  establish the necessary qualifications or certifications

        S. 2509--A                         90                         A. 3009--A

     1  required for such laboratories used by licensees.  The board is  author-
     2  ized  to issue rules and regulations consistent with this article estab-
     3  lishing the testing required, the reporting of testing results  and  the
     4  form  for  reporting  such  laboratory  testing  results. The office has
     5  authority to require licensees to  submit  any  cannabinoid  hemp,  hemp
     6  extract  or  product  derived  therefrom,  processed or offered for sale
     7  within the state, for testing.  This  section  shall  not  obligate  the
     8  office,  in  any  way, to perform any testing on hemp, cannabinoid hemp,
     9  hemp extract or product derived therefrom. The office shall  be  author-
    10  ized  to  establish consortia or cooperative agreements with neighboring
    11  states to effectuate this section.
    12    § 106. New York hemp product. The office may establish and adopt offi-
    13  cial grades  and  standards  for  cannabinoid  hemp,  hemp  extract  and
    14  products  derived  therefrom, as he or she may deem advisable, which are
    15  produced for sale in this state and, from time to  time,  may  amend  or
    16  modify such grades and standards.
    17    § 107. Penalties.  Notwithstanding  the  provision  of  any law to the
    18  contrary, the failure to comply with a requirement of this article, or a
    19  regulation thereunder, may be punishable by a civil penalty of not  more
    20  than  one  thousand  dollars  for  a first violation; not more than five
    21  thousand dollars for a second violation within three years; and not more
    22  than ten thousand dollars for a  third  violation  and  each  subsequent
    23  violation thereafter, within three years.
    24    § 108. Hemp  workgroup.  The  executive director, in consultation with
    25  the commissioner of the department of agriculture and  markets  and  the
    26  commissioner  of  health,  may  appoint  a  New York state hemp and hemp
    27  extract workgroup, composed of growers, researchers, producers, process-
    28  ors, manufacturers and trade associations, to make  recommendations  for
    29  the  industrial hemp and cannabinoid hemp programs, state, regional, and
    30  federal policies and  policy  initiatives,  and  opportunities  for  the
    31  promotion and marketing of cannabinoid hemp and hemp extract as consist-
    32  ent with federal and state laws, rules and regulations.
    33    § 109. Prohibitions. 1. Except as authorized by the United States food
    34  and  drug  administration,  the  processing  of cannabinoid hemp or hemp
    35  extract used for human consumption is prohibited within the state unless
    36  the processor is licensed under this article.
    37    2. Cannabinoid hemp and hemp extracts used for human  consumption  and
    38  grown or processed outside the state shall not be distributed or sold at
    39  retail  within the state, unless they meet all standards established for
    40  cannabinoid hemp under state law and regulations.
    41    3. The retail sale of cannabinoid hemp is  prohibited  in  this  state
    42  unless the retailer is licensed under this article.
    43    § 110. Special  use  permits.  The  office shall have the authority to
    44  issue temporary permits for carrying on any activity related to cannabi-
    45  noid hemp, hemp extract and products derived therefrom,  licensed  under
    46  this  article.  The  executive director may set reasonable fees for such
    47  permits and to establish the  periods  during  which  such  permits  are
    48  valid.  The  board  shall  make  rules and regulations to implement this
    49  section.
    50    § 111. Severability. If any provision of this article or the  applica-
    51  tion  thereof to any person or circumstances is held invalid, such inva-
    52  lidity shall not affect other provisions or applications of this article
    53  which can be given effect without the invalid provision or  application,
    54  and to this end the provisions of this article are declared to be sever-
    55  able.

        S. 2509--A                         91                         A. 3009--A

     1                                  ARTICLE 6
     2                             GENERAL PROVISIONS
     3  Section 125. General prohibitions and restrictions.
     4          126. License  to  be confined to premises licensed; premises for
     5                 which no license shall be granted; transporting cannabis.
     6          127. Protections for the use  of  cannabis;  unlawful  discrimi-
     7                 nations prohibited.
     8          128. Registrations and licenses.
     9          129. Laboratory testing permit.
    10          130. Special use permits.
    11          132. Municipal control and preemption.
    12          133. Office to be necessary party to certain proceedings.
    13          134. Penalties for violation of this chapter.
    14          135. Revocation  of  registrations,  licenses  and  permits  for
    15                 cause; procedure for revocation or cancellation.
    16          136. Lawful actions pursuant to this chapter.
    17          137. Review by courts.
    18          138. Illicit cannabis.
    19          139. Injunction for unlawful manufacturing, sale,  distribution,
    20                 or consumption of cannabis.
    21          140. Persons  forbidden  to  traffic cannabis; certain officials
    22                 not to be interested in manufacture or sale  of  cannabis
    23                 products.
    24          141. Access to criminal history information through the division
    25                 of criminal justice services.
    26    §  125.  General  prohibitions  and restrictions.   1. No person shall
    27  cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
    28  retail  any  cannabis,  adult-use  cannabis product, medical cannabis or
    29  cannabinoid hemp within the  state  without  obtaining  the  appropriate
    30  registration, license, or permit therefor required by this chapter.
    31    2.  No  registered organization, licensee, or permittee shall sell, or
    32  agree to sell or deliver in this state any cannabis or cannabinoid  hemp
    33  for  the  purposes  of  resale to any person who is not duly registered,
    34  licensed or permitted pursuant to this chapter to sell such product,  at
    35  wholesale  or  retail, as the case may be, at the time of such agreement
    36  and sale.
    37    3. No registered organization, licensee, or permittee shall employ, or
    38  permit to be employed, or shall allow to work, on  any  premises  regis-
    39  tered or licensed for retail sale hereunder, any person under the age of
    40  eighteen  years  in any capacity where the duties of such person require
    41  or permit such person to sell, dispense or handle cannabis.
    42    4. No registered organization,  licensee,  or  permittee  shall  sell,
    43  deliver  or give away, or cause, permit or procure to be sold, delivered
    44  or given away any adult-use cannabis, cannabis product, medical cannabis
    45  or cannabinoid hemp on credit unless authorized by the executive  direc-
    46  tor;  except  that  a registered organization, licensee or permittee may
    47  accept third party credit cards for the sale of any  cannabis,  cannabis
    48  product,  medical  cannabis  or  cannabinoid hemp for which it is regis-
    49  tered, licensed or permitted to dispense or sell to patients or cannabis
    50  consumers. This includes, but is not limited to, any consignment sale of
    51  any kind.
    52    5. No registered organization, licensee, or permittee shall  cease  to
    53  be  operated  as  a  bona fide or legitimate premises within the contem-
    54  plation of the registration, license, or permit issued  for  such  prem-
    55  ises, as determined within the judgment of the office.

        S. 2509--A                         92                         A. 3009--A

     1    6.  No  registered  organization, licensee, or permittee shall refuse,
     2  nor any person holding a registration, license, or  permit  refuse,  nor
     3  any  officer  or  director  of any corporation or organization holding a
     4  registration, license, or permit refuse, to appear and/or testify  under
     5  oath  at  an  inquiry or hearing held by the office, with respect to any
     6  matter bearing upon the registration, license, or permit, the conduct of
     7  any people at the licensed premises, or bearing upon  the  character  or
     8  fitness  of  such registrant, licensee, or permittee to continue to hold
     9  any registration, license, or permit. Nor shall any of the  above  offer
    10  false testimony under oath at such inquiry or hearing.
    11    7.  No  registered  organization, licensee, or permittee shall engage,
    12  participate in, or aid or abet any violation or provision of this  chap-
    13  ter, or the rules or regulations of the office or board.
    14    8.  The  proper conduct of registered, licensed, or permitted premises
    15  is essential to the public interest. Failure of a  registered  organiza-
    16  tion,  licensee,  or permittee to exercise adequate supervision over the
    17  registered, licensed, or permitted location poses a substantial risk not
    18  only to the objectives of this chapter but imperils the health,  safety,
    19  and  welfare  of the people of this state. It shall be the obligation of
    20  each person registered, licensed, or permitted  under  this  chapter  to
    21  ensure  that  a high degree of supervision is exercised over any and all
    22  conduct at any registered, licensed, or permitted location  at  any  and
    23  all times in order to safeguard against abuses of the privilege of being
    24  registered,  licensed, or permitted, as well as other violations of law,
    25  statute, rule, or regulation. Persons registered, licensed, or permitted
    26  shall be held strictly accountable for any and all violations that occur
    27  upon any registered, licensed, or permitted premises, and  for  any  and
    28  all  violations  committed  by  or  permitted  by  any manager, agent or
    29  employee of such registered, licensed, or permitted person.
    30    9. It shall be unlawful for any  person,  partnership  or  corporation
    31  operating  a place for profit or pecuniary gain, with a capacity for the
    32  assemblage of twenty or more persons to permit a person  or  persons  to
    33  come  to  the place of assembly for the purpose of cultivating, process-
    34  ing, distributing, or retail distribution or sale of  cannabis  on  said
    35  premises. This includes, but is not limited, to, cannabis that is either
    36  provided  by the operator of the place of assembly, his agents, servants
    37  or employees, or cannabis that is brought  onto  said  premises  by  the
    38  person or persons assembling at such place, unless an appropriate regis-
    39  tration,  license,  or permit has first been obtained from the office of
    40  cannabis management by the operator of said place of assembly.
    41    10. As it is a privilege under the law to be registered, licensed,  or
    42  permitted  to cultivate, process, distribute, traffic, or sell cannabis,
    43  the office may impose any such further restrictions upon any registrant,
    44  licensee, or permittee in particular instances as it deems necessary  to
    45  further  state policy and best serve the public interest. A violation or
    46  failure of any person registered, licensed, or permitted to comply  with
    47  any  condition,  stipulation, or agreement, upon which any registration,
    48  license, or permit was issued or renewed by the office shall subject the
    49  registrant, licensee, or permittee to suspension, cancellation,  revoca-
    50  tion, and/or civil penalties as determined by the office.
    51    11.  No  adult-use cannabis or medical cannabis may be imported to, or
    52  exported out of, New York state by a registered  organization,  licensee
    53  or  person  holding  a  license  and/or permit pursuant to this chapter,
    54  until such time as it may become legal to do so under  federal  law  and
    55  the  board  has  promulgated regulations for the minimum requirements of
    56  such activities. Should it become legal to do so under federal law,  the

        S. 2509--A                         93                         A. 3009--A

     1  board  shall  have  the authority to promulgate rules and regulations to
     2  protect the public and the policy of the state.
     3    12.  No  registered organization, licensee or any of its agents, serv-
     4  ants or employees shall peddle any cannabis product, medical cannabis or
     5  cannabinoid hemp from house to house by means of a truck  or  otherwise,
     6  where  the  sale  is  consummated  and delivery made concurrently at the
     7  residence or place of business of a cannabis consumer.  The  office  may
     8  establish  regulations  to  enforce  this  subdivision. This subdivision
     9  shall not prohibit the delivery by a registered organization  to  certi-
    10  fied  patients or their designated caregivers, pursuant to article three
    11  of this chapter.
    12    13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
    13  purpose of receiving an order from a certified patient, designated care-
    14  giver or cannabis consumer for any cannabis product, medical cannabis or
    15  cannabinoid  hemp at the residence or place of business of such patient,
    16  caregiver or consumer, nor shall any  licensee  receive  or  accept  any
    17  order,  for the sale of any cannabis product, medical cannabis or canna-
    18  binoid hemp which shall be solicited at the residence or place of  busi-
    19  ness  of  a  patient,  caregiver or consumer. This subdivision shall not
    20  prohibit the solicitation by a distributor of an order from any licensee
    21  at the licensed premises of such licensee.
    22    14. No premises registered,  licensed,  or  permitted  by  the  office
    23  shall:
    24    (a) permit or allow any gambling on the premises;
    25    (b) permit or allow the premises to become disorderly;
    26    (c)  permit or allow the use, by any person, of any fireworks or other
    27  pyrotechnics on the premises; or
    28    (d) permit or allow to appear as an entertainer, on any  part  of  the
    29  premises registered, licensed, or permitted, any person under the age of
    30  eighteen years.
    31    § 126. License to be confined to premises licensed; premises for which
    32  no  license shall be granted; transporting cannabis.  1. A registration,
    33  license, or permit issued to any person, pursuant to this  chapter,  for
    34  any  registered, licensed, or permitted premises shall not be transfera-
    35  ble to any other person, to any other location or premises,  or  to  any
    36  other  building or part of the building containing the licensed premises
    37  except in the discretion of the office. All privileges  granted  by  any
    38  registration,  license,  or permit shall be available only to the person
    39  therein specified, and only for  the  premises  licensed  and  no  other
    40  except  if  authorized  by  the  office.    Provided,  however, that the
    41  provisions of this section shall not be deemed to prohibit  an  applica-
    42  tion  or  request for approval for a registration or license as provided
    43  for in this chapter. A violation  of  this  section  shall  subject  the
    44  registration, license, or permit to revocation for cause.
    45    2.  Where a registration or license for premises has been revoked, the
    46  office in its discretion may refuse to accept an  application  from,  or
    47  issue  a  registration,  license,  or  permit under this chapter to, any
    48  individual, business, or entity connected to the revoked registration or
    49  license, or for such premises or for any part of the building containing
    50  such premises and connected therewith.
    51    3. In determining whether to issue such a proscription against  grant-
    52  ing  any  registration, license, or permit for such five-year period, in
    53  addition to any other factors deemed relevant to the office, the  office
    54  shall,  in  the  case  of  a  license revoked due to the illegal sale of
    55  cannabis to a minor, determine whether the proposed subsequent  licensee
    56  has  obtained such premises through an arm's length transaction, and, if

        S. 2509--A                         94                         A. 3009--A

     1  such transaction is not found to be an  arm's  length  transaction,  the
     2  office shall deny the issuance of such license.
     3    4. For purposes of this section, "arm's length transaction" shall mean
     4  a  sale  of  a  fee  of all undivided interests in real property, lease,
     5  management agreement, or other agreement giving  the  applicant  control
     6  over  the  cannabis  at  the  premises, or any part thereof, in the open
     7  market, between an informed and willing buyer and seller  where  neither
     8  is under any compulsion to participate in the transaction, unaffected by
     9  any unusual conditions indicating a reasonable possibility that the sale
    10  was  made  for  the purpose of permitting the original licensee to avoid
    11  the effect of the revocation. The following sales shall be presumed  not
    12  to  be  arm's  length  transactions  unless  adequate  documentation  is
    13  provided demonstrating that the sale, lease,  management  agreement,  or
    14  other  agreement  giving  the applicant control over the cannabis at the
    15  premises, was not conducted, in whole or in part,  for  the  purpose  of
    16  permitting the original licensee to avoid the effect of the revocation:
    17    (a) a sale between relatives;
    18    (b) a sale between related companies or partners in a business; or
    19    (c) a sale, lease, management agreement, or other agreement giving the
    20  applicant  control  over the cannabis at the premises, affected by other
    21  facts or circumstances that would indicate that the sale, lease, manage-
    22  ment agreement, or other agreement giving the applicant control over the
    23  cannabis at the premises, is entered into for  the  primary  purpose  of
    24  permitting the original licensee to avoid the effect of the revocation.
    25    5.  No  registered organization, licensee or permittee shall transport
    26  cannabis products or medical cannabis except in vehicles owned and oper-
    27  ated by such registered organization, licensee or  permittee,  or  hired
    28  and operated by such registered organization, licensee or permittee from
    29  a  trucking  or transportation company permitted and registered with the
    30  office.
    31    6. No common carrier or person operating a transportation facility  in
    32  this  state,  other than the United States government, shall receive for
    33  transportation or delivery within the state  any  cannabis  products  or
    34  medical  cannabis  unless  registered, licensed or permitted pursuant to
    35  this chapter and the shipment is  accompanied  by  copy  of  a  bill  of
    36  lading,  or  other document, showing the name and address of the consig-
    37  nor, the name and address of the consignee, the date  of  the  shipment,
    38  and  the  quantity  and  kind  of  cannabis products or medical cannabis
    39  contained therein.
    40    § 127. Protections for the use of cannabis;  unlawful  discriminations
    41  prohibited.   1. No person, registered organization, licensee or permit-
    42  tee, or agent or contractor of a registered  organization,  licensee  or
    43  permittee  shall  be  subject  to arrest, prosecution, or penalty in any
    44  manner, or denied any right or privilege, including but not  limited  to
    45  civil  liability or disciplinary action by a business or occupational or
    46  professional licensing board or office,  solely  for  conduct  permitted
    47  under  this  chapter. For the avoidance of doubt, the appellate division
    48  of the supreme court of the state of New York, and any  disciplinary  or
    49  character  and  fitness  committees established by them are occupational
    50  and professional licensing boards within the meaning  of  this  section.
    51  State  or  local  law  enforcement  agencies shall not cooperate with or
    52  provide assistance to the government of the United States or any  agency
    53  thereof in enforcing the federal controlled substances act, 21 U.S.C. et
    54  seq.,  solely  for actions consistent with this chapter, except pursuant
    55  to an order of a court of competent jurisdiction.

        S. 2509--A                         95                         A. 3009--A

     1    2. No school or landlord may refuse to enroll or lease to and may  not
     2  otherwise  penalize a person solely for conduct allowed under this chap-
     3  ter, except as exempted:
     4    (a)  if  failing to do so would cause the school or landlord to lose a
     5  monetary or licensing related benefit under federal law or regulations;
     6    (b) if the institution has  adopted  a  code  of  conduct  prohibiting
     7  cannabis use on the basis of religious belief; or
     8    (c)  if  a property is registered with the New York smoke-free housing
     9  registry, it is not required to permit the smoking of cannabis  products
    10  on its premises.
    11    3.  For  the  purposes of medical care, including organ transplants, a
    12  certified patient's authorized use of medical cannabis must  be  consid-
    13  ered  the equivalent of the use of any other medication under the direc-
    14  tion of a practitioner and does not constitute the  use  of  an  illicit
    15  substance  or  otherwise disqualify a registered qualifying patient from
    16  medical care.
    17    4.  An  employer  may  implement  policies  prohibiting  the  use   or
    18  possession  of  cannabis in accordance with section two hundred one-d of
    19  the labor law, provided such policies are  in  writing  as  part  of  an
    20  established  workplace  policy,  uniformly applied to all employees, and
    21  the employer gives prior written notice of such policies to employees.
    22    5. An employer may take  disciplinary  or  adverse  employment  action
    23  against  an employee, including termination of employment, for violating
    24  an established workplace policy adopted under subdivision four  of  this
    25  section,  or  if  the  results of a drug test administered in accordance
    26  with applicable state and local law demonstrate that  the  employee  was
    27  impaired by or under the influence of cannabis while in the workplace or
    28  during  the performance of work. For the purposes of this subdivision, a
    29  drug test that solely yields a positive result for cannabis  metabolites
    30  shall  not be construed as proof that an employee is under the influence
    31  of or impaired by cannabis unless the test yields a positive result  for
    32  active  tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-8-tet-
    33  rahydrocannabinol, or other active cannabinoid found in  cannabis  which
    34  causes impairment.
    35    6.  Nothing  in  this chapter permits any person to undertake any task
    36  under the influence of cannabis when doing so  would  constitute  negli-
    37  gence  or  professional  malpractice, jeopardize workplace safety, or to
    38  operate, navigate or be in actual physical control of any motor  vehicle
    39  or other transport vehicle, aircraft, motorboat, machinery or equipment,
    40  or firearms under the influence of cannabis.
    41    7.  A  person  currently under parole, probation or other state super-
    42  vision, or released on recognizance, non-monetary  conditions,  or  bail
    43  prior  to  being convicted, shall not be punished or otherwise penalized
    44  for conduct allowed under this chapter unless the terms  and  conditions
    45  of  said  parole,  probation, or state supervision explicitly prohibit a
    46  person's cannabis use or any other conduct otherwise allowed under  this
    47  chapter.  A person's use of cannabis or conduct under this chapter shall
    48  not be prohibited unless it has  been  shown  by  clear  and  convincing
    49  evidence  that  the  prohibition is reasonably related to the underlying
    50  crime. Nothing in this provision shall restrict the rights of  a  certi-
    51  fied medical patient.
    52    §  128.  Registrations  and  licenses.   1. No registration or license
    53  shall be transferable or  assignable  except  that  notwithstanding  any
    54  other provision of law, the registration or license of a sole proprietor
    55  converting  to  corporate  form,  where such proprietor becomes the sole
    56  stockholder and only officer and director of such new  corporation,  may

        S. 2509--A                         96                         A. 3009--A

     1  be  transferred  to  the subject corporation if all requirements of this
     2  chapter remain the same with respect to such registration or license  as
     3  transferred  and, further, the registered organization or licensee shall
     4  transmit  to  the  office,  within  ten  days of the transfer of license
     5  allowable under this subdivision, on a form prescribed  by  the  office,
     6  notification of the transfer of such license.
     7    2. No registration, license or permit shall be pledged or deposited as
     8  collateral  security  for  any loan or upon any other condition; and any
     9  such pledge or deposit, and any contract providing  therefor,  shall  be
    10  void.
    11    3.  Licenses  issued  under this chapter shall contain, in addition to
    12  any further information or material to be prescribed by the rules of the
    13  office, the following information:
    14    (a) name of the person to whom the license is issued;
    15    (b) kind of license and what kind of traffic in  cannabis  is  thereby
    16  permitted;
    17    (c)  description by street and number, or otherwise, of licensed prem-
    18  ises; and
    19    (d) a statement in substance that such license shall not be  deemed  a
    20  property  or vested right, and that it may be revoked at any time pursu-
    21  ant to law.
    22    § 129. Laboratory testing permit.    1.  The  executive  director,  in
    23  consultation  with  the commissioner of health, shall approve and permit
    24  one or more independent cannabis testing laboratories  to  test  medical
    25  cannabis, adult-use cannabis and/or cannabinoid hemp.
    26    2. To be permitted as an independent cannabis laboratory, a laboratory
    27  must  apply  to  the office, on a form and in a manner prescribed by the
    28  office, which may include a permit fee and must demonstrate the  follow-
    29  ing to the satisfaction of the executive director:
    30    (a) the owners and directors of the laboratory are of good moral char-
    31  acter;
    32    (b)  the laboratory and its staff has the skills, resources and exper-
    33  tise needed to accurately and consistently perform testing required  for
    34  adult-use cannabis, medical cannabis and/or cannabinoid hemp;
    35    (c)  the  laboratory has in place and will maintain adequate policies,
    36  procedures, and facility security to ensure proper:  collection,  label-
    37  ing, accessioning, preparation, analysis, result reporting, disposal and
    38  storage of adult-use cannabis, medical cannabis and/or cannabinoid hemp;
    39    (d)  the  laboratory is physically located in New York state except as
    40  authorized in regulation; and
    41    (e) the laboratory meets the requirements prescribed by  this  chapter
    42  and by regulation.
    43    3.  The  owner of a laboratory testing permit under this section shall
    44  not hold a registration or license in any category of this  chapter  and
    45  shall  not have any direct or indirect ownership interest in such regis-
    46  tered organization or  licensee.  No  board  member,  officer,  manager,
    47  owner,  partner,  principal stakeholder or member of a registered organ-
    48  ization or licensee under this chapter, or such person's immediate fami-
    49  ly member, shall have an interest or voting  rights  in  any  laboratory
    50  testing permittee.
    51    4. The office shall require that the permitted laboratory report test-
    52  ing  results to the office in a manner, form and timeframe as determined
    53  by the executive director.
    54    5. The board is  authorized  to  promulgate  regulations  establishing
    55  minimum  operating  and  testing  requirements,  and requiring permitted
    56  laboratories to perform certain tests and services.

        S. 2509--A                         97                         A. 3009--A

     1    6. The executive director is authorized to  enter  into  contracts  or
     2  memoranda  of  understanding  with  any  other state for the purposes of
     3  aligning laboratory testing requirements or establishing best  practices
     4  in testing of cannabis.
     5    §  130. Special use permits.  The office is hereby authorized to issue
     6  the following kinds of permits for  carrying  on  activities  consistent
     7  with  the  policy  and purpose of this chapter with respect to cannabis.
     8  The executive director has the authority to set  fees  for  all  permits
     9  issued  pursuant  to this section, to establish the periods during which
    10  permits are authorized.
    11    1. Industrial cannabis permit - to purchase cannabis for  use  in  the
    12  manufacture  and sale of any of the following, when such cannabis is not
    13  otherwise suitable for consumption purposes, namely:  (a) apparel, ener-
    14  gy, paper, and tools; (b) scientific, chemical,  mechanical  and  indus-
    15  trial  products;  or  (c)  any other industrial use as determined by the
    16  executive director.
    17    2. Nursery permit - to produce clones,  immature  plants,  seeds,  and
    18  other  agricultural  products used specifically for the planting, propa-
    19  gation, and cultivation of  cannabis,  and  to  sell  such  to  licensed
    20  adult-use cultivators and registered organizations.
    21    3. Solicitor's permit - to offer for sale or to solicit orders for the
    22  sale  of  any  cannabis products and/or medical cannabis, as a represen-
    23  tative of a registered organization or licensee under this chapter.
    24    4. Broker's permit - to act as a broker in the purchase  and  sale  of
    25  cannabis  products  and/or medical cannabis for a fee or commission, for
    26  or on behalf of a person authorized to cultivate, process, distribute or
    27  dispense cannabis products, medical cannabis or cannabinoid hemp  within
    28  the state.
    29    5.  Trucking  permit  - to allow for the trucking or transportation of
    30  cannabis products and/or medical cannabis  by  a  person  other  than  a
    31  registered organization or licensee under this chapter.
    32    6.  Warehouse  permit - to allow for the storage of cannabis, cannabis
    33  products, or medical cannabis at a location not otherwise registered  or
    34  licensed by the office.
    35    7.  Temporary retail cannabis permit - to authorize the retail sale of
    36  adult-use cannabis to cannabis consumers, for a limited purpose or dura-
    37  tion.
    38    8. Caterer's permit - to authorize the service of cannabis products at
    39  a  function, occasion or event in a hotel, restaurant, club, ballroom or
    40  other premises, which shall authorize within  the  hours  fixed  by  the
    41  office,  during  which  cannabis  may  lawfully be sold or served on the
    42  premises in which such function, occasion or event is held.
    43    9. Packaging permit - to authorize a licensed cannabis distributor  to
    44  sort,  package,  label  and  bundle  cannabis  products from one or more
    45  registered organizations or licensed processors, on the premises of  the
    46  licensed  cannabis  distributor or at a warehouse for which a permit has
    47  been issued under this section.
    48    10. Delivery permit - to authorize licensed adult-use cannabis dispen-
    49  saries or third-parties  to  deliver  adult-use  cannabis  and  cannabis
    50  products directly to cannabis consumers.
    51    11.  Miscellaneous  permits  -  to purchase, receive or sell cannabis,
    52  cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
    53  contracts  or other documents pertaining to cannabis, cannabis products,
    54  or medical cannabis, or to provide specialized  or  certified  ancillary
    55  services  to  support the implementation and purpose of this chapter, in
    56  cases not expressly provided for by this chapter, when in  the  judgment

        S. 2509--A                         98                         A. 3009--A

     1  of the office it would be appropriate and consistent with the policy and
     2  purpose of this chapter.
     3    § 132. Municipal control and preemption. 1.  The provisions of article
     4  four  of this chapter, authorizing the cultivation, processing, distrib-
     5  ution and sale of adult-use cannabis to cannabis consumers, shall not be
     6  applicable to a county, or city having a population of one hundred thou-
     7  sand or more residents, which on or before  December  thirty-first,  two
     8  thousand  twenty-one,  adopts  a local law, ordinance or resolution by a
     9  majority vote of its governing body, to completely prohibit  the  estab-
    10  lishment  of  one or more types of licenses contained in article four of
    11  this chapter, within the jurisdiction of such county or city.  Any coun-
    12  ty law, ordinance or resolution passed by  a  county  pursuant  to  this
    13  subdivision  shall  not  apply  to  a  city that has a population of one
    14  hundred thousand or more residents and that  is  geographically  located
    15  within the county unless such a prohibition is also adopted by a majori-
    16  ty  vote  of  the city's governing body. No law, ordinance or resolution
    17  may be adopted after January first, two thousand twenty-two,  completely
    18  prohibiting the establishment of one or more types of licenses contained
    19  in article four of this chapter.
    20    2.  Except  as  provided  for  in subdivision one of this section, all
    21  counties, towns, cities and villages are hereby preempted from  adopting
    22  any  rule, ordinance, regulation or prohibition pertaining to the opera-
    23  tion  or  licensure  of  registered  organizations,  adult-use  cannabis
    24  licenses  or cannabinoid hemp licenses. However, counties, cities, towns
    25  and villages, as applicable, may pass ordinances or regulations  govern-
    26  ing  the  hours of operation and location of licensed adult-use cannabis
    27  retail dispensaries, provided such ordinances or regulations do not make
    28  the operation of such licensed retail dispensaries unreasonably  imprac-
    29  ticable.
    30    3.  Local  rules, ordinances, regulations or prohibitions enacted by a
    31  county, city, town, or village shall not require an  adult-use  cannabis
    32  applicant,  licensee  or permittee to enter into a community host agree-
    33  ment or pay any consideration to the municipality other than  reasonable
    34  zoning and permitting fees.
    35    4.  Notwithstanding  subdivision one of this section, adult-use canna-
    36  bis, medical cannabis and cannabinoid hemp farming and farm  operations,
    37  on  land  located  within  an  agricultural district, shall be deemed an
    38  approved activity under the relevant county, city, town, or village land
    39  use or zoning ordinances, rules, or regulations, inclusive of all neces-
    40  sary ancillary farm operations as permitted by license pursuant to  this
    41  chapter.
    42    §  133.  Office  to  be  necessary party to certain proceedings.   The
    43  office shall be made a party to all actions and proceedings affecting in
    44  any manner the possession, ownership  or  transfer  of  a  registration,
    45  license  or  permit  to operate within a municipality; to all injunction
    46  proceedings; and to all other civil actions or proceedings which in  any
    47  manner  affect  the  enjoyment of the privileges or the operation of the
    48  restrictions provided for in this chapter.
    49    § 134. Penalties for violation of this chapter.   1.  Any  person  who
    50  cultivates for sale or sells cannabis, cannabis products, medical canna-
    51  bis  or  cannabinoid  hemp  without  having an appropriate registration,
    52  license or permit therefor, or whose registration,  license,  or  permit
    53  has been revoked, surrendered or cancelled, upon first conviction there-
    54  of  shall be guilty of a misdemeanor, punishable by a fine not more than
    55  five thousand dollars per violation, per day, and upon second conviction
    56  thereof shall be guilty of a class A misdemeanor punishable  by  a  fine

        S. 2509--A                         99                         A. 3009--A

     1  not more than ten thousand dollars per violation, per day, or a sentence
     2  of  imprisonment  not  to  exceed  thirty  days  and upon all subsequent
     3  convictions thereof shall be an E felony punishable by a fine  not  more
     4  than  twenty-five  thousand dollars per violation, per day or a sentence
     5  of imprisonment not to exceed one year.
     6    2. Any registered organization  or  licensee,  whose  registration  or
     7  license  has  been suspended pursuant to the provisions of this chapter,
     8  who sells cannabis, cannabis products, medical cannabis  or  cannabinoid
     9  hemp  during  the  suspension  period,  upon conviction thereof shall be
    10  guilty of an A misdemeanor, punishable punished by a fine  of  not  more
    11  than five thousand dollars per violation, per day.
    12    3.  Any  person  who shall make any false statement in the application
    13  for or renewal of a registration, license or a permit under this chapter
    14  shall be guilty of a misdemeanor, and upon conviction thereof  shall  be
    15  punishable by a fine of not more than five thousand dollars.
    16    4.  Any  violation  by any person of any provision of this chapter for
    17  which no punishment or penalty is otherwise provided shall be  a  misde-
    18  meanor.
    19    5.  Nothing in this section shall prohibit the office from suspending,
    20  revoking, or denying a license, permit, registration, or application  in
    21  addition to the penalties prescribed herein.
    22    §  135.  Revocation  of registrations, licenses and permits for cause;
    23  procedure for revocation or cancellation.  1. Any registration,  license
    24  or  permit  issued  pursuant  to this chapter may be revoked, cancelled,
    25  suspended and/or subjected to the imposition  of  a  civil  penalty  for
    26  cause, and must be revoked for the following causes:
    27    (a)  the  registered  organization,  licensee, permittee or his or her
    28  agent or employee has sold any illegal cannabis on the  premises  regis-
    29  tered, licensed or permitted;
    30    (b)  for  transferring,  assigning  or  hypothecating  a registration,
    31  license or permit without prior written approval of the office;
    32    (c) for failing to follow testing requirements prescribed  under  this
    33  chapter or falsifying testing results;
    34    (d)  for  knowingly  distributing  cannabis  products to persons under
    35  twenty-one years of age;
    36    (e) for diverting, inverting or trafficking in cannabis to or from  an
    37  illegal  and unlicensed, registered, or permitted source in violation of
    38  this chapter; or
    39    (f) for any other violation established in regulation which  poses  an
    40  imminent  and substantial threat to public health, public safety, or the
    41  integrity of the state's cannabis regulatory structure.
    42    2. Notwithstanding the issuance of a registration, license  or  permit
    43  by  way of renewal, the office may revoke, cancel or suspend such regis-
    44  tration, license or permit and/or may impose a civil penalty against any
    45  holder of such registration, license or permit, as  prescribed  by  this
    46  section,  for  causes  or  violations  occurring during a license period
    47  which occurred prior to the issuance of such  registration,  license  or
    48  permit.
    49    3.  (a)  As  used  in  this  section,  the term "for cause" shall also
    50  include the existence of a sustained and continuing pattern  of  miscon-
    51  duct,  failure  to  adequately prevent diversion or disorder on or about
    52  the registered, licensed or permitted premises, or in the area in  front
    53  of or adjacent to the registered or licensed premises, or in any parking
    54  lot  provided  by  the  registered  organization  or licensee for use by
    55  registered organization or licensee's patrons, which, in the judgment of
    56  the office, adversely affects or tends to affect the protection, health,

        S. 2509--A                         100                        A. 3009--A

     1  welfare, safety, or repose of the inhabitants of the area in  which  the
     2  registered  or  licensed premises is located, or results in the licensed
     3  premises becoming a focal point for police attention, or is offensive to
     4  public decency.
     5    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
     6  include deliberately misleading the authority:
     7    (A) as to the nature and character of the business to be  operated  by
     8  the registered organization, licensee or permittee; or
     9    (B) by substantially altering the nature or character of such business
    10  during  the registration or licensing period without seeking appropriate
    11  approvals from the office.
    12    (ii) As used in this subdivision, the term "substantially altering the
    13  nature or character" of such business shall mean any significant  alter-
    14  ation  in  the  scope  of  business activities conducted by a registered
    15  organization, licensee or permittee  that  would  require  obtaining  an
    16  alternate form of registration, license or permit.
    17    4.  As used in this chapter, the existence of a sustained and continu-
    18  ing pattern of misconduct, failure to adequately  prevent  diversion  or
    19  disorder  on  or about the premises may be presumed upon the third inci-
    20  dent reported to the office by a law enforcement agency,  or  discovered
    21  by  the  office  during  the course of any investigation, of misconduct,
    22  diversion or disorder on or about the premises or related to the  opera-
    23  tion of the premises.
    24    5.  The denial, revocation, or suspension of any application, license,
    25  permit, or registration issued to or submitted by a person, business, or
    26  entity may also be grounds for the denial, suspension, or revocation  of
    27  any and all other licenses, permits, or registrations applied for by, or
    28  issued  to  said  person,  business, or entity if the executive director
    29  determines it necessary to protect public health and safety or that  the
    30  person,  business,  and/or  entities involved no longer possess the good
    31  moral character required to participate in the cannabis industry.
    32    6. Any registration, license or permit issued by the  office  pursuant
    33  to  this  chapter  may  be  revoked,  cancelled  or  suspended and/or be
    34  subjected to  the  imposition  of  a  monetary  penalty  in  the  manner
    35  prescribed by this section.
    36    7.  The  office  may  on  its  own  initiative, or on complaint of any
    37  person, institute proceedings to revoke, cancel or suspend any adult-use
    38  cannabis retail dispensary  license  and  may  impose  a  civil  penalty
    39  against  the  licensee  after  a  hearing at which the licensee shall be
    40  given an opportunity to be heard. Such hearing shall  be  held  in  such
    41  manner and upon such notice as may be prescribed by regulation.
    42    8.  All  other  registrations,  licenses  or permits issued under this
    43  chapter may be revoked, cancelled, suspended and/or made subject to  the
    44  imposition  of  a civil penalty by the office after a hearing to be held
    45  in such manner and upon such notice as may be prescribed  in  regulation
    46  by the board.
    47    9.  Notwithstanding  any  other  provision of this chapter, the office
    48  may: (a) revoke or refuse to issue any class or type of license, permit,
    49  or registration if it determines that failing to do  so  would  conflict
    50  with  any  federal law or guidance pertaining to regulatory, enforcement
    51  and other systems that states, businesses,  or  other  institutions  may
    52  implement to mitigate the potential for federal intervention or enforce-
    53  ment.  This  provision  shall  not  be construed to prohibit the overall
    54  implementation and administration of this  chapter  on  account  of  the
    55  federal  classification  of  marijuana  or  cannabis  as  a  schedule  I
    56  substance or any other federal prohibitions or restrictions; and

        S. 2509--A                         101                        A. 3009--A

     1    (b) the board may adopt rules and regulations based on  federal  guid-
     2  ance,  provided  those rules and regulations are designed to comply with
     3  federal guidance and mitigate federal enforcement against the  registra-
     4  tions,  licenses,  or permits issued under this chapter, or the cannabis
     5  industry as a whole. This may include regulations which permit the shar-
     6  ing  of  licensee,  registrant, or permit holder information with desig-
     7  nated banking or financial institutions, provided these regulations  are
     8  designed  to  aid  cannabis industry participants' access to banking and
     9  financial services.
    10    § 136. Lawful actions pursuant to this chapter.  1. Contracts  related
    11  to the operation of registered organizations, licenses and permits under
    12  this  chapter  shall  be lawful and shall not be deemed unenforceable on
    13  the basis that the  actions  permitted  pursuant  to  the  registration,
    14  license or permit are prohibited by federal law.
    15    2. The following actions are not unlawful as provided under this chap-
    16  ter, shall not be an offense under any state or local law, and shall not
    17  result  in  any civil fine, seizure, or forfeiture of assets against any
    18  person acting in accordance with this chapter:
    19    (a) Actions of a registered organization, licensee, or  permittee,  or
    20  the  employees  or  agents  of such registered organization, licensee or
    21  permittee, as permitted by this chapter and consistent  with  rules  and
    22  regulations  of the office, pursuant to a valid registration, license or
    23  permit issued by the office.
    24    (b) Actions of those who allow property to be  used  by  a  registered
    25  organization, licensee, or permittee, or the employees or agents of such
    26  registered  organization,  licensee  or  permittee, as permitted by this
    27  chapter and consistent with rules and regulations of the office,  pursu-
    28  ant to a valid registration, license or permit issued by the office.
    29    (c)  Actions of any person or entity, their employees, or their agents
    30  providing a service to a registered organization, licensee, permittee or
    31  a potential registered organization, licensee, or permittee, as  permit-
    32  ted  by  this  chapter  and consistent with rules and regulations of the
    33  office, relating to the formation of a business.
    34    (d) The purchase, possession,  or  consumption  of  cannabis,  medical
    35  cannabis and cannabinoid hemp, as permitted by this chapter and consist-
    36  ent  with  rules  and regulations of the office, obtained from a validly
    37  registered, licensed or permitted retailer.
    38    § 137. Review by courts.  1. The following actions by the office shall
    39  be subject to review by the supreme court  in  the  manner  provided  in
    40  article seventy-eight of the civil practice law and rules:
    41    (a)  refusal  by  the  office  to  issue a registration, license, or a
    42  permit;
    43    (b) the revocation, cancellation  or  suspension  of  a  registration,
    44  license, or permit by the office;
    45    (c) the failure or refusal by the office to render a decision upon any
    46  completed  application for a license, registration or permit, or hearing
    47  submitted to or  held  by  the  office  within  sixty  days  after  such
    48  submission of a completed application or hearing;
    49    (d)  the  transfer by the office of a registration, license, or permit
    50  to any other entity or premises, or refusal by  the  office  to  approve
    51  such a transfer; and
    52    (e)  refusal to approve a corporate change in stockholders, stockhold-
    53  ings, officers or directors.
    54    2. No stay shall be granted pending the determination of  such  matter
    55  except on notice to the office and only for a period of less than thirty
    56  days. In no instance shall a stay be granted where the office has issued

        S. 2509--A                         102                        A. 3009--A

     1  a  summary  suspension  of  a  registration,  license, or permit for the
     2  protection of the public health, safety, and welfare.
     3    § 138. Illicit cannabis.  1. "Illicit cannabis" means and includes any
     4  cannabis  product  or  medical  cannabis owned, cultivated, distributed,
     5  bought, sold, packaged, rectified, blended, treated,  fortified,  mixed,
     6  processed,  warehoused,  possessed  or  transported,  on  which  any tax
     7  required to have been paid under any applicable state law has  not  been
     8  paid;  or  any  adult-use cannabis or medical cannabis product the form,
     9  packaging, or content of which is not permitted by the office, as appli-
    10  cable.
    11    2. Any person who shall knowingly barter or exchange  with,  or  sell,
    12  give  or offer to sell or to give another any illicit cannabis is guilty
    13  of a class A misdemeanor.
    14    3. Any person who shall possess or have under his or  her  control  or
    15  transport  any  illicit cannabis with intent to barter or exchange with,
    16  or to sell or give to another the same or any part thereof is guilty  of
    17  a class A misdemeanor. Such intent is presumptively established by proof
    18  that  the person knowingly possessed or had under his or her control one
    19  or more ounces, or an equivalent amount as determined by  the  board  in
    20  regulation, of illicit cannabis. This presumption may be rebutted.
    21    4.  Any  person who, being the owner, lessee, or occupant of any room,
    22  shed, tenement, booth or building, float or  vessel,  or  part  thereof,
    23  knowingly  permits  the same to be used for the cultivation, processing,
    24  distribution, purchase, sale, warehousing, transportation, or storage of
    25  any illicit cannabis, is guilty of a misdemeanor.
    26    § 139. Injunction for unlawful manufacturing, sale,  distribution,  or
    27  consumption  of cannabis.   1. If any person shall engage or participate
    28  or be about to engage or participate  in  the  cultivation,  production,
    29  distribution, traffic, or sale of cannabis products, medical cannabis or
    30  cannabinoid  hemp in this state without obtaining the appropriate regis-
    31  tration, license, or permit  therefor,  or  shall  traffic  in  cannabis
    32  products, medical cannabis or cannabinoid hemp contrary to any provision
    33  of  this  chapter,  or otherwise unlawfully, or shall traffic in illicit
    34  cannabis or, operating either a place for profit or pecuniary gain, or a
    35  not-for-profit basis, with a capacity for the assemblage  of  twenty  or
    36  more  persons, shall permit a person or persons to come to such place of
    37  assembly for the purpose of consuming cannabis products  without  having
    38  the  appropriate  license  or  permit therefor, the office may present a
    39  verified petition or complaint to a justice of the supreme  court  at  a
    40  special term of the supreme court of the judicial district in which such
    41  city,  village  or  town is situated, for an order enjoining such person
    42  engaging or participating in such activity  or  from  carrying  on  such
    43  business.  Such  petition  or complaint shall state the facts upon which
    44  such application is based. Upon the  presentation  of  the  petition  or
    45  complaint, the justice or court may grant an order temporarily restrain-
    46  ing  any person from continuing to engage in conduct as specified in the
    47  petition or complaint, and shall grant an order requiring such person to
    48  appear before such justice or court at or before a special term  of  the
    49  supreme  court  in  such judicial district on the day specified therein,
    50  not more than ten days after the granting thereof,  to  show  cause  why
    51  such  person should not be permanently enjoined from engaging or partic-
    52  ipating in such activity or from carrying on such business, or why  such
    53  person should not be enjoined from carrying on such business contrary to
    54  the provisions of this chapter. A copy of such petition or complaint and
    55  order  shall  be  served upon the person, in the manner directed by such
    56  order, not less than three days before the return day  thereof.  On  the

        S. 2509--A                         103                        A. 3009--A

     1  day  specified  in such order, the justice or court before whom the same
     2  is returnable shall hear the proofs of the parties and  may,  if  deemed
     3  necessary  or  proper,  take testimony in relation to the allegations of
     4  the  petition  or  complaint.  If the justice or court is satisfied that
     5  such person is about to engage or participate in the unlawful traffic in
     6  cannabis, medical cannabis or cannabinoid hemp or has unlawfully  culti-
     7  vated,  processed, or sold cannabis products, medical cannabis or canna-
     8  binoid hemp without having obtained a registration or license or contra-
     9  ry to the provisions of this  chapter,  or  has  trafficked  in  illicit
    10  cannabis,  or, is operating or is about to operate such place for profit
    11  or pecuniary gain, with such capacity, and has permitted or is about  to
    12  permit  a  person  or  persons to come to such place of assembly for the
    13  purpose of consuming cannabis products without having  such  appropriate
    14  license, an order shall be granted enjoining such person from thereafter
    15  engaging  or  participating in or carrying on such activity or business,
    16  and allowing for the seizure of such illicit cannabis without limit. If,
    17  after the entry of such an order in the county  clerk's  office  of  the
    18  county  in  which  the principal place of business of the corporation or
    19  partnership is located, or in which the individual so  enjoined  resides
    20  or  conducts  such business, and the service of a copy thereof upon such
    21  person, or such substituted  service  as  the  court  may  direct,  such
    22  person,  partnership  or  corporation shall, in violation of such order,
    23  cultivate, process, distribute or sell cannabis products, medical canna-
    24  bis or cannabinoid hemp, or illicit cannabis,  or  permit  a  person  or
    25  persons  to  come to such place of assembly for the purpose of consuming
    26  cannabis products, such activity shall be deemed a contempt of court and
    27  be punishable in the manner provided by the judiciary law, and, in addi-
    28  tion to any such punishment, the justice or court before whom  or  which
    29  the petition or complaint is heard, may, in his or its discretion, order
    30  the  seizure  and  forfeiture of any cannabis products and any fixtures,
    31  equipment and supplies used in the operation or promotion of such  ille-
    32  gal  activity  and such property shall be subject to forfeiture pursuant
    33  to law. Costs upon the application for such injunction may be awarded in
    34  favor of and against  the  parties  thereto  in  such  sums  as  in  the
    35  discretion  of the justice or court before whom or which the petition or
    36  complaint is heard may seem proper.
    37    2. The owner, lessor and lessee of a building, erection or place where
    38  cannabis products, medical cannabis or cannabinoid  hemp  is  unlawfully
    39  cultivated,  processed,  distributed,  sold, consumed or permitted to be
    40  unlawfully cultivated, processed, distributed, sold or consumed  may  be
    41  made a respondent or defendant in the proceeding or action.
    42    3.  The  gift or transfer of cannabis in conjunction with the transfer
    43  of any money, consideration or value,  or  another  item  or  any  other
    44  services  in  an effort to evade laws, licensing, permitting, and regis-
    45  tration requirements governing the sale of cannabis shall be  considered
    46  an unlawful activity under this chapter.
    47    § 140. Persons forbidden to traffic cannabis; certain officials not to
    48  be  interested  in  manufacture  or  sale  of  cannabis products. 1. The
    49  following are forbidden to traffic in cannabis:
    50    (a) Except as provided in subdivision one-a of this section, a  person
    51  who has been convicted of a felony, unless subsequent to such conviction
    52  such  person  shall  have received an executive pardon therefor removing
    53  this disability, a certificate of good conduct granted by the department
    54  of corrections and community supervision, or  a  certificate  of  relief
    55  from disabilities granted by the department of corrections and community
    56  supervision or a court of this state pursuant to the provisions of arti-

        S. 2509--A                         104                        A. 3009--A

     1  cle  twenty-three  of  the correction law to remove the disability under
     2  this section because of such conviction;
     3    (b) A person under the age of twenty-one years;
     4    (c)  A  person  who  is not a citizen of the United States or an alien
     5  lawfully admitted for permanent residence in the United States;
     6    (d) A partnership or a corporation, unless each member of the partner-
     7  ship, or each of the principal officers  and  directors  of  the  corpo-
     8  ration,  is a citizen of the United States or an alien lawfully admitted
     9  for permanent residence in the United States, not less  than  twenty-one
    10  years  of  age,  and  has  not  been  convicted  of any felony, or if so
    11  convicted has received, subsequent  to  such  conviction,  an  executive
    12  pardon  therefor  removing this disability a certificate of good conduct
    13  granted by the department of corrections and community supervision, or a
    14  certificate of relief from disabilities granted  by  the  department  of
    15  corrections  and community supervision or a court of this state pursuant
    16  to the provisions of article  twenty-three  of  the  correction  law  to
    17  remove  the  disability  under  this section because of such conviction;
    18  provided however that a corporation  which  otherwise  conforms  to  the
    19  requirements  of this section and chapter may be licensed if each of its
    20  principal officers and more than one-half of its directors are  citizens
    21  of the United States or aliens lawfully admitted for permanent residence
    22  in  the United States; and provided further that a corporation organized
    23  under the not-for-profit corporation law  or  the  education  law  which
    24  otherwise  conforms  to the requirements of this section and chapter may
    25  be licensed if each of its principal officers and more than one-half  of
    26  its  directors are not less than twenty-one years of age and none of its
    27  directors are less than eighteen years of age; and provided further that
    28  a corporation organized under the not-for-profit corporation law or  the
    29  education  law  and  located  on the premises of a college as defined by
    30  section two of  the  education  law  which  otherwise  conforms  to  the
    31  requirements  of this section and chapter may be licensed if each of its
    32  principal officers and each of its directors are not less  than  twenty-
    33  one years of age;
    34    (e)  A  person  who  shall have had any registration or license issued
    35  under this chapter revoked for cause, until no less than two years  from
    36  the date of such revocation;
    37    (f)  A  person not registered or licensed under the provisions of this
    38  chapter, who has been convicted of a violation of this chapter, until no
    39  less than two years from the date of such conviction; or
    40    (g) A corporation or partnership, if any officer and director  or  any
    41  partner,  while  not  licensed under the provisions of this chapter, has
    42  been convicted of a violation of this chapter, or has had a registration
    43  or license issued under this chapter revoked for cause,  until  no  less
    44  than two years from the date of such conviction or revocation.
    45    1-a. Notwithstanding the provision of subdivision one of this section,
    46  a  corporation  holding  a  registration  or license to traffic cannabis
    47  products or medical cannabis may, upon conviction of a felony  be  auto-
    48  matically forbidden to traffic in cannabis products or medical cannabis,
    49  and  the  application for a registered organization or license by such a
    50  corporation may be subject to denial, and the registration or license of
    51  such a corporation may be subject to revocation  or  suspension  by  the
    52  office   pursuant,   consistent   with   the   provisions   of   article
    53  twenty-three-A of the correction law. For any  felony  conviction  by  a
    54  court  other  than  a  court  of  this state, the office may request the
    55  department of corrections and community supervision to  investigate  and
    56  review  the  facts  and  circumstances concerning such a conviction, and

        S. 2509--A                         105                        A. 3009--A

     1  such department shall, if so  requested,  submit  its  findings  to  the
     2  office  as  to  whether the corporation has conducted itself in a manner
     3  such that discretionary review by the office would not  be  inconsistent
     4  with  the  public  interest. The department of corrections and community
     5  supervision may charge the registered organization, licensee  or  appli-
     6  cant  a  fee  equivalent to the expenses of an appropriate investigation
     7  under this subdivision. For any conviction rendered by a court  of  this
     8  state,  the  office  may  request the corporation, if the corporation is
     9  eligible for a certificate of relief from disabilities, to seek  such  a
    10  certificate  from  the court which rendered the conviction and to submit
    11  such a certificate as part of the office's discretionary review process.
    12    2. Except as may otherwise be provided for in regulation, it shall  be
    13  unlawful   for  any  police  commissioner,  police  inspector,  captain,
    14  sergeant, roundsman, patrolman or other police official  or  subordinate
    15  of  any  police  department in the state, to be either directly or indi-
    16  rectly interested in the cultivation, processing, distribution, or  sale
    17  of  cannabis  products  or to offer for sale, or recommend to any regis-
    18  tered organization or licensee any cannabis products. A person  may  not
    19  be  denied  any  registration or license granted under the provisions of
    20  this chapter solely on the grounds of being the spouse of a public serv-
    21  ant described in this section. The solicitation or  recommendation  made
    22  to  any  registered  organization  or licensee, to purchase any cannabis
    23  products by any police official or subordinate as hereinabove described,
    24  shall be presumptive evidence of the interest of such official or subor-
    25  dinate in the cultivation, processing, distribution, or sale of cannabis
    26  products.
    27    3. No elective village officer shall be subject to the limitations set
    28  forth in subdivision two of this section unless  such  elective  village
    29  officer  shall  be assigned duties directly relating to the operation or
    30  management of the police department or have direct  authority  over  any
    31  applicable local licensing requirements or approvals.
    32    §  141. Access to criminal history information through the division of
    33  criminal justice services.   In connection with  the  administration  of
    34  this  chapter,  the  office is authorized to request, receive and review
    35  criminal history information through the division  of  criminal  justice
    36  services  with  respect  to  any person seeking a registration, license,
    37  permit or  authorization  to  cultivate,  process,  distribute  or  sell
    38  medical  cannabis  or adult-use cannabis.  At the office's request, each
    39  person, member, principal and/or officer of the applicant  shall  submit
    40  to the office his or her fingerprints in such form and in such manner as
    41  specified  by  the  division,  for  the purpose of conducting a criminal
    42  history search and returning a report thereon  in  accordance  with  the
    43  procedures  and requirements established by the division pursuant to the
    44  provisions of article thirty-five of  the  executive  law,  which  shall
    45  include  the  payment  of the prescribed processing fees for the cost of
    46  the division's full search and retain procedures and a national criminal
    47  history record check. The executive director, or his  or  her  designee,
    48  shall  submit  such fingerprints and the processing fee to the division.
    49  The division shall forward to the office a report with  respect  to  the
    50  applicant's  previous  criminal history, if any, or a statement that the
    51  applicant has no previous criminal history according to its files. Fing-
    52  erprints submitted to the division pursuant to this subdivision may also
    53  be submitted to the federal bureau of investigation for a national crim-
    54  inal history record check. If  additional  copies  of  fingerprints  are
    55  required, the applicant shall furnish them upon request.
    56    § 3. Intentionally omitted.

        S. 2509--A                         106                        A. 3009--A

     1    § 4. Section 3302 of the public health law, as added by chapter 878 of
     2  the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
     3  subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24,  25,
     4  26,  28,  29  and  30  as renumbered by chapter 537 of the laws of 1998,
     5  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
     6  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
     7  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
     8  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 21 as
     9  amended by chapter 1 of the laws of 2020, subdivision 31 as  amended  by
    10  section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as
    11  added  by  section  6  of part A of chapter 447 of the laws of 2012, and
    12  subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of
    13  the laws of 2014, is amended to read as follows:
    14    § 3302. Definitions of terms of general use in  this  article.  Except
    15  where   different   meanings   are  expressly  specified  in  subsequent
    16  provisions of this article, the following terms have the following mean-
    17  ings:
    18    1. "Addict" means a person who habitually uses a controlled  substance
    19  for  a  non-legitimate or unlawful use, and who by reason of such use is
    20  dependent thereon.
    21    2.  "Administer"  means  the  direct  application  of   a   controlled
    22  substance,  whether  by  injection,  inhalation, ingestion, or any other
    23  means, to the body of a patient or research subject.
    24    3. "Agent" means an authorized person who acts on behalf of or at  the
    25  direction of a manufacturer, distributor, or dispenser. No person may be
    26  authorized  to  so  act  if  under  title VIII of the education law such
    27  person would not be permitted to engage in such  conduct.  It  does  not
    28  include  a  common or contract carrier, public warehouseman, or employee
    29  of the carrier or warehouseman when  acting  in  the  usual  and  lawful
    30  course of the carrier's or warehouseman's business.
    31    4. ["Concentrated Cannabis" means
    32    (a)  the  separated  resin, whether crude or purified, obtained from a
    33  plant of the genus Cannabis; or
    34    (b) a material, preparation,  mixture,  compound  or  other  substance
    35  which  contains  more than two and one-half percent by weight of delta-9
    36  tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
    37  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    38  terpene numbering system.
    39    5.]  "Controlled  substance" means a substance or substances listed in
    40  section thirty-three hundred six of this [chapter] title.
    41    [6.] 5. "Commissioner" means commissioner of health of  the  state  of
    42  New York.
    43    [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
    44  attempted transfer from one person to another of a controlled substance,
    45  whether or not there is an agency relationship.
    46    [8.] 7. "Department" means the department of health of  the  state  of
    47  New York.
    48    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    49  mate user or research subject by lawful means, including by means of the
    50  internet, and includes the packaging, labeling, or compounding necessary
    51  to prepare the substance for such delivery.
    52    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    53  ing by means of the internet, other than by administering or dispensing.
    54    [11.]  10.  "Distributor"  means a person who distributes a controlled
    55  substance.

        S. 2509--A                         107                        A. 3009--A

     1    [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
     2  of  a  controlled  substance by a person or in a manner not specifically
     3  authorized by law.
     4    [13.] 12. "Drug" means
     5    (a) substances recognized as drugs in the official United States Phar-
     6  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
     7  official National Formulary, or any supplement to any of them;
     8    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
     9  treatment, or prevention of disease in man or animals; and
    10    (c) substances (other than food) intended to affect the structure or a
    11  function  of  the  body of man or animal. It does not include devices or
    12  their components, parts, or accessories.
    13    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
    14  United States Department of Justice, or its successor agency.
    15    [15.]  14. "Federal controlled substances act" means the Comprehensive
    16  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    17  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    18  promulgated thereunder.
    19    [16.] 15. "Federal registration number" means such number assigned  by
    20  the  Federal agency to any person authorized to manufacture, distribute,
    21  sell, dispense or administer controlled substances.
    22    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    23  repeated  use of any controlled substance for non-legitimate or unlawful
    24  use is in danger of becoming, dependent upon such substance.
    25    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    26  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
    27  hospital or similar facility approved and certified by the department as
    28  authorized to  obtain  controlled  substances  by  distribution  and  to
    29  dispense and administer such substances pursuant to the order of a prac-
    30  titioner.
    31    [19.]  18.  "License"  means  a  written  authorization  issued by the
    32  department or the New York  state  department  of  education  permitting
    33  persons  to  engage  in  a specified activity with respect to controlled
    34  substances.
    35    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    36  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    37  controlled substance, either directly or  indirectly  or  by  extraction
    38  from substances of natural origin, or independently by means of chemical
    39  synthesis, or by a combination of extraction and chemical synthesis, and
    40  includes  any  packaging  or repackaging of the substance or labeling or
    41  relabeling of its container, except that this term does not include  the
    42  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    43  substance:
    44    (a) by a practitioner as an incident to his or  her  administering  or
    45  dispensing  of  a controlled substance in the course of his professional
    46  practice; or
    47    (b) by a practitioner, or by his or her authorized agent under his  or
    48  her  supervision,  for  the  purpose of, or as an incident to, research,
    49  teaching, or chemical analysis and not for sale; or
    50    (c) by a pharmacist as an incident to  his  or  her  dispensing  of  a
    51  controlled substance in the course of his or her professional practice.
    52    [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
    53  whether growing or not; the seeds thereof; the resin extracted from  any
    54  part  of  the  plant; and every compound, manufacture, salt, derivative,
    55  mixture, or preparation of the plant,  its  seeds  or  resin.  The  term
    56  "marihuana" shall not include:

        S. 2509--A                         108                        A. 3009--A

     1    (a)  the  mature  stalks of the plant, fiber produced from the stalks,
     2  oil or cake made from the seeds of the plant, any other compound,  manu-
     3  facture,  salt, derivative, mixture, or preparation of the mature stalks
     4  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
     5  sterilized seed of the plant which is incapable of germination;
     6    (b)  hemp,  as defined in subdivision one of section five hundred five
     7  of the agriculture and markets law;
     8    (c) cannabinoid hemp as defined in subdivision two of section  thirty-
     9  three hundred ninety-eight of this chapter; or
    10    (d)  hemp  extract  as  defined in subdivision five of section thirty-
    11  three hundred ninety-eight of this chapter.
    12    22.] 20. "Narcotic drug" means any of the following, whether  produced
    13  directly  or  indirectly  by  extraction  from  substances  of vegetable
    14  origin, or independently by means of chemical synthesis, or by a  combi-
    15  nation of extraction and chemical synthesis:
    16    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
    17  tion of opium or opiate;
    18    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
    19  which  is  chemically equivalent or identical with any of the substances
    20  referred to in [subdivision] paragraph (a) of this subdivision, but  not
    21  including the isoquinoline alkaloids of opium;
    22    (c) opium poppy and poppy straw.
    23    [23.]  21. "Opiate" means any substance having an addiction-forming or
    24  addiction-sustaining liability similar to morphine or being  capable  of
    25  conversion  into a drug having addiction-forming or addiction-sustaining
    26  liability. It  does  not  include,  unless  specifically  designated  as
    27  controlled  under section [3306] thirty-three hundred six of this [arti-
    28  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    29  its salts (dextromethorphan). It does include its racemic and  levorota-
    30  tory forms.
    31    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    32  somniferum L., except its seeds.
    33    [25.] 23. "Person" means individual, institution, corporation, govern-
    34  ment or governmental subdivision  or  agency,  business  trust,  estate,
    35  trust, partnership or association, or any other legal entity.
    36    [26.]  24. "Pharmacist" means any person licensed by the state depart-
    37  ment of education to practice pharmacy.
    38    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    39  York  state  board  of  pharmacy  and registered with the Federal agency
    40  pursuant to the federal controlled substances act.
    41    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    42  opium poppy, after mowing.
    43    [29.] 27. "Practitioner" means:
    44    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    45  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    46  administer or conduct research with respect to a controlled substance in
    47  the  course  of  a  licensed  professional practice or research licensed
    48  pursuant to this article. Such person shall be deemed  a  "practitioner"
    49  only  as  to such substances, or conduct relating to such substances, as
    50  is permitted by his license, permit or otherwise permitted by law.
    51    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    52  prescription,  permitting an ultimate user lawfully to obtain controlled
    53  substances  from  any  person  authorized  by  law  to   dispense   such
    54  substances.

        S. 2509--A                         109                        A. 3009--A

     1    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
     2  prescription, an electronic prescription, an oral prescription[,] or  an
     3  out-of-state prescription[, or any one].
     4    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
     5  er, or offer or agree to do the same.
     6    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
     7  possesses a controlled substance for his own use or the use by a  member
     8  of  his  household  or  for an animal owned by him or in his custody. It
     9  shall also mean and include a person designated, by a practitioner on  a
    10  prescription, to obtain such substance on behalf of the patient for whom
    11  such substance is intended.
    12    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    13  cations facilities which comprise the worldwide network of networks that
    14  employ a set of industry standards and protocols, or any predecessor  or
    15  successor  protocol  to  such  protocol,  to exchange information of all
    16  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    17  networks,  whether  private  or  public, used to transmit information by
    18  electronic means.
    19    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    20  distribution,  or  dispensing  of  a  controlled substance that uses the
    21  internet, is initiated by use of the internet or causes the internet  to
    22  be used.
    23    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    24  in  the  United  States  that sells, delivers or dispenses, or offers to
    25  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    26  internet.
    27    [37.]  35.  "Electronic prescription" means a prescription issued with
    28  an electronic signature and transmitted by electronic means  in  accord-
    29  ance with regulations of the commissioner and the commissioner of educa-
    30  tion  and consistent with federal requirements. A prescription generated
    31  on an electronic system that is printed out or transmitted via facsimile
    32  is not considered  an  electronic  prescription  and  must  be  manually
    33  signed.
    34    [38.] 36. "Electronic" means of or relating to technology having elec-
    35  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    36  capabilities. "Electronic" shall not include facsimile.
    37    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
    38  created, generated, transmitted, communicated,  received  or  stored  by
    39  means  of electronic equipment and includes the preservation, retrieval,
    40  use and disposition in accordance with regulations of  the  commissioner
    41  and the commissioner of education and in compliance with federal law and
    42  regulations.
    43    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    44  process,  attached  to or logically associated with an electronic record
    45  and executed or adopted by a person with the intent to sign the  record,
    46  in  accordance with regulations of the commissioner and the commissioner
    47  of education.
    48    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    49  means  the prescription monitoring program registry established pursuant
    50  to section thirty-three hundred forty-three-a of this article.
    51    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    52  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    53  drug substance to create a drug with respect to an outsourcing  facility
    54  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    55  further defined in this section.
    56    [43.] 41. "Outsourcing facility" means a facility that:

        S. 2509--A                         110                        A. 3009--A

     1    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
     2  section sixty-eight hundred two of the education law;
     3    (b)  is  currently  registered  as an outsourcing facility pursuant to
     4  article one hundred thirty-seven of the education law; and
     5    (c) complies with all applicable requirements  of  federal  and  state
     6  law, including the Federal Food, Drug and Cosmetic Act.
     7    Notwithstanding  any  other  provision of law to the contrary, when an
     8  outsourcing facility distributes or dispenses any  drug  to  any  person
     9  pursuant to a prescription, such outsourcing facility shall be deemed to
    10  be  providing  pharmacy services and shall be subject to all laws, rules
    11  and regulations governing pharmacies and pharmacy services.
    12    § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
    13  26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
    14  section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
    15  18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
    16  1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
    17  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    18  laws of 2006, are amended to read as follows:
    19    (13) [Marihuana.
    20    (14)] Mescaline.
    21    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
    22  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    23    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
    24  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    25  not, the seeds thereof, any extract from any part  of  such  plant,  and
    26  every  compound, manufacture, salts, derivative, mixture, or preparation
    27  of such plant, its seeds or extracts.
    28    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    29    [(18)] (17) N-methyl-3-piperidyl benzilate.
    30    [(19)] (18) Psilocybin.
    31    [(20)] (19) Psilocyn.
    32    [(21)] (20) Synthetic Tetrahydrocannabinols.  [Synthetic]  tetrahydro-
    33  cannabinols  not  derived from the cannabis plant, or tetrahydrocannabi-
    34  nols manufactured or created from the cannabis plant but which were  not
    35  produced  by the cannabis plant during its cultivation or present at the
    36  time of harvest that are equivalents of the substances contained in  the
    37  plant,  or in the resinous extractives of cannabis, sp. and/or synthetic
    38  substances, derivatives, and their isomers with similar chemical  struc-
    39  ture and pharmacological activity such as the following:
    40    [/\]  delta  1  cis  or  trans tetrahydrocannabinol, and their optical
    41  isomers
    42    [/\] delta 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
    43  isomers
    44    [/\]  delta  3,  4  cis or trans tetrahydrocannabinol, and its optical
    45  isomers (since nomenclature of these substances is  not  internationally
    46  standardized,  compounds  of  these  structures, regardless of numerical
    47  designation of atomic positions covered).
    48    Tetrahydrocannabinol created or produced by decarboxylation of tetrah-
    49  ydrocannabinolic acid produced from the cannabis  plant  through  culti-
    50  vation  or  present at the time of harvest and/or any U.S. Food and Drug
    51  Administration approved product  containing  tetrahydrocannabinol  shall
    52  not be considered a synthetic tetrahydrocannabinol.
    53    [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
    54  names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
    55  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.

        S. 2509--A                         111                        A. 3009--A

     1    [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
     2  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
     3    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
     4  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
     5  phencyclidine, TPCP, TCP.
     6    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
     7    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
     8  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
     9  MDE, MDEA.
    10    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    11  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    12  N-hydroxy MDA.
    13    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    14  names: TCPY.
    15    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    16  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    17  3- (2-aminobutyl) indole; Alpha-ET or AET.
    18    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    19  names: DOET.
    20    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    21  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    22  DOB; 2C-B, Nexus.
    23    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    24  optical isomers, salts and salts of isomers.
    25    § 6. Title 5-A of article 33 of the public health law is REPEALED.
    26    § 6-a. Article 33-B of the public health law is REPEALED.
    27    § 7. Section 3382 of the public health law, as added by chapter 878 of
    28  the laws of 1972, is amended to read as follows:
    29    §  3382. Growing of the plant known as Cannabis by unlicensed persons.
    30  A person who, without being licensed so to  do  under  this  article  or
    31  articles three, four or five of the cannabis law, grows the plant of the
    32  genus  Cannabis  or  knowingly  allows  it  to  grow on his land without
    33  destroying the same, shall be guilty of a class A misdemeanor.
    34    § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
    35  added by chapter 810 of the laws of 1980, is amended to read as follows:
    36    1.  ["Marijuana"]  "Cannabis" means [marijuana] cannabis as defined in
    37  [section thirty-three hundred two of this chapter] subdivision three  of
    38  section   three   of   the   cannabis   law   and   shall  also  include
    39  tetrahydrocannabinols or a chemical derivative of tetrahydrocannabinol.
    40    § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
    41  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    42  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
    43  amended by chapter 664 of the laws  of  1985,  are  amended  and  a  new
    44  subdivision 21 is added to read as follows:
    45    5.  "Controlled  substance"  means any substance listed in schedule I,
    46  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    47  health law other than [marihuana] cannabis as defined in subdivision six
    48  of  this  section,  but  including  concentrated  cannabis as defined in
    49  [paragraph (a) of subdivision four of section thirty-three  hundred  two
    50  of such law] subdivision twenty-one of this section.
    51    6.   ["Marihuana"]  "Cannabis"  means  ["marihuana"  or  "concentrated
    52  cannabis" as those terms are defined in section thirty-three hundred two
    53  of the public health law] all parts of the plant of the genus  cannabis,
    54  whether   growing  or  not;  the  seeds  thereof;  and  every  compound,
    55  manufacture, salt, derivative, mixture, or preparation of the plant,  or
    56  its  seeds.  It  does  not include the mature stalks of the plant, fiber

        S. 2509--A                         112                        A. 3009--A

     1  produced from the stalks, oil or cake made from the seeds of the  plant,
     2  any   other   compound,   manufacture,  salt,  derivative,  mixture,  or
     3  preparation of the mature stalks, fiber, oil, or cake, or the sterilized
     4  seed of the plant which is incapable of germination. It does not include
     5  all  parts  of  the  plant  cannabis  sativa l., whether growing or not,
     6  having no more than three-tenths  of  one  percent  tetrahydrocannabinol
     7  (THC).  Cannabis does not include any drug product for which an applica-
     8  tion has been approved by the Federal Food and Drug Administration.
     9    9.  "Hallucinogen"  means  any controlled substance listed in schedule
    10  I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19),  (20)  and
    11  (21).
    12    21.  "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 percent by weight of delta-9 tetrahydrocannabi-
    16  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
    17  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
    18  system.
    19    § 10. Subdivision 4 of section 220.06 of the penal law is REPEALED.
    20    § 11. Subdivision 10 of section 220.09 of the penal law is REPEALED.
    21    §  12. Subdivision 3 of section 220.34 of the penal law, as amended by
    22  chapter 537 of the laws of 1998, is amended to read as follows:
    23    3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
    24  four  of  section  thirty-three  hundred  two  of the public health law]
    25  subdivision twenty-one of section 220.00 of this article; or
    26    § 13. Subdivision 4 of section 15.20 of the penal  law,  as  added  by
    27  chapter 75 of the laws of 1995, is amended to read as follows:
    28    4. Notwithstanding the use of the term "knowingly" in any provision of
    29  this  chapter  defining  an  offense  in which the aggregate weight of a
    30  controlled substance or [marihuana] cannabis is an element, knowledge by
    31  the defendant of the aggregate weight of such  controlled  substance  or
    32  [marihuana]  cannabis  is  not  an element of any such offense and it is
    33  not, unless expressly so provided, a defense to a  prosecution  therefor
    34  that  the  defendant did not know the aggregate weight of the controlled
    35  substance or [marihuana] cannabis.
    36    § 14. Section 221.00 of the penal law, as amended by chapter 90 of the
    37  laws of 2014, is amended to read as follows:
    38  § 221.00 [Marihuana] Cannabis; definitions.
    39    Unless the context in which they are used clearly otherwise  requires,
    40  the terms occurring in this article shall have the same meaning ascribed
    41  to  them  in article two hundred twenty of this chapter. Any act that is
    42  lawful under [title five-A of article thirty-three of the public health]
    43  articles three, four or five, of the cannabis law is not a violation  of
    44  this article.
    45    §  15. Section 221.00 of the penal law, as added by chapter 360 of the
    46  laws of 1977, is amended to read as follows:
    47  § 221.00 [Marihuana] Cannabis; definitions.
    48    Unless the context in which they are used clearly otherwise  requires,
    49  the terms occurring in this article shall have the same meaning ascribed
    50  to them in article two hundred twenty of this chapter.
    51    §  16.  Section  221.05 of the penal law, as amended by chapter 131 of
    52  the laws of 2019, is amended to read as follows:
    53  § 221.05 Unlawful possession  of  [marihuana]  cannabis  in  the  second
    54             degree.

        S. 2509--A                         113                        A. 3009--A

     1    A  person  is guilty of unlawful possession of [marihuana] cannabis in
     2  the second degree when he knowingly and unlawfully  possesses  [marihua-
     3  na.]:
     4    1. cannabis and is less than twenty-one years of age; or
     5    2.  cannabis  in  a public place, as defined in section 240.00 of this
     6  part, and such cannabis is burning.
     7    Unlawful possession of [marihuana] cannabis in the second degree is  a
     8  violation  punishable only by a fine of not more than fifty dollars when
     9  such possession is by a person less than twenty-one years of age and  of
    10  an  aggregate  weight  of less than one-half of one ounce of cannabis or
    11  less than two and one-half grams of concentrated cannabis or a  fine  of
    12  not  more  than  one hundred dollars when such possession is by a person
    13  less than twenty-one years of age and of an aggregate weight  more  than
    14  one-half  of one ounce of cannabis but not more than one ounce of canna-
    15  bis, or more than two and one-half grams of  concentrated  cannabis  but
    16  not  more than five grams of concentrated cannabis.  Unlawful possession
    17  of cannabis in the second degree is punishable by a  fine  of  not  more
    18  than one hundred twenty-five dollars when such possession is in a public
    19  place  and  such  cannabis is burning. The term "burning" shall mean and
    20  include smoking and vaping as such terms are defined in section thirteen
    21  hundred ninety-nine-n of the public health law.
    22    § 16-a. Subdivision 8 of section 1399-n of the public health  law,  as
    23  amended  by  chapter  131  of  the  laws  of 2019, is amended to read as
    24  follows:
    25    8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
    26  any  other  matter  or  substance  which contains tobacco or [marihuana]
    27  cannabis as defined in section [thirty-three hundred two of  this  chap-
    28  ter] 220.00 of the penal law.
    29    §  17.  Section  221.15 of the penal law, as amended by chapter 265 of
    30  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    31  laws of 1995, is amended to read as follows:
    32  §  221.15  [Criminal] Unlawful possession of [marihuana] cannabis in the
    33             [fourth] first degree.
    34    A person is guilty of [criminal] unlawful  possession  of  [marihuana]
    35  cannabis  in  the  [fourth]  first  degree  when he or she knowingly and
    36  unlawfully possesses [one or more preparations, compounds,  mixtures  or
    37  substances   containing   marihuana  and  the  preparations,  compounds,
    38  mixtures or substances are of] an aggregate weight  of  more  than  [two
    39  ounces]  one  ounce  of cannabis or more than five grams of concentrated
    40  cannabis.
    41    [Criminal] Unlawful possession of [marihuana] cannabis in the [fourth]
    42  first degree is a [class A misdemeanor] violation punishable by  a  fine
    43  of not more than one hundred twenty-five dollars. The provisions of this
    44  section  shall  not apply to certified patients or designated caregivers
    45  as lawfully registered under article three of the cannabis law.
    46    § 18. Section 221.20 of the penal law, as amended by  chapter  265  of
    47  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    48  laws of 1995, is amended to read as follows:
    49  § 221.20 Criminal possession of  [marihuana]  cannabis  in  the  [third]
    50             second degree.
    51    A  person  is guilty of criminal possession of [marihuana] cannabis in
    52  the [third] second degree  when  he  or  she  knowingly  and  unlawfully
    53  possesses  [one  or more preparations, compounds, mixtures or substances
    54  containing  marihuana  and  the  preparations,  compounds,  mixtures  or
    55  substances  are  of] an aggregate weight of more than [eight] two ounces
    56  of cannabis or more than ten grams of concentrated cannabis.

        S. 2509--A                         114                        A. 3009--A

     1    Criminal possession of [marihuana]  cannabis  in  the  [third]  second
     2  degree is a class [E felony] A misdemeanor punishable by a fine not more
     3  than  one  hundred  twenty-five dollars per ounce possessed in excess of
     4  two ounces of cannabis or ten grams of concentrated  cannabis.  However,
     5  where  the defendant has previously been convicted of an offense defined
     6  in this article or article two hundred twenty of this  title,  committed
     7  within the three years immediately preceding such violation, it shall be
     8  punishable  (a)  only by a fine of not more than two hundred dollars per
     9  ounce possessed in excess of two ounces, if the defendant was previously
    10  convicted of one such offense committed during such period, and (b) by a
    11  fine of not more than two hundred fifty dollars per ounce  possessed  in
    12  excess  of two ounces or a term of imprisonment not in excess of fifteen
    13  days or both, if the defendant was  previously  convicted  of  two  such
    14  offenses  committed  during  such period. The provisions of this section
    15  shall not apply  to  certified  patients  or  designated  caregivers  as
    16  lawfully registered under article three of the cannabis law.
    17    §  19.  Section  221.25 of the penal law, as amended by chapter 265 of
    18  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    19  laws of 1995, is amended to read as follows:
    20  § 221.25 Criminal  possession  of  [marihuana]  cannabis in the [second]
    21             first degree.
    22    A person is guilty of criminal possession of [marihuana]  cannabis  in
    23  the  [second]  first  degree  when  he  or  she knowingly and unlawfully
    24  possesses [one or more preparations, compounds, mixtures  or  substances
    25  containing  marihuana  and  the  preparations,  compounds,  mixtures  or
    26  substances are of] an aggregate weight of more than [sixteen] sixty-four
    27  ounces of cannabis or more than eighty grams of concentrated cannabis.
    28    Criminal possession of [marihuana]  cannabis  in  the  [second]  first
    29  degree is a class [D] E felony.
    30    § 20. Sections 221.10 and 221.30 of the penal law are REPEALED.
    31    § 20-a. Paragraph (c) of subdivision 8 of section 700.05 of the crimi-
    32  nal  procedure  law,  as  amended  by chapter 37 of the laws of 2014, is
    33  amended to read as follows:
    34    (c) Criminal possession of  a  controlled  substance  in  the  seventh
    35  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    36  possession of a controlled substance in the fifth degree as  defined  in
    37  section  220.06  of  the  penal law, criminal possession of a controlled
    38  substance in the fourth degree as defined in section 220.09 of the penal
    39  law, criminal possession of a controlled substance in the  third  degree
    40  as  defined in section 220.16 of the penal law, criminal possession of a
    41  controlled substance in the second degree as defined in  section  220.18
    42  of  the  penal law, criminal possession of a controlled substance in the
    43  first degree as defined in section 220.21 of  the  penal  law,  criminal
    44  sale of a controlled substance in the fifth degree as defined in section
    45  220.31  of the penal law, criminal sale of a controlled substance in the
    46  fourth degree as defined in section 220.34 of the  penal  law,  criminal
    47  sale of a controlled substance in the third degree as defined in section
    48  220.39  of the penal law, criminal sale of a controlled substance in the
    49  second degree as defined in section 220.41 of the  penal  law,  criminal
    50  sale of a controlled substance in the first degree as defined in section
    51  220.43  of  the penal law, criminally possessing a hypodermic instrument
    52  as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
    53  prescription  for  a controlled substance or a controlled substance by a
    54  practitioner or pharmacist as defined in section  220.65  of  the  penal
    55  law,  criminal  possession  of methamphetamine manufacturing material in
    56  the second degree as defined in section 220.70 of the penal law,  crimi-

        S. 2509--A                         115                        A. 3009--A

     1  nal  possession  of  methamphetamine manufacturing material in the first
     2  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
     3  possession of precursors of methamphetamine as defined in section 220.72
     4  of  the  penal law, unlawful manufacture of methamphetamine in the third
     5  degree as defined in section 220.73 of the penal law, unlawful  manufac-
     6  ture  of  methamphetamine  in  the  second  degree as defined in section
     7  220.74 of the penal law, unlawful manufacture of methamphetamine in  the
     8  first  degree  as  defined  in section 220.75 of the penal law, unlawful
     9  disposal of methamphetamine laboratory material as  defined  in  section
    10  220.76  of  the penal law, operating as a major trafficker as defined in
    11  section 220.77 of the penal law, [criminal possession  of  marihuana  in
    12  the first degree as defined in section 221.30 of the penal law, criminal
    13  sale  of  marihuana  in the first degree as defined in section 221.55 of
    14  the penal law,] promoting gambling in the second degree  as  defined  in
    15  section  225.05 of the penal law, promoting gambling in the first degree
    16  as defined in section 225.10 of the penal law,  possession  of  gambling
    17  records  in  the second degree as defined in section 225.15 of the penal
    18  law, possession of gambling records in the first degree  as  defined  in
    19  section  225.20 of the penal law, and possession of a gambling device as
    20  defined in section 225.30 of the penal law;
    21    § 20-b. Paragraph (c) of subdivision 4-b and subdivisions 6 and  9  of
    22  section  1310  of  the  civil  practice  law and rules, paragraph (c) of
    23  subdivision 4-b as added by chapter 655 of the laws of 1990 and subdivi-
    24  sions 6 and 9 as added by chapter 669 of the laws of 1984,  are  amended
    25  to read as follows:
    26    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    27  220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
    28  nal  defendant  for  a violation of section 221.30 of the penal law,] or
    29  where the accusatory instrument charges any such felony, conviction upon
    30  a plea of guilty to a felony for which the plea is otherwise  authorized
    31  by  law,  together with evidence which: (i) provides substantial indicia
    32  that the defendant used the real property  to  engage  in  a  continual,
    33  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    34  manufacturing, warehousing, or packaging of  controlled  substances  [or
    35  where  the  conviction is for a violation of section 221.30 of the penal
    36  law, marijuana,] as part of an illegal trade or business for  gain;  and
    37  (ii) establishes, where the conviction is for possession of a controlled
    38  substance  [or where the conviction is for a violation of section 221.30
    39  of the penal law, marijuana], that such possession was with  the  intent
    40  to sell it.
    41    6.  "Pre-conviction  forfeiture  crime" means only a felony defined in
    42  article two hundred twenty or section [221.30 or] 221.55  of  the  penal
    43  law.
    44    9.  "Criminal defendant" means a person who has criminal liability for
    45  a crime defined in subdivisions five and six [hereof] of  this  section.
    46  For  purposes  of this article, a person has criminal liability when (a)
    47  he has been convicted of a post-conviction forfeiture crime, or (b)  the
    48  claiming  authority  proves  by  clear and convincing evidence that such
    49  person has committed an act in violation of article two  hundred  twenty
    50  or section [221.30 or] 221.55 of the penal law.
    51    §  20-c. Paragraph (c) of subdivision 7 of section 480.00 of the penal
    52  law, as added by chapter 655 of the laws of 1990, is amended to read  as
    53  follows:
    54    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    55  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    56  accusatory instrument charges any such felony, conviction upon a plea of

        S. 2509--A                         116                        A. 3009--A

     1  guilty  to  a  felony for which the plea is otherwise authorized by law,
     2  together with evidence which: (i) provides substantial indicia that  the
     3  defendant  used  the  real  property  to  engage in a continual, ongoing
     4  course  of  conduct involving the unlawful mixing, compounding, manufac-
     5  turing, warehousing, or packaging of controlled substances [or where the
     6  conviction is for a violation of section 221.30 of this  chapter,  mari-
     7  juana] as part of an illegal trade or business for gain; and (ii) estab-
     8  lishes, where the conviction is for possession of a controlled substance
     9  [or  where  the  conviction is for a violation of section 221.30 of this
    10  chapter, marijuana], that such possession was with the  intent  to  sell
    11  it.
    12    §  20-d. Paragraph (c) of subdivision 4 of section 509-cc of the vehi-
    13  cle and traffic law, as amended by chapter 368 of the laws of  2015,  is
    14  amended to read as follows:
    15    (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
    16  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    17  of this section that result in disqualification for  a  period  of  five
    18  years  shall include a conviction under sections 100.10, 105.13, 115.05,
    19  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    20  125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
    21  140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
    22  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,]  221.50,  221.55,
    23  230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20,  235.05,
    24  235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
    25  section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
    26  265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
    27  the aforesaid offenses under section 110.00 of the  penal  law,  or  any
    28  similar  offenses  committed under a former section of the penal law, or
    29  any offenses committed under a former section of  the  penal  law  which
    30  would  constitute violations of the aforesaid sections of the penal law,
    31  or any offenses committed outside  this  state  which  would  constitute
    32  violations of the aforesaid sections of the penal law.
    33    § 20-e. Subdivision 1 of section 170.56 of the criminal procedure law,
    34  as  amended  by  chapter  360 of the laws of 1977, is amended to read as
    35  follows:
    36    1.  Upon or after arraignment in a local criminal court upon an infor-
    37  mation, a prosecutor's information or a misdemeanor complaint, where the
    38  sole remaining count or counts  charge  a  violation  or  violations  of
    39  section  221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law and
    40  before the entry of a plea of guilty thereto or commencement of  a trial
    41  thereof, the court, upon motion of  a  defendant,  may  order  that  all
    42  proceedings  be  suspended  and the action adjourned in contemplation of
    43  dismissal, or upon a finding that adjournment would not be necessary  or
    44  appropriate  and the setting forth in the record of the reasons for such
    45  findings, may dismiss in furtherance of justice the  accusatory  instru-
    46  ment;  provided,  however, that the court may not order such adjournment
    47  in contemplation of dismissal or dismiss the accusatory  instrument  if:
    48  (a)  the  defendant  has  previously  been  granted  such adjournment in
    49  contemplation of dismissal, or (b) the  defendant  has  previously  been
    50  granted  a dismissal under this section, or (c) the defendant has previ-
    51  ously been convicted of any offense involving controlled substances,  or
    52  (d)  the  defendant  has  previously  been  convicted of a crime and the
    53  district attorney does not consent or (e) the defendant  has  previously
    54  been  adjudicated  a  youthful  offender on the basis of any act or acts
    55  involving controlled substances  and  the  district  attorney  does  not
    56  consent.

        S. 2509--A                         117                        A. 3009--A

     1    §  20-f.  Subparagraph  (iii)  of  paragraph  (k)  of subdivision 3 of
     2  section 160.50 of the criminal procedure law, as amended by chapter  132
     3  of the laws of 2019, is amended to read as follows:
     4    (iii) the conviction is for an offense defined in section 221.05 [or],
     5  221.10 or 221.15 of the penal law.
     6    §  21.  Section  221.35 of the penal law, as amended by chapter 265 of
     7  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
     8  laws of 1995, is amended to read as follows:
     9  §  221.35  Criminal  sale  of  [marihuana] cannabis in the [fifth] sixth
    10             degree.
    11    A person is guilty of criminal sale of  [marihuana]  cannabis  in  the
    12  [fifth]  sixth  degree  when  he  or she knowingly and unlawfully sells,
    13  [without] for  consideration[,  one  or  more  preparations,  compounds,
    14  mixtures  or  substances  containing  marihuana  and  the  preparations,
    15  compounds, mixtures or substances are] cannabis or cannabis  concentrate
    16  of  [an aggregate weight of two grams or less; or one cigarette contain-
    17  ing marihuana] any weight.
    18    Criminal sale of [marihuana] cannabis in the [fifth] sixth degree is a
    19  [class B misdemeanor] violation punishable by a fine not more  than  the
    20  greater  of  two-hundred and fifty dollars or two times the value of the
    21  sale.
    22    § 22. Section 221.40 of the penal law, as added by chapter 360 of  the
    23  laws of 1977, is amended to read as follows:
    24  § 221.40 Criminal  sale  of  [marihuana]  cannabis in the [fourth] fifth
    25             degree.
    26    A person is guilty of criminal sale of  [marihuana]  cannabis  in  the
    27  [fourth]  fifth  degree  when  he  or she knowingly and unlawfully sells
    28  [marihuana except as provided in section 221.35 of this article]  canna-
    29  bis  of  an  aggregate  weight  of more than one ounce or more than five
    30  grams of cannabis concentrate.
    31    Criminal sale of [marihuana] cannabis in the [fourth] fifth degree  is
    32  a [class A] misdemeanor punishable by a fine of not more than the great-
    33  er of five hundred dollars or two times the value of the sale or a maxi-
    34  mum of three months imprisonment, or both.
    35    §  23.  Section  221.45 of the penal law, as amended by chapter 265 of
    36  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    37  laws of 1995, is amended to read as follows:
    38  §  221.45  Criminal  sale  of [marihuana] cannabis in the [third] fourth
    39             degree.
    40    A person is guilty of criminal sale of  [marihuana]  cannabis  in  the
    41  [third] fourth degree when he or she knowingly and unlawfully sells [one
    42  or more preparations, compounds, mixtures or substances containing mari-
    43  huana  and the preparations, compounds, mixtures or substances are of an
    44  aggregate weight of more than twenty-five grams] or an aggregate  weight
    45  of  more  than  four  ounces  of  cannabis  or more than twenty grams of
    46  concentrated cannabis.
    47    Criminal sale of [marihuana] cannabis in the [third] fourth degree  is
    48  a [class E felony] misdemeanor punishable by a fine of not more than the
    49  greater  of one thousand dollars or two times the value of the sale or a
    50  maximum of one year imprisonment or both.
    51    § 24. a new Section 221.46 is added  to  the  penal  law  as  follows:
    52  § 221.46 Criminal  sale  of  cannabis  in the third degree.  A person is
    53  guilty of criminal sale of cannabis in the third degree when he knowing-
    54  ly and unlawfully sells any amount of cannabis or concentrated  cannabis
    55  to  any  person  under  twenty-one  years of age. In any prosecution for
    56  unlawful sale of cannabis or  concentrated  cannabis  to  someone  under

        S. 2509--A                         118                        A. 3009--A

     1  twenty-one  years  of age pursuant to this section, it is an affirmative
     2  defense that:  (a) the defendant had reasonable cause  to  believe  that
     3  the  person  under twenty-one years of age involved was twenty-one years
     4  old or more; and (b) such person under twenty-one years of age exhibited
     5  to  the defendant a draft card, driver's license or identification card,
     6  birth certificate or other  official  or  apparently  official  document
     7  purporting  to  establish  that  such person was twenty-one years old or
     8  more. Criminal sale of cannabis in the third degree is a class A  Misde-
     9  meanor.
    10    §  24-a. Section 221.50 of the penal law, as amended by chapter 265 of
    11  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    12  laws of 1995, is amended to read as follows:
    13  § 221.50 Criminal sale of [marihuana] cannabis in the second degree.
    14    A  person  is  guilty  of criminal sale of [marihuana] cannabis in the
    15  second degree when he knowingly and unlawfully sells [one or more prepa-
    16  rations, compounds, mixtures or substances containing marihuana and  the
    17  preparations,  compounds,  mixtures  or  substances are of] an aggregate
    18  weight of more than [four ounces, or knowingly and unlawfully sells  one
    19  or more preparations, compounds, mixtures or substances containing mari-
    20  huana  to  a  person  less than eighteen years of age] sixteen ounces of
    21  cannabis or more than eighty grams of concentrated cannabis..
    22    Criminal sale of [marihuana] cannabis in the second degree is a  class
    23  E felony.
    24    §  25.  Section  221.55 of the penal law, as amended by chapter 265 of
    25  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    26  laws of 1995, is amended to read as follows:
    27  § 221.55 Criminal sale of [marihuana] cannabis in the first degree.
    28    A  person  is  guilty  of criminal sale of [marihuana] cannabis in the
    29  first degree when he knowingly and unlawfully sells [one or more  prepa-
    30  rations,  compounds, mixtures or substances containing marihuana and the
    31  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    32  weight  of]  more  than [sixteen] sixty-four ounces of cannabis or three
    33  hundred and twenty grams of cannabis concentrate.
    34    Criminal sale of [marihuana] cannabis in the first degree is a class D
    35  felony.
    36    § 26. The penal law is amended by adding a new section 221.60 to  read
    37  as follows:
    38  § 221.60 Licensing of cannabis production and distribution.
    39    The  provisions  of  this article and of article two hundred twenty of
    40  this title shall not apply to any person exempted from  criminal  penal-
    41  ties  pursuant to the provisions of this chapter or possessing, manufac-
    42  turing, transporting, distributing, selling or transferring cannabis  or
    43  concentrated cannabis, or engaged in any other action that is in compli-
    44  ance with article three, four or five of the cannabis law.
    45    § 27. Intentionally omitted.
    46    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    47  business law is REPEALED.
    48    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
    49  business  law, as amended by chapter 812 of the laws of 1980, is amended
    50  to read as follows:
    51    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    52  or  otherwise  introducing [marihuana,] cocaine, hashish, or hashish oil
    53  into the human body.
    54    § 30. Section 114-a of the vehicle and traffic law, as added by  chap-
    55  ter 163 of the laws of 1973, is amended to read as follows:

        S. 2509--A                         119                        A. 3009--A

     1    §  114-a.  Drug.  The term "drug" when used in this chapter, means and
     2  includes any substance listed in section thirty-three hundred six of the
     3  public health law and any substance or combination  of  substances  that
     4  impair, to any extent, physical or mental abilities.
     5    §  31. The article heading of article 20-B of the tax law, as added by
     6  chapter 90 of the laws of 2014, is amended to read as follows:
     7                  EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
     8    § 32. The paragraph heading and subparagraph (i) of paragraph  (b)  of
     9  subdivision 1 of section 1193 of the vehicle and traffic law, as amended
    10  by chapter 169 of the laws of 2013, are amended to read as follows:
    11    Driving  while intoxicated or while ability impaired by drugs or while
    12  ability impaired by the combined influence of drugs or  of  alcohol  and
    13  any  drug  or  drugs;  aggravated driving while intoxicated; misdemeanor
    14  offenses. (i) A violation of subdivision two, three, or four [or four-a]
    15  of section eleven hundred ninety-two of this article shall be  a  misde-
    16  meanor  and  shall be punishable by a fine of not less than five hundred
    17  dollars nor more than one thousand dollars,  or  by  imprisonment  in  a
    18  penitentiary  or county jail for not more than one year, or by both such
    19  fine and imprisonment. A violation of paragraph (a) of subdivision two-a
    20  of section eleven hundred ninety-two of this article shall be  a  misde-
    21  meanor  and  shall be punishable by a fine of not less than one thousand
    22  dollars nor more than two thousand five hundred dollars or by  imprison-
    23  ment  in a penitentiary or county jail for not more than one year, or by
    24  both such fine and imprisonment.
    25    § 33. Paragraph (c) of subdivision 1 of section 1193  of  the  vehicle
    26  and traffic law is amended by adding a new subparagraph (i-a) to read as
    27  follows:
    28    (i-a)  A  violation  of  subdivision  four-a of section eleven hundred
    29  ninety-two of this article shall be a  class  E  felony,  and  shall  be
    30  punishable by a fine of not less than one thousand dollars nor more than
    31  five  thousand dollars or by a period of imprisonment as provided in the
    32  penal law, or by both such fine and imprisonment.
    33    § 33-a. Subdivisions 1, 2 and 3 of section 1194  of  the  vehicle  and
    34  traffic  law,  as added by chapter 47 of the laws of 1988, paragraph (a)
    35  of subdivision 2 as amended by chapter 196 of the laws  of  1996,  para-
    36  graphs  (b)  and  (c)  of subdivision 2 as amended by chapter 489 of the
    37  laws of 2017, clause (A) of subparagraph 1, subparagraphs  2  and  3  of
    38  paragraph  (b), subparagraphs 1, 2 and 3 of paragraph (c) of subdivision
    39  2 as amended by chapter 27 of the laws of 2018, subparagraphs 1 and 2 of
    40  paragraph (d) of subdivision 2 as amended by chapter 732 of the laws  of
    41  2006,  and  item (iii) of clause c of subparagraph 1 of paragraph (d) of
    42  subdivision 2 as amended by section 37 of part LL of chapter 56  of  the
    43  laws of 2010,  are amended to read as follows:
    44    1.  Arrest  and  field  testing.  (a)  Arrest.    Notwithstanding  the
    45  provisions of section 140.10 of the criminal  procedure  law,  a  police
    46  officer  may, without a warrant, arrest a person, in case of a violation
    47  of subdivision one of section eleven hundred ninety-two of this article,
    48  if such violation is coupled with an accident or collision in which such
    49  person is involved, which in fact has been committed, though not in  the
    50  police  officer's  presence,  when  the  officer has reasonable cause to
    51  believe that the violation was committed by such person.
    52    (b) Field testing. Every person operating a motor  vehicle  which  has
    53  been involved in an accident or which is operated in violation of any of
    54  the  provisions  of this chapter shall, at the request of a police offi-
    55  cer, submit to a breath test and/or oral/bodily fluid test to be  admin-
    56  istered  by the police officer.  If such test indicates that such opera-

        S. 2509--A                         120                        A. 3009--A

     1  tor has consumed alcohol or  drug  or  drugs,  the  police  officer  may
     2  request  such operator to submit to a chemical test and/or an evaluation
     3  conducted by a drug recognition expert in the manner set forth in subdi-
     4  vision two of this section.
     5    2.  Chemical tests and drug recognition evaluations.  (a) When author-
     6  ized.  Any person who operates a motor vehicle in this  state  shall  be
     7  deemed  to  have given consent to an evaluation conducted by a certified
     8  drug recognition expert and/or a chemical test of one  or  more  of  the
     9  following: breath, blood, urine, or saliva, for the purpose of determin-
    10  ing  the  alcoholic  and/or drug content of the blood provided that such
    11  test is administered by or at the direction of  a  police  officer  with
    12  respect  to  a chemical test of breath, urine or saliva or, with respect
    13  to a chemical test of blood, at the direction of a police officer:
    14    (1) having reasonable grounds to believe  such  person  to  have  been
    15  operating  in  violation  of  any  subdivision of section eleven hundred
    16  ninety-two of this article and within two hours after  such  person  has
    17  been  placed  under  arrest for any such violation; or having reasonable
    18  grounds to believe such person to have been operating  in  violation  of
    19  section eleven hundred ninety-two-a of this article and within two hours
    20  after the stop of such person for any such violation,
    21    (2) within two hours after a breath test, as provided in paragraph (b)
    22  of  subdivision  one  of  this  section, indicates that alcohol has been
    23  consumed by such person and in accordance with the rules and regulations
    24  established by the police force of which the officer is a member;
    25    (3) for the  purposes  of  this  paragraph,  "reasonable  grounds"  to
    26  believe  that  a  person has been operating a motor vehicle after having
    27  consumed alcohol in violation of section eleven hundred ninety-two-a  of
    28  this  article  shall  be  determined  by viewing the totality of circum-
    29  stances surrounding the incident which, when  taken  together,  indicate
    30  that  the  operator  was  driving in violation of such subdivision. Such
    31  circumstances may include any visible or behavioral indication of  alco-
    32  hol  consumption  by  the  operator,  the existence of an open container
    33  containing or having contained an alcoholic beverage in  or  around  the
    34  vehicle  driven  by  the operator, or any other evidence surrounding the
    35  circumstances of the incident which indicates that the operator has been
    36  operating a motor vehicle after having consumed alcohol at the  time  of
    37  the incident; or
    38    (4)  notwithstanding  any  other  provision of law to the contrary, no
    39  person under the age of twenty-one shall  be  arrested  for  an  alleged
    40  violation  of  section  eleven  hundred  ninety-two-a  of  this article.
    41  However, a person under the age of twenty-one for whom a  chemical  test
    42  and/or an evaluation conducted by a certified drug recognition expert is
    43  authorized pursuant to this paragraph may be temporarily detained by the
    44  police solely for the purpose of requesting or administering such chemi-
    45  cal  test and/or an evaluation conducted by a certified drug recognition
    46  expert whenever arrest without a warrant for a petty  offense  would  be
    47  authorized  in  accordance  with the provisions of section 140.10 of the
    48  criminal procedure law or paragraph  (a)  of  subdivision  one  of  this
    49  section.
    50    (b)  Report  of  refusal.  (1)  If: (A) such person having been placed
    51  under arrest; or (B) after a breath, blood,  urine,  and/or  oral/bodily
    52  fluid test indicates the presence of alcohol and/or drug or drugs in the
    53  person's  system;  or (C) with regard to a person under the age of twen-
    54  ty-one, there are reasonable grounds to believe  that  such  person  has
    55  been  operating  a  motor  vehicle  after  having  consumed  alcohol  in
    56  violation of section eleven hundred ninety-two-a of  this  article;  and

        S. 2509--A                         121                        A. 3009--A

     1  having  thereafter been requested to submit to such chemical test and/or
     2  an evaluation or any portion  thereof  conducted  by  a  certified  drug
     3  recognition expert and having been informed that the person's license or
     4  permit  to drive and any non-resident operating privilege shall be imme-
     5  diately suspended and subsequently revoked, or, for operators under  the
     6  age  of twenty-one for whom there are reasonable grounds to believe that
     7  such operator has been operating a motor vehicle after  having  consumed
     8  alcohol  in  violation  of  section  eleven hundred ninety-two-a of this
     9  article, shall be revoked for refusal to submit to such chemical test or
    10  any portion thereof, and/or an evaluation conducted by a certified  drug
    11  recognition  expert or any portion thereof, whether or not the person is
    12  found guilty of  the  charge  for  which  such  person  is  arrested  or
    13  detained,  refuses to submit to such chemical test or any portion there-
    14  of, and/or an evaluation or any portion thereof conducted by a certified
    15  drug recognition expert or any portion thereof, unless a court order has
    16  been granted pursuant to subdivision three of  this  section,  the  test
    17  shall  not  be given and a written report of such refusal shall be imme-
    18  diately made by the police officer before whom such  refusal  was  made.
    19  Such  report may be verified by having the report sworn to, or by affix-
    20  ing to such report a form notice that false statements made therein  are
    21  punishable  as  a  class A misdemeanor pursuant to section 210.45 of the
    22  penal law and such form notice together with  the  subscription  of  the
    23  deponent shall constitute a verification of the report.
    24    (2)  The  report  of  the  police  officer  shall set forth reasonable
    25  grounds to believe such arrested person or such  detained  person  under
    26  the  age  of twenty-one had been driving in violation of any subdivision
    27  of section eleven hundred ninety-two or eleven hundred  ninety-two-a  of
    28  this  article,  that  said person had refused to submit to such chemical
    29  test, or an evaluation or any portion thereof conducted by  a  certified
    30  drug  recognition  expert  or  any portion thereof, and that no chemical
    31  test or evaluation conducted by a certified drug recognition expert  was
    32  administered  pursuant  to the requirements of subdivision three of this
    33  section. The report shall be presented to the court upon arraignment  of
    34  an arrested person, provided, however, in the case of a person under the
    35  age  of  twenty-one,  for  whom  a  test  was authorized pursuant to the
    36  provisions of subparagraph two or three of paragraph (a) of this  subdi-
    37  vision,  and who has not been placed under arrest for a violation of any
    38  of the provisions of section eleven hundred ninety-two of this  article,
    39  such  report  shall  be forwarded to the commissioner within forty-eight
    40  hours in a manner to be prescribed by the commissioner, and  all  subse-
    41  quent proceedings with regard to refusal to submit to such chemical test
    42  and/or an evaluation conducted by a certified drug recognition expert by
    43  such person shall be as set forth in subdivision three of section eleven
    44  hundred ninety-four-a of this article.
    45    (3) For persons placed under arrest for a violation of any subdivision
    46  of  section  eleven  hundred  ninety-two of this article, the license or
    47  permit to drive and any non-resident operating privilege shall, upon the
    48  basis of such written report, be  temporarily  suspended  by  the  court
    49  without  notice  pending  the  determination of a hearing as provided in
    50  paragraph (c) of this subdivision. Copies of such report must be  trans-
    51  mitted  by the court to the commissioner and such transmittal may not be
    52  waived even with the consent of all the parties. Such  report  shall  be
    53  forwarded  to the commissioner within forty-eight hours of such arraign-
    54  ment.
    55    (4) The court or the police officer, in the case of a person under the
    56  age of twenty-one alleged to be driving after having  consumed  alcohol,

        S. 2509--A                         122                        A. 3009--A

     1  shall  provide such person with a scheduled hearing date, a waiver form,
     2  and such other information as may be required by the commissioner. If  a
     3  hearing, as provided for in paragraph (c) of this subdivision, or subdi-
     4  vision three of section eleven hundred ninety-four-a of this article, is
     5  waived  by  such  person,  the commissioner shall immediately revoke the
     6  license, permit, or non-resident operating privilege, as of the date  of
     7  receipt  of  such  waiver in accordance with the provisions of paragraph
     8  (d) of this subdivision.
     9    (c) Hearings. Any person whose license or permit to drive or any  non-
    10  resident  driving privilege has been suspended pursuant to paragraph (b)
    11  of this subdivision is entitled to a hearing in accordance with a  hear-
    12  ing  schedule  to  be promulgated by the commissioner. If the department
    13  fails to provide for such hearing fifteen days after  the  date  of  the
    14  arraignment  of  the  arrested  person,  the license, permit to drive or
    15  non-resident operating privilege of  such  person  shall  be  reinstated
    16  pending a hearing pursuant to this section. The hearing shall be limited
    17  to  the  following  issues:  (1)  did the police officer have reasonable
    18  grounds to believe that such person had been driving in violation of any
    19  subdivision of section eleven hundred ninety-two of  this  article;  (2)
    20  did the police officer make a lawful arrest of such person; (3) was such
    21  person given sufficient warning, in clear or unequivocal language, prior
    22  to such refusal that such refusal to submit to such chemical test or any
    23  portion thereof and/or an evaluation or any portion thereof conducted by
    24  a  certified  drug  recognition  expert,  would  result in the immediate
    25  suspension and subsequent revocation of such person's license or operat-
    26  ing privilege whether or not such person is found guilty of  the  charge
    27  for  which the arrest was made; and (4) did such person refuse to submit
    28  to such chemical test or any portion thereof and/or an evaluation or any
    29  portion thereof conducted by a certified drug  recognition  expert.  If,
    30  after such hearing, the hearing officer, acting on behalf of the commis-
    31  sioner,  finds  on  any  one of said issues in the negative, the hearing
    32  officer shall immediately terminate any  suspension  arising  from  such
    33  refusal.  If,  after such hearing, the hearing officer, acting on behalf
    34  of the commissioner finds all of the issues  in  the  affirmative,  such
    35  officer  shall  immediately revoke the license or permit to drive or any
    36  non-resident operating privilege in accordance with  the  provisions  of
    37  paragraph  (d)  of  this  subdivision. A person who has had a license or
    38  permit to drive or non-resident operating privilege suspended or revoked
    39  pursuant to this subdivision may appeal  the  findings  of  the  hearing
    40  officer  in  accordance  with  the provisions of article three-A of this
    41  chapter. Any person may waive the right to a hearing under this section.
    42  Failure by such person to appear for the scheduled hearing shall consti-
    43  tute a waiver of such hearing, provided, however, that such  person  may
    44  petition  the commissioner for a new hearing which shall be held as soon
    45  as practicable.
    46    (d) Sanctions. (1) Revocations. a. Any license which has been  revoked
    47  pursuant  to paragraph (c) of this subdivision shall not be restored for
    48  at least one year after such revocation, nor thereafter, except  in  the
    49  discretion  of  the  commissioner.  However,  no  such  license shall be
    50  restored for at least eighteen months after such revocation, nor  there-
    51  after  except  in  the discretion of the commissioner, in any case where
    52  the person has had a prior revocation resulting from refusal  to  submit
    53  to a chemical test and/or an evaluation or any portion thereof conducted
    54  by  a  certified  drug  recognition  expert, or has been convicted of or
    55  found to be in violation of any subdivision of  section  eleven  hundred
    56  ninety-two  or  section  eleven hundred ninety-two-a of this article not

        S. 2509--A                         123                        A. 3009--A

     1  arising out of the same incident,  within  the  five  years  immediately
     2  preceding  the date of such revocation; provided, however, a prior find-
     3  ing that a person under the age of twenty-one has refused to submit to a
     4  chemical  test  pursuant  to subdivision three of section eleven hundred
     5  ninety-four-a of this article shall have the  same  effect  as  a  prior
     6  finding of a refusal pursuant to this subdivision solely for the purpose
     7  of  determining  the  length  of  any  license  suspension or revocation
     8  required to be imposed under any provision  of  this  article,  provided
     9  that the subsequent offense or refusal is committed or occurred prior to
    10  the  expiration  of  the  retention period for such prior refusal as set
    11  forth in paragraph (k) of subdivision one of section two hundred one  of
    12  this chapter.
    13    b.  Any  license  which  has been revoked pursuant to paragraph (c) of
    14  this subdivision or pursuant to  subdivision  three  of  section  eleven
    15  hundred  ninety-four-a  of  this article, where the holder was under the
    16  age of twenty-one years at the  time  of  such  refusal,  shall  not  be
    17  restored for at least one year, nor thereafter, except in the discretion
    18  of the commissioner. Where such person under the age of twenty-one years
    19  has  a  prior  finding,  conviction  or  youthful  offender adjudication
    20  resulting from a violation  of  section  eleven  hundred  ninety-two  or
    21  section  eleven  hundred  ninety-two-a of this article, not arising from
    22  the same incident, such license shall not be restored for at  least  one
    23  year or until such person reaches the age of twenty-one years, whichever
    24  is  the greater period of time, nor thereafter, except in the discretion
    25  of the commissioner.
    26    c. Any commercial driver's license which has been revoked pursuant  to
    27  paragraph  (c)  of  this  subdivision based upon a finding of refusal to
    28  submit to a chemical test and/or an evaluation or  any  portion  thereof
    29  conducted  by  a  certified  drug recognition expert, where such finding
    30  occurs within or outside of this state, shall not  be  restored  for  at
    31  least  eighteen  months after such revocation, nor thereafter, except in
    32  the discretion of the commissioner, but shall not  be  restored  for  at
    33  least  three  years after such revocation, nor thereafter, except in the
    34  discretion of the commissioner, if the holder of such license was  oper-
    35  ating a commercial motor vehicle transporting hazardous materials at the
    36  time of such refusal. However, such person shall be permanently disqual-
    37  ified  from  operating  a commercial motor vehicle in any case where the
    38  holder has a prior finding of refusal  to  submit  to  a  chemical  test
    39  and/or  an  evaluation  or  any portion thereof conducted by a certified
    40  drug recognition  expert  pursuant  to  this  section  or  has  a  prior
    41  conviction  of  any  of the following offenses: any violation of section
    42  eleven hundred ninety-two of this article; any violation of  subdivision
    43  one  or  two  of  section  six  hundred  of this chapter; or has a prior
    44  conviction of any felony involving the use of a motor  vehicle  pursuant
    45  to  paragraph  (a)  of  subdivision one of section five hundred ten-a of
    46  this chapter. Provided that the commissioner may  waive  such  permanent
    47  revocation  after a period of ten years has expired from such revocation
    48  provided:
    49    (i) that during such ten year period such person has not been found to
    50  have refused a chemical test or an evaluation  or  any  portion  thereof
    51  conducted  by  a  certified  drug  recognition  expert  pursuant to this
    52  section and has not been convicted of any one of the following offenses:
    53  any violation of section eleven  hundred  ninety-two  of  this  article;
    54  refusal  to  submit  to  a chemical test or an evaluation or any portion
    55  thereof conducted by a certified drug  recognition  expert  pursuant  to
    56  this  section;  any  violation  of subdivision one or two of section six

        S. 2509--A                         124                        A. 3009--A

     1  hundred of this chapter; or has a prior conviction of any felony involv-
     2  ing the use of a motor vehicle pursuant to paragraph (a) of  subdivision
     3  one of section five hundred ten-a of this chapter;
     4    (ii) that such person provides acceptable documentation to the commis-
     5  sioner  that  such person is not in need of alcohol or drug treatment or
     6  has satisfactorily completed a prescribed course of such treatment; and
     7    (iii) after such documentation is accepted, that such person is grant-
     8  ed a certificate of relief from disabilities or a  certificate  of  good
     9  conduct  pursuant  to  article twenty-three of the correction law by the
    10  court in which such person was last penalized.
    11    d. Upon a third finding of refusal and/or conviction  of  any  of  the
    12  offenses  which  require a permanent commercial driver's license revoca-
    13  tion, such permanent revocation may not be waived  by  the  commissioner
    14  under any circumstances.
    15    (2)  Civil  penalties.  Except as otherwise provided, any person whose
    16  license, permit to drive, or any  non-resident  operating  privilege  is
    17  revoked  pursuant to the provisions of this section shall also be liable
    18  for a civil penalty in the amount of five hundred dollars except that if
    19  such revocation is a second or subsequent revocation  pursuant  to  this
    20  section  issued  within  a  five  year  period,  or such person has been
    21  convicted of a violation of any subdivision of  section  eleven  hundred
    22  ninety-two of this article within the past five years not arising out of
    23  the  same  incident,  the  civil penalty shall be in the amount of seven
    24  hundred fifty dollars. Any person whose license is revoked  pursuant  to
    25  the provisions of this section based upon a finding of refusal to submit
    26  to a chemical test while operating a commercial motor vehicle shall also
    27  be  liable for a civil penalty of five hundred fifty dollars except that
    28  if such person has previously been found to have refused a chemical test
    29  and/or an evaluation conducted by a certified drug recognition expert or
    30  any portion thereof pursuant to this section while operating  a  commer-
    31  cial  motor  vehicle  or  has a prior conviction of any of the following
    32  offenses while operating a commercial motor vehicle:  any  violation  of
    33  section  eleven  hundred  ninety-two  of  this article; any violation of
    34  subdivision two of section six hundred of this chapter; or has  a  prior
    35  conviction of any felony involving the use of a commercial motor vehicle
    36  pursuant  to  paragraph  (a)  of subdivision one of section five hundred
    37  ten-a of this chapter, then the civil penalty  shall  be  seven  hundred
    38  fifty  dollars.  No  new  driver's license or permit shall be issued, or
    39  non-resident operating privilege restored to  such  person  unless  such
    40  penalty  has been paid. All penalties collected by the department pursu-
    41  ant to the provisions of this section shall be the property of the state
    42  and shall be paid into the general fund of the state treasury.
    43    (3) Effect of rehabilitation program. No period of revocation  arising
    44  out  of this section may be set aside by the commissioner for the reason
    45  that such person was a participant in the  alcohol  and  drug  rehabili-
    46  tation  program  set  forth in section eleven hundred ninety-six of this
    47  article.
    48    (e) Regulations. The commissioner  shall  promulgate  such  rules  and
    49  regulations as may be necessary to effectuate the provisions of subdivi-
    50  sions one and two of this section.
    51    (f) Evidence. Evidence of a refusal to submit to such chemical test or
    52  any  portion  thereof  or  an evaluation conducted by a drug recognition
    53  expert shall be admissible in any trial,  proceeding  or  hearing  based
    54  upon  a violation of the provisions of section eleven hundred ninety-two
    55  of this article but only upon a showing that the person was given suffi-

        S. 2509--A                         125                        A. 3009--A

     1  cient warning, in clear and unequivocal language, of the effect of  such
     2  refusal and that the person persisted in the refusal.
     3    (g)  Results.  Upon  the  request  of  the  person who was tested, the
     4  results of such test shall be made available to such person.
     5    3. Compulsory  chemical  tests.  (a)  Court  ordered  chemical  tests.
     6  Notwithstanding  the  provisions  of subdivision two of this section, no
     7  person who operates a motor vehicle in this state may refuse  to  submit
     8  to a chemical test of one or more of the following: breath, blood, urine
     9  or [saliva] oral/bodily fluids, for the purpose of determining the alco-
    10  holic  and/or  drug  content  of  the blood or oral/bodily fluids when a
    11  court order for such chemical test has been issued  in  accordance  with
    12  the provisions of this subdivision.
    13    (b)  When authorized. Upon refusal by any person to submit to a chemi-
    14  cal test or any portion thereof as described above, the test  shall  not
    15  be  given  unless a police officer or a district attorney, as defined in
    16  subdivision thirty-two of section 1.20 of the  criminal  procedure  law,
    17  requests  and  obtains  a  court order to compel a person to submit to a
    18  chemical test to determine the alcoholic  and/or  drug  content  of  the
    19  person's  blood or oral/bodily fluids upon a finding of reasonable cause
    20  to believe that:
    21    (1) such person was the operator of a motor vehicle [and in the course
    22  of such operation a  person  other  than  the  operator  was  killed  or
    23  suffered  serious  physical  injury  as  defined in section 10.00 of the
    24  penal law]; and
    25    (2) a. either such person operated the vehicle  in  violation  of  any
    26  subdivision  of section eleven hundred ninety-two of this article, or b.
    27  a breath test and/or oral/bodily fluid test  administered  by  a  police
    28  officer  in  accordance  with  paragraph  (b) of subdivision one of this
    29  section indicates that alcohol and/or drug or drugs has been consumed by
    30  such person; and
    31    (3) such person has been placed under lawful arrest; and
    32    (4) such person has refused to submit to a  chemical  test  and/or  an
    33  evaluation  conducted  by  a  certified  drug recognition expert, or any
    34  portion thereof, requested in accordance with the  provisions  of  para-
    35  graph  (a)  of  subdivision  two  of  this  section or is unable to give
    36  consent to such a test.
    37    (c) Reasonable cause; definition. For the purpose of this  subdivision
    38  "reasonable  cause"  shall  be  determined  by  viewing  the totality of
    39  circumstances surrounding the incident which, when taken together, indi-
    40  cate that the operator  was  driving  in  violation  of  section  eleven
    41  hundred  ninety-two of this article. Such circumstances may include, but
    42  are not limited to: evidence that the operator  was  operating  a  motor
    43  vehicle  in  violation  of  any  provision  of this article or any other
    44  moving violation at the time of the incident; any visible indication  of
    45  alcohol or drug consumption or impairment by the operator; the existence
    46  of  an  open  container  containing an alcoholic beverage and/or drug or
    47  drugs in or around the vehicle driven  by  the  operator;  the  odor  of
    48  cannabis  or  burnt cannabis; any other evidence surrounding the circum-
    49  stances of the incident which indicates that the operator has been oper-
    50  ating a motor vehicle while impaired by the consumption  of  alcohol  or
    51  drugs or intoxicated at the time of the incident.
    52    (d)  Court  order;  procedure. (1) An application for a court order to
    53  compel submission to a chemical test or any portion thereof, may be made
    54  to any supreme court justice, county court judge or district court judge
    55  in the judicial district in which the incident occurred, or if the inci-
    56  dent occurred in the city of New York before any supreme  court  justice

        S. 2509--A                         126                        A. 3009--A

     1  or judge of the criminal court of the city of New York. Such application
     2  may  be  communicated  by  telephone, radio or other means of electronic
     3  communication, or in person.
     4    (2)  The  applicant  must provide identification by name and title and
     5  must state the purpose of the communication. Upon being advised that  an
     6  application for a court order to compel submission to a chemical test is
     7  being made, the court shall place under oath the applicant and any other
     8  person  providing  information in support of the application as provided
     9  in subparagraph three of this paragraph. After being sworn the applicant
    10  must state that the person from whom the chemical test was requested was
    11  the operator of a motor vehicle and [in the course of such  operation  a
    12  person,  other  than  the operator, has been killed or seriously injured
    13  and], based upon the totality  of  circumstances,  there  is  reasonable
    14  cause  to  believe  that  such  person  was operating a motor vehicle in
    15  violation of any subdivision of section  eleven  hundred  ninety-two  of
    16  this  article  and,  after  being placed under lawful arrest such person
    17  refused to submit to a chemical test or any portion thereof, in  accord-
    18  ance with the provisions of this section or is unable to give consent to
    19  such  a  test  or  any portion thereof. The applicant must make specific
    20  allegations of fact to support such statement. Any other person properly
    21  identified, may present sworn allegations of  fact  in  support  of  the
    22  applicant's statement.
    23    (3)  Upon  being advised that an oral application for a court order to
    24  compel a person to submit to a chemical test is being made, a  judge  or
    25  justice  shall  place  under  oath  the  applicant  and any other person
    26  providing information in support of the application. Such oath or  oaths
    27  and all of the remaining communication must be recorded, either by means
    28  of  a  voice recording device or verbatim stenographic or verbatim long-
    29  hand notes. If a voice recording device is used or a stenographic record
    30  made, the judge must have the record transcribed, certify to the accura-
    31  cy of the transcription and file the original record  and  transcription
    32  with  the  court  within  seventy-two hours of the issuance of the court
    33  order. If the longhand notes are taken, the judge shall subscribe a copy
    34  and file it with the court within twenty-four hours of the  issuance  of
    35  the order.
    36    (4)  If  the court is satisfied that the requirements for the issuance
    37  of a court order pursuant to the provisions of  paragraph  (b)  of  this
    38  subdivision  have  been  met,  it may grant the application and issue an
    39  order requiring the accused to submit to a chemical  test  to  determine
    40  the alcoholic and/or drug content of his blood and/or oral/bodily fluids
    41  ordering  the  withdrawal  of a blood and/or oral/bodily fluid sample in
    42  accordance with the provisions of paragraph (a) of subdivision  four  of
    43  this  section.  When  a judge or justice determines to issue an order to
    44  compel submission to a chemical test based on an oral  application,  the
    45  applicant  therefor  shall  prepare  the  order  in  accordance with the
    46  instructions of the judge or justice.   In all  cases  the  order  shall
    47  include the name of the issuing judge or justice, the name of the appli-
    48  cant,  and  the  date  and time it was issued.  It must be signed by the
    49  judge or justice if issued in person, or  by  the  applicant  if  issued
    50  orally.
    51    (5) Any false statement by an applicant or any other person in support
    52  of  an  application  for  a court order shall subject such person to the
    53  offenses for perjury set forth in article two hundred ten of  the  penal
    54  law.
    55    (6)  The  chief administrator of the courts shall establish a schedule
    56  to provide that a sufficient number of judges or justices will be avail-

        S. 2509--A                         127                        A. 3009--A

     1  able in each judicial district  to  hear  oral  applications  for  court
     2  orders as permitted by this section.
     3    (e) Administration of compulsory chemical test. An order issued pursu-
     4  ant  to the provisions of this subdivision shall require that a chemical
     5  test to determine the alcoholic and/or drug content  of  the  operator's
     6  blood  and/or  oral/bodily fluid must be administered. The provisions of
     7  paragraphs (a), (b) and (c) of subdivision four of this section shall be
     8  applicable to any chemical test administered pursuant to this section.
     9    § 33-b. Subdivision 1 of section 1227 of the vehicle and traffic  law,
    10  as  amended by section 3 of part F of chapter 60 of the laws of 2005, is
    11  amended to read as follows:
    12    1. The drinking of alcoholic beverages or consumption of cannabis,  or
    13  the  possession of an open container containing an alcoholic beverage or
    14  cannabis, in a motor vehicle located upon the public highways or  right-
    15  of-way public highway is prohibited. Any operator or passenger violating
    16  this section shall be guilty of a traffic infraction.
    17    The  provisions  of  this  section shall not be deemed to prohibit the
    18  drinking of alcoholic beverages, the consumption of  cannabis  by  means
    19  other than burning, or the possession of an open container containing an
    20  alcoholic beverage or cannabis by passengers in passenger vehicles oper-
    21  ated  pursuant  to  a  certificate or permit issued by the department of
    22  transportation  or  the  United  States  department  of  transportation.
    23  Furthermore,  the  provisions  of  this  section  shall not be deemed to
    24  prohibit the possession of wine which is:  (a)  resealed  in  accordance
    25  with  the  provisions  of  subdivision four of section eighty-one of the
    26  alcoholic beverage control law; and (b) is transported in the  vehicle's
    27  trunk  or  is transported behind the last upright seat or in an area not
    28  normally occupied by the driver or passenger in a motor vehicle that  is
    29  not equipped with a trunk.
    30    §  34. Subdivision 1 of section 171-a of the tax  law,  as  amended by
    31  section  3  of  part XX of chapter 59 of the laws of 2019, is amended to
    32  read as follows:
    33    1. All taxes, interest, penalties and fees collected  or  received  by
    34  the commissioner or the commissioner's duly authorized agent under arti-
    35  cles nine (except section one hundred eighty-two-a thereof and except as
    36  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    37  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    38  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    39  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    40  (except  as otherwise provided in section four hundred eighty-two there-
    41  of), twenty-B, twenty-C, twenty-D, twenty-one, twenty-two,  twenty-four,
    42  twenty-six, twenty-eight (except as otherwise provided in section eleven
    43  hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
    44  nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
    45  hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
    46  chapter shall be deposited daily in one account  with  such  responsible
    47  banks,  banking  houses  or  trust companies as may be designated by the
    48  comptroller, to the credit of the comptroller. Such an  account  may  be
    49  established  in one or more of such depositories. Such deposits shall be
    50  kept separate and apart from all other money in the  possession  of  the
    51  comptroller.  The  comptroller  shall require adequate security from all
    52  such depositories. Of the total revenue collected or received under such
    53  articles of this chapter, the comptroller  shall  retain  in  the  comp-
    54  troller's  hands  such  amount  as  the commissioner may determine to be
    55  necessary for refunds or reimbursements  under  such  articles  of  this
    56  chapter  out  of  which  amount the comptroller shall pay any refunds or

        S. 2509--A                         128                        A. 3009--A

     1  reimbursements to which taxpayers shall be entitled under the provisions
     2  of such articles of this chapter. The commissioner and  the  comptroller
     3  shall  maintain  a  system  of  accounts  showing  the amount of revenue
     4  collected  or  received from each of the taxes imposed by such articles.
     5  The comptroller, after reserving the  amount  to  pay  such  refunds  or
     6  reimbursements,  shall,  on  or  before the tenth day of each month, pay
     7  into the state treasury to the credit of the general  fund  all  revenue
     8  deposited  under  this  section  during the preceding calendar month and
     9  remaining to the comptroller's credit on the last day of such  preceding
    10  month, (i) except that the comptroller shall pay to the state department
    11  of social services that amount of overpayments of tax imposed by article
    12  twenty-two  of  this  chapter  and  the interest on such amount which is
    13  certified to the comptroller by the commissioner as  the  amount  to  be
    14  credited against past-due support pursuant to subdivision six of section
    15  one  hundred  seventy-one-c  of  this  article, (ii) and except that the
    16  comptroller shall pay to the New York state  higher  education  services
    17  corporation  and the state university of New York or the city university
    18  of New York respectively that amount of overpayments of tax  imposed  by
    19  article twenty-two of this chapter and the interest on such amount which
    20  is  certified to the comptroller by the commissioner as the amount to be
    21  credited against the amount  of  defaults  in  repayment  of  guaranteed
    22  student loans and state university loans or city university loans pursu-
    23  ant  to subdivision five of section one hundred seventy-one-d and subdi-
    24  vision six of section one hundred seventy-one-e of this  article,  (iii)
    25  and  except further that, notwithstanding any law, the comptroller shall
    26  credit  to  the  revenue  arrearage   account,   pursuant   to   section
    27  ninety-one-a of the state finance law, that amount of overpayment of tax
    28  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
    29  or thirty-three of this chapter, and  any  interest  thereon,  which  is
    30  certified  to  the  comptroller  by the commissioner as the amount to be
    31  credited against a past-due legally enforceable debt  owed  to  a  state
    32  agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
    33  hundred seventy-one-f of this article, provided, however, he shall cred-
    34  it to the special offset fiduciary account, pursuant to section  ninety-
    35  one-c  of the state finance law, any such amount creditable as a liabil-
    36  ity as set forth in paragraph (b) of  subdivision  six  of  section  one
    37  hundred  seventy-one-f of this article, (iv) and except further that the
    38  comptroller shall pay to the city of New York that amount of overpayment
    39  of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
    40  thirty-B  or  thirty-three of this chapter and any interest thereon that
    41  is certified to the comptroller by the commissioner as the amount to  be
    42  credited  against city of New York tax warrant judgment debt pursuant to
    43  section one hundred  seventy-one-l  of  this  article,  (v)  and  except
    44  further  that  the  comptroller shall pay to a non-obligated spouse that
    45  amount of overpayment of tax imposed by article twenty-two of this chap-
    46  ter and the interest on such amount which has been credited pursuant  to
    47  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    48  hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
    49  ty-one-l  of  this  article and which is certified to the comptroller by
    50  the commissioner as the amount due such non-obligated spouse pursuant to
    51  paragraph six of subsection (b) of section six hundred fifty-one of this
    52  chapter; and (vi) the comptroller shall deduct a like amount  which  the
    53  comptroller  shall  pay  into  the treasury to the credit of the general
    54  fund from amounts subsequently  payable  to  the  department  of  social
    55  services,  the  state university of New York, the city university of New
    56  York, or the higher  education  services  corporation,  or  the  revenue

        S. 2509--A                         129                        A. 3009--A

     1  arrearage  account  or  special  offset  fiduciary  account  pursuant to
     2  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
     3  case  may be, whichever had been credited the amount originally withheld
     4  from  such  overpayment,  and  (vii)  with respect to amounts originally
     5  withheld from such overpayment pursuant to section one hundred  seventy-
     6  one-l  of this article and paid to the city of New York, the comptroller
     7  shall collect a like amount from the city of New York.
     8    § 35. Section 490 of the tax law, as added by chapter 90 of  the  laws
     9  of 2014, is amended to read as follows:
    10    §  490.  [Definitions]  Excise  tax on medical cannabis.   1. (a) [All
    11  definitions of terms applicable to title five-A of article  thirty-three
    12  of  the  public health law shall apply to this article.] For purposes of
    13  this article, the terms "medical cannabis,"  "registered  organization,"
    14  "certified  patient,"  and  "designated  caregiver"  shall have the same
    15  definitions as in section three of the cannabis law.
    16    (b) As used in this section, where not otherwise specifically  defined
    17  and unless a different meaning is clearly required "gross receipt" means
    18  the  amount  received in or by reason of any sale, conditional or other-
    19  wise, of medical [marihuana] cannabis or in or by reason of the furnish-
    20  ing of medical [marihuana] cannabis from the sale of medical [marihuana]
    21  cannabis provided by a registered organization to a certified patient or
    22  designated caregiver.  Gross receipt is expressed in money, whether paid
    23  in cash, credit or property of any kind or nature, and shall  be  deter-
    24  mined  without  any  deduction  therefrom  on account of the cost of the
    25  service sold or the cost of materials, labor or services used  or  other
    26  costs,  interest  or  discount  paid,  or any other expenses whatsoever.
    27  "Amount received" for the purpose of the definition of gross receipt, as
    28  the term gross receipt is used throughout this article, means the amount
    29  charged for the provision of medical [marihuana] cannabis.
    30    2. There is hereby imposed an excise tax on the  gross  receipts  from
    31  the sale of medical [marihuana] cannabis by a registered organization to
    32  a  certified  patient  or designated caregiver, to be paid by the regis-
    33  tered organization, at the rate of seven percent.  The  tax  imposed  by
    34  this  article  shall  be  charged  against and be paid by the registered
    35  organization and shall not be added as a separate charge or line item on
    36  any sales slip, invoice, receipt or other statement or memorandum of the
    37  price given to the retail customer.
    38    3. The commissioner may make,  adopt  and  amend  rules,  regulations,
    39  procedures  and  forms  necessary  for the proper administration of this
    40  article.
    41    4. Every registered organization that makes sales of medical [marihua-
    42  na] cannabis subject to the tax imposed by this  article  shall,  on  or
    43  before  the  twentieth  date of each month, file with the commissioner a
    44  return on forms to  be  prescribed  by  the  commissioner,  showing  its
    45  receipts from the retail sale of medical [marihuana] cannabis during the
    46  preceding calendar month and the amount of tax due thereon. Such returns
    47  shall  contain such further information as the commissioner may require.
    48  Every registered organization required  to  file  a  return  under  this
    49  section shall, at the time of filing such return, pay to the commission-
    50  er  the total amount of tax due on its retail sales of medical [marihua-
    51  na] cannabis for the period covered by such return. If a return  is  not
    52  filed  when  due, the tax shall be due on the day on which the return is
    53  required to be filed.
    54    5. Whenever the commissioner shall determine that any moneys  received
    55  under  the  provisions  of this article were paid in error, he may cause
    56  the same to be refunded, with interest, in accordance  with  such  rules

        S. 2509--A                         130                        A. 3009--A

     1  and  regulations  as  he may prescribe, except that no interest shall be
     2  allowed or paid if the amount thereof would be  less  than  one  dollar.
     3  Such  interest  shall be at the overpayment rate set by the commissioner
     4  pursuant  to subdivision twenty-sixth of section one hundred seventy-one
     5  of this chapter, or if no rate is set, at the rate of  six  percent  per
     6  annum,  from  the  date when the tax, penalty or interest to be refunded
     7  was paid to a date preceding the date of the refund check  by  not  more
     8  than  thirty  days.  Provided,  however,  that  for the purposes of this
     9  subdivision, any tax paid before the last day prescribed for its payment
    10  shall be deemed to have been paid on such last day. Such moneys received
    11  under the provisions of this article which the commissioner shall deter-
    12  mine were paid in error, may be refunded out of funds in the custody  of
    13  the  comptroller  to  the  credit  of such taxes provided an application
    14  therefor is filed with the commissioner within two years from  the  time
    15  the erroneous payment was made.
    16    6.  The provisions of article twenty-seven of this chapter shall apply
    17  to the tax imposed by this article in the same manner and with the  same
    18  force  and  effect  as if the language of such article had been incorpo-
    19  rated in full into this section and had expressly referred  to  the  tax
    20  imposed by this article, except to the extent that any provision of such
    21  article  is  either  inconsistent with a provision of this article or is
    22  not relevant to this article.
    23    7. All taxes, interest and penalties  collected  or  received  by  the
    24  commissioner  under  this  article  shall  be  deposited and disposed of
    25  pursuant to the provisions of section one hundred seventy-one-a of  this
    26  chapter,  provided that an amount equal to one hundred percent collected
    27  under this article less any amount determined by the commissioner to  be
    28  reserved  by the comptroller for refunds or reimbursements shall be paid
    29  by the comptroller to the credit of  the  medical  [marihuana]  cannabis
    30  trust  fund  established  by  section eighty-nine-h of the state finance
    31  law.
    32    8. A registered organization that dispenses medical [marihuana] canna-
    33  bis shall provide to the department information  on  where  the  medical
    34  [marihuana]  cannabis  was  dispensed  and where the medical [marihuana]
    35  cannabis was manufactured. A registered organization that obtains [mari-
    36  huana] cannabis from another registered organization shall  obtain  from
    37  such  registered organization information on where the medical [marihua-
    38  na] cannabis was manufactured.
    39    § 36. Section 491 of the tax law, as added by chapter 90 of  the  laws
    40  of  2014, subdivision 1 as amended by section 1 of part II of chapter 60
    41  of the laws of 2016, is amended to read as follows:
    42    § 491. Returns to be secret. 1. Except in accordance with proper judi-
    43  cial order or as in this section or otherwise provided by law, it  shall
    44  be unlawful for the commissioner, any officer or employee of the depart-
    45  ment, or any officer or person who, pursuant to this section, is permit-
    46  ted  to inspect any return or report or to whom a copy, an abstract or a
    47  portion of any return or report is furnished, or to whom any information
    48  contained in any return or report is furnished, or any person engaged or
    49  retained by such department on an  independent  contract  basis  or  any
    50  person  who  in  any  manner  may acquire knowledge of the contents of a
    51  return or report filed pursuant to this article to divulge or make known
    52  in any manner the contents or any  other  information  relating  to  the
    53  business of a distributor, owner or other person contained in any return
    54  or  report  required  under  this article. The officers charged with the
    55  custody of such returns or reports shall not be required to produce  any
    56  of  them  or  evidence  of  anything  contained in them in any action or

        S. 2509--A                         131                        A. 3009--A

     1  proceeding in any court, except on  behalf  of  the  state,  [the  state
     2  department of health] office of cannabis management, or the commissioner
     3  in  an  action  or proceeding under the provisions of this chapter or on
     4  behalf  of the state or the commissioner in any other action or proceed-
     5  ing involving the collection of a tax due under this  chapter  to  which
     6  the  state  or the commissioner is a party or a claimant or on behalf of
     7  any party to any action or proceeding under the provisions of this arti-
     8  cle, when the returns or the reports or  the  facts  shown  thereby  are
     9  directly  involved  in  such  action  or  proceeding, or in an action or
    10  proceeding relating to the regulation or taxation of medical [marihuana]
    11  cannabis on behalf of officers  to  whom  information  shall  have  been
    12  supplied as provided in subdivision two of this section, in any of which
    13  events  the  court  may  require  the  production  of,  and may admit in
    14  evidence so much of said returns or reports or of the facts shown there-
    15  by as are pertinent to the action or proceeding  and  no  more.  Nothing
    16  herein  shall  be  construed to prohibit the commissioner, in his or her
    17  discretion, from allowing the inspection or delivery of a certified copy
    18  of any return or report filed under this article or of  any  information
    19  contained  in any such return or report by or to a duly authorized offi-
    20  cer or employee of the [state department of health] office  of  cannabis
    21  management;  or  by  or to the attorney general or other legal represen-
    22  tatives of the state when an  action  shall  have  been  recommended  or
    23  commenced  pursuant  to this chapter in which such returns or reports or
    24  the facts shown thereby are directly involved; or the inspection of  the
    25  returns  or  reports  required  under this article by the comptroller or
    26  duly designated officer or employee of the state department of audit and
    27  control, for purposes of the audit of a refund of  any  tax  paid  by  a
    28  registered  organization  or  other  person  under  this article; nor to
    29  prohibit the delivery to a registered organization, or a duly authorized
    30  representative of such registered organization, a certified copy of  any
    31  return  or report filed by such registered organization pursuant to this
    32  article, nor to prohibit the publication of statistics so classified  as
    33  to  prevent  the identification of particular returns or reports and the
    34  items thereof. This section shall also not be construed to prohibit  the
    35  disclosure,  for  tax  administration  purposes,  to the division of the
    36  budget and the office of the state comptroller,  of  information  aggre-
    37  gated  from the returns filed by all the registered organizations making
    38  sales of, or manufacturing, medical [marihuana] cannabis in a  specified
    39  county,  whether  the  number of such registered organizations is one or
    40  more. Provided further that,  notwithstanding  the  provisions  of  this
    41  subdivision,  the commissioner may, in his or her discretion, permit the
    42  proper officer of any county entitled to receive an allocation,  follow-
    43  ing  appropriation  by  the  legislature,  pursuant  to this article and
    44  section eighty-nine-h of the state finance law, or the authorized repre-
    45  sentative of such officer, to inspect any return filed under this  arti-
    46  cle,  or  may furnish to such officer or the officer's authorized repre-
    47  sentative an abstract of any such return or supply such officer or  such
    48  representative with information concerning an item contained in any such
    49  return,  or  disclosed  by any investigation of tax liability under this
    50  article.
    51    2. The commissioner, in his or her discretion  and  pursuant  to  such
    52  rules  and  regulations  as he or she may adopt, may permit [the commis-
    53  sioner of internal revenue of the United  States,  or]  the  appropriate
    54  officers of any other state which regulates or taxes medical [marihuana]
    55  cannabis,  or  the duly authorized representatives of such [commissioner
    56  or of any such] officers, to inspect returns or reports made pursuant to

        S. 2509--A                         132                        A. 3009--A

     1  this article, or may furnish to such [commissioner or]  other  officers,
     2  or  duly authorized representatives, a copy of any such return or report
     3  or an abstract of the information  therein  contained,  or  any  portion
     4  thereof,  or may supply [such commissioner or] any such officers or such
     5  representatives with information relating to the business  of  a  regis-
     6  tered organization making returns or reports hereunder. The commissioner
     7  may  refuse  to  supply information pursuant to this subdivision [to the
     8  commissioner of internal revenue of the United States or] to  the  offi-
     9  cers  of  any  other state if the statutes [of the United States, or] of
    10  the state represented by such officers, do not grant substantially simi-
    11  lar privileges to the commissioner, but such refusal shall not be manda-
    12  tory. Information shall not be supplied to [the commissioner of internal
    13  revenue of the United States or] the appropriate officers of  any  other
    14  state which regulates or taxes medical [marihuana] cannabis, or the duly
    15  authorized  representatives  [of  such  commissioner  or] of any of such
    16  officers, unless such [commissioner,] officer or  other  representatives
    17  shall  agree  not to divulge or make known in any manner the information
    18  so supplied, but such officers may transmit such  information  to  their
    19  employees  or legal representatives when necessary, who in turn shall be
    20  subject to the same restrictions  as  those  hereby  imposed  upon  such
    21  [commissioner,] officer or other representatives.
    22    3. (a) Any officer or employee of the state who willfully violates the
    23  provisions  of subdivision one or two of this section shall be dismissed
    24  from office and be incapable of holding any public office in this  state
    25  for a period of five years thereafter.
    26    (b)  Cross-reference: For criminal penalties, see article thirty-seven
    27  of this chapter.
    28    § 37. The tax law is amended by adding a new article 20-C to  read  as
    29  follows:
    30                                ARTICLE 20-C
    31                     TAX ON ADULT-USE CANNABIS PRODUCTS
    32  Section 492. Definitions.
    33          493. Imposition of tax.
    34          494. Registration and renewal.
    35          495. Returns and payment of tax.
    36          496. Records to be kept; penalties.
    37          496-a. Returns to be secret.
    38          496-b. Administrative provisions.
    39          496-c. Illicit cannabis penalty.
    40    §  492. Definitions. For purposes of this article, the following defi-
    41  nitions shall apply:
    42    (a) "Adult-use cannabis product" or "adult-use cannabis" has the  same
    43  meaning as the term is defined in section three of the cannabis law. For
    44  purposes  of this article, under no circumstances shall adult-use canna-
    45  bis product include medical cannabis  or  cannabinoid  hemp  product  as
    46  defined in section three of the cannabis law.
    47    (b)  "Cannabis"  means all parts of the a plant of the genus cannabis,
    48  whether growing or not; the seeds thereof; the resin extracted from  any
    49  part  of  the  plant; and every compound, manufacture, salt, derivative,
    50  mixture, or preparation of the plant, its seeds or resin.  For  purposes
    51  of  this article, cannabis does not include medical cannabis or cannabi-
    52  noid hemp product as defined in section three of the cannabis law.
    53    (c) "Cannabis edible  product"  means  a  product,  containing  either
    54  cannabis  or  concentrated  cannabis and other ingredients, intended for
    55  use or consumption  through  ingestion,  including  sublingual  or  oral
    56  absorption.

        S. 2509--A                         133                        A. 3009--A

     1    (d)  "Cannabis flower" means the flower of a plant of the genus canna-
     2  bis that has been harvested, dried and cured but has not  undergone  any
     3  processing whereby the plant material is transformed into a concentrate,
     4  including,  but not limited to, concentrated cannabis, or into an edible
     5  or  topical  product  containing  cannabis  or concentrated cannabis and
     6  other ingredients. Cannabis flower excludes leaves and stem.
     7    (e) "Concentrated cannabis" has  the  same  meaning  as  the  term  is
     8  defined in section three of the cannabis law.
     9    (f)  "Distributor"  has  the  same  meaning  as the term is defined in
    10  section three of the cannabis law.
    11    (g) "Illicit cannabis" means and  includes  cannabis  flower,  concen-
    12  trated cannabis, cannabis edible product and cannabis plant on which any
    13  tax  required to have been paid under this chapter has not been paid, or
    14  the form, packaging, or content of which is not permitted by the  office
    15  of cannabis management, as applicable.
    16    (h)  "Cannabis  plant"  means cannabis that has not been harvested, or
    17  undergone processing, drying or curing.
    18    (i) "Person" means every individual,  partnership,  limited  liability
    19  company, society, association, joint stock company, corporation, estate,
    20  receiver,  trustee,  assignee, referee, and any other person acting in a
    21  fiduciary or representative capacity, whether appointed by  a  court  or
    22  otherwise, and any combination of the foregoing.
    23    (j)  "Sale"  means any transfer of title, possession or both, exchange
    24  or barter, rental, lease or license to use or consume,  conditional,  or
    25  otherwise,  in any manner or by any means whatsoever for a consideration
    26  or any agreement therefor.
    27    (k) "Total THC" has the same meaning as the term  defined  in  section
    28  three of the cannabis law.
    29    §  493.  Imposition  of  tax.    (a)  There is hereby imposed a tax on
    30  adult-use cannabis products sold by a distributor to a person who  sells
    31  adult-use cannabis products at retail at the following rates:
    32    (1) cannabis flower at the rate of seven tenths of one cent per milli-
    33  gram of the amount of total THC, as reflected on the product label;
    34    (2) concentrated cannabis at the rate of one cent per milligram of the
    35  amount of total THC, as reflected on the product label; and
    36    (3) cannabis edible product at the rate of four cents per milligram of
    37  the  amount  of  total  THC, as reflected on the product label. This tax
    38  shall accrue at the time of such sale or transfer. Where  a  person  who
    39  distributes  adult-use  cannabis is licensed under the cannabis law as a
    40  microbusiness, cooperative or registered organization, such person shall
    41  be liable for the tax, and such tax shall accrue  at  the  time  of  the
    42  retail sale.
    43    (b) In addition to any other tax imposed by this chapter or other law,
    44  there is hereby imposed a tax of ten and one-quarter percent on receipts
    45  from  the retail sale of adult-use cannabis products sold in this state.
    46  The tax is imposed on the retail customer and shall be collected at  the
    47  time  of  the  retail  sale  by  the person who sells adult-use cannabis
    48  products at retail, in trust for and on account of the state.
    49    (c) The taxes imposed in subdivisions (a)  and  (b)  of  this  section
    50  shall  not  apply  to  sales of adult-use cannabis to a person holding a
    51  cannabis research license under section thirty-nine of the cannabis law.
    52    § 494. Registration and renewal.  (a) (i) Every  distributor  on  whom
    53  tax  is  imposed under this article and every person who sells adult-use
    54  cannabis products at retail must file with the commissioner  a  properly
    55  completed  application for a certificate of registration before engaging
    56  in business. An application for a certificate of  registration  must  be

        S. 2509--A                         134                        A. 3009--A

     1  submitted  electronically, on a form prescribed by the commissioner, and
     2  must be accompanied by a non-refundable application fee of  six  hundred
     3  dollars. A certificate of registration shall not be assignable or trans-
     4  ferable  and  shall be destroyed immediately upon such person ceasing to
     5  do business as specified in such certificate, or in the event that  such
     6  business never commenced.
     7    (ii)  Provided,  however, that the commissioner shall refund or credit
     8  an application fee paid with respect to the registration of an adult-use
     9  cannabis business in this state if, prior to the beginning of the period
    10  with respect to which such  registration  relates,  the  certificate  of
    11  registration described in subparagraph (i) of this paragraph is returned
    12  to the department or, if such certificate has been destroyed, the opera-
    13  tor of such business satisfactorily accounts to the commissioner for the
    14  missing  certificate,  but such business may not sell adult-use cannabis
    15  products in this state during such period, unless it  is  re-registered.
    16  Such  refund  or  credit  shall be deemed a refund of tax paid in error,
    17  provided, however, no interest shall be allowed  or  paid  on  any  such
    18  refund.
    19    (b) (1) The commissioner shall refuse to issue a certificate of regis-
    20  tration  to  any applicant and shall revoke the certificate of registra-
    21  tion of any such person who does not possess a valid  license  from  the
    22  office of cannabis management or a valid certificate of authority issued
    23  pursuant  to  section  eleven  hundred  thirty-four of this chapter. The
    24  commissioner may refuse to issue a certificate of  registration  to  any
    25  applicant where such applicant:
    26    (i)  has  a  past-due liability as that term is defined in section one
    27  hundred seventy-one-v of this chapter;
    28    (ii) has had a certificate  of  registration  under  this  article,  a
    29  license from the office of cannabis management, or any license or regis-
    30  tration  provided  for  in  this chapter revoked or suspended where such
    31  revocation or suspension was in effect on the date the  application  was
    32  filed  or  ended within one year from the date on which such application
    33  was filed;
    34    (iii) has been convicted of a crime provided for in this chapter with-
    35  in one year from the date on which such application  was  filed  or  the
    36  certificate was issued, as applicable;
    37    (iv) willfully fails to file a report or return required by this arti-
    38  cle;
    39    (v) willfully files, causes to be filed, gives or causes to be given a
    40  report,  return, certificate or affidavit required by this article which
    41  is false; or
    42    (vi) willfully fails to collect or truthfully account for or pay  over
    43  any tax imposed by this article.
    44    (2) In addition to the grounds for revocation in paragraph (1) of this
    45  subdivision, where a person who holds a certificate of registration is a
    46  person who has possessed or sold illicit cannabis: (1) such registration
    47  shall  be revoked for a period of one year for the first such possession
    48  or sale; (2) for a second such possession or sale  within  a  period  of
    49  five  years  by  such  person,  the registration of such person shall be
    50  revoked for a period of three years; (3) for a third such possession  or
    51  sale  within  a period of five years by such person, the registration of
    52  such person shall be revoked for a period of five years.  A  certificate
    53  of  registration shall be revoked pursuant to this paragraph immediately
    54  upon such person's receipt of written  notice  of  revocation  from  the
    55  commissioner.

        S. 2509--A                         135                        A. 3009--A

     1    (c) A certificate of registration shall be valid for the period speci-
     2  fied  thereon,  unless earlier suspended or revoked. Upon the expiration
     3  of the term stated on a certificate of  registration,  such  certificate
     4  shall be null and void.
     5    (d)  Every  holder  of  a  certificate of registration must notify the
     6  commissioner of changes to any of the information stated on the  certif-
     7  icate, or of changes to any information contained in the application for
     8  the  certificate  of  registration. Such notification must be made on or
     9  before the last day of the month in which a change occurs  and  must  be
    10  made electronically on a form prescribed by the commissioner.
    11    (e)  Every  holder of a certificate of registration under this article
    12  shall be required to reapply prior  to  such  certificate's  expiration,
    13  during  a  reapplication  period  established  by the commissioner. Such
    14  reapplication period shall not occur  more  frequently  than  every  two
    15  years.  Such reapplication shall be subject to the same requirements and
    16  conditions as an initial application, including grounds for refusal  and
    17  the payment of the application fee.
    18    (f) Any person who is required to obtain a certificate of registration
    19  under  subdivision  (a) of this section who possesses adult-use cannabis
    20  products without such certificate shall be subject to a penalty of  five
    21  hundred  dollars  for  each month or part thereof during which adult-use
    22  cannabis products are possessed without such certificate, not to  exceed
    23  ten thousand dollars in the aggregate.
    24    §  495.  Returns  and payment of tax. (a)(i) Every distributor on whom
    25  tax is imposed under this article shall, on or before the twentieth date
    26  of each month, file electronically with the  commissioner  a  return  on
    27  forms  to  be  prescribed  by  the  commissioner,  showing the total THC
    28  content of adult-use cannabis products subject to tax pursuant to subdi-
    29  vision (a) of section four hundred ninety-three of this article and  the
    30  total  amount  of tax due thereon in the preceding calendar month, along
    31  with such other information as the commissioner may require.
    32    (ii) Every person who sells  adult-use  cannabis  products  to  retail
    33  customers  shall  file  electronically with the commissioner a return on
    34  forms to be prescribed by the commissioner, showing the total amount  of
    35  tax  due  under  subdivision (b) of section four hundred ninety-three of
    36  this article, along with such other information as the commissioner  may
    37  require.
    38    (b)  Every  person required to file a return under this section shall,
    39  at the time of filing such return, pay electronically to the commission-
    40  er the total amount of tax due for the period covered by such return. If
    41  a return is not filed when due, the tax shall be due on the day on which
    42  the return is required to be filed.
    43    § 496. Records to be kept; penalties. (a) Records to  be  kept.  Every
    44  distributor  on  whom tax is imposed under this article and every person
    45  who sells adult-use cannabis products at retail shall maintain  complete
    46  and  accurate  records  in  such  form  as  the commissioner may require
    47  including, but not limited to, such items as the total  THC  content  of
    48  the  adult-use  cannabis  products  sold  to or produced by such person;
    49  complete records of every retail sale of  adult-use  cannabis,  and  any
    50  other  record  or information required by the commissioner. Such records
    51  must be preserved for a period of three years after the  filing  of  the
    52  return  to which such records relate and must be provided to the commis-
    53  sioner upon request.
    54    (b) Penalties. In addition to any other penalty provided in this arti-
    55  cle or otherwise imposed by  law,  every  distributor  on  whom  tax  is
    56  imposed under this article and every person who sells adult-use cannabis

        S. 2509--A                         136                        A. 3009--A

     1  products  at  retail  who  fails  to  maintain  or make available to the
     2  commissioner the records required by this section is subject to a penal-
     3  ty not to exceed five hundred dollars for each month or part thereof for
     4  which the failure occurs. This penalty may not be imposed more than once
     5  for  failures  for  the  same  monthly  period or part thereof.   If the
     6  commissioner determines that a failure to  maintain  or  make  available
     7  records  in  any  month  was entirely due to reasonable cause and not to
     8  willful neglect, the commissioner must remit the penalty for that month.
     9    § 496-a. Returns to be secret. (a) Except in  accordance  with  proper
    10  judicial  order  or  as in this section or otherwise provided by law, it
    11  shall be unlawful for the commissioner, any officer or employee  of  the
    12  department,  or  any officer or person who, pursuant to this section, is
    13  permitted to inspect any return or report or to whom a copy, an abstract
    14  or a portion of any return or report is furnished, or to whom any infor-
    15  mation contained in any return or report is furnished, or any person who
    16  in any manner may acquire knowledge of  the  contents  of  a  return  or
    17  report  filed  pursuant  to this article to divulge or make known in any
    18  manner the content or any other information contained in any  return  or
    19  report required under this article. The officers charged with the custo-
    20  dy  of  such  returns or reports shall not be required to produce any of
    21  them or evidence of anything contained in them in any action or  preced-
    22  ing  in any court, except on behalf of the state, the office of cannabis
    23  management, or the commissioner in an action or proceeding involving the
    24  collection of tax due under this chapter  to  which  the  state  or  the
    25  commissioner  is  a party or a claimant or on behalf of any party to any
    26  action or proceeding under the provisions  of  this  article,  when  the
    27  returns  or the reports or the facts shown thereby are directly involved
    28  in such action or proceeding, or in an action or proceeding  related  to
    29  the  regulation  or taxation of adult-use cannabis products on behalf of
    30  officers to whom information shall have been  supplied  as  provided  in
    31  this  section,  in  any  of  which  events  the  court  may  require the
    32  production of, and may admit in evidence so  much  of  said  returns  or
    33  reports  or of the facts shown thereby as are pertinent to the action or
    34  proceeding and no more. Nothing herein shall be  construed  to  prohibit
    35  the commissioner, in his or her discretion, from allowing the inspection
    36  or delivery of a certified copy of any return or report filed under this
    37  article  or of any information contained in any such return or report by
    38  or to a duly authorized officer or employee of the  office  of  cannabis
    39  management;  or  by  or to the attorney general or other legal represen-
    40  tatives of the state when an  action  shall  have  been  recommended  or
    41  commenced  pursuant  to this chapter in which such returns or reports or
    42  the facts shown thereby are directly involved; or the inspection of  the
    43  returns  or  reports  required  under this article by the comptroller or
    44  duly designated officer or employee of the state department of audit and
    45  control, for purposes of the audit of a refund of any tax  paid  by  any
    46  person  under  this article; nor to prohibit the delivery to such person
    47  or a duly authorized representative of such person, a certified copy  of
    48  any  return or report filed by such person pursuant to this article, nor
    49  to prohibit the publication of statistics so classified  as  to  prevent
    50  the identification of particular returns or reports and the items there-
    51  of. This section shall also not be construed to prohibit the disclosure,
    52  for  tax  administration purposes, to the division of the budget and the
    53  office of the state comptroller,  of  information  aggregated  from  the
    54  returns  filed  by all persons subject to the taxes imposed by the arti-
    55  cle, whether the number of such persons is one or more.

        S. 2509--A                         137                        A. 3009--A

     1    (b) The commissioner, in his or her discretion, may permit the  appro-
     2  priate  officers  of any other state that regulates or taxes cannabis or
     3  the duly authorized representatives of any  such  officers,  to  inspect
     4  returns or reports made pursuant to this article, or may furnish to such
     5  other  officers, or their duly authorized representatives, a copy of any
     6  such return  or  report  or  an  abstract  of  the  information  therein
     7  contained,  or  any  portion thereof, or may supply any such officers or
     8  such representatives with information relating  to  the  business  of  a
     9  person  making  returns  or reports hereunder solely for purposes of tax
    10  administration. The commissioner may refuse to supply information pursu-
    11  ant to this subdivision to the officers of any other state if the  stat-
    12  utes of the state represented by such officers do not grant substantial-
    13  ly similar privileges to the commissioner, but such refusal shall not be
    14  mandatory.  Information  shall  not  be  supplied to the officers of any
    15  state that regulates or taxes cannabis, or their duly authorized  repre-
    16  sentatives  of any such officers, unless such officer or other represen-
    17  tatives shall agree not to divulge or  make  known  in  any  manner  the
    18  information so supplied, but such officers may transmit such information
    19  to  their employees or legal representatives when necessary, who in turn
    20  shall be subject to the same restrictions as those hereby  imposed  upon
    21  such officer or other representatives.
    22    (c)(1) Any officer or employee of the state who willfully violates the
    23  provisions  of subdivision (a) or (b) of this section shall be dismissed
    24  from office and be incapable of holding any public office in this  state
    25  for a period of five years thereafter.
    26    (2) For criminal penalties, see article thirty-seven of this chapter.
    27    §  496-b.  Administrative provisions. (a)(1) The provisions of article
    28  twenty-seven of this chapter shall apply to the tax imposed by  subdivi-
    29  sion  (a)  of  section  four hundred ninety-three of this article in the
    30  same manner and with the same force and effect as  if  the  language  of
    31  such  article  had  been  incorporated in full into this section and had
    32  expressly referred to the tax imposed by this  article,  except  to  the
    33  extent  that any provision of such article is either inconsistent with a
    34  provision of this article or is not relevant to this article.
    35    (2) The tax imposed by subdivision (b) of section four  hundred  nine-
    36  ty-three  of  this article shall be administered and collected in a like
    37  manner as and jointly with the taxes imposed by sections eleven  hundred
    38  five  and  eleven  hundred  ten  of this chapter. In addition, except as
    39  otherwise provided in this article, all of  the  provisions  of  article
    40  twenty-eight  of  this  chapter  (except  sections eleven hundred seven,
    41  eleven hundred eight, eleven hundred nine,  and  eleven  hundred  forty-
    42  eight)  relating  to or applicable to the administration, collection and
    43  review of the taxes imposed by such sections  eleven  hundred  five  and
    44  eleven hundred ten, including, but not limited to, the provisions relat-
    45  ing  to  definitions, returns, exemptions, penalties, personal liability
    46  for the tax, and collection of tax from the customer, shall apply to the
    47  taxes imposed by this article so far as  such  provisions  can  be  made
    48  applicable to the taxes imposed by this article with such limitations as
    49  set  forth  in  full  in  this  article and such modifications as may be
    50  necessary in order to adapt such language to the taxes so imposed.  Such
    51  provisions shall apply with the same force and effect as if the language
    52  of those provisions had been set forth in full except to the extent that
    53  any provision is either inconsistent with a provision of this article or
    54  is not relevant to the taxes imposed by this article.
    55    (b)(1) All taxes, interest, and penalties collected or received by the
    56  commissioner  under  this  article  shall  be  deposited and disposed of

        S. 2509--A                         138                        A. 3009--A

     1  pursuant to the provisions of section one hundred seventy-one-a of  this
     2  chapter,  provided that an amount equal to one hundred percent collected
     3  under this article less any amount determined by the commissioner to  be
     4  reserved  by the comptroller for refunds or reimbursements shall be paid
     5  by the comptroller to the credit of the  cannabis  revenue  fund  estab-
     6  lished  by section ninety-nine-ii of the state finance law. Of the total
     7  revenue collected or received under this article, the comptroller  shall
     8  retain such amount as the commissioner may determine to be necessary for
     9  refunds.  The commissioner is authorized and directed to deduct from the
    10  registration fees under subdivision (a) of section four hundred  ninety-
    11  four  of  this  article,  before  deposit into the cannabis revenue fund
    12  designated by the comptroller, a reasonable amount necessary to effectu-
    13  ate refunds of appropriations of the department to reimburse the depart-
    14  ment for the costs incurred to administer, collect, and  distribute  the
    15  taxes imposed by this article.
    16    §  496-c. Illicit cannabis penalty. (a) In addition to any other civil
    17  or criminal penalties that may apply, any person  in  possession  of  or
    18  having control over illicit cannabis, as defined in section four hundred
    19  ninety-two  of this article, after notice and an opportunity for a hear-
    20  ing, shall be liable for a civil penalty of not less than  four  hundred
    21  dollars  per ounce of illicit cannabis flower, ten dollars per milligram
    22  of the total weight of any illicit cannabis edible product, one  hundred
    23  dollars  per  gram of the total weight of any product containing illicit
    24  cannabis concentrate, and one  thousand  dollars  per  illicit  cannabis
    25  plant,  but  not  to  exceed  eight hundred dollars per ounce of illicit
    26  cannabis flower, twenty dollars per milligram of the total weight of any
    27  illicit cannabis edible product, two hundred dollars  per  gram  of  the
    28  total weight of any product containing illicit cannabis concentrate, and
    29  two  thousand  dollars per illicit cannabis plant for a first violation,
    30  and for a second and subsequent violation within three years following a
    31  prior violation shall be liable for a civil penalty  of  not  less  than
    32  eight  hundred  dollars  per  ounce  of  illicit cannabis flower, twenty
    33  dollars per milligram of the total weight of any illicit cannabis edible
    34  product, two hundred dollars per gram of the total weight of any product
    35  containing illicit cannabis concentrate, and two  thousand  dollars  per
    36  illicit cannabis plant, but not to exceed one thousand dollars per ounce
    37  of  illicit  cannabis  flower,  forty dollars per milligram of the total
    38  weight of any illicit cannabis edible product, four hundred dollars  per
    39  gram  of  the  total  weight  of any product containing illicit cannabis
    40  concentrate, and four thousand dollars per illicit cannabis plant.
    41    (b) No enforcement action taken under this section shall be  construed
    42  to  limit  any other criminal or civil liability of anyone in possession
    43  of illicit cannabis.
    44    (c) The penalty imposed by this section shall not apply to persons  in
    45  possession of less than two ounces of adult-use cannabis or ten grams of
    46  concentrated cannabis.
    47    §  38.  Subparagraph  (A) of paragraph 1 of subdivision (a) of section
    48  1115 of the tax law, as amended by section 1 of part CCC of  chapter  59
    49  of the laws of 2019, is amended to read as follows:
    50    (A)  Food,  food products, beverages, dietary foods and health supple-
    51  ments, sold for human  consumption  but  not  including  (i)  candy  and
    52  confectionery, (ii) fruit drinks which contain less than seventy percent
    53  of  natural  fruit juice, (iii) soft drinks, sodas and beverages such as
    54  are ordinarily dispensed at soda fountains or  in  connection  therewith
    55  (other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco-
    56  holic beverages, and (v) adult-use cannabis products as defined in arti-

        S. 2509--A                         139                        A. 3009--A

     1  cle  twenty-C  of  this  chapter,  all  of which shall be subject to the
     2  retail sales and compensating use taxes, whether or not the item is sold
     3  in liquid form. Nothing in  this  subparagraph  shall  be  construed  as
     4  exempting  food  or  drink from the tax imposed under subdivision (d) of
     5  section eleven hundred five of this article.
     6    § 39. Intentionally omitted.
     7    § 39-a. Paragraph 3 of subdivision (a) of section 1115 of the tax law,
     8  as amended by chapter 201 of the laws of 1976, is  amended  to  read  as
     9  follows:
    10    (3) Drugs and medicines intended for use, internally or externally, in
    11  the  cure,  mitigation, treatment or prevention of illnesses or diseases
    12  in human beings, medical equipment (including component  parts  thereof)
    13  and  supplies  required for such use or to correct or alleviate physical
    14  incapacity, and products consumed by  humans  for  the  preservation  of
    15  health but not including: (i) cosmetics or toilet articles notwithstand-
    16  ing  the  presence  of  medicinal ingredients therein [or]; (ii) medical
    17  equipment (including component parts thereof) and supplies,  other  than
    18  such  drugs  and  medicines,  purchased  at retail for use in performing
    19  medical and similar  services  for  compensation;  and  (iii)  adult-use
    20  cannabis products, as defined by article twenty-C of this chapter.
    21    § 39-b. Section 471 of the tax law is amended by adding a new subdivi-
    22  sion 7 to read as follows:
    23    7.  The  taxes imposed under this section shall not apply to adult-use
    24  cannabis products subject to tax under article twenty-C of this chapter.
    25    § 39-c. Section 1181 of the tax law, as added by section 1 of part  UU
    26  of chapter 59 of the laws of 2019, is amended to read as follows:
    27    §  1181.  Imposition  of  tax. In addition to any other tax imposed by
    28  this chapter or other law, there is  hereby  imposed  a  tax  of  twenty
    29  percent  on receipts from the retail sale of vapor products sold in this
    30  state. The tax is imposed on the purchaser and collected  by  the  vapor
    31  products  dealer as defined in subdivision (b) of section eleven hundred
    32  eighty of this article, in trust for and on account of the state.    The
    33  taxes  imposed  under this section shall not apply to adult-use cannabis
    34  products subject to tax under article twenty-C of this chapter.
    35    § 39-d. Subdivision (b) of section 1116 of the tax law is  amended  by
    36  adding a new paragraph 8 to read as follows:
    37    8.  Nothing  in this section shall exempt purchases or sales of adult-
    38  use cannabis products, as defined by article twenty-C of  this  chapter,
    39  by an organization described in paragraphs four, five, seven, eight, and
    40  nine of subdivision (a) of this section.
    41    § 40. Section 12 of chapter 90 of the laws of 2014 amending the public
    42  health  law,  the  tax  law, the state finance law, the general business
    43  law, the penal law and the criminal procedure law  relating  to  medical
    44  use of marihuana, is amended to read as follows:
    45    §  12. This act shall take effect immediately [and]; provided, however
    46  that sections one, three, five, seven-a, eight, nine, ten and eleven  of
    47  this  act  shall  expire  and  be deemed repealed [seven] fourteen years
    48  after such date; provided that sections 490 and 491 of the tax law shall
    49  expire and be deemed repealed fourteen years after such  date  and  that
    50  the  amendments to section 171-a of the tax law made by section seven of
    51  this act shall take effect on the same date and in the  same  manner  as
    52  section  54 of part A of chapter 59 of the laws of 2014 takes effect and
    53  shall not expire and be deemed repealed; and provided, further, that the
    54  amendments to subdivision 5 of section 410.91 of the criminal  procedure
    55  law  made  by section eleven of this act shall not affect the expiration

        S. 2509--A                         140                        A. 3009--A

     1  and repeal of such section and shall expire and be deemed repealed ther-
     2  ewith.
     3    §  41.  The  office  of  cannabis management, in consultation with the
     4  division of the budget, the department of taxation and finance  and  the
     5  department  of health shall conduct a study of the effectiveness of this
     6  act. Such study shall examine all aspects of the program, including  the
     7  economic and fiscal aspects of the program, the impact of the program on
     8  the public health and safety of New York residents and the progress made
     9  in  achieving  social  justice  goals and toward eliminating the illegal
    10  market for cannabis products in New York. The office shall  make  recom-
    11  mendations  regarding  the  appropriate level of taxation as well as any
    12  recommended changes to the taxation  and  regulatory  structure  of  the
    13  program.  In  addition, the office shall also recommend changes, if any,
    14  necessary to improve and protect the public health  and  safety  of  New
    15  Yorkers.  Such  study  shall  be conducted two years after the effective
    16  date of this act and shall be presented to the governor,  the  temporary
    17  president  of  the senate and the speaker of the assembly, no later than
    18  October 1, 2024.
    19    § 42. Section 102 of the alcoholic beverage control law is amended  by
    20  adding a new subdivision 8 to read as follows:
    21    8. No alcoholic beverage retail licensee shall sell cannabis, nor have
    22  or  possess  a  license or permit to sell cannabis, on the same premises
    23  where alcoholic beverages are sold.
    24    § 43. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
    25  general  obligations  law,  as added by chapter 406 of the laws of 2000,
    26  are amended to read as follows:
    27    1. "Illegal drug" means any controlled substance  [or  marijuana]  the
    28  possession  of  which  is  an offense under the public health law or the
    29  penal law.
    30    4. "Grade one violation" means  possession  of  one-quarter  ounce  or
    31  more,  but less than four ounces, or distribution of less than one ounce
    32  of an illegal drug [other than marijuana, or possession of one pound  or
    33  twenty-five  plants  or more, but less than four pounds or fifty plants,
    34  or distribution of less than one pound of marijuana].
    35    5. "Grade two violation" means possession of four ounces or more,  but
    36  less  than  eight ounces, or distribution of one ounce or more, but less
    37  than two ounces, of an illegal drug [other than marijuana, or possession
    38  of four pounds or more or fifty plants or distribution of more than  one
    39  pound but less than ten pounds of marijuana].
    40    6.  "Grade  three violation" means possession of eight ounces or more,
    41  but less than sixteen ounces, or distribution of two ounces or more, but
    42  less than four ounces, of a specified illegal  drug  [or  possession  of
    43  eight  pounds  or  more  or  seventy-five  plants or more, but less than
    44  sixteen pounds or one hundred plants, or distribution of more than  five
    45  pounds but less than ten pounds of marijuana].
    46    7.  "Grade  four violation" means possession of sixteen ounces or more
    47  or distribution of four ounces or more of a specified illegal  drug  [or
    48  possession  of  sixteen  pounds or more or one hundred plants or more or
    49  distribution of ten pounds or more of marijuana].
    50    13. "Drug trafficker" means a person convicted of a class A or class B
    51  felony controlled substance [or marijuana offense]  who,  in  connection
    52  with  the  criminal  conduct  for  which  he  or  she  stands convicted,
    53  possessed, distributed, sold or conspired to sell a controlled substance
    54  [or marijuana] which, by virtue of its quantity, the person's  prominent
    55  role  in the enterprise responsible for the sale or distribution of such
    56  controlled substance and other circumstances related  to  such  criminal

        S. 2509--A                         141                        A. 3009--A

     1  conduct  indicate  that  such  person's  criminal  possession,  sale  or
     2  conspiracy to sell such substance was not an isolated occurrence and was
     3  part of an ongoing pattern of criminal activity from which  such  person
     4  derived  substantial income or resources and in which such person played
     5  a leadership role.
     6    § 44. Paragraph (g) of subdivision 1 of  section  488  of  the  social
     7  services law, as added by section 1 of part B of chapter 501 of the laws
     8  of 2012, is amended to read as follows:
     9    (g)  "Unlawful use or administration of a controlled substance," which
    10  shall mean any administration by a custodian to a service recipient  of:
    11  a  controlled substance as defined by article thirty-three of the public
    12  health law, without a prescription; or other medication not approved for
    13  any use by the federal food and  drug  administration,  except  for  the
    14  administration  of  medical  cannabis  when  such  administration  is in
    15  accordance with article three of the cannabis law  and  any  regulations
    16  promulgated  thereunder  as well as the rules, regulations, policies, or
    17  procedures of the state oversight  agency  or  agencies  governing  such
    18  custodians.  It  also  shall  include  a  custodian  unlawfully using or
    19  distributing a controlled substance as defined by  article  thirty-three
    20  of the public health law, at the workplace or while on duty.
    21    §  44-a.  Subdivision  1 of section 151 of the social services law, as
    22  amended by section 2 of part F of chapter 58 of the  laws  of  2014,  is
    23  amended to read as follows:
    24    1. Unauthorized transactions. Except as otherwise provided in subdivi-
    25  sion  two  of  this  section, no person, firm, establishment, entity, or
    26  corporation (a) licensed under the provisions of the alcoholic  beverage
    27  control  law  to  sell  liquor  and/or  wine  at retail for off-premises
    28  consumption; (b) licensed to sell beer at wholesale and also  authorized
    29  to  sell  beer  at  retail for off-premises consumption; (c) licensed or
    30  authorized to conduct pari-mutuel wagering activity  under  the  racing,
    31  pari-mutuel  wagering  and  breeding law; (d) licensed to participate in
    32  charitable gaming under article fourteen-H of the general municipal law;
    33  (e) licensed to participate in the operation of a video lottery facility
    34  under section one thousand six hundred seventeen-a of the tax  law;  (f)
    35  licensed  to  operate a gaming facility under section one thousand three
    36  hundred eleven of the racing, pari-mutuel  wagering  and  breeding  law;
    37  [or]  (g)  licensed  to  operate an adult-use cannabis retail dispensary
    38  pursuant to the cannabis law: or  (h)  providing  adult-oriented  enter-
    39  tainment  in  which  performers disrobe or perform in an unclothed state
    40  for entertainment, or making available the  venue  in  which  performers
    41  disrobe  or  perform in an unclothed state for entertainment, shall cash
    42  or accept any public assistance check  or  electronic  benefit  transfer
    43  device issued by a public welfare official or department, or agent ther-
    44  eof, as and for public assistance.
    45    §  44-b.  Subdivision  3  of section 151 of the social services law is
    46  amended by adding a new paragraph (d) to read as follows:
    47    (d) A violation of the provisions of subdivision one of  this  section
    48  taking  place at the licensed premises by a person, firm, establishment,
    49  entity or corporation licensed pursuant to the cannabis law  to  operate
    50  an adult-use cannabis retail dispensary shall subject such person, firm,
    51  establishment, entity or corporation to penalties and injunctions pursu-
    52  ant to section sixteen of article two of the cannabis law.
    53    §  45.  Paragraphs  (e) and (f) of subdivision 1 of section 490 of the
    54  social services law, as added by section 1 of part B of chapter  501  of
    55  the  laws  of 2012, are amended and a new paragraph (g) is added to read
    56  as follows:

        S. 2509--A                         142                        A. 3009--A

     1    (e) information regarding individual  reportable  incidents,  incident
     2  patterns  and  trends,  and  patterns  and  trends  in the reporting and
     3  response to reportable incidents is shared, consistent  with  applicable
     4  law,  with  the  justice  center, in the form and manner required by the
     5  justice  center  and,  for  facilities or provider agencies that are not
     6  state operated, with the applicable state oversight agency  which  shall
     7  provide such information to the justice center; [and]
     8    (f)  incident  review  committees  are established; provided, however,
     9  that the regulations may authorize an exemption from  this  requirement,
    10  when  appropriate,  based on the size of the facility or provider agency
    11  or other relevant factors. Such committees shall be composed of  members
    12  of  the  governing  body  of  the  facility or provider agency and other
    13  persons identified by the director of the facility or  provider  agency,
    14  including  some members of the following: direct support staff, licensed
    15  health care practitioners, service  recipients  and  representatives  of
    16  family,  consumer and other advocacy organizations, but not the director
    17  of the facility or provider agency. Such committee shall meet  regularly
    18  to:  (i)  review the timeliness, thoroughness and appropriateness of the
    19  facility or provider agency's responses to  reportable  incidents;  (ii)
    20  recommend  additional  opportunities  for improvement to the director of
    21  the facility or provider agency, if appropriate; (iii)  review  incident
    22  trends  and  patterns  concerning  reportable  incidents;  and (iv) make
    23  recommendations to the director of the facility or  provider  agency  to
    24  assist  in reducing reportable incidents. Members of the committee shall
    25  be trained in confidentiality laws and  regulations,  and  shall  comply
    26  with section seventy-four of the public officers law[.]; and
    27    (g)  safe  storage,  administration, and diversion prevention policies
    28  regarding controlled substances and medical cannabis.
    29    § 46. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
    30  law,  as added by chapter 90 of the laws of 2014, are amended to read as
    31  follows:
    32  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    33             nitions.
    34    The following definitions are applicable to this article:
    35    1.  "Medical  [marihuana] cannabis" means medical [marihuana] cannabis
    36  as defined in [subdivision eight of section thirty-three  hundred  sixty
    37  of the public health law] section three of the cannabis law.
    38    2.  "Certification" means a certification, made under section [thirty-
    39  three hundred sixty-one of the public health law] thirty of the cannabis
    40  law.
    41  § 179.05 Criminal diversion of  medical  [marihuana]  cannabis;  limita-
    42             tions.
    43    The provisions of this article shall not apply to:
    44    1.  a  practitioner  authorized  to issue a certification who acted in
    45  good faith in the lawful course of his or her profession; or
    46    2. a registered organization as that term is defined  in  [subdivision
    47  nine  of  section  thirty-three  hundred sixty of the public health law]
    48  section thirty-four of the cannabis law who acted in good faith  in  the
    49  lawful course of the practice of pharmacy; or
    50    3.  a  person  who acted in good faith seeking treatment for a medical
    51  condition or assisting another person to obtain treatment for a  medical
    52  condition.
    53  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    54             degree.
    55    A person is guilty of criminal diversion of medical [marihuana] canna-
    56  bis  in  the first degree when he or she is a practitioner, as that term

        S. 2509--A                         143                        A. 3009--A

     1  is defined in [subdivision twelve of section thirty-three hundred  sixty
     2  of  the public health law] section three of the cannabis law, who issues
     3  a certification with knowledge of reasonable grounds to  know  that  (i)
     4  the  recipient  has  no medical need for it, or (ii) it is for a purpose
     5  other than to treat a serious condition as defined in [subdivision seven
     6  of section thirty-three hundred sixty of the public health law]  section
     7  three of the cannabis law.
     8    Criminal diversion of medical [marihuana] cannabis in the first degree
     9  is a class E felony.
    10  § 179.11 Criminal  diversion  of  medical  [marihuana]  cannabis  in the
    11             second degree.
    12    A person is guilty of criminal diversion of medical [marihuana] canna-
    13  bis in the second degree when he or  she  sells,  trades,  delivers,  or
    14  otherwise  provides  medical  [marihuana] cannabis to another with know-
    15  ledge or reasonable grounds to know that the recipient is not registered
    16  under [title five-A of article thirty-three of the  public  health  law]
    17  article three of the cannabis law.
    18    Criminal  diversion  of  medical  [marihuana]  cannabis  in the second
    19  degree is a class B misdemeanor.
    20  § 179.15 Criminal retention of medical [marihuana] cannabis.
    21    A person is guilty of criminal retention of medical [marihuana] canna-
    22  bis when, being a certified patient or designated  caregiver,  as  those
    23  terms  are  defined  in  [subdivisions three and five of section thirty-
    24  three hundred sixty of the  public  health  law,  respectively]  section
    25  three  of  the  cannabis  law,  he  or she knowingly obtains, possesses,
    26  stores or maintains an amount of [marihuana] cannabis in excess  of  the
    27  amount he or she is authorized to possess under the provisions of [title
    28  five-A  of  article thirty-three of the public health law] article three
    29  of the cannabis law.
    30    Criminal retention of medical [marihuana] cannabis is a class A misde-
    31  meanor.
    32    § 47. Section 220.78 of the penal law, as added by chapter 154 of  the
    33  laws of 2011, is amended to read as follows:
    34  § 220.78 Witness or victim of drug or alcohol overdose.
    35    1.  A  person who, in good faith, seeks health care for someone who is
    36  experiencing a drug  or  alcohol  overdose  or  other  life  threatening
    37  medical  emergency  shall  not be charged or prosecuted for a controlled
    38  substance offense under article two  hundred  twenty  or  a  [marihuana]
    39  cannabis  offense  under  article  two hundred twenty-one of this title,
    40  other than an offense involving sale for consideration or other  benefit
    41  or  gain, or charged or prosecuted for possession of alcohol by a person
    42  under age twenty-one years under section sixty-five-c of  the  alcoholic
    43  beverage  control  law,  or  for  possession of drug paraphernalia under
    44  article thirty-nine of the general business law,  with  respect  to  any
    45  controlled  substance,  [marihuana]  cannabis,  alcohol or paraphernalia
    46  that was obtained as a result of such seeking  or  receiving  of  health
    47  care.
    48    2.  A  person  who is experiencing a drug or alcohol overdose or other
    49  life threatening medical emergency and, in good faith, seeks health care
    50  for himself or herself or is the subject of such a  good  faith  request
    51  for  health  care,  shall  not be charged or prosecuted for a controlled
    52  substance offense under this article or a [marihuana]  cannabis  offense
    53  under  article  two  hundred  twenty-one  of  this  title, other than an
    54  offense involving sale for consideration or other benefit  or  gain,  or
    55  charged  or  prosecuted  for possession of alcohol by a person under age
    56  twenty-one years under section sixty-five-c of  the  alcoholic  beverage

        S. 2509--A                         144                        A. 3009--A

     1  control law, or for possession of drug paraphernalia under article thir-
     2  ty-nine  of  the  general  business  law, with respect to any substance,
     3  [marihuana] cannabis, alcohol or paraphernalia that was  obtained  as  a
     4  result of such seeking or receiving of health care.
     5    3. Definitions. As used in this section the following terms shall have
     6  the following meanings:
     7    (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
     8  including, but not limited to, physical illness, coma,  mania,  hysteria
     9  or  death,  which  is  the  result of consumption or use of a controlled
    10  substance or alcohol and relates to an adverse reaction to or the  quan-
    11  tity  of  the  controlled substance or alcohol or a substance with which
    12  the controlled substance  or  alcohol  was  combined;  provided  that  a
    13  patient's  condition shall be deemed to be a drug or alcohol overdose if
    14  a prudent layperson, possessing an average  knowledge  of  medicine  and
    15  health, could reasonably believe that the condition is in fact a drug or
    16  alcohol overdose and (except as to death) requires health care.
    17    (b) "Health care" means the professional services provided to a person
    18  experiencing  a  drug  or alcohol overdose by a health care professional
    19  licensed, registered or certified under title eight of the education law
    20  or article thirty of the public health law who, acting within his or her
    21  lawful scope of practice, may provide diagnosis, treatment or  emergency
    22  services for a person experiencing a drug or alcohol overdose.
    23    4.  It  shall  be an affirmative defense to a criminal sale controlled
    24  substance offense under this article or a criminal sale  of  [marihuana]
    25  cannabis offense under article two hundred twenty-one of this title, not
    26  covered  by  subdivision one or two of this section, with respect to any
    27  controlled substance or [marihuana] cannabis which  was  obtained  as  a
    28  result of such seeking or receiving of health care, that:
    29    (a) the defendant, in good faith, seeks health care for someone or for
    30  him  or  herself who is experiencing a drug or alcohol overdose or other
    31  life threatening medical emergency; and
    32    (b) the defendant has  no  prior  conviction  for  the  commission  or
    33  attempted  commission  of a class A-I, A-II or B felony under this arti-
    34  cle.
    35    5. Nothing in this section shall be construed to bar the admissibility
    36  of any evidence in connection with the investigation and prosecution  of
    37  a  crime  with  regard  to  another defendant who does not independently
    38  qualify for the bar to prosecution or for the affirmative  defense;  nor
    39  with  regard  to other crimes committed by a person who otherwise quali-
    40  fies under this section; nor shall anything in this section be construed
    41  to bar any seizure pursuant to law, including but not limited to  pursu-
    42  ant  to  section  thirty-three hundred eighty-seven of the public health
    43  law.
    44    6. The bar to prosecution described in subdivisions  one  and  two  of
    45  this  section  shall  not apply to the prosecution of a class A-I felony
    46  under this article, and the affirmative defense described in subdivision
    47  four of this section shall not apply to the prosecution of a  class  A-I
    48  or A-II felony under this article.
    49    §  48. Subdivision 1 of section 260.20 of the penal law, as amended by
    50  chapter 362 of the laws of 1992, is amended as follows:
    51    1. He knowingly permits a child less than eighteen years old to  enter
    52  or  remain  in  or  upon a place, premises or establishment where sexual
    53  activity as defined by article one hundred thirty, two hundred thirty or
    54  two hundred sixty-three of this [chapter]  part  or  activity  involving
    55  controlled  substances  as defined by article two hundred twenty of this
    56  [chapter or involving marihuana as defined by article two hundred  twen-

        S. 2509--A                         145                        A. 3009--A

     1  ty-one of this chapter] part is maintained or conducted, and he knows or
     2  has  reason to know that such activity is being maintained or conducted;
     3  or
     4    § 49. Section 89-h of the state finance law, as added by chapter 90 of
     5  the laws of 2014, is amended to read as follows:
     6    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
     7  established in the joint  custody  of  the  state  comptroller  and  the
     8  commissioner  of  taxation and finance a special fund to be known as the
     9  "medical [marihuana] cannabis trust fund."
    10    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
    11  moneys  required  to  be  deposited  in the medical [marihuana] cannabis
    12  trust fund pursuant to the provisions of section four hundred ninety  of
    13  the tax law.
    14    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
    15  kept separate and shall not be commingled with any other moneys  in  the
    16  custody  of the commissioner of taxation and finance and the state comp-
    17  troller.
    18    4. The moneys of the medical [marihuana] cannabis trust fund,  follow-
    19  ing  appropriation by the legislature, shall be allocated upon a certif-
    20  icate of approval of availability by  the  director  of  the  budget  as
    21  follows:   (a) Twenty-two and five-tenths percent of the monies shall be
    22  transferred to the counties in New  York  state  in  which  the  medical
    23  [marihuana] cannabis was manufactured and allocated in proportion to the
    24  gross  sales  originating from medical [marihuana] cannabis manufactured
    25  in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
    26  moneys  shall  be transferred to the counties in New York state in which
    27  the medical [marihuana] cannabis was dispensed and allocated in  propor-
    28  tion  to the gross sales occurring in each such county; (c) five percent
    29  of the monies shall be transferred to  the  office  of  [alcoholism  and
    30  substance  abuse  services] addiction services and supports, which shall
    31  use that revenue for additional drug abuse  prevention,  counseling  and
    32  treatment  services;  [and]  (d) five percent of the revenue received by
    33  the department shall be transferred to the division of criminal  justice
    34  services,  which  shall  use that revenue for a program of discretionary
    35  grants to state and local law enforcement agencies  that  demonstrate  a
    36  need  relating  to  [title  five-A of article thirty-three of the public
    37  health law] article three of the cannabis law; said grants could be used
    38  for personnel costs of state and local law enforcement agencies[.];  and
    39  (e)  forty-five  percent  of  the monies shall be transferred to the New
    40  York state cannabis revenue fund. For purposes of this subdivision,  the
    41  city of New York shall be deemed to be a county.
    42    §  50.  The state finance law is amended by adding a new section 99-ii
    43  to read as follows:
    44    § 99-ii. New York state cannabis revenue  fund.  1.  There  is  hereby
    45  established  in  the  joint  custody  of  the  state comptroller and the
    46  commissioner of taxation and finance a special fund to be known  as  the
    47  "New York state cannabis revenue fund" (the "fund").
    48    2.  Monies  in  the  fund shall be kept separate from and shall not be
    49  commingled with any other monies in the custody of  the  comptroller  or
    50  the  commissioner  of  taxation  and finance. Provided, however that any
    51  monies of the fund not required for immediate use may, at the discretion
    52  of the comptroller, in consultation with the director of the budget,  be
    53  invested  by  the comptroller in obligations of the United States or the
    54  state. The proceeds of any such investment shall be retained by the fund
    55  as assets to be used for purposes of the fund.

        S. 2509--A                         146                        A. 3009--A

     1    3. Except as set forth in subdivisions two and four of  this  section,
     2  monies  from the fund shall not be used to make payments for any purpose
     3  other than the purposes set forth in subdivisions two and four  of  this
     4  section.
     5    4.  The "New York state cannabis revenue fund" shall consist of monies
     6  received by the commissioner of taxation and finance pursuant to  subdi-
     7  visions  (a) and (b) of section four hundred ninety-three of the tax law
     8  and all other monies credited or transferred thereto from any other fund
     9  or source. Such monies shall first be allocated to the "cannabis  social
    10  equity  fund" established pursuant to a chapter of the laws of two thou-
    11  sand twenty-one that established such fund, according to  the  following
    12  schedule:  ten  million dollars in fiscal year two thousand twenty-two--
    13  two thousand twenty-three; twenty million dollars  in  fiscal  year  two
    14  thousand  twenty-three--two thousand twenty-four; thirty million dollars
    15  in fiscal year two thousand twenty-four--two thousand twenty-five; forty
    16  million dollars in fiscal year two  thousand  twenty-five--two  thousand
    17  twenty-six;  and  fifty  million dollars in each fiscal year thereafter.
    18  All remaining monies shall  be  expended  for  the  following  purposes:
    19  administration  of the regulated cannabis program, data gathering, moni-
    20  toring and reporting, the governor's traffic safety committee, implemen-
    21  tation and administration of the initiatives and programs of the  social
    22  and economic equity plan in the office of cannabis management, substance
    23  abuse, harm reduction and mental health treatment and prevention, public
    24  health  education and intervention, research on cannabis uses and appli-
    25  cations, program evaluation and improvements, and any  other  identified
    26  purpose  recommended by the executive director of the office of cannabis
    27  management and approved by the director of the budget.
    28    5.The moneys in the "cannabis social equity fund"  shall  be  adminis-
    29  tered  by the urban development corporation and allocated by the depart-
    30  ment of state in collaboration with the office of  children  and  family
    31  services,  the  department of labor, the department of health, the divi-
    32  sion of housing and community  renewal,  and  the  office  of  addiction
    33  services, and approved by the director of the division of the budget, to
    34  provide grants for qualified community-based nonprofit organizations and
    35  approved  local  government  entities  for the purpose of reinvesting in
    36  communities disproportionately affected by past federal and  state  drug
    37  policies.  Such  grants  shall be used, including but not limited to, to
    38  support job placement, job  skills  services,  adult  education,  mental
    39  health  treatment,  substance use disorder treatment, housing, financial
    40  literacy, community banking, nutrition  services,  services  to  address
    41  adverse  childhood  experiences,  afterschool  and  child care services,
    42  system navigation  services,  legal  services  to  address  barriers  to
    43  reentry,  including,  but  not  limited to, providing representation and
    44  related assistance with expungement, vacatur,  substitution  and  resen-
    45  tencing  of marihuana-related convictions, and linkages to medical care,
    46  women's health services and other community-based  supportive  services.
    47  The  grants  from  this  program may also be used to further support the
    48  social and economic equity program created by article four of the canna-
    49  bis law and as established by the cannabis control board.
    50    § 51. Subdivision 2 of section 3371  of  the  public  health  law,  as
    51  amended  by  chapter  90  of  the  laws  of  2014, is amended to read as
    52  follows:
    53    2. The prescription monitoring program registry may be accessed, under
    54  such terms and conditions as  are  established  by  the  department  for
    55  purposes of maintaining the security and confidentiality of the informa-
    56  tion contained in the registry, by:

        S. 2509--A                         147                        A. 3009--A

     1    (a)  a  practitioner,  or  a  designee authorized by such practitioner
     2  pursuant to paragraph (b) of subdivision  two  of  section  thirty-three
     3  hundred  forty-three-a  [or  section  thirty-three hundred sixty-one] of
     4  this article, for the purposes of: (i) informing the practitioner that a
     5  patient  may  be  under treatment with a controlled substance by another
     6  practitioner; (ii) providing  the  practitioner  with  notifications  of
     7  controlled  substance  activity  as  deemed  relevant by the department,
     8  including but not limited to a notification made available on a  monthly
     9  or  other  periodic  basis through the registry of controlled substances
    10  activity pertaining to his or her patient; (iii)  allowing  the  practi-
    11  tioner,  through  consultation  of  the  prescription monitoring program
    12  registry, to review his or her patient's controlled  substances  history
    13  as  required  by  section thirty-three hundred forty-three-a [or section
    14  thirty-three hundred sixty-one] of this article; and (iv)  providing  to
    15  his  or  her  patient, or person authorized pursuant to paragraph (j) of
    16  subdivision one of this section, upon request, a copy of such  patient's
    17  controlled substance history as is available to the practitioner through
    18  the prescription monitoring program registry; or
    19    (b)  a pharmacist, pharmacy intern or other designee authorized by the
    20  pharmacist pursuant to paragraph (b) of  subdivision  three  of  section
    21  thirty-three hundred forty-three-a of this article, for the purposes of:
    22  (i)  consulting  the  prescription monitoring program registry to review
    23  the controlled substances history of an individual for whom one or  more
    24  prescriptions  for controlled substances or certifications for [marihua-
    25  na] cannabis is presented to the pharmacist, pursuant to  section  thir-
    26  ty-three  hundred forty-three-a of this article; and (ii) receiving from
    27  the department such notifications of controlled  substance  activity  as
    28  are made available by the department; or
    29    (c)  an  individual  employed  by  a  registered  organization for the
    30  purpose of consulting the prescription monitoring  program  registry  to
    31  review  the  controlled substances history of an individual for whom one
    32  or more certifications for [marihuana] cannabis  is  presented  to  that
    33  registered  organization[,  pursuant  to  section  thirty-three  hundred
    34  sixty-four of this article]. Unless otherwise authorized by  this  arti-
    35  cle,  an  individual  employed  by  a  registered  organization  will be
    36  provided access to the  prescription  monitoring  program  in  the  sole
    37  discretion of the commissioner.
    38    §  52.  Subdivision  3  of section 853 of the general business law, as
    39  added by chapter 90 of the laws of 2014, is amended to read as follows:
    40    3. This article shall not apply to any sale, furnishing or  possession
    41  which  is  for  a  lawful purpose under [title five-A of article thirty-
    42  three of the public health law] the cannabis law.
    43    § 53. Subdivision 5 of section 410.91 of the criminal  procedure  law,
    44  as  amended  by  chapter  90  of the laws of 2014, is amended to read as
    45  follows:
    46    5. For the purposes of this  section,  a  "specified  offense"  is  an
    47  offense  defined  by  any  of the following provisions of the penal law:
    48  burglary in the third degree as  defined  in  section  140.20,  criminal
    49  mischief  in  the  third  degree  as defined in section 145.05, criminal
    50  mischief in the second degree as defined in section 145.10, grand larce-
    51  ny in the fourth degree as defined in subdivision one, two, three, four,
    52  five, six, eight, nine or ten of section 155.30, grand  larceny  in  the
    53  third  degree  as  defined  in section 155.35 (except where the property
    54  consists of one or more firearms, rifles or shotguns), unauthorized  use
    55  of a vehicle in the second degree as defined in section 165.06, criminal
    56  possession  of stolen property in the fourth degree as defined in subdi-

        S. 2509--A                         148                        A. 3009--A

     1  vision one,  two,  three,  five  or  six  of  section  165.45,  criminal
     2  possession  of stolen property in the third degree as defined in section
     3  165.50 (except where the property consists  of  one  or  more  firearms,
     4  rifles  or shotguns), forgery in the second degree as defined in section
     5  170.10, criminal possession of a forged instrument in the second  degree
     6  as defined in section 170.25, unlawfully using slugs in the first degree
     7  as  defined in section 170.60, criminal diversion of medical [marihuana]
     8  cannabis in the first degree as defined in section 179.10 or an  attempt
     9  to commit any of the aforementioned offenses if such attempt constitutes
    10  a  felony  offense;  or  a class B felony offense defined in article two
    11  hundred twenty where a sentence is imposed pursuant to paragraph (a)  of
    12  subdivision two of section 70.70 of the penal law; or any class C, class
    13  D or class E controlled substance [or marihuana] cannabis felony offense
    14  as defined in article two hundred twenty or two hundred twenty-one.
    15    §  54.  Subdivision 5 of section 410.91 of the criminal procedure law,
    16  as amended by section 8 of part AAA of chapter 56 of the laws  of  2009,
    17  is amended to read as follows:
    18    5.  For  the  purposes  of  this  section, a "specified offense" is an
    19  offense defined by any of the following provisions  of  the  penal  law:
    20  burglary  in  the  third  degree  as defined in section 140.20, criminal
    21  mischief in the third degree as  defined  in  section  145.05,  criminal
    22  mischief in the second degree as defined in section 145.10, grand larce-
    23  ny in the fourth degree as defined in subdivision one, two, three, four,
    24  five,  six,  eight,  nine or ten of section 155.30, grand larceny in the
    25  third degree as defined in section 155.35  (except  where  the  property
    26  consists  of one or more firearms, rifles or shotguns), unauthorized use
    27  of a vehicle in the second degree as defined in section 165.06, criminal
    28  possession of stolen property in the fourth degree as defined in  subdi-
    29  vision  one,  two,  three,  five  or  six  of  section  165.45, criminal
    30  possession of stolen property in the third degree as defined in  section
    31  165.50  (except  where  the  property  consists of one or more firearms,
    32  rifles or shotguns), forgery in the second degree as defined in  section
    33  170.10,  criminal possession of a forged instrument in the second degree
    34  as defined in section 170.25, unlawfully using slugs in the first degree
    35  as defined in section 170.60, or an attempt to commit any of the  afore-
    36  mentioned  offenses  if  such attempt constitutes a felony offense; or a
    37  class B felony offense defined in article two  hundred  twenty  where  a
    38  sentence  is  imposed  pursuant  to  paragraph (a) of subdivision two of
    39  section 70.70 of the penal law; or any class  C,  class  D  or  class  E
    40  controlled  substance  or [marihuana] cannabis felony offense as defined
    41  in article two hundred twenty or two hundred twenty-one.
    42    § 55. The criminal procedure law is amended by adding  a  new  section
    43  440.46-a to read as follows:
    44  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    45               offenses.
    46    1.  A person currently serving a sentence for a conviction, whether by
    47  trial or by open or negotiated plea, who would not have been  guilty  of
    48  an  offense  or  who  would  have been guilty of a lesser offense on and
    49  after the effective date of this section had this section been in effect
    50  at the time of his or her  conviction  may  petition  for  a  recall  or
    51  dismissal  of  sentence before the trial court that entered the judgment
    52  of conviction in his or her case to request resentencing or dismissal in
    53  accordance with article two hundred twenty-one of the penal law.
    54    2. Upon receiving a motion under subdivision one of this  section  the
    55  court shall presume the movant satisfies the criteria in subdivision one
    56  of this section unless the party opposing the motion proves by clear and

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     1  convincing  evidence  that  the movant does not satisfy the criteria. If
     2  the movant satisfies the criteria in subdivision one  of  this  section,
     3  the court shall grant the motion to vacate the sentence or to resentence
     4  because  it  is legally invalid. In exercising its discretion, the court
     5  may consider, but shall not  be  limited  to,  the  following:  (a)  the
     6  movant's  criminal  conviction  history,  including  the  type of crimes
     7  committed, the extent of injury to victims, the length of  prior  prison
     8  commitments,  and  the remoteness of the crimes. (b) the movant's disci-
     9  plinary record and record of rehabilitation while incarcerated.
    10    3. A person who is serving a  sentence  and  resentenced  pursuant  to
    11  subdivision  two  of  this  section  shall  be given credit for any time
    12  already served and shall be subject to supervision for one year  follow-
    13  ing  completion  of  his  or  her time in custody or shall be subject to
    14  whatever supervision time he or she would have otherwise been subject to
    15  after  release,  whichever  is  shorter,  unless  the  court,   in   its
    16  discretion,  as part of its resentencing order, releases the person from
    17  supervision. Such person is subject to parole supervision under  section
    18  60.04  of  the penal law or post-release supervision under section 70.45
    19  of the penal law by the designated agency and the  jurisdiction  of  the
    20  court  in  the  county in which the person is released or resides, or in
    21  which an alleged violation of supervision has occurred, for the  purpose
    22  of hearing petitions to revoke supervision and impose a term of custody.
    23    4.  Under  no circumstances may resentencing under this section result
    24  in the imposition of a term longer than the original  sentence,  or  the
    25  reinstatement  of charges dismissed pursuant to a negotiated plea agree-
    26  ment.
    27    5. A person who has completed his or her  sentence  for  a  conviction
    28  under the former article two hundred twenty-one of the penal law, wheth-
    29  er  by trial or open or negotiated plea, who would have been guilty of a
    30  lesser offense on and after the effective date of this section had  this
    31  section been in effect at the time of his or her conviction, may file an
    32  application  before  the  trial  court  that  entered  the  judgment  of
    33  conviction in his or her case to have the conviction, in accordance with
    34  article two hundred twenty-one of the penal law: (a)  dismissed  because
    35  the  prior  conviction  is  now legally invalid and sealed in accordance
    36  with section 160.50 of this chapter;  (b)  redesignated  (or  "reclassi-
    37  fied")  as  a  violation and sealed in accordance with section 160.50 of
    38  this chapter; or (c) redesignated (reclassified) as a misdemeanor.
    39    6. The court shall presume the petitioner satisfies  the  criteria  in
    40  subdivision  five of this section unless the party opposing the applica-
    41  tion proves by clear and convincing evidence that  the  petitioner  does
    42  not  satisfy  the criteria in subdivision five of this section. Once the
    43  applicant satisfies the criteria in subdivision five  of  this  section,
    44  the court shall redesignate (or "reclassify") the conviction as a misde-
    45  meanor,  redesignate (reclassify) the conviction as a violation and seal
    46  the conviction, or dismiss and seal the conviction  as  legally  invalid
    47  under this section had this section been in effect at the time of his or
    48  her conviction.
    49    7. Unless requested by the applicant, no hearing is necessary to grant
    50  or deny an application filed under subdivision five of this section.
    51    8.  Any felony conviction that is vacated and resentenced under subdi-
    52  vision two or designated as a misdemeanor or violation under subdivision
    53  six of this section shall be considered a misdemeanor or  violation  for
    54  all purposes. Any misdemeanor conviction that is vacated and resentenced
    55  under subdivision two of this section or designated as a violation under

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     1  subdivision  six of this section shall be considered a violation for all
     2  purposes.
     3    9. If the court that originally sentenced the movant is not available,
     4  the  presiding  judge shall designate another judge to rule on the peti-
     5  tion or application.
     6    10. Nothing in this section is intended to diminish  or  abrogate  any
     7  rights or remedies otherwise available to the petitioner or applicant.
     8    11.  Nothing  in  this and related sections is intended to diminish or
     9  abrogate the finality of judgments in any case not  falling  within  the
    10  purview of this section.
    11    12.  The  provisions  of  this section shall apply equally to juvenile
    12  delinquency adjudications and dispositions under  section  five  hundred
    13  one-e of the executive law if the juvenile would not have been guilty of
    14  an  offense  or  would  have  been guilty of a lesser offense under this
    15  section had this section been in effect  at  the  time  of  his  or  her
    16  conviction.
    17    13.  The  office  of  court  administration  shall promulgate and make
    18  available all necessary forms to enable the filing of the petitions  and
    19  applications provided in this section no later than sixty days following
    20  the effective date of this section.
    21    §  56.  Transfer  of employees. Notwithstanding any other provision of
    22  law, rule, or regulation to the contrary, upon the transfer of any func-
    23  tions from the department of health to the office of cannabis management
    24  for the regulation and control of medical cannabis pursuant to this act,
    25  employees performing those functions shall be transferred to the  office
    26  of  cannabis  management  pursuant to subdivision 2 of section 70 of the
    27  civil service law. Employees transferred pursuant to this section  shall
    28  be  transferred  without  further examination or qualification and shall
    29  retain  their  respective  civil  service  classifications,  status  and
    30  collective bargaining unit designations and collective bargaining agree-
    31  ments.  The civil service department may re-classify any person employed
    32  in  a permanent, classified, competitive, or exempt class position imme-
    33  diately prior to being transferred to the office of cannabis  management
    34  pursuant  to  subdivision  2  of section 70 of the civil service law, to
    35  align with the duties  and  responsibilities  of  their  positions  upon
    36  transfer.    Employees whose positions are subsequently re-classified to
    37  align with the duties and responsibilities of their positions upon being
    38  transferred to the office of cannabis management shall hold  such  posi-
    39  tions  without further examination or qualification. Notwithstanding any
    40  other provision of this act, the names of  those  competitive  permanent
    41  employees  on  promotion eligible lists in their former department shall
    42  be added and interfiled on a promotion eligible list in the new  office,
    43  as the state civil service department deems appropriate.
    44    §  57.  Transfer  of  records.  All books, papers, and property of the
    45  department of health related to the administration of the medical  mari-
    46  juana  program  shall be deemed to be in the possession of the executive
    47  director of the office of cannabis management and shall continue  to  be
    48  maintained by the office of cannabis management.
    49    §  58.  Continuity  of authority. For the purpose of succession of all
    50  functions, powers, duties and obligations transferred and  assigned  to,
    51  devolved  upon  and  assumed  by  it pursuant to this act, the office of
    52  cannabis management shall be deemed and held to constitute the continua-
    53  tion of the department of health's medical marijuana program.
    54    § 59. Completion of unfinished business. Any business or other  matter
    55  undertaken  or  commenced  by  the department of health pertaining to or
    56  connected with the functions,  powers,  obligations  and  duties  hereby

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     1  transferred  and assigned to the office of cannabis management and pend-
     2  ing on the effective date of this act, may be conducted and completed by
     3  the office of cannabis management.
     4    §  60.  Continuation of rules and regulations. All rules, regulations,
     5  acts, orders, determinations, and decisions of the department of  health
     6  pertaining  to  medical  marijuana  and  cannabinoid hemp, including the
     7  functions and powers transferred and assigned pursuant to this  act,  in
     8  force  at  the  time  of such transfer and assumption, shall continue in
     9  full force and effect as  rules,  regulations,  acts,  orders,  determi-
    10  nations  and  decisions  of the office of cannabis management until duly
    11  modified or abrogated by the board of the office of cannabis management.
    12    § 61. Terms occurring in laws, contracts and other documents.  Whenev-
    13  er the department of health, or commissioner thereof, is referred to  or
    14  designated in any law, contract or document pertaining to the functions,
    15  powers, obligations and duties hereby transferred to and assigned to the
    16  office  of  cannabis  management, such reference or designation shall be
    17  deemed to refer to the board of cannabis management,  or  the  executive
    18  director thereof, as applicable.
    19    §  62.  Existing  rights  and remedies preserved. No existing right or
    20  remedy of any character shall be  lost,  impaired  or  affected  by  any
    21  provisions of this act.
    22    § 63. Pending actions and proceedings. No action or proceeding pending
    23  at  the  time when this act shall take effect, brought by or against the
    24  department of health, or the commissioner thereof, shall be affected  by
    25  any provision of this act, but the same may be prosecuted or defended in
    26  the name of the executive director of the office of cannabis management.
    27  In  all  such  actions  and  proceedings,  the executive director of the
    28  office of cannabis management, upon application to the court,  shall  be
    29  substituted as a party.
    30    § 63-a. Severability. If any clause, sentence, paragraph, subdivision,
    31  section  or part of this act shall be adjudged by any court of competent
    32  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    33  invalidate the remainder thereof, but shall be confined in its operation
    34  to the clause, sentence, paragraph, subdivision, section or part thereof
    35  directly  involved  in the controversy in which such judgment shall have
    36  been rendered. It is hereby declared to be the intent of the legislature
    37  that this act would have been enacted even if  such  invalid  provisions
    38  had not been included herein.
    39    § 64. This act shall take effect immediately; provided, however that:
    40    (i)  the taxes imposed by section thirty-seven of this act shall apply
    41  on and after March 1, 2022  to:  (1)  the  sale  of  adult-use  cannabis
    42  products  from  a distributor to the person who sells adult-use cannabis
    43  at retail; and (2) the sale of adult-use cannabis products by  a  person
    44  who sells such products at retail;
    45    (ii)  the  amendments  to article 179 of the penal law made by section
    46  forty-six of this act shall not affect the repeal of  such  article  and
    47  shall be deemed to be repealed therewith;
    48    (iii)  the amendments to section 89-h of the state finance law made by
    49  section forty-nine of this act shall  not  affect  the  repeal  of  such
    50  section and shall be deemed repealed therewith;
    51    (iv) the amendments to section 221.00 of the penal law made by section
    52  fourteen  of this act shall be subject to the expiration of such section
    53  when upon such date the provisions of section fifteen of this act  shall
    54  take effect;

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     1    (v)  the  amendments  to  subdivision  2 of section 3371 of the public
     2  health law made by section fifty-one of this act shall  not  affect  the
     3  expiration of such subdivision and shall be deemed to expire therewith;
     4    (vi)  the  amendments  to  subdivision 3 of section 853 of the general
     5  business law made by section fifty-two of this act shall not affect  the
     6  repeal of such subdivision and shall be deemed to be repealed therewith;
     7  and
     8    (vii)  the amendments to subdivision 5 of section 410.91 of the crimi-
     9  nal procedure law made by section fifty-three  of  this  act  shall  not
    10  affect the repeal of such section and shall be subject to the expiration
    11  and  reversion of such subdivision when upon such date the provisions of
    12  section fifty-four of this act shall take effect.  !

    13                                   PART I

    14    Section 1.  Subdivision (c) of section 1101 of the tax law,  as  added
    15  by  chapter  93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended
    16  by section 2 and paragraph 8 as added by section 3 of part AA of chapter
    17  57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the
    18  laws of 1965, is amended to read as follows:
    19    (c) When used in this article for the  purposes  of  the  tax  imposed
    20  under  subdivision  (e)  of section eleven hundred five of this article,
    21  the following terms shall mean:
    22    (1) Hotel. A building or portion of it which  is  regularly  used  and
    23  kept  open  as such for the lodging of guests. The term "hotel" includes
    24  an apartment hotel, a motel, boarding house  or  club,  whether  or  not
    25  meals are served.
    26    (2)  Occupancy.  The  use  or  possession,  or the right to the use or
    27  possession, of any room in a hotel or vacation rental.   "Right  to  the
    28  use or possession" includes the rights of a room remarketer as described
    29  in paragraph eight of this subdivision.
    30    (3)  Occupant.  A person who, for a consideration, uses, possesses, or
    31  has the right to use or possess, any room in a hotel or vacation  rental
    32  under  any lease, concession, permit, right of access, license to use or
    33  other agreement, or otherwise. "Right to use or  possess"  includes  the
    34  rights  of  a  room  remarketer  as described in paragraph eight of this
    35  subdivision.
    36    (4) Operator. Any person operating a hotel or vacation rental.    Such
    37  term  shall  include a room remarketer and such room remarketer shall be
    38  deemed to operate a hotel, or portion thereof,  with  respect  to  which
    39  such person has the rights of a room remarketer.
    40    (5)  Permanent  resident. Any occupant of any room or rooms in a hotel
    41  or vacation rental for at least ninety consecutive days shall be consid-
    42  ered a permanent resident with regard to the period of such occupancy.
    43    (6) Rent. The consideration  received  for  occupancy,  including  any
    44  service or other charge or amount required to be paid as a condition for
    45  occupancy,  valued  in money, whether received in money or otherwise and
    46  whether received by the operator or a room remarketer or another  person
    47  on behalf of either of them.
    48    (7)  Room.  Any  room or rooms of any kind in any part or portion of a
    49  hotel or vacation rental, which is available for  or  let  out  for  any
    50  purpose other than a place of assembly.
    51    (8)  Room remarketer. A person who reserves, arranges for, conveys, or
    52  furnishes occupancy, whether directly or indirectly, to an occupant  for
    53  rent in a hotel for an amount determined by the room remarketer, direct-
    54  ly or indirectly, whether pursuant to a written or other agreement. Such

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     1  person's  ability  or  authority  to  reserve,  arrange  for, convey, or
     2  furnish occupancy, directly or indirectly, and to determine rent  there-
     3  for,  shall  be  the "rights of a room remarketer". A room remarketer is
     4  not  a  permanent  resident with respect to a room for which such person
     5  has the rights of a room remarketer.
     6    (9) Vacation rental. A building or portion of it that is used for  the
     7  lodging  of  guests.  The  term  "vacation  rental" includes a house, an
     8  apartment, a condominium, a cooperative unit, a cabin, a cottage,  or  a
     9  bungalow,  or  one  or more rooms therein, where sleeping accommodations
    10  are provided for the lodging of paying occupants, the typical  occupants
    11  are  transients  or travelers, and the relationship between the operator
    12  and occupant is not that of a landlord and tenant. It is  not  necessary
    13  that  meals  are served. A building or portion of a building may qualify
    14  as a vacation rental whether or not amenities, including but not limited
    15  to daily housekeeping services, concierge services, or  linen  services,
    16  are provided.
    17    (10)  (i) Vacation rental marketplace provider. A person who, pursuant
    18  to an agreement with an operator, facilitates the occupancy of  a  vaca-
    19  tion  rental  by  such  operator or operators. A person "facilitates the
    20  occupancy of a vacation rental" for purposes of this paragraph when  the
    21  person  meets both of the following conditions: (A) such person provides
    22  the forum in which, or by means of which,  the  sale  of  the  occupancy
    23  takes  place  or  the  offer of such sale is accepted, including a shop,
    24  store, or booth, an internet website, catalog, or similar forum; and (B)
    25  such person or an affiliate of such person collects the rent paid  by  a
    26  customer  to  an  operator  for  the  occupancy of a vacation rental, or
    27  contracts with a third party to collect such rent.
    28    (ii) For the purposes of  this  article,  the  term  "vacation  rental
    29  marketplace  provider"  shall not include a "room remarketer" as defined
    30  in paragraph eight of this subdivision. For purposes of this  paragraph,
    31  persons  are  affiliated if one person has an ownership interest of more
    32  than five percent, whether direct or indirect, in another, or  where  an
    33  ownership  interest  of  more than five percent, whether direct or indi-
    34  rect, is held in each of such persons by another person or by a group of
    35  other persons that are affiliated persons with respect  to  each  other.
    36  The  term  "vacation  rental  marketplace  provider" shall not include a
    37  "real estate broker" as licensed under  article  twelve-A  of  the  real
    38  property law.
    39    § 2. Subdivision (a) of section 1104 of the tax law, as added by chap-
    40  ter 3 of the laws of 2004, is amended to read as follows:
    41    (a)  Imposition.  In  addition to any other fee or tax imposed by this
    42  article or any other law, on and after April first, two  thousand  five,
    43  there  is  hereby imposed within the territorial limits of a city with a
    44  population of a million or more and there shall be paid a  unit  fee  on
    45  every  occupancy of a unit in a hotel or vacation rental in such city at
    46  the rate of one dollar and fifty cents per unit  per  day,  except  that
    47  such  unit  fee  shall  not be imposed upon (1) occupancy by a permanent
    48  resident or (2) where the rent per unit is not more than at the rate  of
    49  two dollars per day.
    50    § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as
    51  amended  by  section  1  of part Q of chapter 59 of the laws of 2012, is
    52  amended to read as follows:
    53    (1) The rent for every occupancy of a room or rooms  in  a  hotel  and
    54  vacation  rental in this state, except that the tax shall not be imposed
    55  upon (i) a permanent resident, or (ii) where the rent is not  more  than
    56  at the rate of two dollars per day.

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     1    §  4.    Subdivision  1  of section 1131 of the tax law, as amended by
     2  section 2 of part G of chapter 59 of the laws of  2019,  is  amended  to
     3  read as follows:
     4    (1)  "Persons  required to collect tax" or "person required to collect
     5  any tax imposed by this article" shall include: every vendor of tangible
     6  personal property or services; every  recipient  of  amusement  charges;
     7  every  operator  of  a  hotel  or vacation rental; every vacation rental
     8  marketplace provider with respect to the rent for every occupancy  of  a
     9  vacation rental it facilitates as described in paragraph ten of subdivi-
    10  sion  (c)  of  section  eleven  hundred  one  of this article; and every
    11  marketplace provider with respect to sales of tangible personal property
    12  it facilitates as described in  paragraph  one  of  subdivision  (e)  of
    13  section  eleven  hundred  one  of  this  article.  Said terms shall also
    14  include any officer, director or employee  of  a  corporation  or  of  a
    15  dissolved  corporation,  any  employee of a partnership, any employee or
    16  manager of a limited liability company, or any employee of an individual
    17  proprietorship who as such officer, director,  employee  or  manager  is
    18  under a duty to act for such corporation, partnership, limited liability
    19  company  or  individual proprietorship in complying with any requirement
    20  of this article, or has so acted; and any member  of  a  partnership  or
    21  limited  liability company.  Provided, however, that any person who is a
    22  vendor solely by reason of clause (D) or  (E)  of  subparagraph  (i)  of
    23  paragraph  [(8)]  eight of subdivision (b) of section eleven hundred one
    24  of this article shall not be a  "person  required  to  collect  any  tax
    25  imposed  by this article" until twenty days after the date by which such
    26  person is required to file a certificate  of  registration  pursuant  to
    27  section eleven hundred thirty-four of this part.
    28    §  5.  Section 1132 of the tax law is amended by adding a new subdivi-
    29  sion (m) to read as follows:
    30    (m)(l) A vacation rental marketplace provider with respect to  a  sale
    31  for  every occupancy of a vacation rental it facilitates: (A) shall have
    32  all the obligations and rights of a vendor under this article and  arti-
    33  cle twenty-nine of this chapter and under any regulations adopted pursu-
    34  ant thereto, including, but not limited to, the duty to obtain a certif-
    35  icate  of  authority,  to  collect tax, file returns, remit tax, and the
    36  right to accept a certificate or other  documentation  from  a  customer
    37  substantiating  an exemption or exclusion from tax, the right to receive
    38  the refund authorized by subdivision (e) of this section and the  credit
    39  allowed  by  subdivision  (f)  of section eleven hundred thirty-seven of
    40  this part subject to the provisions of such subdivisions; and (B)  shall
    41  keep such records and information and cooperate with the commissioner to
    42  ensure the proper collection and remittance of tax imposed, collected or
    43  required  to  be collected under this article and article twenty-nine of
    44  this chapter.
    45    (2) An operator is relieved from the duty to collect tax in regard  to
    46  a  particular rent for the occupancy of a vacation rental subject to tax
    47  under subdivision (e) of section eleven hundred five of this article and
    48  shall not include the rent from such occupancy in its taxable sales  for
    49  purposes of section eleven hundred thirty-six of this part if, in regard
    50  to such occupancy: (A) the operator of the vacation rental can show that
    51  such occupancy was facilitated by a vacation rental marketplace provider
    52  from  whom such operator has received in good faith a properly completed
    53  certificate of collection in a  form  prescribed  by  the  commissioner,
    54  certifying  that  the vacation rental marketplace provider is registered
    55  to collect sales tax and will collect sales tax on all taxable sales  of
    56  occupancy  of a vacation rental by the operator facilitated by the vaca-

        S. 2509--A                         155                        A. 3009--A

     1  tion rental marketplace provider, and with such other information as the
     2  commissioner may prescribe; and (B) any failure of the  vacation  rental
     3  marketplace  provider  to  collect the proper amount of tax in regard to
     4  such  sale  was  not  the result of such operator providing the vacation
     5  rental marketplace provider with incorrect information.  This  provision
     6  shall  be  administered  in a manner consistent with subparagraph (i) of
     7  paragraph one of subdivision (c) of this section as if a certificate  of
     8  collection  were  a resale or exemption certificate for purposes of such
     9  subparagraph, including with regard to the completeness of such  certif-
    10  icate  of  collection  and the timing of its acceptance by the operator.
    11  Provided that, with regard to any  sales  of  occupancy  of  a  vacation
    12  rental  by an operator that are facilitated by a vacation rental market-
    13  place provider who is affiliated with such operator within  the  meaning
    14  of  paragraph  ten  of  subdivision (c) of section eleven hundred one of
    15  this article, the operator shall be deemed liable as a  person  under  a
    16  duty  to  act for such vacation rental marketplace provider for purposes
    17  of subdivision one of section eleven hundred thirty-one of this part.
    18    (3) The commissioner may, at his or  her  discretion:  (A)  develop  a
    19  standard  provision,  or  approve  a  provision  developed by a vacation
    20  rental marketplace provider, in which the  vacation  rental  marketplace
    21  provider  obligates itself to collect the tax on behalf of all operators
    22  for whom the vacation rental marketplace provider facilitates  sales  of
    23  occupancy of a vacation rental, with respect to all sales that it facil-
    24  itates  for such operators where the rental occurs in the state; and (B)
    25  provide by regulation or otherwise that the inclusion of such  provision
    26  in  the publicly-available agreement between the vacation rental market-
    27  place provider and operator will have the same effect as  an  operator's
    28  acceptance  of  a  certificate  of  collection from such vacation rental
    29  marketplace provider under paragraph two of this subdivision.
    30    § 6. Section 1133 of the tax law is amended by adding a  new  subdivi-
    31  sion (g) to read as follows:
    32    (g)  A  vacation  rental marketplace provider is relieved of liability
    33  under this section for failure to collect the correct amount of  tax  to
    34  the  extent  that the vacation rental marketplace provider can show that
    35  the error was due to incorrect or insufficient information given to  the
    36  vacation rental marketplace provider by the operator. Provided, however,
    37  this  subdivision  shall  not  apply if the operator and vacation rental
    38  marketplace provider are affiliated within the meaning of paragraph  ten
    39  of subdivision (c) of section eleven hundred one of this article.
    40    §  7.  Subdivision  (a)  of  section 1134 of the tax law is amended by
    41  adding a new paragraph 6 to read as follows:
    42    (6) An operator of a vacation rental, as defined in paragraph nine  of
    43  subdivision  (c)  of  section  eleven  hundred  one  of this article, is
    44  relieved of the requirement to register in paragraph one of this  subdi-
    45  vision  if  its sales of occupancy are wholly facilitated by one or more
    46  vacation  rental  marketplace  providers  from  whom  the  operator  has
    47  received  in  good  faith  a  certificate  of  collection that meets the
    48  requirements set forth in paragraph two of subdivision  (m)  of  section
    49  eleven hundred thirty-two of this part.
    50    § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
    51  amended  by  section  5  of part G of chapter 59 of the laws of 2019, is
    52  amended to read as follows:
    53    (4) The return of a vendor of tangible personal property  or  services
    54  shall  show  such vendor's receipts from sales and the number of gallons
    55  of any motor fuel or diesel motor fuel sold and also the aggregate value
    56  of tangible personal property and services and number of gallons of such

        S. 2509--A                         156                        A. 3009--A

     1  fuels sold by the vendor, the use of which is subject to tax under  this
     2  article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
     3  provisions of section eleven hundred  thirty-seven  of  this  part.  The
     4  return  of  a recipient of amusement charges shall show all such charges
     5  and the amount of tax thereon, and the return of an operator required to
     6  collect tax on rents shall show all rents received or  charged  and  the
     7  amount  of tax thereon. The return of a marketplace seller shall exclude
     8  the receipts from a sale of tangible personal property facilitated by  a
     9  marketplace  provider  if,  in  regard to such sale: (A) the marketplace
    10  seller has timely received in good faith a  properly  completed  certif-
    11  icate  of  collection  from  the marketplace provider or the marketplace
    12  provider has included a provision approved by the  commissioner  in  the
    13  publicly-available  agreement  between  the marketplace provider and the
    14  marketplace seller as described in subdivision  one  of  section  eleven
    15  hundred thirty-two of this part, and (B) the information provided by the
    16  marketplace  seller  to  the  marketplace  provider  about such tangible
    17  personal property is accurate. The return of an operator  shall  exclude
    18  the  rent  from occupancy of a vacation rental facilitated by a vacation
    19  rental marketplace provider if, in regard to such sale: (A) the vacation
    20  rental operator has timely received in good faith a  properly  completed
    21  certificate  of collection from the vacation rental marketplace provider
    22  or the vacation rental marketplace provider  has  included  a  provision
    23  approved by the commissioner in the publicly-available agreement between
    24  the  vacation  rental marketplace provider and the operator as described
    25  in subdivision (m) of section eleven hundred thirty-two  of  this  part,
    26  and  (B) the information provided by the operator to the vacation rental
    27  marketplace provider about such rent and such occupancy is accurate.
    28    § 9. Section 1142 of the tax law is amended by adding a  new  subdivi-
    29  sion 16 to read as follows:
    30    16.  To  publish a list on the department's website of vacation rental
    31  marketplace providers whose certificates of authority have been  revoked
    32  and, if necessary to protect sales tax revenue, provide by regulation or
    33  otherwise  that  a  vacation  rental  operator  will  be relieved of the
    34  requirement to register and the duty to collect  tax  on  the  rent  for
    35  occupancy  of a vacation rental facilitated by a vacation rental market-
    36  place provider only if, in addition  to  the  conditions  prescribed  by
    37  paragraph  two  of  subdivision (m) of section eleven hundred thirty-two
    38  and paragraph six of subdivision (a) of section eleven  hundred  thirty-
    39  four  of  this part being met, such vacation rental marketplace provider
    40  is not on such list at the commencement of the quarterly period  covered
    41  thereby.
    42    §  10.  This  act  shall  take  effect  immediately and shall apply to
    43  collections of rent by  the  operator  or  vacation  rental  marketplace
    44  provider on or after September 1, 2021.

    45                                   PART J

    46    Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b
    47  of  subdivision  4  of  section 1008 and paragraph b of subdivision 5 of
    48  section 1009 of the racing, pari-mutuel, wagering and breeding  law  are
    49  REPEALED.
    50    § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as
    51  amended  by  chapter  32  of  the  laws  of  2016, is amended to read as
    52  follows:
    53    (1) Any admission charge where such admission charge is in  excess  of
    54  ten  cents  to  or  for  the use of any place of amusement in the state,

        S. 2509--A                         157                        A. 3009--A

     1  except charges for admission to [race tracks or] combative sports  which
     2  charges  are  taxed  under  any  other law of this state, or dramatic or
     3  musical arts  performances,  or  live  circus  performances,  or  motion
     4  picture  theaters,  and  except charges to a patron for admission to, or
     5  use of, facilities for sporting activities in which such patron is to be
     6  a participant, such as bowling alleys and swimming pools. For any person
     7  having the permanent use or possession of a box or seat or a lease or  a
     8  license,  other  than a season ticket, for the use of a box or seat at a
     9  place of amusement, the tax shall be upon the amount for which a similar
    10  box or seat is sold for each performance or exhibition at which the  box
    11  or seat is used or reserved by the holder, licensee or lessee, and shall
    12  be paid by the holder, licensee or lessee.
    13    §  3.  Subdivision  (a)  of section 1109 of the tax law, as amended by
    14  section 1 of part BB of chapter 61 of the laws of 2005,  is  amended  to
    15  read as follows:
    16    (a)  General.  In  addition  to  the  taxes imposed by sections eleven
    17  hundred five and eleven hundred ten of this  article,  there  is  hereby
    18  imposed  within  the  territorial  limits  of  the metropolitan commuter
    19  transportation district created  and  established  pursuant  to  section
    20  twelve  hundred sixty-two of the public authorities law, and there shall
    21  be paid, additional taxes, at the rate of three-eighths of one  percent,
    22  which shall be identical to the taxes imposed by sections eleven hundred
    23  five and eleven hundred ten of this article. Such sections and the other
    24  sections  of  this  article,  including  the  definition  and  exemption
    25  provisions, shall apply for  purposes  of  the  taxes  imposed  by  this
    26  section  in the same manner and with the same force and effect as if the
    27  language of those sections had  been  incorporated  in  full  into  this
    28  section and had expressly referred to the taxes imposed by this section.
    29  Notwithstanding the foregoing, the tax imposed by this section shall not
    30  apply to admissions to race tracks or simulcast facilities.
    31    §  4.    Subdivision (a) of section 1146 of the tax law, as amended by
    32  chapter 65 of the laws of 1985, is amended to read as follows:
    33    (a) Except in accordance with proper judicial order  or  as  otherwise
    34  provided by law, it shall be unlawful for the [tax commission, any tax]
    35   commissioner, any officer or employee of the department of taxation and
    36  finance,  any  person engaged or retained by such department on an inde-
    37  pendent contract basis, or any person who  in  any  manner  may  acquire
    38  knowledge  of  the  contents  of  a return or report filed with the [tax
    39  commission] commissioner pursuant to this article, to  divulge  or  make
    40  known  in  any manner any particulars set forth or disclosed in any such
    41  return or report. The officers charged with the custody of such  returns
    42  and  reports shall not be required to produce any of them or evidence of
    43  anything contained in them in any action or  proceeding  in  any  court,
    44  except  on  behalf  of the [tax commission] commissioner in an action or
    45  proceeding under the provisions of the tax law or in any other action or
    46  proceeding involving the collection of a tax due under this  chapter  to
    47  which  the  state  or  the [tax commission] commissioner is a party or a
    48  claimant, or on behalf of any party to any action, proceeding or hearing
    49  under the provisions of this article when the returns, reports or  facts
    50  shown  thereby are directly involved in such action, proceeding or hear-
    51  ing, in any of which events the court, or in the case of a hearing,  the
    52  [tax  commission]  commissioner  may  require the production of, and may
    53  admit into evidence, so much of said returns, reports or  of  the  facts
    54  shown thereby, as are pertinent to the action, proceeding or hearing and
    55  no  more. The [tax commission] commissioner may, nevertheless, publish a
    56  copy or a summary of any decision rendered after a hearing  required  by

        S. 2509--A                         158                        A. 3009--A

     1  this article. Nothing herein shall be construed to prohibit the delivery
     2  to  a  person  who  has  filed a return or report or his duly authorized
     3  representative of a certified copy of any  return  or  report  filed  in
     4  connection  with  his  tax.    Nor shall anything herein be construed to
     5  prohibit the delivery to a person required to collect the tax under this
     6  article or a purchaser, transferee or assignee personally  liable  under
     7  the provisions of subdivision (c) of section eleven hundred forty-one of
     8  this chapter for the tax due from the seller, transferor or assignor, of
     9  any  return  or  report filed under this article in connection with such
    10  tax provided, however, that there may be delivered only so much of  said
    11  return,  report  or  of  the  facts  shown thereby as are pertinent to a
    12  determination of the taxes due or  liability  owed  by  such  person  or
    13  purchaser,  transferee or assignee and no more or to prohibit the publi-
    14  cation of statistics so classified as to prevent the  identification  of
    15  particular  returns  or reports and the items thereof, or the inspection
    16  by the attorney general or other legal representatives of the  state  of
    17  the  return  or  report of any person required to collect or pay the tax
    18  who shall bring action to review the tax based thereon, or against  whom
    19  an  action  or proceeding under this chapter has been recommended by the
    20  commissioner of taxation and finance or the attorney general or has been
    21  instituted, or the inspection of the returns or reports  required  under
    22  this  article  by the comptroller or duly designated officer or employee
    23  of the state department of audit and control, for purposes of the  audit
    24  of  a  refund of any tax paid by a person required to collect or pay the
    25  tax under this article.  Provided,  further,  nothing  herein  shall  be
    26  construed to prohibit the disclosure, in such manner as the [tax commis-
    27  sion] commissioner deems appropriate, of the names and other appropriate
    28  identifying information of those persons holding certificates of author-
    29  ity  pursuant  to  section  eleven  hundred thirty-four of this article,
    30  those persons whose certificates of authority  have  been  suspended  or
    31  revoked,  those  persons  whose  certificates of authority have expired,
    32  those persons who have filed a certificate of registration for a certif-
    33  icate of authority where the [tax commission] commissioner  has  refused
    34  to  issue  a  certificate  of  authority,  those  persons holding direct
    35  payment permits pursuant to section eleven hundred thirty-two  or  those
    36  persons  whose  direct payment permits have been suspended or revoked by
    37  the [tax commission] commissioner; and  provided  further  that  nothing
    38  herein  shall be construed to prohibit the disclosure, in such manner as
    39  the commissioner deems appropriate, of information related to the tax on
    40  admissions to race tracks and simulcast facilities to the gaming commis-
    41  sion or the division of the budget.
    42    § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
    43  amended by section 2 of part WW, subparagraph (i) as separately  amended
    44  by  section 5 of part Z of chapter 60 of the laws of 2016, is amended to
    45  read as follows:
    46    (1) Either, all of the taxes described in article twenty-eight of this
    47  chapter, at the same uniform rate, as to which taxes all  provisions  of
    48  the  local  laws, ordinances or resolutions imposing such taxes shall be
    49  identical, except as to rate and except as otherwise provided, with  the
    50  corresponding  provisions  in  such  article twenty-eight, including the
    51  definition and exemption provisions of  such  article,  so  far  as  the
    52  provisions  of  such  article twenty-eight can be made applicable to the
    53  taxes imposed by such city or  county  and  with  such  limitations  and
    54  special  provisions  as are set forth in this article. The taxes author-
    55  ized under this subdivision may not be  imposed  by  a  city  or  county
    56  unless  the  local law, ordinance or resolution imposes such taxes so as

        S. 2509--A                         159                        A. 3009--A

     1  to include all portions and all types of  receipts,  charges  or  rents,
     2  subject  to  state  tax  under  sections  eleven hundred five and eleven
     3  hundred ten of this chapter, except as  otherwise  provided.    Notwith-
     4  standing  the  foregoing,  a  tax imposed by a city or county authorized
     5  under this subdivision shall not include the tax imposed on charges  for
     6  admission  to race tracks and simulcast facilities under subdivision (f)
     7  of section eleven hundred five of this chapter. (i) Any local law, ordi-
     8  nance or resolution enacted by any city of less than one million  or  by
     9  any  county  or  school  district, imposing the taxes authorized by this
    10  subdivision, shall, notwithstanding any provision of law to the  contra-
    11  ry, exclude from the operation of such local taxes all sales of tangible
    12  personal  property  for use or consumption directly and predominantly in
    13  the production of tangible personal property, gas, electricity,  refrig-
    14  eration  or  steam,  for sale, by manufacturing, processing, generating,
    15  assembly, refining, mining or extracting;  and  all  sales  of  tangible
    16  personal  property  for  use  or consumption predominantly either in the
    17  production of tangible personal property, for sale, by farming or  in  a
    18  commercial  horse  boarding operation, or in both; and all sales of fuel
    19  sold for use in commercial aircraft and general aviation aircraft;  and,
    20  unless such city, county or school district elects otherwise, shall omit
    21  the  provision  for credit or refund contained in clause six of subdivi-
    22  sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
    23  chapter.    (ii)  Any  local law, ordinance or resolution enacted by any
    24  city, county or school district, imposing the taxes authorized  by  this
    25  subdivision,  shall  omit the residential solar energy systems equipment
    26  and electricity exemption provided for in subdivision (ee), the  commer-
    27  cial  solar  energy systems equipment and electricity exemption provided
    28  for in subdivision (ii), the commercial fuel cell electricity generating
    29  systems equipment and electricity generated by such equipment  exemption
    30  provided for in subdivision (kk) and the clothing and footwear exemption
    31  provided  for  in  paragraph thirty of subdivision (a) of section eleven
    32  hundred fifteen of this chapter, unless  such  city,  county  or  school
    33  district  elects  otherwise  as to such residential solar energy systems
    34  equipment  and  electricity  exemption,  such  commercial  solar  energy
    35  systems  equipment and electricity exemption, commercial fuel cell elec-
    36  tricity generating systems equipment and electricity generated  by  such
    37  equipment exemption or such clothing and footwear exemption.
    38    §  6.   Paragraph 1 of subdivision (b) of section 1210 of the tax law,
    39  as amended by section 3 of part WW of chapter 60 of the laws of 2016, is
    40  amended to read as follows:
    41    (1) Or, one or more of the taxes described in subdivisions  (b),  (d),
    42  (e)  and (f) of section eleven hundred five of this chapter, at the same
    43  uniform rate, including the transitional provisions  in  section  eleven
    44  hundred  six  of  this  chapter  covering  such taxes, but not the taxes
    45  described in subdivisions (a) and (c) of section eleven hundred five  of
    46  this  chapter. Provided, further, that where the tax described in subdi-
    47  vision (b) of section eleven hundred five of this  chapter  is  imposed,
    48  the  compensating  use  taxes  described  in clauses (E), (G) and (H) of
    49  subdivision (a) of section eleven hundred ten of this chapter shall also
    50  be imposed. Provided, further, that where the taxes described in  subdi-
    51  vision  (b)  of section eleven hundred five of this chapter are imposed,
    52  such taxes shall omit: (A) the provision for refund or credit  contained
    53  in  subdivision  (d)  of section eleven hundred nineteen of this chapter
    54  with respect to such taxes described in such subdivision (b) of  section
    55  eleven  hundred  five  unless such city or county elects to provide such
    56  provision or, if so elected, to repeal such provision; (B) the exemption

        S. 2509--A                         160                        A. 3009--A

     1  provided in paragraph two of subdivision (ee) of section eleven  hundred
     2  fifteen of this chapter unless such county or city elects otherwise; (C)
     3  the  exemption  provided in paragraph two of subdivision (ii) of section
     4  eleven  hundred  fifteen  of  this  chapter,  unless such county or city
     5  elects otherwise; and (D) the exemption provided  in  paragraph  two  of
     6  subdivision  (kk)  of  section  eleven  hundred fifteen of this chapter,
     7  unless such county or city elects otherwise; and provided  further  that
     8  where  the  tax  described  in  subdivision  (f)  of such section eleven
     9  hundred five is imposed, such tax shall not apply to charges for  admis-
    10  sion to race tracks and simulcast facilities.
    11    §  7.  Notwithstanding  any  provisions  of  law  to  the contrary and
    12  notwithstanding the repeal of sections 227, 306  and  406,  subparagraph
    13  (ii)  of paragraph b of subdivision 4 of section 1008 and paragraph b of
    14  subdivision 5 of section 1009 of the racing, pari-mutuel,  wagering  and
    15  breeding law by section one of this act, all provisions of such sections
    16  227,  306  and 406, subparagraph (ii) of paragraph b of subdivision 4 of
    17  section 1008 and paragraph b  of  subdivision  5  of  section  1009,  in
    18  respect to the imposition, exemption, assessment, payment, payment over,
    19  determination,  collection,  and  credit  or refund of tax, interest and
    20  penalty imposed thereunder, the filing of forms and returns, the preser-
    21  vation of records for the purposes  of  such  tax,  the  disposition  of
    22  revenues,  and  any  civil  and  criminal  penalties  applicable  to the
    23  violation of the provisions of such sections 227, 306 and 406,  subpara-
    24  graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph
    25  b  of  subdivision  5  of section 1009, shall continue in full force and
    26  effect with respect to all such tax accrued for  periods  prior  to  the
    27  effective  date  of  this  act  in the same manner as they might if such
    28  provisions were not repealed.
    29    § 8. This act shall take effect November 1, 2021 and  shall  apply  to
    30  charges  for  admissions  to race tracks and simulcast facilities on and
    31  after such date.

    32                                   PART K

    33    Section 1. Subdivision (d) of section 1139 of the tax law, as  amended
    34  by section 10 of subpart D of part VI of chapter 57 of the laws of 2009,
    35  is amended to read as follows:
    36    (d) (1) Except in respect to an overpayment made on a return described
    37  in paragraph two of subdivision (a) of section eleven hundred thirty-six
    38  of  this  part  [or  on a return described in subdivision (c) of section
    39  eleven hundred thirty-seven-A of this part], interest shall  be  allowed
    40  and paid upon any refund made or credit allowed pursuant to this section
    41  except  as otherwise provided in paragraph two or three of this subdivi-
    42  sion or subdivision (e) of this section  and  except  that  no  interest
    43  shall  be  allowed  or paid if the amount thereof would be less than one
    44  dollar.   Such interest shall be at the  overpayment  rate  set  by  the
    45  commissioner  pursuant to section eleven hundred forty-two of this part,
    46  or if no rate is set, at the rate of six percent per annum from the date
    47  when the tax, penalty or interest refunded or credited  was  paid  to  a
    48  date  preceding  the  date  of  the refund check by not more than thirty
    49  days, provided, however, that for the purposes of this  subdivision  any
    50  tax  paid before the last day prescribed for its payment shall be deemed
    51  to have been paid on such last day. In the case of a  refund  or  credit
    52  claimed on a return of tax which is filed after the last date prescribed
    53  for  filing  such  return  (determined  with  regard  to extensions), or
    54  claimed on an application for refund or credit,  no  interest  shall  be

        S. 2509--A                         161                        A. 3009--A

     1  allowed  or  paid  for  any  day  before the date on which the return or
     2  application is filed.  For purposes of this  subdivision,  a  return  or
     3  application  for refund or credit shall not be treated as filed until it
     4  is  filed in processible form. A return or application is in a processi-
     5  ble form if it is filed on a permitted form, and contains the taxpayer's
     6  name, address and identifying number and the  required  signatures,  and
     7  sufficient required information (whether on the return or application or
     8  on  required attachments) to permit the mathematical verification of tax
     9  liability shown on the return or refund or credit claimed on the  appli-
    10  cation.
    11    (2)  If a refund is made or a credit is allowed in an amount less than
    12  one hundred thousand dollars (i) within three months after the last date
    13  prescribed or permitted by extension of time  for  filing  a  return  on
    14  which  the refund or credit was claimed or within three months after the
    15  return was filed, whichever is later, or (ii) within three months  after
    16  an  application  for  refund  or credit is filed on which that refund or
    17  credit was claimed, or (iii) within three months  after  the  last  date
    18  prescribed  or  permitted by extension of time for filing an application
    19  for a refund or credit on which that refund or credit  was  claimed,  no
    20  interest will be allowed or paid on that refund or credit.
    21    (3)  If  a  refund  is made or a credit is allowed in an amount of one
    22  hundred thousand dollars or more (i) within six months  after  the  last
    23  date prescribed or permitted by extension of time for filing a return on
    24  which  the  refund  or credit was claimed or within six months after the
    25  return was filed, whichever is later, or (ii) within six months after an
    26  application for refund or credit is filed on which that refund or credit
    27  was claimed, or (iii) within six months after the last  date  prescribed
    28  or  permitted  by extension of time for filing an application for refund
    29  or credit on which that refund or credit was claimed, no  interest  will
    30  be allowed or paid on that refund or credit.
    31    §  2. This act shall take effect immediately and shall apply to refund
    32  or credit claims submitted on or after March 1, 2022.

    33                                   PART L

    34    Section 1. Subparagraph (i) of the opening paragraph of  section  1210
    35  of  the  tax law is REPEALED and a new subparagraph (i) is added to read
    36  as follows:
    37    (i) with respect to a city of one million or more  and  the  following
    38  counties:  (1)  any such city having a population of one million or more
    39  is hereby authorized and empowered to adopt and amend local laws,  ordi-
    40  nances  or resolutions imposing such taxes in any such city, at the rate
    41  of four and one-half percent;
    42    (2) the following counties that impose taxes described in  subdivision
    43  (a)  of this section at the rate of three percent as authorized above in
    44  this paragraph are hereby further authorized and empowered to adopt  and
    45  amend  local  laws,  ordinances,  or  resolutions imposing such taxes at
    46  additional rates, in quarter  percent  increments,  not  to  exceed  the
    47  following  rates,  which  rates are additional to the three percent rate
    48  authorized above in this paragraph:
    49    (A) One percent - Albany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,
    50  Chemung,  Chenango,  Clinton,  Columbia,  Cortland,  Delaware, Dutchess,
    51  Essex, Franklin, Fulton, Genesee, Greene,  Hamilton,  Jefferson,  Lewis,
    52  Livingston,  Madison,  Monroe,  Montgomery,  Niagara, Onondaga, Ontario,
    53  Orange, Orleans,  Oswego,  Otsego,  Putnam,  Rensselaer,  Rockland,  St.
    54  Lawrence,  Saratoga,  Schenectady, Schoharie, Schuyler, Seneca, Steuben,

        S. 2509--A                         162                        A. 3009--A

     1  Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,  Westches-
     2  ter, Wyoming, Yates;
     3    (B) One and one-quarter percent - Herkimer, Nassau, Suffolk;
     4    (C) One and one-half percent - Allegany;
     5    (D) One and three-quarters percent - Erie, Oneida.
     6    Provided,  however,  that  (I) the county of Rockland may impose addi-
     7  tional rates of five-eighths percent and three-eighths percent, in  lieu
     8  of imposing such additional rate in quarter percent increments; (II) the
     9  county  of Ontario may impose additional rates of one-eighth percent and
    10  three-eighths percent, in lieu of imposing such additional rate in quar-
    11  ter percent increments; (III) three-quarters percent of  the  additional
    12  rate  authorized  to be imposed by the county of Nassau shall be subject
    13  to the limitation set forth in section  twelve  hundred  sixty-two-e  of
    14  this article.
    15    § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
    16  tax  law  is  REPEALED  and  a new subparagraph (ii) is added to read as
    17  follows:
    18    (ii) the following cities that impose taxes described  in  subdivision
    19  (a) of this section at the rate of one and one-half percent or higher as
    20  authorized  above  in  this paragraph for such cities are hereby further
    21  authorized and empowered to adopt and amend local laws,  ordinances,  or
    22  resolutions  imposing such taxes at additional rates, in quarter percent
    23  increments, not to exceed the following rates,  which  rates  are  addi-
    24  tional  to the one and one-half percent or higher rates authorized above
    25  in this paragraph:
    26    (1) One percent - Mount Vernon; New Rochelle; Oswego; White Plains;
    27    (2) One and one quarter percent - None;
    28    (3) One and one-half percent - Yonkers.
    29    § 3. Subparagraphs (iii) and (iv) of the opening paragraph of  section
    30  1210  of  the tax law are REPEALED and a new subparagraph (iii) is added
    31  to read as follows:
    32    (iii) the maximum rate referred to in section twelve  hundred  twenty-
    33  four  of this article shall be calculated without reference to the addi-
    34  tional rates authorized for counties, other than the counties of Cayuga,
    35  Cortland, Fulton, Madison, and Otsego, in clause two of subparagraph (i)
    36  and the cities in subparagraph (ii) of this paragraph.
    37    § 4. Section 1210 of the tax law is amended by adding a  new  subdivi-
    38  sion (p) to read as follows:
    39    (p)  Notwithstanding any provision of this section or other law to the
    40  contrary, a county authorized to impose an additional rate or  rates  of
    41  sales  and  compensating  use taxes by clause two of subparagraph (i) of
    42  the opening paragraph of this section, or a city, other than the city of
    43  Mount Vernon, authorized to impose an additional rate of such  taxes  by
    44  subparagraph  (ii)  of  such  opening  paragraph, may adopt a local law,
    45  ordinance or resolution by a majority vote of its governing body  impos-
    46  ing  such  rate  or  rates for a period not to exceed two years, and any
    47  such period must end on November  thirtieth  of  an  odd-numbered  year.
    48  Notwithstanding  the  preceding  sentence,  the  city of White Plains is
    49  authorized to exceed such two-year limitation to impose the tax  author-
    50  ized  by  subparagraph  (ii)  of  such  opening paragraph for the period
    51  commencing on September first, two thousand  twenty-one  and  ending  on
    52  November thirtieth, two thousand twenty-three. Any such local law, ordi-
    53  nance, or resolution shall also be subject to the provisions of subdivi-
    54  sions (d) and (e) of this section.
    55    § 5. Section 1210-E of the tax law is REPEALED.

        S. 2509--A                         163                        A. 3009--A

     1    §  6.  Subdivisions  (d), (e), (f), (g), (h), (i), (j), (k), (l), (m),
     2  (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z),  (z-1),
     3  (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section
     4  1224 of the tax law are REPEALED.
     5    § 7. Section 1224 of the tax law is amended by adding three new subdi-
     6  visions (d), (e), and (f) to read as follows:
     7    (d)  For  purposes  of this section, the term "prior right" shall mean
     8  the preferential right to impose any tax described  in  sections  twelve
     9  hundred  two  and twelve hundred three, or twelve hundred ten and twelve
    10  hundred eleven, of this article and thereby to preempt such tax  and  to
    11  preclude  another  municipal corporation from imposing or continuing the
    12  imposition of such tax to the  extent  that  such  right  is  exercised.
    13  However, the right of preemption shall only apply within the territorial
    14  limits of the taxing jurisdiction having the right of preemption.
    15    (e)  Each  of  the  following  counties and cities shall have the sole
    16  right to impose the following additional rate of sales and  compensating
    17  use taxes in excess of three percent that such county or city is author-
    18  ized  to  impose  pursuant to clause two of subparagraph (i) or subpara-
    19  graph (ii) of the opening paragraph of section  twelve  hundred  ten  of
    20  this  article.  Such  additional  rates  of  tax shall not be subject to
    21  preemption.
    22    (1) Counties:
    23    (A) One percent - Albany, Broome,  Cattaraugus,  Chautauqua,  Chemung,
    24  Chenango,  Clinton, Columbia, Delaware, Dutchess, Essex, Franklin, Gene-
    25  see, Greene, Hamilton, Jefferson, Lewis, Livingston, Monroe, Montgomery,
    26  Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Putnam, Rensselaer,
    27  Rockland, St.   Lawrence, Saratoga,  Schenectady,  Schoharie,  Schuyler,
    28  Seneca,  Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington,
    29  Wayne, Westchester, Wyoming, Yates;
    30    (B) One and one-quarter percent - Herkimer, Nassau, Suffolk;
    31    (C) One and one-half percent - Allegany;
    32    (D) One and three-quarters percent - Erie, Oneida;
    33    Provided, however that the county of Westchester shall have  the  sole
    34  right  to  impose  the  additional one percent rate of tax authorized by
    35  clause two of subparagraph (i)  of  the  opening  paragraph  of  section
    36  twelve  hundred  ten  of this article in the area of such county outside
    37  the cities of Mount Vernon, New Rochelle, White Plains and Yonkers.
    38    (2) Cities:
    39    (A) One-quarter of one percent - Rome;
    40    (B) One-half of one percent - None;
    41    (C) Three-quarters of one percent - None;
    42    (D) One percent - Mount Vernon, New Rochelle, White Plains;
    43    (E) One and one quarter percent - None;
    44    (F) One and one-half percent - Yonkers.
    45    (f) Each of the following cities is authorized to  preempt  the  taxes
    46  imposed  by  the county in which it is located pursuant to the authority
    47  of section twelve hundred ten of this article, to the extent of one-half
    48  the maximum aggregate rate authorized under section twelve  hundred  ten
    49  of  this article, including the additional rate that the county in which
    50  such city is located is authorized to impose: Auburn, in Cayuga  county;
    51  Cortland,  in  Cortland  county;  Gloversville  and Johnstown, in Fulton
    52  county; Oneida, in Madison county; Oneonta, in Otsego county. As of  the
    53  date  this  subdivision takes effect, any such preemption by such a city
    54  in effect on such date shall continue in full force and effect until the
    55  effective date of a local  law,  ordinance,  or  resolution  adopted  or
    56  amended  by the city to change such preemption. Any preemption by such a

        S. 2509--A                         164                        A. 3009--A

     1  city pursuant to this subdivision that takes effect after the  effective
     2  date  of this subdivision shall be subject to the notice requirements in
     3  section twelve hundred twenty-three of this subpart  and  to  the  other
     4  requirements of this article.
     5    § 8. Section 1262-g of the tax law, as amended by section 2 of item DD
     6  of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
     7  to read as follows:
     8    § 1262-g. Oneida county allocation and distribution of net collections
     9  from the additional [one percent rate] rates of sales  and  compensating
    10  use  taxes.  Notwithstanding  any  contrary provision of law, (a) if the
    11  county of Oneida imposes sales and compensating  use  taxes  at  a  rate
    12  which  is one percent additional to the three percent rate authorized by
    13  section twelve hundred ten  of  this  article,  as  authorized  by  such
    14  section,  [(a)]  (i) where a city in such county imposes tax pursuant to
    15  the authority of subdivision (a) of such  section  twelve  hundred  ten,
    16  such county shall allocate, distribute and pay in cash quarterly to such
    17  city one-half of the net collections attributable to such additional one
    18  percent  rate of the county's taxes collected in such city's boundaries;
    19  [(b)] (ii) where a city in such county does not impose tax  pursuant  to
    20  the  authority  of  such  subdivision (a) of such section twelve hundred
    21  ten, such county shall allocate, distribute and pay in cash quarterly to
    22  such city not so imposing tax a portion of the net collections attribut-
    23  able to one-half of the county's additional  one  percent  rate  of  tax
    24  calculated  on the basis of the ratio which such city's population bears
    25  to the county's total population,  such  populations  as  determined  in
    26  accordance  with  the  latest  decennial federal census or special popu-
    27  lation census taken pursuant to section twenty of the general  municipal
    28  law  completed  and  published prior to the end of the quarter for which
    29  the allocation is made, which special census  must  include  the  entire
    30  area  of the county; [and (c)] provided, however, that such county shall
    31  dedicate the first one million five  hundred  thousand  dollars  of  net
    32  collections  attributable  to  such  additional  one percent rate of tax
    33  received by such county after the county receives in the aggregate eigh-
    34  teen million five hundred thousand dollars of net collections from  such
    35  additional  one  percent  rate  of  tax [imposed for any of the periods:
    36  September first, two thousand twelve through  August  thirty-first,  two
    37  thousand thirteen; September first, two thousand thirteen through August
    38  thirty-first,  two  thousand fourteen; and September first, two thousand
    39  fourteen through August thirty-first, two  thousand  fifteen;  September
    40  first,  two  thousand  fifteen through August thirty-first, two thousand
    41  sixteen; and September first, two thousand sixteen through August  thir-
    42  ty-first,  two  thousand seventeen; September first, two thousand seven-
    43  teen through  August  thirty-first,  two  thousand  eighteen;  September
    44  first,  two  thousand eighteen through August thirty-first, two thousand
    45  twenty; and September first, two thousand twenty through August  thirty-
    46  first,  two  thousand  twenty-three,]  to  an allocation on a per capita
    47  basis, utilizing figures from the latest  decennial  federal  census  or
    48  special population census taken pursuant to section twenty of the gener-
    49  al  municipal  law, completed and published prior to the end of the year
    50  for which such allocation is made, which special census must include the
    51  entire area of such county, to be allocated and  distributed  among  the
    52  towns  of  Oneida  county  by appropriation of its board of legislators;
    53  provided, further, that nothing  herein  shall  require  such  board  of
    54  legislators to make any such appropriation until it has been notified by
    55  any  town  by  appropriate  resolution and, in any case where there is a
    56  village wholly or partly located within a town, a  resolution  of  every

        S. 2509--A                         165                        A. 3009--A

     1  such  village,  embodying  the  agreement  of  such  town and village or
     2  villages upon the amount of such appropriation to be distributed to such
     3  village or villages out of the allocation to the town or towns in  which
     4  it is located.
     5    (b)  if  the county of Oneida imposes sales and compensating use taxes
     6  at a rate which is one and  three-quarters  percent  additional  to  the
     7  three  percent  rate  authorized  by  section twelve hundred ten of this
     8  article, as authorized pursuant to clause two of subparagraph (i) of the
     9  opening paragraph of section twelve hundred ten  of  this  article,  net
    10  collections  attributable  to  the  additional three-quarters percent of
    11  such additional rate shall not be subject to  any  revenue  distribution
    12  agreement entered into by the county and the cities in the county pursu-
    13  ant  to  the  authority  of  subdivision  (c)  of section twelve hundred
    14  sixty-two of this part.
    15    § 9. The opening paragraph of section 1262-r of the tax law, as  added
    16  by chapter 37 of the laws of 2006, is amended to read as follows:
    17    (1)  Notwithstanding  any  contrary provision of law, if the county of
    18  Ontario imposes the additional one-eighth of one percent and  the  addi-
    19  tional  three-eighths of one percent rates of tax authorized pursuant to
    20  clause two of subparagraph (i)  of  the  opening  paragraph  of  section
    21  twelve  hundred ten of this article, net collections from the such addi-
    22  tional three-eighths of one percent rate of  such  taxes  shall  be  set
    23  aside  for  county  purposes  and  shall not be subject to any agreement
    24  entered into by the county and the cities in the county pursuant to  the
    25  authority of subdivision (c) of section twelve hundred sixty-two of this
    26  part or this section.
    27    (2)  Notwithstanding  the  provisions  of  subdivision  (c) of section
    28  twelve hundred sixty-two of this part to the contrary, if the cities  of
    29  Canandaigua  and Geneva in the county of Ontario do not impose sales and
    30  compensating use taxes pursuant  to  the  authority  of  section  twelve
    31  hundred  ten  of  this  article and such cities and county enter into an
    32  agreement pursuant to the authority of subdivision (c) of section twelve
    33  hundred sixty-two of this part to be effective March first, two thousand
    34  six, such agreement may provide that:
    35    § 10. The tax law is amended by adding a new section 1262-v to read as
    36  follows:
    37    § 1262-v. Disposition of net collections from the additional  rate  of
    38  sales  and  compensating  use tax in Clinton county. Notwithstanding any
    39  contrary provision of law, if the county of Clinton  imposes  the  addi-
    40  tional  one  percent rate of sales and compensating use taxes authorized
    41  pursuant to clause two of subparagraph (i) of the opening  paragraph  of
    42  section  twelve  hundred  ten of this article, net collections from such
    43  additional rate shall be paid to the county and  the  county  shall  set
    44  aside such net collections and use them solely for county purposes. Such
    45  net  collections shall not be subject to any revenue distribution agree-
    46  ment entered into by the county and the city in the county  pursuant  to
    47  the  authority of subdivision (c) of section twelve hundred sixty-two of
    48  this part.
    49    § 11. Section 1262-s of the tax law, as amended by section 3 of item U
    50  of subpart C of part XXX of chapter 58 of the laws of 2020,  is  amended
    51  to read as follows:
    52    § 1262-s. Disposition of net collections from the additional one-quar-
    53  ter of one percent rate of sales and compensating use taxes in the coun-
    54  ty  of  Herkimer.  Notwithstanding any contrary provision of law, if the
    55  county of Herkimer imposes [the additional] sales and  compensating  use
    56  tax  at  a  rate  that  is one and one-quarter [of one] percent [rate of

        S. 2509--A                         166                        A. 3009--A

     1  sales and compensating use taxes] additional to the three  percent  rate
     2  authorized  by section twelve hundred ten of this article, as authorized
     3  by [section twelve hundred ten-E] clause two of subparagraph (i) of  the
     4  opening paragraph of section twelve hundred ten of this article [for all
     5  or  any  portion  of  the  period beginning December first, two thousand
     6  seven and ending November thirtieth,  two  thousand  twenty-three],  the
     7  county  shall  use  all  net collections [from such] attributable to the
     8  additional one-quarter [of one] percent of such additional rate  to  pay
     9  the  county's  expenses  for the construction of additional correctional
    10  facilities. The net collections from [the] such  additional  one-quarter
    11  percent  of  such  additional  rate  [imposed pursuant to section twelve
    12  hundred ten-E of this article] shall be deposited in a special  fund  to
    13  be  created  by  such county separate and apart from any other funds and
    14  accounts of the county. Any and all remaining net collections from  such
    15  additional  tax, after the expenses of such construction are paid, shall
    16  be deposited by the county of Herkimer in the general fund of such coun-
    17  ty for any county purpose.
    18    § 12. The tax law is amended by adding a new section 1265 to  read  as
    19  follows:
    20    §  1265. References to certain provisions authorizing additional rates
    21  or to expirations of a period. Notwithstanding any provision of  law  to
    22  the  contrary: (a) any reference in any section of this chapter or other
    23  law, or in any local law, ordinance, or resolution adopted  pursuant  to
    24  the authority of this article, to net collections or revenues from a tax
    25  imposed by a county or city pursuant to the authority of a clause, or to
    26  a  subclause  of  a  clause,  of subparagraph (i) or (ii) of the opening
    27  paragraph of section twelve hundred ten  of  this  article  repealed  by
    28  section one or two of the chapter of the laws of two thousand twenty-one
    29  that  added  this section or pursuant to section twelve hundred ten-E of
    30  this article repealed by section five of such chapter shall be deemed to
    31  be a reference to net collections or revenues from a tax imposed by that
    32  county or city pursuant to the authority of the equivalent provision  of
    33  clause  two  of  subparagraph (i) or to subparagraph (ii) of the opening
    34  paragraph of such section twelve hundred ten as added  by  such  section
    35  one  or  two of such chapter of the laws of two thousand twenty-one; (b)
    36  any reference in this chapter or in any other law relating to the  expi-
    37  ration  of  a  provision concerning the distribution of revenue from the
    38  taxes authorized to be imposed  by  the  opening  paragraph  of  section
    39  twelve  hundred  ten  of  this  article  shall  be disregarded, and such
    40  provision shall continue in effect unless later amended or repealed.
    41    § 13. This act shall take effect immediately.

    42                                   PART M

    43    Section 1. Subdivision (jj) of section 1115 of the tax law, as amended
    44  by section 1 of part V of chapter 59 of the laws of 2019, is amended  to
    45  read as follows:
    46    (jj)  Tangible  personal  property or services otherwise taxable under
    47  this article sold to a related person shall not be subject to the  taxes
    48  imposed by section eleven hundred five of this article or the compensat-
    49  ing  use  tax  imposed  under section eleven hundred ten of this article
    50  where the purchaser can show that the following conditions have been met
    51  to the extent they are applicable: (1)(i) the vendor and  the  purchaser
    52  are  referenced  as  either  a "covered company" as described in section
    53  243.2(f) or a "material entity" as described in section 243.2(l) of  the
    54  Code of Federal Regulations in a resolution plan that has been submitted

        S. 2509--A                         167                        A. 3009--A

     1  to an agency of the United States for the purpose of satisfying subpara-
     2  graph  1 of paragraph (d) of section one hundred sixty-five of the Dodd-
     3  Frank Wall Street Reform and Consumer Protection Act (the "Act") or  any
     4  successor  law,  or (ii) the vendor and the purchaser are separate legal
     5  entities pursuant to a divestiture directed pursuant to  subparagraph  5
     6  of  paragraph  (d)  of section one hundred sixty-five of such act or any
     7  successor law; (2) the sale would not have occurred between such related
     8  entities were it not for such resolution plan or divestiture; and (3) in
     9  acquiring such property  or  services,  the  vendor  did  not  claim  an
    10  exemption  from  the tax imposed by this state or another state based on
    11  the vendor's intent to resell such services or  property.  A  person  is
    12  related to another person for purposes of this subdivision if the person
    13  bears  a  relationship  to  such person described in section two hundred
    14  sixty-seven of the internal revenue code. The exemption provided by this
    15  subdivision shall not apply to sales made, services  rendered,  or  uses
    16  occurring  after  June thirtieth, two thousand [twenty-one] twenty-four,
    17  except with respect to sales made, services rendered, or uses  occurring
    18  pursuant  to  binding contracts entered into on or before such date; but
    19  in no case shall such exemption apply after June thirtieth, two thousand
    20  [twenty-four] twenty-seven.
    21    § 2. This act shall take effect immediately.

    22                                   PART N

    23    Section 1. Subparagraph (vi) of paragraph  1  of  subdivision  (a)  of
    24  section  1134  of  the  tax  law, as amended by section 160 of part A of
    25  chapter 389 of the laws of 1997, is amended to read as follows:
    26    (vi) every person described in subparagraph (i), (ii), (iii), (iv)  or
    27  (v)  of  this paragraph or every person who is a vendor solely by reason
    28  of clause (D), (E) or (F) of subparagraph  (i)  of  paragraph  eight  of
    29  subdivision  (b)  of  section  eleven hundred one of this article who or
    30  which has had its certificate of authority revoked under paragraph  four
    31  of  this  subdivision, shall file with the commissioner a certificate of
    32  registration, in a form prescribed by the commissioner, at least  twenty
    33  days  prior to commencing business or opening a new place of business or
    34  such purchasing, selling or taking of possession or  payment,  whichever
    35  comes first. Every person who is a vendor solely by reason of clause (D)
    36  of  subparagraph  (i)  of  paragraph eight of subdivision (b) of section
    37  eleven hundred one of this article shall file with  the  commissioner  a
    38  certificate  of registration, in a form prescribed by such commissioner,
    39  within thirty days after the day on which the cumulative total number of
    40  occasions that such person came into the state to  deliver  property  or
    41  services, for the immediately preceding four quarterly periods ending on
    42  the  last  day  of  February,  May, August and November, exceeds twelve.
    43  Every person who is a vendor solely by reason of clause (E) of  subpara-
    44  graph  (i)  of  paragraph  eight  of  subdivision  (b) of section eleven
    45  hundred one of this article shall file with the commissioner  a  certif-
    46  icate of registration, in a form prescribed by such commissioner, within
    47  thirty  days  after the day on which the cumulative total, for the imme-
    48  diately preceding four quarterly periods  ending  on  the  last  day  of
    49  February, May, August and November, of such person's gross receipts from
    50  sales  of  property delivered in this state exceeds [three] five hundred
    51  thousand dollars and number of such sales  exceeds  one  hundred.  Every
    52  person  who  is  a vendor solely by reason of clause (F) of subparagraph
    53  (i) of paragraph eight of subdivision (b) of section eleven hundred  one
    54  of this article shall file with the commissioner a certificate of regis-

        S. 2509--A                         168                        A. 3009--A

     1  tration,  in  a form prescribed by such commissioner, within thirty days
     2  after the day on which tangible personal property in which  such  person
     3  retains  an  ownership interest is brought into this state by the person
     4  to whom such property is sold, where the person to whom such property is
     5  sold  becomes  or  is  a resident or uses such property in any manner in
     6  carrying on in this state any employment, trade, business or profession.
     7  Information with respect to the  notice  requirements  of  a  purchaser,
     8  transferee  or  assignee  and  such  person's  liability pursuant to the
     9  provisions of subdivision (c) of section  eleven  hundred  forty-one  of
    10  this chapter shall be included in or accompany the certificate of regis-
    11  tration  form  furnished  the  applicant.  The  commissioner  shall also
    12  include with such information furnished to each applicant general infor-
    13  mation about the tax imposed under this article including information on
    14  records to be kept, returns and payments, notification requirements  and
    15  forms.  Such  certificate  of  registration may be amended in accordance
    16  with rules promulgated by the commissioner.
    17    § 2. This act shall take effect immediately.

    18                                   PART O

    19    Section 1. Subdivision (a) of section 1401 of the tax law, as  amended
    20  by chapter 576 of the laws of 1994, is amended to read as follows:
    21    (a)  (1)  "Person" means an individual, partnership, limited liability
    22  company, society, association, joint stock company, corporation, estate,
    23  receiver, trustee, assignee, referee or any other  person  acting  in  a
    24  fiduciary  or  representative  capacity, whether appointed by a court or
    25  otherwise, any combination of individuals, and any other form  of  unin-
    26  corporated enterprise owned or conducted by two or more persons.
    27    (2) "Person" shall include any individual, corporation, partnership or
    28  limited  liability  company or an officer or employee of any corporation
    29  (including a dissolved corporation), or a  member  or  employee  of  any
    30  partnership,  or  a  member,  manager or employee of a limited liability
    31  company, who as such officer, employee, manager or  member  is  under  a
    32  duty to act for such corporation, partnership, limited liability company
    33  or  individual  proprietorship in complying with any requirement of this
    34  article, or has so acted.
    35    § 2. Subdivision (a) of section 1404 of the tax  law,  as  amended  by
    36  chapter 61 of the laws of 1989, is amended to read as follows:
    37    (a)  The real estate transfer tax imposed pursuant to section fourteen
    38  hundred two of this article shall be paid by the grantor  and  such  tax
    39  shall  not  be payable, directly or indirectly, by the grantee except as
    40  provided in a contract between  grantor  and  grantee  or  as  otherwise
    41  provided  in  this  section.    If the grantor has failed to pay the tax
    42  imposed by this article at the time required by section fourteen hundred
    43  ten of this article or if the grantor is exempt from such tax, the gran-
    44  tee shall have the duty to pay the tax. Where the grantee has  the  duty
    45  to  pay the tax because the grantor has failed to pay, such tax shall be
    46  the joint and several liability of the grantor and the grantee; provided
    47  that in the event of such failure, the grantee shall  have  a  cause  of
    48  action against the grantor for recovery of payment of such tax, interest
    49  and  penalties  by the grantee.  In the case of a conveyance of residen-
    50  tial real property as defined in subdivision  (a)  of  section  fourteen
    51  hundred  two-a  of  this  article, if the tax imposed by this article is
    52  paid by the grantee pursuant to a contract between the grantor  and  the
    53  grantee,  the  amount of such tax shall be excluded from the calculation
    54  of consideration subject to tax under this article.

        S. 2509--A                         169                        A. 3009--A

     1  § 3. Subdivision (a) of section 1409 of the tax law, as amended
     2    §  3.  Subdivision  (a)  of section 1409 of the tax law, as amended by
     3  chapter 297 of the laws of 2019, is amended to read as follows:
     4    (a) (1) A joint return shall be filed by  both  the  grantor  and  the
     5  grantee  for  each  conveyance whether or not a tax is due thereon other
     6  than a conveyance of an easement or  license  to  a  public  utility  as
     7  defined  in  subdivision two of section one hundred eighty-six-a of this
     8  chapter or to a public utility which is a provider of  telecommunication
     9  services  as  defined  in subdivision one of section one hundred eighty-
    10  six-e of this chapter, where the consideration is two  dollars  or  less
    11  and  is  clearly  stated  as  actual  consideration in the instrument of
    12  conveyance.
    13    (2) When the grantor or grantee of a deed for a building used as resi-
    14  dential real property containing [one-  to  four-]  up  to  four  family
    15  dwelling  units  is  a limited liability company, the joint return shall
    16  not be accepted for filing unless it is accompanied by a document  which
    17  identifies  the  names  and business addresses of all members, managers,
    18  and any other authorized persons, if  any,  of  such  limited  liability
    19  company  and  the names and business addresses or, if none, the business
    20  addresses of all shareholders, directors,  officers,  members,  managers
    21  and  partners  of any limited liability company or other business entity
    22  that are to be the members, managers or authorized persons, if  any,  of
    23  such  limited  liability  company.  The identification of such names and
    24  addresses shall not be deemed an unwarranted invasion of personal priva-
    25  cy pursuant to article six of the  public  officers  law.  If  any  such
    26  member, manager or authorized person of the limited liability company is
    27  itself a limited liability company or other business entity other than a
    28  publicly  traded  entity,  a REIT, a UPREIT, or a mutual fund, the names
    29  and addresses of the shareholders, directors, officers, members,  manag-
    30  ers  and  partners  of  the  limited liability company or other business
    31  entity shall also be disclosed until full disclosure of ultimate  owner-
    32  ship  by  natural persons is achieved. For purposes of this subdivision,
    33  the terms "members", "managers", "authorized person", "limited liability
    34  company" and "other business entity" shall  have  the  same  meaning  as
    35  those  terms  are  defined  in  section  one  hundred two of the limited
    36  liability company law.
    37    (3) The return shall be filed with the recording  officer  before  the
    38  instrument effecting the conveyance may be recorded. However, if the tax
    39  is  paid to the commissioner pursuant to section fourteen hundred ten of
    40  this article, the return shall be filed with such  commissioner  at  the
    41  time  the tax is paid. In that instance, a receipt evidencing the filing
    42  of the return and the payment of tax shall be filed with  the  recording
    43  officer  before the instrument effecting the conveyance may be recorded.
    44  The recording officer shall handle such receipt in the same manner as  a
    45  return filed with the recording officer.
    46    §  4.  Subdivision  (h)  of  section  1418 of the tax law, as added by
    47  section 7 of part X of chapter 56 of the laws of  2010  and  as  further
    48  amended  by  subdivision (c) of section 1 of part W of chapter 56 of the
    49  laws of 2010, is amended to read as follows:
    50    (h) Notwithstanding the provisions of subdivision (a) of this section,
    51  the commissioner may  furnish  information  relating  to  real  property
    52  transfers  obtained or derived from returns filed pursuant to this arti-
    53  cle in relation to the real estate transfer tax, to the extent that such
    54  information is also required to  be  reported  to  the  commissioner  by
    55  section  three hundred thirty-three of the real property law and section
    56  five hundred seventy-four of the real property tax  law  and  the  rules

        S. 2509--A                         170                        A. 3009--A

     1  adopted  thereunder,  provided  such information was collected through a
     2  combined process established pursuant to an agreement entered into  with
     3  the  commissioner  pursuant  to  paragraph  viii of subdivision one-e of
     4  section three hundred thirty-three of the real property law. The commis-
     5  sioner  may  redisclose  such  information  to  the extent authorized by
     6  section five hundred seventy-four of the real property  tax  law.    The
     7  commissioner  may  also  disclose  any  information reported pursuant to
     8  paragraph two of subdivision (a) of section  fourteen  hundred  nine  of
     9  this article.
    10    §  5.  This  act  shall take effect immediately; provided however that
    11  sections one and two of this act shall take effect  July  1,  2021,  and
    12  shall  apply  to  conveyances occurring on or after such date other than
    13  conveyances that are made pursuant to binding written contracts  entered
    14  into  on or before April 1, 2021, provided that the date of execution of
    15  such contract is confirmed by independent evidence, such as the  record-
    16  ing  of  the  contract,  payment of a deposit or other facts and circum-
    17  stances as determined by the commissioner of taxation and finance.

    18                                   PART P

    19    Section 1. Section 480-a of the tax law is amended  by  adding  a  new
    20  subdivision 6 to read as follows:
    21    6.  (a)  No  retail  dealer  who  has  its  retail dealer registration
    22  cancelled, suspended or revoked pursuant to this  section  or  has  been
    23  forbidden  from selling cigarettes or tobacco products pursuant to para-
    24  graph (j) of subdivision one of section  four  hundred  eighty  of  this
    25  article  shall  possess  cigarettes  or tobacco products in any place of
    26  business, cart, stand, truck or other merchandising device in this state
    27  beginning on the tenth day after such cancellation, suspension,  revoca-
    28  tion,  or  forbiddance  and  continuing  for  the  duration of the same;
    29  provided however, such retail dealer shall not be prohibited before  the
    30  tenth  day  after  such cancellation, suspension, revocation, or forbid-
    31  dance from selling or transferring its  inventory  of  lawfully  stamped
    32  cigarettes  or tobacco products on which the taxes imposed by this arti-
    33  cle have been assumed or paid to a  properly  registered  retail  dealer
    34  whose  registration  is  not cancelled, suspended, or revoked or who has
    35  not been forbidden from selling cigarettes or tobacco products.
    36    (b) No retail dealer shall possess cigarettes or tobacco  products  in
    37  any  place of business, cart, stand, truck or other merchandising device
    38  in this state unless it has obtained a valid retail dealer  registration
    39  from the commissioner.
    40    (c)  The  possession of cigarettes or tobacco products in violation of
    41  paragraph (a) or (b) of this subdivision shall be  presumptive  evidence
    42  that  such cigarettes or tobacco products are being sold in violation of
    43  this section and section four hundred eighty of  this  article  and,  in
    44  addition  to  any  other  applicable  penalties, shall be subject to the
    45  penalties authorized by subdivision three of this section.
    46    § 2. Subparagraph (A) of paragraph (4) of subdivision (a)  of  section
    47  eleven  hundred  thirty-four of the tax law, as amended by chapter 59 of
    48  the laws of 2020, is amended to read as follows:  (A) Where a person who
    49  holds a certificate of authority (i) willfully fails to file a report or
    50  return required by this article, (ii)  willfully  files,  causes  to  be
    51  filed,  gives  or  causes  to  be given a report, return, certificate or
    52  affidavit required under this article which is  false,  (iii)  willfully
    53  fails  to comply with the provisions of paragraph two or three of subdi-
    54  vision (e) of section eleven hundred thirty-seven of this article,  (iv)

        S. 2509--A                         171                        A. 3009--A

     1  willfully  fails  to prepay, collect, truthfully account for or pay over
     2  any tax imposed under this article or pursuant to the authority of arti-
     3  cle twenty-nine of this chapter, (v) fails to obtain a bond pursuant  to
     4  paragraph  two of subdivision (e) of section eleven hundred thirty-seven
     5  of this part, or fails to comply with a notice issued by the commission-
     6  er pursuant to paragraph  three  of  such  subdivision,  (vi)  has  been
     7  convicted of a crime provided for in this chapter, [or] (vii) where such
     8  person,  or  any  person  affiliated  with  such  person as such term is
     9  defined in subdivision twenty-one of section  four  hundred  seventy  of
    10  this  chapter,  has  had a retail dealer registration issued pursuant to
    11  section four hundred  eighty-a  of  this  chapter  revoked  pursuant  to
    12  subparagraph  (iii) of paragraph (a) of subdivision four of such section
    13  four hundred eighty-a, or (viii) has not obtained a valid retail  dealer
    14  registration  under  section  four  hundred eighty-a of this chapter and
    15  such person possesses or sells unstamped or unlawfully stamped  packages
    16  of  cigarettes  three  or  more times within a period of five years, the
    17  commissioner may revoke or suspend such certificate of authority and all
    18  duplicates thereof. Provided, however, that the commissioner may  revoke
    19  or suspend a certificate of authority based on (a) the grounds set forth
    20  in  clause  (vi) of this subparagraph only where the conviction referred
    21  to occurred not more than one year prior to the date  of  revocation  or
    22  suspension;  and provided further that where the commissioner revokes or
    23  suspends a certificate of authority based on the grounds  set  forth  in
    24  clause  (vii)  of this subparagraph, such suspension or revocation shall
    25  continue for as long as the revocation of the retail dealer registration
    26  pursuant to section four hundred eighty-a of  this  chapter  remains  in
    27  effect,  or  (b) the grounds set forth in clause (viii) of this subpara-
    28  graph, such suspension or revocation shall  be  for  a  period  of  five
    29  years.
    30    §  3.  Subparagraph (B) of paragraph (4) of subdivision (a) of section
    31  eleven hundred thirty-four of the tax law, as amended by chapter  59  of
    32  the laws of 2020, is amended to read as follows:
    33    (B)  Where  a person files a certificate of registration for a certif-
    34  icate of authority under this subdivision and in considering such appli-
    35  cation the commissioner ascertains that (i) any tax imposed  under  this
    36  chapter  or  any related statute, as defined in section eighteen hundred
    37  of this chapter, has been finally determined to be due from such  person
    38  and  has not been paid in full, (ii) a tax due under this article or any
    39  law, ordinance or resolution enacted pursuant to the authority of  arti-
    40  cle  twenty-nine  of  this chapter has been finally determined to be due
    41  from an officer, director, partner or  employee  of  such  person,  and,
    42  where  such  person  is  a  limited  liability company, also a member or
    43  manager  of  such  person,  in  the  officer's,  director's,  partner's,
    44  member's,  manager's  or  employee's  capacity  as  a person required to
    45  collect tax on behalf of such person or another person and has not  been
    46  paid,  (iii)  such  person has been convicted of a crime provided for in
    47  this chapter within one year from the date on which such certificate  of
    48  registration is filed, (iv) an officer, director, partner or employee of
    49  such person, and, where such person is a limited liability company, also
    50  a  member  or  manager of such person, which officer, director, partner,
    51  member, manager or employee is a  person  required  to  collect  tax  on
    52  behalf  of  such  person filing a certificate of registration has in the
    53  officer's, director's,  partner's,  member's,  manager's  or  employee's
    54  capacity as a person required to collect tax on behalf of such person or
    55  of another person been convicted of a crime provided for in this chapter
    56  within  one year from the date on which such certificate of registration

        S. 2509--A                         172                        A. 3009--A

     1  is filed, (v) a shareholder owning more than fifty percent of the number
     2  of shares of stock of such person (where such person is  a  corporation)
     3  entitling  the  holder  thereof to vote for the election of directors or
     4  trustees, who owned more than fifty percent of the number of such shares
     5  of another person (where such other person is a corporation) at the time
     6  any  tax imposed under this chapter or any related statute as defined in
     7  section eighteen hundred of this chapter was finally  determined  to  be
     8  due  and  where  such tax has not been paid in full, or at the time such
     9  other person was convicted of a crime provided for in this chapter with-
    10  in one year from the date on which such certificate of  registration  is
    11  filed,  (vi)  a  certificate of authority issued to such person has been
    12  revoked or suspended pursuant to  subparagraph  (A)  of  this  paragraph
    13  within  one year from the date on which such certificate of registration
    14  is filed, [or] (vii) a retail dealer  registration  issued  pursuant  to
    15  section  four hundred eighty-a of this chapter to such person, or to any
    16  person affiliated with such person as such term is defined  in  subdivi-
    17  sion  twenty-one  of  section  four hundred seventy of this chapter, has
    18  been revoked pursuant to subparagraph (iii) of paragraph (a) of subdivi-
    19  sion four of such section four hundred eighty-a, where  such  revocation
    20  remains in effect, or (viii) such person has not obtained a valid retail
    21  dealer  registration under section four hundred eighty-a of this chapter
    22  and has possessed or sold unstamped or unlawfully  stamped  packages  of
    23  cigarettes  three  or  more  times  within  a  period of five years, the
    24  commissioner may refuse to issue a certificate  of  authority;  provided
    25  however  that under the circumstances described in clause (viii) of this
    26  subparagraph, such person shall not be eligible to submit a  certificate
    27  of  registration  for  a certificate of authority until five years after
    28  its last possession or sale of unstamped or unlawfully stamped  packages
    29  of cigarettes within such five year period.
    30    §  4.  Any retail dealer who, prior to the effective date of this act,
    31  had its retail dealer  registration  cancelled,  suspended,  or  revoked
    32  pursuant  to section four hundred eighty-a of the tax law or was forbid-
    33  den from selling cigarettes or tobacco products  pursuant  to  paragraph
    34  (j) of subdivision one of section four hundred eighty of the tax law and
    35  such  cancellation,  suspension,  revocation,  or forbiddance remains in
    36  effect as of the effective date of this act, shall  be  prohibited  from
    37  possessing  cigarettes  and  tobacco products beginning on the tenth day
    38  after the effective date of this act and continuing for as long as  such
    39  cancellation,  suspension,  revocation,  or  forbiddance shall remain in
    40  effect; provided however, such retail dealer  shall  not  be  prohibited
    41  before  the  tenth day after the effective date of this act from selling
    42  or transferring its inventory of lawfully stamped cigarettes or  tobacco
    43  products on which the taxes imposed by this article have been assumed or
    44  paid  to  a  properly registered retail dealer whose registration is not
    45  cancelled, suspended, or revoked or who  has  not  been  forbidden  from
    46  selling cigarettes or tobacco products.
    47    § 5. This act shall take effect immediately.

    48                                   PART Q

    49    Section  1. Subdivision 1 of section 429 of the tax law, as amended by
    50  chapter 433 of the laws of 1978, is amended to read as follows:
    51    1. Every distributor, noncommercial importer or other person shall, on
    52  or before the twentieth day of each month, file with the  department  of
    53  taxation  and  finance  a  return, on forms to be prescribed by the [tax
    54  commission] commissioner and furnished by such department, stating sepa-

        S. 2509--A                         173                        A. 3009--A

     1  rately the number of gallons, or lesser  quantity,  of  beers,  and  the
     2  number  of liters, or lesser quantity, of wines and liquors sold or used
     3  by such distributor, noncommercial importer  or  other  person  in  this
     4  state  during the preceding calendar month, except that the [tax commis-
     5  sion] commissioner may, if [it] he or she deems it necessary [in  order]
     6  to  [insure]  facilitate  the efficient reporting and payment of the tax
     7  imposed by this article, require returns to be made at  such  times  and
     8  covering  such periods as [it] he or she may deem necessary. Such return
     9  shall contain such further information as the [tax  commission]  commis-
    10  sioner shall require. The fact that the name of the distributor, noncom-
    11  mercial  importer  or  other person is signed to a filed return shall be
    12  prima facie evidence for all  purposes  that  the  return  was  actually
    13  signed by such distributor, noncommercial importer or other person.
    14    §  2. Section 505 of the tax law, as amended by section 2 of part E of
    15  chapter 60 of the laws of 2007, is amended to read as follows:
    16    § 505. Returns. Every carrier subject to this article and every carri-
    17  er to whom a certificate of registration was issued  shall  file  on  or
    18  before  the  last  day of each month a return for the preceding calendar
    19  month where a carrier's total tax liability under this article  for  the
    20  preceding calendar year exceeded [four] twelve thousand dollars. Where a
    21  carrier's  total  tax  liability  under  this  article for the preceding
    22  calendar year did not exceed [four] twelve thousand dollars or  where  a
    23  carrier  was  not  subject  to  such tax in the preceding calendar year,
    24  returns shall be filed quarterly, on or  before  the  last  day  of  the
    25  calendar  month following each of the calendar quarters: January through
    26  March, April through June, July through September  and  October  through
    27  December.    Provided,  however, if the commissioner consents thereto in
    28  writing, any carrier may file a return on or before  the  thirtieth  day
    29  after  the  close  of  any  different period, if the carrier's books are
    30  regularly kept on a periodic basis other than a calendar month or  quar-
    31  ter.  The  commissioner  may  permit  the filing of returns on an annual
    32  basis, provided the carrier was subject to the tax  under  this  article
    33  during  the  entire  preceding calendar year and the carrier's total tax
    34  liability under this article for such year did not exceed  [two  hundred
    35  fifty]  twelve hundred dollars. Such annual returns shall be filed on or
    36  before January thirty-first of the  succeeding  calendar  year.  Returns
    37  shall  be  filed  with the commissioner on forms to be furnished by such
    38  commissioner for such purpose and shall contain such  data,  information
    39  or  matter  as  the commissioner may require to be included therein. The
    40  fact that a carrier's name is signed to a filed return  shall  be  prima
    41  facie  evidence  for all purposes that the return was actually signed by
    42  such carrier. The commissioner may grant a reasonable extension of  time
    43  for  filing  returns whenever good cause exists and may waive the filing
    44  of returns if a carrier is not subject to the tax imposed by this  arti-
    45  cle  for  the  period  covered  by the return.   Every return shall have
    46  annexed thereto a  certification  to  the  effect  that  the  statements
    47  contained therein are true.
    48    §  3.  This act shall take effect immediately; provided, however, that
    49  section two of this act shall apply to tax returns for  taxable  periods
    50  beginning on or after January 1, 2022.

    51                                   PART R

    52    Section  1.    Section  1280 of the tax law is amended by adding a new
    53  subdivision (v) to read as follows:

        S. 2509--A                         174                        A. 3009--A

     1    (v) "Technology service provider" or "TSP" means a person that acts by
     2  employment, contract or otherwise on  behalf  of  one  or  more  taxicab
     3  owners  or  HAIL vehicle owners to collect the trip record for a taxicab
     4  trip or HAIL vehicle trip.
     5    §  2.  Subdivision  (b)  of section 1283 of the tax law, as amended by
     6  chapter 9 of the laws of 2012, is amended to read as follows:
     7    (b) (1) If the taxicab owner has designated an agent, then  the  agent
     8  shall  be  jointly  liable  with  the taxicab owner for the tax on trips
     9  occurring during the period that such designation is in effect. Even  if
    10  the  TLC  has specified that the taxicab owner's agent cannot operate as
    11  an agent, that agent shall be jointly liable with the taxicab  owner  if
    12  the  agent  has  acted  for  the taxicab owner. During the period that a
    13  taxicab owner's designation of an agent is in effect,  the  agent  shall
    14  file  the returns required by this article and pay any tax due with such
    15  return, but the taxicab owner shall not be  relieved  of  liability  for
    16  tax,  penalty  or  interest due under this article, or for the filing of
    17  returns required to be filed, unless the agent has timely filed accurate
    18  returns and timely paid the tax required to be paid under this  article.
    19  If  a taxicab owner has designated an agent, then the agent must perform
    20  any act this article requires the taxicab  owner  to  perform,  but  the
    21  failure  of  such  agent  to  perform any such act shall not relieve the
    22  taxicab owner from the obligation  to  perform  such  act  or  from  any
    23  liability that may arise from failure to perform the act.
    24    (2)  (A)  Notwithstanding  the foregoing, a TSP that collects the trip
    25  record and the trip fare on behalf of a taxicab owner or a HAIL  vehicle
    26  owner  shall  be  jointly  liable with the taxicab owner or HAIL vehicle
    27  owner for the tax due on such trips.    For  any  period  that  the  TSP
    28  collects  trip  records  on  behalf  of  a taxicab owner or HAIL vehicle
    29  owner, the TSP shall file returns reporting all trip records and,  after
    30  retaining  any  fees to which it is entitled pursuant to a contract with
    31  such taxicab owner or HAIL vehicle owner, shall remit the taxes  due  on
    32  all fares collected by the TSP.
    33    (B) The TSP, after retaining the fees described in subparagraph (A) of
    34  this  paragraph,  shall  also remit the taxes due on any taxicab trip or
    35  HAIL vehicle trip for which it maintained the trip record  but  did  not
    36  collect  the  fare,  from  any  fares it collected on behalf of any such
    37  taxicab owner or HAIL vehicle owner, before it releases any proceeds  to
    38  the  taxicab  owner  or HAIL vehicle owner.   If the TSP fails to comply
    39  with the requirements of this subparagraph, such TSP shall be liable for
    40  the taxes due on such trips up to the amount it released to the  taxicab
    41  owner  or  HAIL  vehicle  owner, or any person on behalf of such taxicab
    42  owner or HAIL vehicle owner.  However, the taxicab owner,  HAIL  vehicle
    43  owner  or  their  agents shall not  be relieved of any liability for the
    44  tax, penalty or interest due  under  this  article,  or  for  filing  of
    45  returns  required to be  filed, unless the TSP has timely filed accurate
    46  returns and timely paid the tax required to be paid under this article.
    47    § 3. Subdivision (a) of section 1299-B of the tax  law,  as  added  by
    48  section  2  of part NNN of chapter 59 of the laws of 2018, is amended to
    49  read as follows:
    50    (a) Notwithstanding any provision of law to the contrary,  any  person
    51  that  dispatches  a motor vehicle by any means that provides transporta-
    52  tion that is subject to a surcharge imposed by this  article,  including
    53  transportation  network  companies as defined in article forty-four-B of
    54  the vehicle and traffic law, shall be liable for the  surcharge  imposed
    55  by this article, except that in the case of taxicab trips and HAIL vehi-
    56  cle trips that are also subject to tax pursuant to article twenty-nine-A

        S. 2509--A                         175                        A. 3009--A

     1  of  this  chapter[,  only the taxicab owner or HAIL base liable for that
     2  tax shall be the person liable for the surcharge imposed by  this  arti-
     3  cle]:  (1)  the  TSP  shall be liable for the  surcharge imposed by this
     4  article  for  all  trips for which the TSP collected the trip record and
     5  the surcharge, and shall be responsible for filing returns;  and,  after
     6  retaining  any  fees to which it is entitled pursuant to a contract with
     7  such taxicab owner or HAIL vehicle owner, shall remit the surcharges  on
     8  such trips to the department.
     9    (2)  the  TSP,  after retaining the fees described in paragraph one of
    10  this subdivision, shall also remit the surcharges  due  on  any  taxicab
    11  trip  or  HAIL  vehicle trip for which it maintained the trip record but
    12  did not collect the fare, from any fares it collected on behalf  of  any
    13  such  taxicab  owner  or  HAIL  vehicle  owner,  before  it releases any
    14  proceeds to the taxicab owner or HAIL vehicle owner.   Whenever the  TSP
    15  fails to comply with the requirements of the preceding sentence, the TSP
    16  shall be liable for the surcharges due on such trips up to the amount it
    17  released  to  the  taxicab owner or HAIL vehicle owner, or any person on
    18  behalf of such taxicab owner or HAIL vehicle owner.  However, the  taxi-
    19  cab  owner  or  HAIL base shall be jointly and severally liable with the
    20  TSP for such surcharges. For purposes of this section, the terms  "taxi-
    21  cab  trips,"  "HAIL  vehicle trips," "taxicab owner," [and] "HAIL base",
    22  and "TSP" shall have the same meaning  as  they  do  in  section  twelve
    23  hundred eighty of this chapter.
    24    § 4. Section 1299-F of the tax law is amended by adding a new subdivi-
    25  sion (e) to read as follows:
    26    (e) Notwithstanding the provisions of subdivision (a) of this section,
    27  the  commissioner may, in his or her discretion, permit the proper offi-
    28  cer of the taxi and limousine commission of the city of New  York  (TLC)
    29  or  the  duly  authorized representative of such officer, to inspect any
    30  return filed under this article, or may furnish to such officer or  such
    31  officer's  authorized  representative  an abstract of any such return or
    32  supply such person with information concerning an item contained in  any
    33  such  return,  or  disclosed by any investigation of tax liability under
    34  this article; but such permission shall be granted or  such  information
    35  furnished only if the TLC shall have furnished the commissioner with all
    36  information  requested  by the commissioner pursuant to this article and
    37  shall have permitted the commissioner or the  commissioner's  authorized
    38  representative to make any inspection of any records or reports concern-
    39  ing  for-hire  transportation  trips subject to the surcharge imposed by
    40  this article, and any persons required to collect such surcharge,  filed
    41  with  or  possessed  by the TLC that the commissioner may have requested
    42  from the TLC. Provided, further, that the commissioner may  disclose  to
    43  the TLC whether or not a person liable for the surcharge imposed by this
    44  article  has paid all of the surcharges due under this article as of any
    45  given date.
    46    § 5. This act shall take effect immediately and shall apply  to  trips
    47  occurring on or after July 1, 2021.

    48                                   PART S

    49    Section  1.  Paragraph  1  of subdivision (g) of section 32 of the tax
    50  law, as added by section 2 of part VV of chapter 59 of the laws of 2009,
    51  is amended to read as follows:
    52    (1) If a tax return preparer or facilitator is required to register or
    53  re-register with the department pursuant to paragraph one  or  three  of
    54  subdivision  (b)  of  this section, as applicable, and fails to do so in

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     1  accordance with the terms of this section, then the tax return  preparer
     2  [of]  or  facilitator  must  pay a penalty of [two] five hundred [fifty]
     3  dollars for the first day of non-compliance and two hundred dollars  for
     4  each  subsequent  day  of non-compliance thereafter. The maximum penalty
     5  that may be imposed under this paragraph on any tax return  preparer  or
     6  facilitator  during  any  calendar  year  must  not  exceed ten thousand
     7  dollars.  [Provided, however, that if the tax return preparer or facili-
     8  tator complies with the registration requirements of this section within
     9  ninety calendar days after notification of assessment of this penalty is
    10  sent by the department, then this penalty must be  abated.  If  the  tax
    11  return  preparer  or facilitator continues to fail to register or re-re-
    12  gister after the ninety calendar day period, the tax return preparer  or
    13  facilitator  must  pay  an additional penalty of five hundred dollars if
    14  the failure is for not more than one  month,  with  an  additional  five
    15  hundred  dollars  for  each  additional month or fraction thereof during
    16  which the failure continues. Once the ninety calendar days specified  in
    17  this  paragraph  have  expired,  the] The penalty can be waived only for
    18  good cause shown by the tax return preparer or facilitator.
    19    § 2. Paragraph 2 of subdivision (g) of section 32 of the tax  law,  as
    20  added  by  section  2  of  part VV of chapter 59 of the laws of 2009, is
    21  amended to read as follows:
    22    (2) If a commercial tax return  preparer  fails  to  pay  the  fee  as
    23  required  in  paragraph  one  of  subdivision (c) of this section, for a
    24  calendar year, then the commercial tax return preparer must pay a penal-
    25  ty of fifty dollars for each return the commercial tax  return  preparer
    26  has  filed with the department in that calendar year. [Provided however,
    27  that if the commercial tax return preparer  complies  with  the  payment
    28  requirements of paragraph one of subdivision (c) of this section, within
    29  ninety calendar days after notification of the assessment of this penal-
    30  ty  is  sent  by  the department, then this penalty must be abated.] The
    31  maximum penalty that may be imposed under this paragraph on any  commer-
    32  cial tax return preparer during any calendar year must not exceed [five]
    33  ten  thousand  dollars. [Once the ninety calendar days specified in this
    34  paragraph have expired, the] The penalty can be  waived  only  for  good
    35  cause shown by the commercial tax return preparer.
    36    §  3. Section 32 of the tax law is amended by adding a new subdivision
    37  (h) to read as follows:
    38    (h) (1) Tax return preparers and  facilitators  must  prominently  and
    39  conspicuously  display  a  copy of their registration certificate issued
    40  pursuant to this section, for the current registration period, at  their
    41  place  of  business  and  at  any  other location where they provide tax
    42  return preparation  and/or  facilitation  services,  in  an  area  where
    43  taxpayers using their services are able to see and review such registra-
    44  tion certificate.
    45    (2)  Tax  return  preparers  and  facilitators  must  prominently  and
    46  conspicuously display at their  place  of  business  and  at  any  other
    47  location  where  they provide tax return preparation and/or facilitation
    48  services the following documents:
    49    (A) a current price  list,  in  at  least  fourteen-point  type,  that
    50  includes,  but  is not limited to, a list of all services offered by the
    51  tax return preparer and/or facilitator; the minimum fee charged for each
    52  service, including the fee charged for each type of federal or New  York
    53  state tax return to be prepared and facilitation service to be provided;
    54  and a list of each factor that may increase a stated fee and the specif-
    55  ic additional fees or range of possible additional fees when each factor
    56  applies; and

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     1    (B)  a  copy  of the most recent Consumer Bill of Rights Regarding Tax
     2  Preparers published by the department pursuant to section three  hundred
     3  seventy-two of the general business law.
     4    (3)  A tax return preparer or facilitator who fails to comply with any
     5  of the requirements of this subdivision  must  pay  a  penalty  of  five
     6  hundred  dollars  for  the  first  day of non-compliance and two hundred
     7  dollars for each subsequent day of non-compliance thereafter. The  maxi-
     8  mum penalty that may be imposed under this subdivision on any tax return
     9  preparer  or  facilitator  during  any calendar year must not exceed ten
    10  thousand dollars. The penalty can be waived only for good cause shown by
    11  the tax return preparer or facilitator.
    12    § 4. Subdivision (g) of section 32 of the tax law, as added by section
    13  2 of part VV of chapter 59 of the laws of 2009, is  relettered  subdivi-
    14  sion (i).
    15    §  5.  This act shall take effect immediately; provided, however, that
    16  paragraph (3) of subdivision (h) of section 32 of the tax law, as  added
    17  by section three of this act, shall take effect January 1, 2022.

    18                                   PART T

    19    Section  1.  Section 2016 of the tax law, as amended by chapter 401 of
    20  the laws of 1987, is amended to read as follows:
    21    § 2016. Judicial review. A decision of the tax appeals tribunal, which
    22  is not subject to any further administrative review, shall  finally  and
    23  irrevocably  decide  all  the  issues  which  were raised in proceedings
    24  before the division of tax appeals upon which  such  decision  is  based
    25  unless,  within  four  months after notice of such decision is served by
    26  the tax appeals tribunal upon every party to the proceeding before  such
    27  tribunal  by  certified  mail  or  personal  service, the petitioner who
    28  commenced the proceeding [petitions] or the commissioner, or both, peti-
    29  tion for judicial review in the manner provided by article seventy-eight
    30  of the civil practice law and rules, except  as  otherwise  provided  in
    31  this  [section]  chapter.    Such  service  by  certified  mail shall be
    32  complete upon deposit of such notice, enclosed in a  post-paid  properly
    33  addressed  wrapper,  in  a  post office or official depository under the
    34  exclusive care and custody of the United States postal service.    [The]
    35  Where the petitioner who commenced the proceeding before the division of
    36  tax  appeals  files  a  petition for judicial review, the petition shall
    37  designate the tax appeals tribunal and the commissioner [of taxation and
    38  finance] as respondents in the proceeding for judicial  review.    Where
    39  the  commissioner  files  a  petition  for judicial review, the petition
    40  shall  designate  the  tax  appeals  tribunal  and  the  petitioner  who
    41  commenced  the proceeding before the division of tax appeals as respond-
    42  ents in the proceeding for judicial review.  The  tax  appeals  tribunal
    43  shall  not  participate  in proceedings for judicial review of its deci-
    44  sions and such proceedings for judicial review shall be commenced in the
    45  appellate division of the supreme court, third department. In all  other
    46  respects  the  provisions  and standards of article seventy-eight of the
    47  civil practice law and rules shall apply.  The record to be reviewed  in
    48  such  proceedings for judicial review shall include the determination of
    49  the administrative law judge, the decision of the tax appeals  tribunal,
    50  the stenographic transcript of the hearing before the administrative law
    51  judge,  the  transcript  of  any oral proceedings before the tax appeals
    52  tribunal and any exhibit or document  submitted  into  evidence  at  any
    53  proceeding  in  the  division of tax appeals upon which such decision is
    54  based.

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     1    § 2. This act shall take effect immediately and shall apply  to  deci-
     2  sions  and  orders  issued  by the tax appeals tribunal on or after such
     3  date.

     4                                   PART U

     5    Section 1. Paragraphs i and v of subdivision 1-e of section 333 of the
     6  real  property  law,  as amended by section 5 of part X of chapter 56 of
     7  the laws of 2010 and as further amended by subdivision (d) of section  1
     8  of  part  W  of  chapter  56 of the laws of 2010, are amended to read as
     9  follows:
    10    i. A recording officer shall not record or accept for [record] record-
    11  ing any conveyance of real property affecting land  in  New  York  state
    12  unless accompanied by one of the following:
    13    (1)  a  receipt  issued  by  the  commissioner of taxation and finance
    14  pursuant to subdivision (c) of section fourteen hundred twenty-three  of
    15  the tax law; or
    16    (2)  a transfer report form prescribed by the commissioner of taxation
    17  and finance [or in lieu thereof, confirmation from the commissioner that
    18  the required data has been reported to it pursuant to paragraph  vii  of
    19  this  subdivision], and the fee prescribed pursuant to subdivision three
    20  of this section.
    21    v. (1) The provisions of this subdivision shall not operate to invali-
    22  date any conveyance of real property where one  or  more  of  the  items
    23  designated  as  subparagraphs  one through eight of paragraph ii of this
    24  subdivision, have not  been  reported  or  which  has  been  erroneously
    25  reported,  nor  affect  the  record  contrary  to the provisions of this
    26  subdivision, nor impair any title founded on such conveyance or  record.
    27  [Such]
    28    (2) Subject to the provisions of section fourteen hundred twenty-three
    29  of the tax law, such form shall contain an affirmation as to the accura-
    30  cy of the contents made both by the transferor or transferors and by the
    31  transferee  or transferees. Provided, however, that if the conveyance of
    32  real property occurs as a result of a  taking  by  eminent  domain,  tax
    33  foreclosure,  or  other  involuntary  proceeding such affirmation may be
    34  made only by either the condemnor, tax district, or other party to  whom
    35  the  property has been conveyed, or by that party's attorney. The affir-
    36  mations required by this paragraph shall be made in the form and  manner
    37  prescribed  by  the  commissioner,  provided  that  notwithstanding  any
    38  provision of law to the contrary, affirmants may be allowed,  but  shall
    39  not be required, to sign such affirmations electronically.
    40    §  2. Paragraphs vii and viii of subdivision 1-e of section 333 of the
    41  real property law are REPEALED.
    42    § 3. Subdivision 3 of section 333 of the real property law, as amended
    43  by section 2 of part JJ of chapter 56 of the laws of 2009 and as further
    44  amended by subdivision (d) of section 1 of part W of chapter 56  of  the
    45  laws of 2010, is amended to read as follows:
    46    3. [The] (i) When a recording officer [of every county and the city of
    47  New  York] is presented with a conveyance for recording that is accompa-
    48  nied by a receipt issued by the commissioner  of  taxation  and  finance
    49  pursuant  to subdivision (c) of section fourteen hundred twenty-three of
    50  the tax law, such recording officer shall be relieved of  the  responsi-
    51  bility  to  collect  the  fee described by this subdivision.   He or she
    52  shall nonetheless be entitled to the portion of such fee that he or  she
    53  would  otherwise have deducted pursuant to this subdivision, as provided

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     1  by subdivision (b) of section fourteen hundred twenty-three of  the  tax
     2  law.
     3    (ii)  When  a  recording  officer  is  presented with a conveyance for
     4  recording that is not accompanied by such a receipt,  he  or  she  shall
     5  impose  a fee of two hundred fifty dollars, or in the case of a transfer
     6  involving qualifying residential or farm property as  defined  by  para-
     7  graph  iv  of  subdivision  one-e  of this section, a fee of one hundred
     8  twenty-five dollars, for every real  property  transfer  reporting  form
     9  submitted  for recording as required under subparagraph two of paragraph
    10  i of subdivision one-e of this section. In the city  of  New  York,  the
    11  recording  officer  shall  impose  a fee of one hundred dollars for each
    12  real property transfer tax form filed in accordance with  chapter  twen-
    13  ty-one  of  title  eleven  of the administrative code of the city of New
    14  York, except where a real  property  transfer  reporting  form  is  also
    15  submitted  for recording for the transfer as required under subparagraph
    16  two of paragraph i of subdivision one-e of this section.  The  recording
    17  officer  shall deduct nine dollars from such fee and remit the remainder
    18  of the revenue collected to the commissioner  of  taxation  and  finance
    19  every  month for deposit into the general fund. The amount duly deducted
    20  by the recording officer shall be retained by the county or by the  city
    21  of New York.
    22    §  4.  Subsection  (d)  of  section  663 of the tax law, as amended by
    23  section 1 of part P of chapter 686 of the laws of 2003,  is  amended  to
    24  read as follows:
    25    (d)  A  recording  officer  shall  not  record  or accept for [record]
    26  recording any deed unless one of the following conditions is satisfied:
    27    (1) it is accompanied by a receipt issued by the commissioner indicat-
    28  ing that the estimated tax required by this section has been paid to the
    29  commissioner either electronically or as otherwise prescribed by him  or
    30  her;
    31    (2)  it is accompanied by a form prescribed by the commissioner pursu-
    32  ant to subsection (b) of this section and the payment of  any  estimated
    33  tax shown as payable on such form[,]; or [unless]
    34    (3)  such  receipt  or form includes a certification by the transferor
    35  that this section is inapplicable to the sale or transfer.
    36    § 5. Subdivision (c) of section 1407 of the tax  law,  as  amended  by
    37  chapter 61 of the laws of 1989, is amended to read as follows:
    38    (c)  [Every]  1.  When  a  recording officer designated to act as such
    39  agent is presented with a conveyance for recording that  is  accompanied
    40  by  a  receipt issued by the commissioner pursuant to subdivision (c) of
    41  section fourteen hundred twenty-three of this  article,  such  recording
    42  officer  shall  be  relieved  of  the responsibility to collect the real
    43  estate transfer tax thereon.  He or she shall nonetheless be entitled to
    44  the portion of such tax that he or she  would  otherwise  have  retained
    45  pursuant  to this subdivision, as provided by subdivision (b) of section
    46  fourteen hundred twenty-three of the tax law.
    47    2. When a recording officer is presented with a conveyance for record-
    48  ing that is not accompanied by a receipt described in paragraph  one  of
    49  this  subdivision,  he  or  she shall collect the applicable real estate
    50  transfer tax and shall retain, from the real estate transfer  tax  which
    51  he  or  she  collects,  the sum of one dollar for each of the first five
    52  thousand conveyances accepted for recording and for which he or she  has
    53  issued  a  documentary  stamp  or  metering  machine stamp or upon which
    54  instrument effecting the conveyance he or she has noted payment  of  the
    55  tax  or  that no tax is due, pursuant to any other method for payment of
    56  the tax provided for in the regulations of the commissioner of  taxation

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     1  and  finance,  during  each annual period commencing on the first day of
     2  August and ending on the next succeeding thirty-first day  of  July  and
     3  seventy-five  cents  for  each  conveyance  in  excess  of five thousand
     4  accepted  for  recording and for which he or she has issued such a stamp
     5  or upon which instrument effecting the conveyance he or  she  has  noted
     6  payment of the tax or that no tax is due, pursuant to such other method,
     7  during  such  annual  period.  Such fee shall be payable even though the
     8  stamp issued or such notation shows that no tax is due. Such a fee  paid
     9  to  the register of the city of New York shall belong to the city of New
    10  York and such a fee paid to a recording officer of a county outside such
    11  city shall belong to such officer's county. With respect  to  any  other
    12  agents  designated  to  act pursuant to subdivision (a) of this section,
    13  the commissioner of  taxation  and  finance  shall  have  the  power  to
    14  provide,  at  his or her discretion, for payment of a fee to such agent,
    15  in such manner and amount and subject to such limitations as he  or  she
    16  may  determine,  but  any  such  fee  for any annual period shall not be
    17  greater than the sum of one dollar for each of the first  five  thousand
    18  conveyances  for  which  such  agent  has  issued a documentary stamp or
    19  metering machine stamp or upon which instrument effecting the conveyance
    20  he or she has noted payment of the tax or that no tax is  due,  pursuant
    21  to  any  other  method  for payment of the tax provided for in the regu-
    22  lations of the commissioner of taxation and finance, during such  annual
    23  period  and  seventy-five  cents  for  each conveyance in excess of five
    24  thousand for which such agent has issued such  a  stamp  or  upon  which
    25  instrument  effecting the conveyance such agent has noted payment of the
    26  tax or that no tax is due, pursuant to such other  method,  during  such
    27  annual period.
    28    § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 61 of
    29  the laws of 1989, is amended to read as follows:
    30    (b)  [The] Subject to the provisions of section fourteen hundred twen-
    31  ty-three of this article, the return shall be signed by both the grantor
    32  and the grantee.  Where a conveyance has more than one grantor  or  more
    33  than one grantee, the return shall be signed by all of such grantors and
    34  grantees. Where any or all of the grantors or any or all of the grantees
    35  have failed to sign a return, it shall be accepted as a return if signed
    36  by  any  one  of  the  grantors or by any one of the grantees. Provided,
    37  however, those not signing the return  shall  not  be  relieved  of  any
    38  liability  for the tax imposed by this article and the period of limita-
    39  tions for assessment of tax or of additional tax shall not apply to  any
    40  such party.
    41    § 7. Subdivision (b) of section 1410 of the tax law, as added by chap-
    42  ter 61 of the laws of 1989, is amended to read as follows:
    43    (b)  A  recording  officer  shall not record an instrument effecting a
    44  conveyance unless one of the following conditions is satisfied:
    45    (1) the instrument is accompanied by a receipt issued by  the  commis-
    46  sioner  pursuant  to subdivision (c) of section fourteen hundred twenty-
    47  three of this article; or
    48    (2) the return required by section fourteen hundred nine of this arti-
    49  cle has been filed and the real estate transfer tax due, if  any,  shall
    50  have been paid as provided in this section.
    51    §  8.  The  tax law is amended by adding a new section 1423 to read as
    52  follows:
    53    §  1423.  Modernization  of  real  property  transfer  reporting.  (a)
    54  Notwithstanding  any  provision of law to the contrary, the commissioner
    55  is hereby authorized to implement a system for the electronic collection
    56  of data relating to transfers of real property. In connection therewith,

        S. 2509--A                         181                        A. 3009--A

     1  the commissioner may combine the two forms referred to in paragraph  one
     2  of  this  subdivision into a consolidated real property transfer form to
     3  be filed with him or her electronically; provided:
     4    (1) The two forms that may be so combined are the real estate transfer
     5  tax  return  required  by section fourteen hundred nine of this article,
     6  and the real property transfer report required by subdivision  one-e  of
     7  section  three  hundred  thirty-three of the real property law. However,
     8  the commissioner shall continue to maintain both such  return  and  such
     9  report  as  separate  forms,  so  that a party who prefers not to file a
    10  consolidated real property transfer form with the commissioner electron-
    11  ically shall have the option of filing both such return and such  report
    12  with  the  recording  officer,  as  otherwise  provided by law. Under no
    13  circumstances shall a consolidated real property transfer form be  filed
    14  with, or accepted by, the recording officer.
    15    (2)  Notwithstanding  the provisions of section fourteen hundred eigh-
    16  teen of this article, any information appearing on a  consolidated  real
    17  property transfer form that is required to be included on the real prop-
    18  erty  transfer  report  required  by  subdivision one-e of section three
    19  hundred thirty-three of the real property law shall be subject to public
    20  disclosure.
    21    (3) When a consolidated real property transfer form is  electronically
    22  submitted  to  the department by either the grantor or grantee or a duly
    23  authorized agent thereof, the act  of  submitting  such  form  shall  be
    24  deemed  to  be the signing of the return as required by paragraph (v) of
    25  subdivision one-e of the real property law or subdivision (b) of section
    26  fourteen hundred nine of this article, and the requirement that all  the
    27  grantors  and  grantees  shall sign the return shall not apply. However,
    28  the fact that a grantor or grantee has not electronically submitted  the
    29  form  shall not relieve that grantor or grantee of any liability for the
    30  tax imposed by this article.
    31    (b) When a consolidated real property transfer form is filed with  the
    32  commissioner  electronically  pursuant  to this section, the real estate
    33  transfer tax imposed under this article, and the fee that  would  other-
    34  wise  be retained by the recording officer pursuant to subdivision three
    35  of section three hundred thirty-three of the real property law, shall be
    36  paid to the commissioner therewith. The  commissioner  shall  retain  on
    37  behalf  of  the  recording  officer  the  portion of such tax that would
    38  otherwise have been retained by the recording officer pursuant to subdi-
    39  vision (c) of section fourteen hundred seven of this  article,  and  the
    40  portion  of  such  fee  that  would  otherwise have been retained by the
    41  recording officer pursuant to subdivision three of section three hundred
    42  thirty-three of the real property law. The moneys  so  retained  by  the
    43  commissioner on behalf of the recording officer, hereinafter referred to
    44  as  the  recording  officer's  fees,  shall be deposited daily with such
    45  responsible banks, banking houses, or trust companies as may  be  desig-
    46  nated  by  the  state  comptroller.  Of  the recording officer's fees so
    47  deposited, the comptroller shall retain in the comptroller's hands  such
    48  amount  as the commissioner may determine to be necessary for refunds or
    49  reimbursements of such fees  collected  or  received  pursuant  to  this
    50  section,  out  of  which  the  comptroller  shall  pay  any  refunds  or
    51  reimbursements of such fees to which persons shall be entitled under the
    52  provisions of this section. The comptroller, after reserving such refund
    53  and reimbursement fund shall, on or  before  the  twelfth  day  of  each
    54  month,  pay to the appropriate recording officers an amount equal to the
    55  recording officer's fees reserved on their  behalf.  Provided,  however,
    56  that  the  commissioner  is  authorized  to request that the comptroller

        S. 2509--A                         182                        A. 3009--A

     1  refrain from making such a payment of such fees to a  recording  officer
     2  until the commissioner has certified to the comptroller that the record-
     3  ing  officer  has  supplied  the  commissioner  with  the liber and page
     4  numbers of the recorded instruments that gave rise to such fees.
     5    (c)  The  system  for  the  electronic submission of consolidated real
     6  property transfer forms shall be designed so that  upon  the  successful
     7  electronic filing of such a form and the payment of the associated taxes
     8  and  fees, the party submitting the same shall be provided with an elec-
     9  tronic receipt in a form prescribed by the  commissioner  that  confirms
    10  such  filing  and  payment.  Such  party may file a printed copy of such
    11  receipt with the recording officer when offering the associated  instru-
    12  ment  for  recording, in lieu of submitting to the recording officer the
    13  return, report, tax and fee that  would  otherwise  have  been  required
    14  under  this  article  and  subdivisions one-e and three of section three
    15  hundred thirty-three of the real property  law.  The  recording  officer
    16  shall retain such receipt for a minimum of three years, unless otherwise
    17  directed  by  the  commissioner, and shall provide a copy thereof to the
    18  commissioner for inspection upon his or her request.
    19    (d) Upon recording the instrument to which the consolidated real prop-
    20  erty transfer form pertains, the recording  officer  shall  provide  the
    21  commissioner  with  the  liber and page thereof at such time and in such
    22  manner as the commissioner shall prescribe.
    23    (e) The provisions of this section shall not be  applicable  within  a
    24  city  or  county  that has implemented its own electronic system for the
    25  recording of deeds, the filing of the real estate transfer  tax  returns
    26  and  the  real property transfer reports prescribed by the commissioner,
    27  and the payment of the associated taxes and fees, unless  such  city  or
    28  county  shall notify the commissioner that such jurisdiction will follow
    29  the system authorized pursuant to this section to be  used  therein,  in
    30  writing.
    31    § 9.  This act shall take effect immediately.

    32                                   PART V

    33    Section  1. This Part enacts into law components of legislation relat-
    34  ing to the administration of the STAR program authorized by section  425
    35  of  the real property tax law and subsection (eee) of section 606 of the
    36  tax law. Each component is wholly contained within a Subpart  identified
    37  as  Subparts  A  through  E.  The  effective  date  for  each particular
    38  provision contained within such Subpart is set forth in the last section
    39  of such Subpart.  Any  provision  in  any  section  contained  within  a
    40  Subpart, including the effective date of the Subpart, which makes refer-
    41  ence  to  a  section  "of  this  act", when used in connection with that
    42  particular component, shall be deemed to mean and refer  to  the  corre-
    43  sponding  section  of the Subpart in which it is found. Section three of
    44  this Part sets forth the general effective date of this Part.

    45                                  SUBPART A

    46    Section 1. Paragraphs (a) and (b) of subdivision 16 of section 425  of
    47  the  real property tax law, as amended by section 5 of part A of chapter
    48  73 of the laws of 2016, are amended to read as follows:
    49    (a) Beginning with assessment rolls used to levy school district taxes
    50  for the two thousand sixteen--two thousand  seventeen  school  year,  no
    51  application  for  an exemption under this section may be approved unless
    52  at least one of the applicants held title to the property on the taxable

        S. 2509--A                         183                        A. 3009--A

     1  status date of the assessment roll that was used to levy school district
     2  taxes for the two thousand fifteen--two thousand sixteen school year and
     3  the property was granted an exemption pursuant to this section  on  that
     4  assessment  roll.   In addition, beginning with assessment rolls used to
     5  levy school district taxes for the two thousand twenty-one--two thousand
     6  twenty-two school year, no application  for  a  new  enhanced  exemption
     7  under  subdivision  four  of  this section may be approved. In the event
     8  that an application is submitted to the assessor that cannot be approved
     9  due to this restriction, the assessor shall notify the applicant that he
    10  or she is required by law to deny the application, but that, in lieu  of
    11  a STAR exemption, the applicant may claim the personal income tax credit
    12  authorized by subsection (eee) of section six hundred six of the tax law
    13  if  eligible, and that the applicant may contact the department of taxa-
    14  tion and finance  for  further  information.    The  commissioner  shall
    15  provide  a  form for assessors to use, at their option, when making this
    16  notification. No STAR exemption may be granted on the basis of an appli-
    17  cation that is not approvable due to this restriction.
    18    (b) Where property received an exemption pursuant to this  section  on
    19  an  assessment roll used to levy school district taxes for the two thou-
    20  sand fifteen--two thousand sixteen school year, and at least one of  its
    21  owners  held  title  to  the property on the taxable status date of such
    22  assessment roll, the exemption shall continue to be  granted  on  subse-
    23  quent assessment rolls without regard to the provisions of this subdivi-
    24  sion  as  long as all applicable requirements of this section are satis-
    25  fied. In addition, such exemption shall be subject  to  modification  as
    26  follows:
    27    (i)  A  basic  STAR  exemption  shall  be  changed to an enhanced STAR
    28  exemption on an assessment roll used to levy school district taxes for a
    29  school year prior to the two thousand twenty-one--two  thousand  twenty-
    30  two  school  year  if  the  owners and spouses primarily residing on the
    31  property file a timely application showing that their ages  and  incomes
    32  meet  the  requirements  of subdivision four of this section.  Beginning
    33  with assessment rolls used to levy school district  taxes  for  the  two
    34  thousand twenty-one--two thousand twenty-two school year, no application
    35  for  a  new  enhanced exemption under this section may approved.  In the
    36  event that an application is submitted to the assessor  that  cannot  be
    37  approved  due  to this restriction, the assessor shall notify the appli-
    38  cant that he or she is required by law to deny the application, but that
    39  the applicant may apply for an enhanced STAR credit  pursuant  to  para-
    40  graph four of subsection (eee) of section six hundred six of the tax law
    41  if  eligible, and that the applicant may contact the department of taxa-
    42  tion and finance for information on how to apply for the  credit.    The
    43  assessor  shall  further notify the applicant that if he or she does not
    44  wish to switch to the credit, he or she may continue receiving the basic
    45  STAR  exemption  as  long  as  the  eligibility  requirements  for  that
    46  exemption  continue  to be satisfied.   The commissioner shall provide a
    47  form for assessors to use, at their option, when making  this  notifica-
    48  tion.    No  enhanced  STAR  exemption may be granted on the basis of an
    49  application that is not approvable due to  this  restriction.    Nothing
    50  contained  herein  shall  be  construed to preclude the restoration of a
    51  previously-granted enhanced STAR  exemption  pursuant  to  subparagraphs
    52  (ii) or (iii) of this paragraph.
    53    (ii)  An  enhanced  STAR  exemption  shall  be changed to a basic STAR
    54  exemption if the combined income of the  owners  and  spouses  primarily
    55  residing  on  the  property increases above the limit set by subdivision
    56  four of this section, subject to the provisions of subparagraph (iii) of

        S. 2509--A                         184                        A. 3009--A

     1  this paragraph, provided that if their combined income falls  below  the
     2  limit  set  by  subdivision four of this section in the future, and they
     3  have not switched to the STAR credit, their enhanced STAR exemption  may
     4  be resumed upon timely application.
     5    (iii) A STAR exemption shall be discontinued if the combined income of
     6  the  owners  and  spouses  primarily  residing on the property increases
     7  above the limit set by subdivision three of this section, provided  that
     8  if  their income falls below such limit in the future, and they have not
     9  switched to the STAR credit, their STAR exemption may  be  resumed  upon
    10  timely application.
    11    (iv)  A STAR exemption shall be permanently discontinued if the owners
    12  fail to satisfy the applicable residency or  ownership  requirement,  or
    13  both.
    14    § 2. This act shall take effect immediately.

    15                                  SUBPART B

    16    Section  1.  Subparagraph  (i)  of  paragraph (c) of subdivision 17 of
    17  section 425 of the real property tax law, as added by section 2 of  part
    18  G of chapter 39 of the laws of 2019, is amended to read as follows:
    19    (i)  A  STAR  credit switch may be deferred if the application for the
    20  credit is submitted after a cutoff date set by  the  commissioner.  When
    21  setting a cutoff date, the commissioner shall take into account the time
    22  required  to  ensure  that the STAR exemptions of all STAR credit appli-
    23  cants in the assessing unit will be removed before school tax bills  are
    24  prepared.  The  commissioner  shall  specify the applicable cutoff dates
    25  after taking into account  local  assessment  calendars,  provided  that
    26  different  cutoff  dates  may  be  set for municipalities with different
    27  assessment calendars, and provided further that any such cutoff date may
    28  be no earlier than the [fifteenth] sixty-first day prior to the date  on
    29  which  the  applicable  final  assessment  roll is required by law to be
    30  completed and filed.
    31    § 2. This act shall take effect immediately.

    32                                  SUBPART C

    33    Section 1. Subsection (c) of section 651 of the tax law, as amended by
    34  section 3 of part QQ of chapter 59 of the laws of 2019,  is  amended  to
    35  read as follows:
    36    (c)  Decedents.  The  return for any deceased individual shall be made
    37  and filed by his or her executor, administrator, or other person charged
    38  with his or her property. If a final return of a decedent is for a frac-
    39  tional part of a year,  the  due  date  of  such  return  shall  be  the
    40  fifteenth  day  of  the  fourth month following the close of the twelve-
    41  month period which began with the first day of such fractional  part  of
    42  the  year.  Notwithstanding any provision of law to the contrary, when a
    43  return has been filed for a decedent, the commissioner may disclose  the
    44  decedent's  name, address, and the date of death to the director of real
    45  property tax services of the county and to the assessor of the assessing
    46  unit in which the address reported on such return is located.
    47    § 2. This act shall take effect immediately.

    48                                  SUBPART D

        S. 2509--A                         185                        A. 3009--A

     1    Section 1. Paragraphs (b) and (c) of subdivision 2 of section 200-a of
     2  the real property tax law, as amended by section 2 of part J of  chapter
     3  57 of the laws of 2013, are amended to read as follows:
     4    (b) The power to hear and determine reviews relating to determinations
     5  made  by  county  equalization  agencies,  as provided by sections eight
     6  hundred sixteen and eight hundred eighteen of this chapter[; and
     7    (c) The power to hear and determine reviews relating to determinations
     8  of STAR eligibility made by the department of taxation  and  finance  as
     9  provided by section four hundred twenty five of this chapter].
    10    §  2.  Subdivision 3 of section 200-a of the real property tax law, as
    11  added by section 7 of part W of chapter 56  of  the  laws  of  2010,  is
    12  amended to read as follows:
    13    3.  The provisions of section five hundred twenty-five of this chapter
    14  shall apply so far as practicable to a hearing conducted by the board of
    15  real property tax services pursuant to sections  eight  hundred  sixteen
    16  and eight hundred eighteen of this chapter.
    17    § 3. Paragraph (a-2) of subdivision 6 of section 425 of the real prop-
    18  erty  tax  law,  as amended by section 1 of part TT of chapter 59 of the
    19  laws of 2019, is amended to read as follows:
    20    (a-2) Notwithstanding any provision of law to the contrary,  where  an
    21  application  for the "enhanced" STAR exemption authorized by subdivision
    22  four of this section has not been filed on or before the taxable  status
    23  date,  and the owner believes that good cause existed for the failure to
    24  file the application by that date, the owner may, no later than the last
    25  day for paying school  taxes  without  incurring  interest  or  penalty,
    26  submit a written request to the commissioner asking him or her to extend
    27  the  filing deadline and grant the exemption. Such request shall contain
    28  an explanation of why the deadline was missed, and shall be  accompanied
    29  by  an  application,  reflecting  the  facts  and  circumstances as they
    30  existed on the taxable status date. After consulting with the  assessor,
    31  the  commissioner may extend the filing deadline and grant the exemption
    32  if the commissioner is satisfied that (i) good  cause  existed  for  the
    33  failure  to  file  the  application by the taxable status date, and that
    34  (ii) the applicant is otherwise entitled to the exemption.  The  commis-
    35  sioner  shall  mail notice of his or her determination to such owner and
    36  the assessor. If the determination  states  that  the  commissioner  has
    37  granted  the  exemption, the [assessor shall thereupon be authorized and
    38  directed to correct the assessment  roll  accordingly,  or,  if  another
    39  person  has  custody  or  control of the assessment roll, to direct that
    40  person to make the appropriate corrections. If  the  correction  is  not
    41  made  before  school  taxes  are levied, the school district authorities
    42  shall be authorized and directed to take account of the  fact  that  the
    43  commissioner has granted the exemption by correcting the applicant's tax
    44  bill  and/or issuing a refund accordingly] determination shall be imple-
    45  mented in the manner provided by subdivision fifteen of this section.
    46    § 4.  Clauses (C) and (D) of subparagraph (iv)  of  paragraph  (b)  of
    47  subdivision  4  of section 425 of the real property tax law are REPEALED
    48  and a new clause (C) is added to read as follows:
    49    (C) If the commissioner determines that the enhanced exemption  should
    50  be replaced with a basic exemption because the property is only eligible
    51  for  a basic exemption, or determines that the enhanced exemption should
    52  be removed or denied without  being  replaced  with  a  basic  exemption
    53  because  the  property  is not eligible for either exemption, his or her
    54  determination shall be implemented in the manner provided by subdivision
    55  fifteen of this section.

        S. 2509--A                         186                        A. 3009--A

     1    § 5. Paragraphs (c) and (d) of subdivision 14 of section  425  of  the
     2  real  property  tax law are REPEALED and a new paragraph (c) is added to
     3  read as follows:
     4    (c)  If  the  commissioner  determines that a STAR exemption should be
     5  removed or denied for one or more of the reasons specified in  paragraph
     6  (b)  of  this subdivision, his or her determination shall be implemented
     7  in the manner provided by subdivision fifteen of this section.
     8    § 6. Subdivisions 14-a, 15 and 15-a of section 425 of the real proper-
     9  ty tax law are REPEALED and a new subdivision 15 is  added  to  read  as
    10  follows:
    11    15.  Review  by  commissioner.  (a)  When  the commissioner determines
    12  pursuant to this section that a STAR exemption should be granted, denied
    13  or modified, the assessor or other person having custody or  control  of
    14  the  assessment  roll  or tax roll shall be authorized and directed upon
    15  receipt of the commissioner's determination to correct such roll accord-
    16  ingly.  Such correction shall be made without regard to  the  provisions
    17  of  title  three  of article five of this chapter or any comparable laws
    18  governing the correction of errors on assessment rolls  and  tax  rolls,
    19  and  shall  be  made  without requesting additional documentation or the
    20  approval of any other party.  In addition:
    21    (b) If the commissioner's determination directs the granting of a STAR
    22  exemption to a property owner, or is otherwise favorable to the property
    23  owner:
    24    (i) The assessor or other person having  custody  or  control  of  the
    25  assessment  roll  or tax roll shall attempt to implement the commission-
    26  er's determination prior to the levy of school taxes if  possible.    If
    27  the  correction  is  not made before school taxes are levied, the school
    28  district authorities shall be authorized and directed to  implement  the
    29  commissioner's  determination  by correcting the property owner's school
    30  tax bill or by providing the property owner with a credit for the amount
    31  at issue; provided that if the school tax bill has  already  been  paid,
    32  the  school  district  authorities  shall  implement  the commissioner's
    33  determination by issuing a refund of the amount at issue.  For  purposes
    34  of  this  subdivision,  the  "amount  at issue" means the additional tax
    35  savings that would have appeared on the property owner's school tax bill
    36  if the commissioner's determination had been implemented  prior  to  the
    37  school tax levy.
    38    (ii)  Alternatively,  the  commissioner  is  authorized  in his or her
    39  discretion to remit directly to the property owner or owners the  amount
    40  at  issue.  When the commissioner does so, he or she shall so notify the
    41  assessor and county director of real property tax  services.    In  such
    42  cases,  no  correction  shall be made to the assessment roll or tax roll
    43  for that school year, and no credit or refund shall be provided  by  the
    44  school  authorities  to  the  property owner or his or her agent for the
    45  excessive amount of school taxes paid for that school year.
    46    (c) If the commissioner's determination directs the denial of  a  STAR
    47  exemption  to a property owner, or is otherwise unfavorable to the prop-
    48  erty owner:
    49    (i) The commissioner shall mail the property owner notice  of  his  or
    50  her  determination and an opportunity to be heard thereon.  If the owner
    51  fails to respond to such notice within forty-five days from the  mailing
    52  thereof,  the  commissioner's  determination  shall stand and no further
    53  review shall be available.  If the owner responds to such notice  within
    54  the  forty-five  day  period, the commissioner shall review the response
    55  and any documentation provided in support thereof and shall  notify  the
    56  owner  of  his  or  her  final determination.   If dissatisfied with the

        S. 2509--A                         187                        A. 3009--A

     1  commissioner's final determination, the owner may seek  judicial  review
     2  thereof  pursuant to article seventy-eight of the civil practice law and
     3  rules.  The property owner shall otherwise have no  right  to  challenge
     4  such final determination in a court action, administrative proceeding or
     5  any  other  form of legal recourse against the commissioner, the depart-
     6  ment, the assessor or other person having  custody  or  control  of  the
     7  assessment roll or tax roll regarding such action.
     8    (ii)  Notwithstanding any provision of law to the contrary, neither an
     9  assessor nor a board of assessment review has the authority to  consider
    10  an objection to the denial or reduction of an exemption pursuant to this
    11  subdivision,  nor  may  such  an  action  be reviewed in a proceeding to
    12  review an assessment pursuant to title one or one-A of article seven  of
    13  this  chapter.  Such an action may only be challenged before the depart-
    14  ment in the manner described in this paragraph.
    15    (iii) If a STAR exemption should appear on a property  owner's  school
    16  tax bill despite the fact that the commissioner had determined the prop-
    17  erty  owner  to  be  ineligible  for that exemption, the commissioner is
    18  authorized to recover the amount at issue directly from  the  owners  of
    19  the  property  by  utilizing any of the procedures for collection, levy,
    20  and lien of personal income tax set forth in article twenty-two  of  the
    21  tax  law,  and  any  other  relevant  procedures  referenced  within the
    22  provisions of such article.  When the commissioner implements the deter-
    23  mination in this manner, he or she shall  so  notify  the  assessor  and
    24  county  director  of real property tax services, but no correction shall
    25  be made to the assessment roll or tax roll for that school year, and  no
    26  corrected  school tax bill shall be sent to the taxpayer for that school
    27  year.
    28    § 7. Section 171-u of the tax law, as added by section 2 of part FF of
    29  chapter 57 of the laws of 2010, and subdivision 5 as added by section  7
    30  of  part  N  of  chapter  58  of the laws of 2011, is amended to read as
    31  follows:
    32    § 171-u. Verification of income eligibility for basic STAR  exemption.
    33  (1)  [On  or after August fifteenth of each year, beginning in two thou-
    34  sand ten, the commissioner shall procure a report or reports identifying
    35  all parcels receiving the basic STAR  exemption  authorized  by  section
    36  four  hundred twenty-five of the real property tax law. The commissioner
    37  is authorized to develop procedures necessary to ascertain to  the  best
    38  of his or her ability whether the parcels satisfy the income eligibility
    39  requirements  for such exemption. Such determination shall be based upon
    40  the affiliated income of the parcel for the applicable income tax  year,
    41  as  defined  by  paragraph  (b-1)  of  subdivision three of section four
    42  hundred twenty-five of the real property tax law.
    43    (2) The commissioner shall further develop procedures  by  which  each
    44  assessor  shall be notified of his or her findings, stating in each case
    45  either that the parcel does or does  not  meet  the  income  eligibility
    46  standard  prescribed  by  law,  or  that  the income-eligibility of such
    47  parcel cannot be ascertained, whichever is appropriate. The commissioner
    48  shall provide no other information about the income of any person to  an
    49  assessor.  Such  reports  shall  be  furnished to assessors prior to the
    50  applicable taxable status date or as soon thereafter as is possible.
    51    (3) Upon receiving  such  a  report,  the  assessor  shall  grant  the
    52  exemption  to  those  parcels  which  the  commissioner determined to be
    53  income-eligible (assuming the assessor finds that the  remaining  eligi-
    54  bility  requirements continue to be satisfied), shall deny the exemption
    55  to those which the commissioner determined not  to  be  income-eligible,
    56  and  shall solicit income documentation from the owners of those parcels

        S. 2509--A                         188                        A. 3009--A

     1  as to which the commissioner was unable to make a  determination.  Where
     2  the  assessor denies the exemption based upon the commissioner's report,
     3  a notice of denial shall be mailed  as  provided  by  paragraph  (b)  of
     4  subdivision six of section four hundred twenty-five of the real property
     5  tax  law,  giving  the  findings of such department as a reason for such
     6  denial.
     7    (4) Where a STAR exemption has been  improperly  granted  on  a  final
     8  assessment  roll  to  a property where the affiliated income exceeds the
     9  limitations established by  paragraph  (b-1)  of  subdivision  three  of
    10  section  four  hundred  twenty-five  of  the  real property tax law, the
    11  improperly granted exemption shall be corrected in the  manner  provided
    12  by  subdivision  twelve  of section four hundred twenty-five of the real
    13  property tax law.
    14    (5)] The commissioner shall verify the income eligibility  of  recipi-
    15  ents  of  the  basic  STAR  exemption authorized by section four hundred
    16  twenty-five of the real property tax law in the manner provided therein.
    17    (2)(a) Notwithstanding any provision  of  law  to  the  contrary,  the
    18  commissioner  may  adopt rules prescribing a uniform statewide system of
    19  parcel identification numbers applicable to all  "assessing  units",  as
    20  that term is defined by section one hundred two of the real property tax
    21  law, provided that no such rule shall apply to an assessment roll with a
    22  taxable status date occurring prior to January first, two thousand thir-
    23  teen.
    24    (b)  Notwithstanding the foregoing provisions of this subdivision, the
    25  commissioner may, at his or her discretion, adopt rules that are  appli-
    26  cable  only  to  "special  assessing  units," as that term is defined by
    27  section eighteen hundred  one  of  the  real  property  tax  law,  which
    28  prescribe  an alternative system of parcel identification numbers solely
    29  for such special assessing units.
    30    § 8.  This act shall take effect immediately.

    31                                  SUBPART E

    32    Section 1. Paragraph 2 of subdivision w of section  233  of  the  real
    33  property law is REPEALED.
    34    §  2. Paragraph 3 of subdivision w of section 233 of the real property
    35  law, as amended by section 18 of part B of chapter 389 of  the  laws  of
    36  1997, is amended to read as follows:
    37    3. A manufactured home park owner or operator providing a reduction in
    38  rent  as  required  by  paragraph  one  [or two] of this subdivision may
    39  retain, in consideration for record keeping expenses, two percent of the
    40  amount of such reduction.
    41    § 3. The opening paragraph  of  paragraph  3-a  of  subdivision  w  of
    42  section  233  of  the  real property law, as added by chapter 405 of the
    43  laws of 2001, is amended to read as follows:
    44    Any reduction required to be provided pursuant to  paragraph  one  [or
    45  two] of this subdivision shall be provided as follows:
    46    § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper-
    47  ty  tax  law  is  amended  by  adding a new subparagraph (iv) to read as
    48  follows:
    49    (iv) Beginning with assessment rolls  used  to  levy  school  district
    50  taxes  for the two thousand twenty-two--two thousand twenty-three school
    51  year, no exemption shall be granted pursuant to this section to a mobile
    52  home that is described in this paragraph.  Owners of such  property  may
    53  claim  the  credit authorized by subsection (eee) of section six hundred
    54  six of the tax law in the manner prescribed therein.

        S. 2509--A                         189                        A. 3009--A

     1    § 5. Subparagraph (B) of paragraph 6 of subsection  (eee)  of  section
     2  606  of  the  tax law is amended by adding a new clause (iii) to read as
     3  follows:
     4    (iii)  Beginning  with  the  two  thousand twenty-two taxable year, to
     5  receive the credit authorized by this subsection, an owner of  a  mobile
     6  home  described  by  clause  (i) of this subparagraph shall register for
     7  such credit in the manner prescribed by the commissioner.
     8    § 6. This act shall take effect immediately; provided,  however,  that
     9  the  amendments to subdivision w of section 233 of the real property law
    10  made by sections one, two and three of  this  act  shall  be  applicable
    11  beginning  with  assessment rolls used to levy school district taxes for
    12  the 2022--2023 school year.
    13    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    14  sion, section, item, subpart or part of this act shall  be  adjudged  by
    15  any  court  of competent jurisdiction to be invalid, such judgment shall
    16  not affect, impair, or invalidate the remainder thereof,  but  shall  be
    17  confined  in  its operation to the clause, sentence, paragraph, subdivi-
    18  sion, section, item, subpart or part thereof directly  involved  in  the
    19  controversy in which such judgment shall have been rendered. It is here-
    20  by declared to be the intent of the legislature that this act would have
    21  been enacted even if such invalid provisions had not been included here-
    22  in.
    23    §  3.  This act shall take effect immediately, provided, however, that
    24  the applicable effective date of Subparts A through E of this act  shall
    25  be as specifically set forth in the last section of such Subparts.

    26                                   PART W

    27    Section  1.  Section  200  of the real property tax law, as amended by
    28  section 4-a of part W of chapter 56 of the laws of 2010, is  amended  to
    29  read as follows:
    30    § 200. State board. There is hereby created in the department of taxa-
    31  tion and finance a separate and independent state board of real property
    32  tax  services,  to consist of five members to be appointed by the gover-
    33  nor, by and with the advice and consent of the  senate.  Of  those  five
    34  members  appointed by the governor, one such person shall be an individ-
    35  ual actively engaged in the commercial production for sale  of  agricul-
    36  tural  crops, livestock and livestock products of an average gross sales
    37  value of  ten  thousand  dollars  or  more.  Said  individual  shall  be
    38  appointed in the first instance to a term of eight years upon expiration
    39  of  an  existing term. Said initial term shall commence on the first day
    40  of January next succeeding the year in which  the  existing  term  shall
    41  expire.  The governor shall designate one of the members as the chairman
    42  of the board, who shall serve as chairman at the pleasure of the  gover-
    43  nor.  A majority of the duly appointed members shall constitute a quorum
    44  and not less than a  majority of such members   concurring may  transact
    45  any  business,  perform any duty or exercise any power of the board. The
    46  members of the board shall  be  appointed  for  terms  of  eight  years,
    47  commencing  on the first day of January next following the year in which
    48  the term of his predecessor  expired,  except  that  the  terms  of  the
    49  members  first  appointed shall expire as follows: one on December thir-
    50  ty-first, nineteen hundred  sixty-one,  one  on  December  thirty-first,
    51  nineteen  hundred  sixty-three,  one  on December thirty-first, nineteen
    52  hundred sixty-five,  one  on  December  thirty-first,  nineteen  hundred
    53  sixty-seven,  and one on December thirty-first, nineteen hundred eighty-
    54  two. Vacancies occurring otherwise than by expiration of term  shall  be

        S. 2509--A                         190                        A. 3009--A

     1  filled  for  the  unexpired  term.  All  members shall receive necessary
     2  expenses incurred in the performance of their duties.
     3    § 2. Section 307 of the real property tax law is REPEALED.
     4    §  3.  Subdivision  4  of section 483 of the real property tax law, as
     5  amended by chapter 72 of the laws of 1979  and  as  further  amended  by
     6  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
     7  2010, and as renumbered by chapter 797 of the laws of 1992,  is  amended
     8  to read as follows:
     9    4. Such exemption from taxation shall be granted only upon an applica-
    10  tion  by  the owner of the building or structure on a form prescribed by
    11  the commissioner. The applicant shall furnish such information as  [such
    12  board]  the  commissioner shall require. Such application shall be filed
    13  with the assessor of the city, town, village or county having the  power
    14  to  assess  property  for  taxation on or before the appropriate taxable
    15  status date of such city, town, village or county and  within  one  year
    16  from the date of completion of such construction or reconstruction.
    17    §  4.  Subdivision 3 of section 489-n of the real property tax law, as
    18  added by chapter 86 of the laws of 1963 and as further amended by subdi-
    19  vision (b) of section 1 of part W of chapter 56 of the laws of 2010,  is
    20  amended to read as follows:
    21    3. The commissioner shall meet at the time and place specified in such
    22  notice  to hear complaints in relation to the tentative determination of
    23  the railroad ceiling. The provisions of section five hundred  twelve  of
    24  this chapter shall apply so far as may be practicable to a hearing under
    25  this  section.  Nothing contained in this subdivision shall be construed
    26  to require a hearing to be conducted when no complaints have been filed.
    27    § 5. Subdivision 3 of section 489-kk of the real property tax law,  as
    28  added  by  chapter  920  of  the  laws of 1977 and as further amended by
    29  subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
    30  2010, is amended to read as follows:
    31    3. The commissioner shall meet at the time and place specified in such
    32  notice  to hear complaints in relation to the tentative determination of
    33  the railroad ceiling. The provisions of section five hundred  twelve  of
    34  this chapter shall apply so far as may be practicable to a hearing under
    35  this  section.  Nothing contained in this subdivision shall be construed
    36  to require a hearing to be conducted when no complaints have been filed.
    37    § 6. The real property tax law is amended by adding a new section  497
    38  to read as follows:
    39    §  497.  Construction  of certain local option provisions in exemption
    40  statutes. 1. Population restrictions. When an  exemption  statute  makes
    41  one  or  more options available to municipal corporations having a popu-
    42  lation within a specified range, and the governing body of  a  municipal
    43  corporation  adopts  a local law or resolution exercising such an option
    44  while its population is within the specified range, a subsequent  change
    45  in  the  population  of the municipal corporation that places it outside
    46  the specified range shall not render such local law or resolution  inef-
    47  fective  or  invalid,  nor  shall it impair the ability of the governing
    48  body to amend or repeal such local law or resolution to the same  extent
    49  as  if  its population were still within the specified range.  Provided,
    50  however, that this subdivision shall not apply to any exemption  statute
    51  that  expressly  provides  that a local law or resolution adopted there-
    52  under shall become ineffective or  invalid  if  the  population  of  the
    53  municipal  corporation  subsequently experiences a change that places it
    54  outside the specified range.
    55    2. Filing provisions.  When an exemption statute  makes  one  or  more
    56  options  available  to  some  or all municipal corporations, and further

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     1  provides that a municipal corporation adopting a local law or resolution
     2  exercising such an option shall file a copy thereof  with  one  or  more
     3  state  agencies  other than the department of state, but if such statute
     4  does  not  expressly  provide  that a local law or resolution exercising
     5  such an option shall not take effect until a copy thereof is filed  with
     6  the  specified  state  agency or agencies, then a failure to comply with
     7  such filing provision shall not render  such  local  law  or  resolution
     8  ineffective or invalid.
     9    §  7.  Subdivision 3 of section 499-oooo of the real property tax law,
    10  as added by chapter 475 of the laws of  2013,  is  amended  to  read  as
    11  follows:
    12    3.  The commissioner or his or her designee shall meet at the time and
    13  place specified in such notice set forth  in  subdivision  one  of  this
    14  section to hear complaints in relation to the tentative determination of
    15  the assessment 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    § 8.  Section 612 of the real property tax law, as further amended  by
    20  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
    21  2010, is amended to read as follows:
    22    § 612. Hearing of complaints. The commissioner or  a  duly  authorized
    23  representative thereof shall meet at the time and place specified in the
    24  notice  required  by  section  six hundred eight of this chapter to hear
    25  complaints  in  relation  to  assessments  of  special  franchises.  The
    26  provisions of section five hundred twelve of this chapter shall apply so
    27  far  as  practicable  to  the  hearing  of  complaints  pursuant to this
    28  section.   Nothing contained in  this  section  shall  be  construed  to
    29  require a hearing to be conducted when no complaints have been filed.
    30    § 9.  Section 1208 of the real property tax law, as amended by chapter
    31  385  of  the  laws  of 1990 and as further amended by subdivision (b) of
    32  section 1 of part W of chapter 56 of the laws of  2010,  is  amended  to
    33  read as follows:
    34    §  1208.  Hearing of complaints. The commissioner or a duly authorized
    35  representative thereof shall meet at the time and place specified in the
    36  notice required by section twelve hundred four of this chapter  to  hear
    37  complaints  in  relation  to  equalization  rates, class ratios or class
    38  equalization rates. The provisions of section five  hundred  twenty-five
    39  of  this  chapter  shall  apply so far as practicable to a hearing under
    40  this section.  Nothing contained in this section shall be  construed  to
    41  require a hearing to be conducted when no complaints have been filed.
    42    § 10.  This act shall take effect immediately; provided, however, that
    43  notwithstanding  the  provisions  of subdivision 2 of section 497 of the
    44  real property tax law as added by section six of this act, the  decision
    45  issued by the Appellate Division, Third Department on April 16, 2020, in
    46  the  Matter  of  Laertes  Solar,  LLC v Assessor of the Town of Harford,
    47  cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY  Slip  Op  02302,
    48  motion for leave to appeal dismissed in part and otherwise denied by the
    49  Court  of  Appeals  on  November 19, 2020, shall remain binding upon the
    50  parties thereto; and  provided  further  that  the  amendments  made  to
    51  section  489-oooo  of the real property tax law made by section seven of
    52  this act shall not affect the repeal of such section and shall be deemed
    53  to be repealed therewith.
    54                                   PART X

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     1    Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property
     2  tax law, subdivision 5 as amended by chapter 325 of the  laws  of  2018,
     3  subdivision  7  as  amended by chapter 515 and subdivision 9 as added by
     4  chapter 608 of the laws of 2002, and paragraph (a) of subdivision  9  as
     5  amended  by  chapter  344  of  the  laws of 2014, are amended to read as
     6  follows:
     7    5. The exemption granted pursuant to this section shall only be appli-
     8  cable to (a) solar or wind energy systems or farm waste  energy  systems
     9  which  are  (i)  existing  or  constructed prior to July first, nineteen
    10  hundred eighty-eight or (ii) constructed subsequent  to  January  first,
    11  nineteen  hundred  ninety-one  and  prior to January first, two thousand
    12  [twenty-five] thirty, and (b) micro-hydroelectric energy  systems,  fuel
    13  cell electric generating systems, micro-combined heat and power generat-
    14  ing  equipment  systems,  electric  energy storage equipment or electric
    15  energy storage system, or fuel-flexible linear generator electric gener-
    16  ating system which are constructed  subsequent  to  January  first,  two
    17  thousand eighteen and prior to January first, two thousand [twenty-five]
    18  thirty.
    19    7.  If  the assessor is satisfied that the applicant is entitled to an
    20  exemption pursuant to this section, he or she shall approve the applica-
    21  tion and enter the taxable assessed value of the  parcel  for  which  an
    22  exemption  has  been  granted pursuant to this section on the assessment
    23  roll with the taxable property, with the amount  of  the  exemption  set
    24  forth  in  a  separate column as computed pursuant to subdivision two of
    25  this section in a separate column.  In  the  event  that  real  property
    26  granted an exemption pursuant to this section ceases to be used primari-
    27  ly for eligible purposes, the exemption granted pursuant to this section
    28  shall cease.
    29    9.  (a)  A  county,  city,  town, village or school district, except a
    30  school district under article fifty-two of the education law,  that  has
    31  not  acted  to  remove  the exemption under this section may require the
    32  owner of a property which includes a solar or wind energy  system  which
    33  meets  the  requirements  of  subdivision four of this section, to enter
    34  into a contract for payments in lieu of taxes. Such contract may require
    35  annual payments in an amount not  to  exceed  the  amounts  which  would
    36  otherwise  be  payable  but for the exemption under this section. If the
    37  owner or developer of such a system provides written notification  to  a
    38  taxing  jurisdiction  of  its intent to construct such a system, then in
    39  order to require the owner or developer of such system to enter  into  a
    40  contract  for  payments  in lieu of taxes, such taxing jurisdiction must
    41  notify such owner or developer in writing of its  intent  to  require  a
    42  contract  for  payments  in lieu of taxes within sixty days of receiving
    43  the written notification.  Written notification to a taxing jurisdiction
    44  for this purpose shall include a hard copy letter sent to  the  highest-
    45  ranking official of the taxing jurisdiction. Such letter shall explicit-
    46  ly  reference  subdivision  nine of section four hundred eighty-seven of
    47  the real property tax law, and clearly state  that,  unless  the  taxing
    48  jurisdiction  responds  within  sixty days in writing with its intent to
    49  require a contract for payments in lieu of taxes, such project shall not
    50  be obligated to make such payments.
    51    (b) Notwithstanding paragraph (a) of this subdivision, should a taxing
    52  jurisdiction adopt a law or resolution at any time within  or  prior  to
    53  the  sixty  day  window,  indicating  the  taxing jurisdiction's ongoing
    54  intent to require a contract for payments in  lieu  of  taxes  for  such
    55  systems,  such  law  or  resolution  shall be considered notification to
    56  owners or developers and no further action is required on  the  part  of

        S. 2509--A                         193                        A. 3009--A

     1  the taxing jurisdiction, provided that such law or resolution remains in
     2  effect through the end of the sixty day notification period.
     3    [The] (c) Any payment in lieu of a tax agreement shall not operate for
     4  a  period  of  more than fifteen years, commencing in each instance from
     5  the date on which the benefits of such exemption first become  available
     6  and effective.
     7    §  2.  Subdivision 1 of section 575-a of the real property tax law, as
     8  added by section 1 of subpart F of part J of chapter 59 of the  laws  of
     9  2019, is amended to read as follows:
    10    1.  Every  corporation, company, association, joint stock association,
    11  partnership and person, their lessees, trustees or  receivers  appointed
    12  by  any  court  whatsoever,  owning,  operating or managing any electric
    13  generating facility in the state shall annually file  with  the  commis-
    14  sioner, by April thirtieth, a report showing the inventory, revenue, and
    15  expenses  associated  therewith for the most recent fiscal year, and, in
    16  the case of solar and wind energy systems, such other information as the
    17  commissioner may reasonably require for the development and  maintenance
    18  of  an appraisal model and discount rate as required pursuant to section
    19  575-b of this chapter.   Such report shall be in  the  form  and  manner
    20  prescribed by the commissioner.
    21    §  3.  The  real  property  tax law is amended by adding a new section
    22  575-b to read as follows:
    23    § 575-b. Solar or wind energy systems. 1. The assessed value for solar
    24  or wind energy systems, as defined in section four hundred  eighty-seven
    25  of  this chapter, shall be determined by a discounted cash flow approach
    26  that includes:
    27    (a) An appraisal model identified and published by the New York  state
    28  department  of  taxation  and finance, in consultation with the New York
    29  state energy research and  development  authority,  within  one  hundred
    30  eighty  days  of  the  effective  date of this section, and periodically
    31  thereafter as appropriate; and
    32    (b) A solar or wind energy system discount rate published annually  by
    33  the New York state department of taxation and finance.
    34    2. The reports required by section five hundred seventy-five-a of this
    35  title  shall  be designed to elicit such information as the commissioner
    36  may reasonably  require  for  the  development  and  maintenance  of  an
    37  appraisal model and discount rate.
    38    3.  The  provisions  of this section shall only apply to solar or wind
    39  energy systems with a nameplate capacity equal to or  greater  than  one
    40  megawatt.
    41    §  4.  The  third undesignated paragraph of section 852 of the general
    42  municipal law, as amended by chapter 630 of the laws of 1977, is amended
    43  to read as follows:
    44    It is hereby further declared to  be  the  policy  of  this  state  to
    45  protect  and  promote the health of the inhabitants of this state and to
    46  increase trade  through  promoting  the  development  of  facilities  to
    47  provide recreation for the citizens of the state and to attract tourists
    48  from  other  states  and  to promote the development of renewable energy
    49  projects to support the state's renewable energy goals as may be  estab-
    50  lished or amended from time to time.
    51    §  5.  Subdivision  4  of section 854 of the general municipal law, as
    52  amended by section 6 of part J of chapter 59 of the  laws  of  2013,  is
    53  amended and a new subdivision 21 is added to read as follows:
    54    (4)  "Project"  -  shall mean any land, any building or other improve-
    55  ment, and all real and personal properties located within the  state  of
    56  New York and within or outside or partially within and partially outside

        S. 2509--A                         194                        A. 3009--A

     1  the  municipality  for  whose benefit the agency was created, including,
     2  but not limited to, machinery, equipment  and  other  facilities  deemed
     3  necessary  or  desirable in connection therewith, or incidental thereto,
     4  whether  or  not  now in existence or under construction, which shall be
     5  suitable for manufacturing, warehousing, research, commercial, renewable
     6  energy or industrial purposes or other economically sound purposes iden-
     7  tified and called for to implement a  state  designated  urban  cultural
     8  park management plan as provided in title G of the parks, recreation and
     9  historic  preservation  law  and which may include or mean an industrial
    10  pollution  control  facility,  a  recreation  facility,  educational  or
    11  cultural  facility,  a  horse  racing  facility,  a railroad facility, a
    12  renewable energy project or an  automobile  racing  facility,  provided,
    13  however,  no  agency shall use its funds or provide financial assistance
    14  in respect of any project wholly or partially outside  the  municipality
    15  for whose benefit the agency was created without the prior consent ther-
    16  eto  by  the governing body or bodies of all the other municipalities in
    17  which a part or parts of the project is, or is to be, located, and  such
    18  portion of the project located outside such municipality for whose bene-
    19  fit  the  agency was created shall be contiguous with the portion of the
    20  project inside such municipality.
    21    (21) "Renewable energy project" shall mean any project and  associated
    22  real property on which the project is situated, that utilizes any system
    23  or  equipment  as  set forth in section four hundred eighty-seven of the
    24  real property tax law or as defined pursuant to paragraph b of  subdivi-
    25  sion  one  of  section sixty-six-p of the public service law as added by
    26  chapter one hundred six of the laws of two thousand nineteen.
    27    § 6. The opening paragraph of section 858  of  the  general  municipal
    28  law,  as  amended by chapter 478 of the laws of 2011, is amended to read
    29  as follows:
    30    The purposes of the agency shall be to promote, develop, encourage and
    31  assist in the acquiring, constructing, reconstructing, improving,  main-
    32  taining,  equipping  and furnishing industrial, manufacturing, warehous-
    33  ing, commercial, research, renewable energy  and  recreation  facilities
    34  including   industrial  pollution  control  facilities,  educational  or
    35  cultural facilities, railroad facilities, horse racing facilities, auto-
    36  mobile racing facilities, renewable energy projects and continuing  care
    37  retirement communities, provided, however, that, of agencies governed by
    38  this  article, only agencies created for the benefit of a county and the
    39  agency created for the benefit of the city of New York shall be  author-
    40  ized to provide financial assistance in any respect to a continuing care
    41  retirement community, and thereby advance the job opportunities, health,
    42  general  prosperity  and  economic welfare of the people of the state of
    43  New York and to improve their recreation opportunities,  prosperity  and
    44  standard of living; and to carry out the aforesaid purposes, each agency
    45  shall have the following powers:
    46    §  7.  Paragraph  (b) of subdivision 5 of section 859-a of the general
    47  municipal law, as added by chapter 563 of the laws of 2015,  is  amended
    48  to read as follows:
    49    (b)  a written cost-benefit analysis by the agency that identifies the
    50  extent to which a project  will  create  or  retain  permanent,  private
    51  sector  jobs;  the estimated value of any tax exemptions to be provided;
    52  the amount of private sector investment generated or likely to be gener-
    53  ated by the proposed project; the contribution of  the  project  to  the
    54  state's  renewable  energy  goals  and emission reduction targets as set
    55  forth in the state energy plan adopted pursuant to section 6-104 of  the
    56  energy  law;  the  likelihood of accomplishing the proposed project in a

        S. 2509--A                         195                        A. 3009--A

     1  timely fashion; and the  extent  to  which  the  proposed  project  will
     2  provide  additional  sources  of  revenue  for municipalities and school
     3  districts; and any other public benefits that might occur as a result of
     4  the project;
     5    § 8. This act shall take effect immediately.

     6                                   PART Y

     7    Section  1.  Legislative  intent.  Article 1 Section 9 of the New York
     8  State Constitution was recently amended and provides "casino gambling at
     9  no more than seven facilities as authorized and prescribed by the legis-
    10  lature shall hereafter be authorized or allowed within this  state."  It
    11  is  the  sense of the legislature that this provision is not contravened
    12  by a statute which authorizes the acceptance of a wager by an individual
    13  who is betting by virtual or electronic means; provided  that  it  meets
    14  other  safeguards  ensuring  that  the  plain  text of this provision is
    15  honored in such structure. Sports wagering is now  legal  online  in  14
    16  states,  including  the bordering states of New Jersey and Pennsylvania,
    17  while it is only permitted in person in New York at four upstate commer-
    18  cial gaming facilities and Native American Class III gaming  facilities.
    19  An  industry  study  found that nearly 20 percent of New Jersey's online
    20  sports wagering revenue comes from New York residents, costing the state
    21  millions of dollars in lost tax revenue.
    22    § 2. Section 1367 of the racing, pari-mutuel wagering and breeding law
    23  is amended by adding a new subdivision 7 to read as follows:
    24    7. (a) A licensed gaming facility operating a sports pool pursuant  to
    25  subdivision  three of this section may offer mobile sports wagering when
    26  conducted in conformance with section one thousand three hundred  sixty-
    27  seven-a of this title.
    28    (b)  Notwithstanding  section  one thousand three hundred fifty-one of
    29  this article, mobile sports wagering  revenue  shall  be  excluded  from
    30  gross  gaming revenue and shall be separately maintained and returned to
    31  the state for deposit into the state lottery fund for education aid,  on
    32  a schedule determined by the commission.
    33    §  3.  The racing, pari-mutuel wagering and breeding law is amended by
    34  adding a new section 1367-a to read as follows:
    35    § 1367-a. Mobile sports wagering.   Mobile sports  wagering  shall  be
    36  permitted  by  the  commission  through a platform provider or providers
    37  selected pursuant to a competitive  bidding  process  conducted  by  the
    38  commission.  The  winning  platform  provider or providers shall use the
    39  technology  necessary  to  ensure  all  bettors  are  physically  within
    40  approved  locations within the state and ensure the necessary safeguards
    41  against abuses and addictions are in place. Any such  contracts  entered
    42  by  the commission are subject to applicable state laws, regulations and
    43  practices.
    44    § 4. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering
    45  and breeding law, as added by chapter  174  of  the  laws  of  2013,  is
    46  amended to read as follows:
    47    1.  (a)  For  a gaming facility in zone two, there is hereby imposed a
    48  tax on gross gaming revenues.  The amount of such tax imposed  shall  be
    49  as follows[; provided, however, should a licensee have agreed within its
    50  application  to  supplement  the  tax  with  a  binding supplemental fee
    51  payment exceeding the aforementioned tax rate, such tax and supplemental
    52  fee shall apply for a gaming facility]:

        S. 2509--A                         196                        A. 3009--A

     1    [(a)] (1) in region two, forty-five percent of  gross  gaming  revenue
     2  from  slot  machines  and  ten  percent of gross gaming revenue from all
     3  other sources.
     4    [(b)]  (2)  in region one, thirty-nine percent of gross gaming revenue
     5  from slot machines and ten percent of  gross  gaming  revenue  from  all
     6  other sources.
     7    [(c)] (3) in region five, thirty-seven percent of gross gaming revenue
     8  from  slot  machines  and  ten  percent of gross gaming revenue from all
     9  other sources.
    10    (b) (1) Notwithstanding the rates in paragraph (a)  of  this  subdivi-
    11  sion,  a gaming facility may petition the commission to lower their slot
    12  tax rate to no lower than  twenty-five  percent.  The  commission  shall
    13  evaluate the petition using the following criteria:
    14    (i)  the  ability  of the licensee to satisfy the license criterion of
    15  financial stability absent the tax rate reduction;
    16    (ii) a complete examination of all financial projections, as  well  as
    17  gaming revenues generated for  the prior annual period;
    18    (iii)  the  licensee's  intended use of the funds resulting from a tax
    19  adjustment;
    20    (iv) the inability of the operator to  remain  competitive  under  the
    21  current tax structure;
    22    (v)  positions  advanced  by  other  gaming  operators in the state in
    23  response to the petition;
    24    (vi) the impact on the competitive landscape;
    25    (vii) other economic factors such  as  employment  and  the  potential
    26  impact upon other businesses  in the region; and
    27    (viii) the public interest to be served by a tax adjustment, including
    28  the impact upon the state in  the event the operator is unable to remain
    29  financially viable.
    30    (2)  The  commission shall report their recommendation to the director
    31  of the division of budget who will make a final determination.
    32    § 5. This act shall take effect immediately; provided,  however,  that
    33  section  four  of  this  act  shall  take effect sixty days after mobile
    34  sports wagering commences and shall expire and be  deemed  repealed  one
    35  year after such date.

    36                                   PART Z

    37    Section 1. The gaming commission shall issue a request for information
    38  for  the  purpose  of  soliciting interest regarding the three unawarded
    39  gaming facility licenses authorized  by  the  state  constitution.  Such
    40  request  shall  seek  information  from parties interested in developing
    41  and/or operating such gaming facilities which shall inform  the  commis-
    42  sion  for the purposes of determining: the appropriate size and scope of
    43  development, the value of the gaming facility license, and  the  process
    44  that should be used in award consideration.
    45    § 2. This act shall take effect immediately.

    46                                   PART AA

    47    Section  1.  Paragraph  1  of subdivision a of section 1612 of the tax
    48  law, as amended by chapter 174 of the laws of 2013, is amended  to  read
    49  as follows:
    50    (1) sixty percent of the total amount for which tickets have been sold
    51  for  [a  lawful lottery] the Quick Draw game [introduced on or after the
    52  effective date of this paragraph,] subject to [the following provisions:

        S. 2509--A                         197                        A. 3009--A

     1    (A) such game shall be available only on premises occupied by licensed
     2  lottery sales agents, subject to the following provisions:
     3    (i)  if  the  licensee  does not hold a license issued pursuant to the
     4  alcoholic beverage control law to sell alcoholic beverages for  consump-
     5  tion  on  the  premises,  then  the  premises must have a minimum square
     6  footage greater than two thousand five hundred square feet;
     7    (ii) notwithstanding the foregoing  provisions,  television  equipment
     8  that  automatically  displays  the  results  of  such  drawings  may  be
     9  installed and used without regard to the square footage if such premises
    10  are used as:
    11    (I) a commercial bowling establishment, or
    12    (II) a facility authorized under the racing, pari-mutuel wagering  and
    13  breeding law to accept pari-mutuel wagers;
    14    (B) the] rules for the operation of such game [shall be] as prescribed
    15  by regulations promulgated and adopted by the [division, provided howev-
    16  er,  that such rules shall provide that no person under the age of twen-
    17  ty-one may participate in such games on the premises of a  licensee  who
    18  holds a license issued pursuant to the alcoholic beverage control law to
    19  sell alcoholic beverages for consumption on the premises; and, provided,
    20  further,  that such regulations may be revised on an emergency basis not
    21  later than ninety days after the enactment of this paragraph in order to
    22  conform such regulations to the requirements of this paragraph]  commis-
    23  sion; or
    24    § 2. This act shall take effect immediately.

    25                                   PART BB

    26    Section  1. Paragraphs 4 and 5 of subdivision a of section 1612 of the
    27  tax law, as amended by chapter 174 of the laws of 2013, are  amended  to
    28  read as follows:
    29    (4) fifty percent of the total amount for which tickets have been sold
    30  for  games  known  as: (A) the "Daily Numbers Game" or "Win 4", discrete
    31  games in which the participants select no more than  three  or  four  of
    32  their  own  numbers  to  match  with  three or four numbers drawn by the
    33  [division] commission for purposes of determining winners of such games,
    34  (B) "Pick 10", [offered no more than once daily,] in which  participants
    35  select  from  a  specified  field  of numbers a subset of ten numbers to
    36  match against a subset of numbers to be drawn by the [division]  commis-
    37  sion  from  such field of numbers for the purpose of determining winners
    38  of such game, (C) "Take 5", [offered no more than once daily,] in  which
    39  participants  select  from a specified field of numbers a subset of five
    40  numbers to match against a subset of five numbers to  be  drawn  by  the
    41  [division]  commission from such field of numbers for purposes of deter-
    42  mining winners of such game; or
    43    (5) forty percent of the total amount for which tickets have been sold
    44  for: (A) "Lotto", [offered no more than once daily,] a discrete game  in
    45  which  all  participants  select a specific subset of numbers to match a
    46  specific subset of numbers,  as  prescribed  by  rules  and  regulations
    47  promulgated  and  adopted  by  the  [division] commission, from a larger
    48  specific field of numbers, as also prescribed by such  rules  and  regu-
    49  lations  and  (B)  with the exception of the game described in paragraph
    50  one of this subdivision, such other state-operated lottery games [which]
    51  that the [division] commission may introduce, [offered no more than once
    52  daily,] commencing on or after forty-five days  following  the  official
    53  publication of the rules and regulations for such game.
    54    § 2. This act shall take effect immediately.

        S. 2509--A                         198                        A. 3009--A

     1                                   PART CC

     2    Section  1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu-
     3  tuel wagering and breeding law are renumbered sections 130, 131, 132 and
     4  133.
     5    § 2. Title 9 of article 13 of the  racing,  pari-mutuel  wagering  and
     6  breeding law is REPEALED.
     7    § 3. Section 130 of the racing, pari-mutuel wagering and breeding law,
     8  as added by chapter 174 of the laws of 2013 and as renumbered by section
     9  one of this act, is amended to read as follows:
    10    §  130. [Establishment of the] The office of gaming inspector general.
    11  [There is hereby created within the  commission  the  office  of  gaming
    12  inspector  general. The head of the office shall be the gaming inspector
    13  general who shall be appointed by the governor by and  with  the  advice
    14  and  consent  of  the  senate.  The inspector general shall serve at the
    15  pleasure of the governor. The inspector general shall report directly to
    16  the governor. The person appointed as inspector general shall, upon  his
    17  or her appointment, have not less than ten years professional experience
    18  in  law,  investigation,  or  auditing.  The  inspector general shall be
    19  compensated within the limits of  funds  available  therefor,  provided,
    20  however, such salary shall be no less than the salaries of certain state
    21  officers holding the positions indicated in paragraph (a) of subdivision
    22  one  of section one hundred sixty-nine of the executive law.] The duties
    23  and responsibilities of the former office of the gaming inspector gener-
    24  al are transferred to and encompassed by the office of the state inspec-
    25  tor general as expressly referenced in article four-A of  the  executive
    26  law.
    27    § 4. Section 131 of the racing, pari-mutuel wagering and breeding law,
    28  as added by chapter 174 of the laws of 2013 and as renumbered by section
    29  one of this act, is amended to read as follows:
    30    §  131. [State gaming] Gaming inspector general; functions and duties.
    31  The [state] gaming inspector general shall have the following duties and
    32  responsibilities:
    33    1. receive and investigate complaints from any source, or upon his  or
    34  her  own initiative, concerning allegations of corruption, fraud, crimi-
    35  nal activity, conflicts of interest or abuse in the commission;
    36    2. [inform the commission members of such allegations and the progress
    37  of investigations related thereto, unless special circumstances  require
    38  confidentiality;
    39    3.]  determine  with  respect to such allegations whether disciplinary
    40  action, civil or criminal prosecution, or further  investigation  by  an
    41  appropriate  federal,  state or local agency is warranted, and to assist
    42  in such investigations;
    43    [4.] 3. prepare and release to the  public  written  reports  of  such
    44  investigations,  as  appropriate  and  to  the  extent permitted by law,
    45  subject to redaction to protect the confidentiality  of  witnesses.  The
    46  release  of  all  or portions of such reports may be deferred to protect
    47  the confidentiality of ongoing investigations;
    48    [5.] 4. review and examine periodically the policies and procedures of
    49  the  commission  with  regard  to  the  prevention  and   detection   of
    50  corruption, fraud, criminal activity, conflicts of interest or abuse;
    51    [6.]  5. recommend remedial action to prevent or eliminate corruption,
    52  fraud, criminal activity, conflicts of interest or abuse in the  commis-
    53  sion; and
    54    [7.]  6.  establish  programs  for  training  commission  officers and
    55  employees [regarding] in regard to the  prevention  and  elimination  of

        S. 2509--A                         199                        A. 3009--A

     1  corruption,  fraud, criminal activity, conflicts of interest or abuse in
     2  the commission.
     3    § 5. Section 132 of the racing, pari-mutuel wagering and breeding law,
     4  as added by chapter 174 of the laws of 2013 and as renumbered by section
     5  one of this act, is amended to read as follows:
     6    §  132.  Powers.  The  [state] gaming inspector general shall have the
     7  power to:
     8    1. subpoena and enforce the attendance of witnesses;
     9    2. administer oaths or affirmations and examine witnesses under oath;
    10    3. require the production of any books and papers deemed  relevant  or
    11  material to any investigation, examination or review;
    12    4. notwithstanding any law to the contrary, examine and copy or remove
    13  documents  or  records  of  any kind prepared, maintained or held by the
    14  commission;
    15    5. require any commission officer  or  employee  to  answer  questions
    16  concerning  any matter related to the performance of his or her official
    17  duties. No statement or other evidence derived  therefrom  may  be  used
    18  against  such officer or employee in any subsequent criminal prosecution
    19  other than for perjury or contempt  arising  from  such  testimony.  The
    20  refusal  of  any  officer or employee to answer questions shall be cause
    21  for removal from office or employment or other appropriate penalty;
    22    6. monitor the implementation by the commission of any recommendations
    23  made by the state inspector general; and
    24    7. perform any other functions that are necessary  or  appropriate  to
    25  fulfill the duties and responsibilities of the office.
    26    § 6. Section 133 of the racing, pari-mutuel wagering and breeding law,
    27  as added by chapter 174 of the laws of 2013 and as renumbered by section
    28  one of this act, is amended to read as follows:
    29    § 133. Responsibilities of the commission and its officers and employ-
    30  ees.  1.  Every  commission officer or employee shall report promptly to
    31  the  [state]  gaming  inspector  general  any   information   concerning
    32  corruption,  fraud, criminal activity, conflicts of interest or abuse by
    33  another state officer or employee relating  to  his  or  her  office  or
    34  employment,  or by a person having business dealings with the commission
    35  relating to those dealings.  The  knowing  failure  of  any  officer  or
    36  employee  to so report shall be cause for removal from office or employ-
    37  ment or other appropriate penalty under this  article.  Any  officer  or
    38  employee  who  acts  pursuant  to  this  subdivision by reporting to the
    39  [state] gaming inspector general or other  appropriate  law  enforcement
    40  official  improper  governmental  action  as defined in section seventy-
    41  five-b of the civil service law  shall  not  be  subject  to  dismissal,
    42  discipline or other adverse personnel action.
    43    2.  The  commission chair shall advise the governor within ninety days
    44  of the issuance of a report by the [state] gaming inspector  general  as
    45  to  the remedial action that the commission has taken in response to any
    46  recommendation for such action contained in such report.
    47    § 7. The racing, pari-mutuel wagering and breeding law is  amended  by
    48  adding a new section 134 to read as follows:
    49    §  134.   Transfer   of   employees.   Upon the transfer of functions,
    50  powers, duties and  obligations  to  the  office of the state  inspector
    51  general  pursuant   to   this  article,  provision shall be made for the
    52  transfer of all gaming  inspector  general  employees  from  within  the
    53  gaming  commission  into    the   office of the state inspector general.
    54  Employees so  transferred  shall be transferred   without further  exam-
    55  ination  or qualification   to   the   same  or  similar  titles,  shall
    56  remain in the same collective bargaining units and shall   retain  their

        S. 2509--A                         200                        A. 3009--A

     1  respective civil service classifications, status and rights  pursuant to
     2  their  collective  bargaining  units and collective   bargaining  agree-
     3  ments.
     4    §  8.  The racing, pari-mutuel wagering and breeding law is amended by
     5  adding a new section 135 to read as follows:
     6    § 135. Transfer of records. All books, papers, records and property of
     7  the  gaming inspector general within the gaming commission with  respect
     8  to  the  functions, powers,   duties   and   obligations  transferred by
     9  section one hundred thirty of this article, are  to be delivered to  the
    10  appropriate  successor  offices within the office of the state inspector
    11  general, at such  place  and  time, and in such manner as the office  of
    12  the state inspector general may require.
    13    §  9.  This  act  shall take effect on the sixtieth day after it shall
    14  have become a law.

    15                                   PART DD

    16    Section 1. Paragraph (a) of subdivision  1  of  section  1003  of  the
    17  racing,  pari-mutuel  wagering and breeding law, as amended by section 1
    18  of part Z of chapter 59 of the laws of  2020,  is  amended  to  read  as
    19  follows:
    20    (a)  Any  racing  association  or  corporation  or  regional off-track
    21  betting corporation, authorized to conduct  pari-mutuel  wagering  under
    22  this  chapter, desiring to display the simulcast of horse races on which
    23  pari-mutuel betting shall be permitted in the manner and subject to  the
    24  conditions  provided for in this article may apply to the commission for
    25  a license so to do. Applications for licenses shall be in such  form  as
    26  may  be  prescribed by the commission and shall contain such information
    27  or other material or evidence as the commission may require. No  license
    28  shall be issued by the commission authorizing the simulcast transmission
    29  of  thoroughbred  races  from a track located in Suffolk county. The fee
    30  for such licenses shall be five hundred dollars per  simulcast  facility
    31  and  for  account wagering licensees that do not operate either a simul-
    32  cast facility that is open to the public within the state of New York or
    33  a licensed racetrack within the state, twenty thousand dollars per  year
    34  payable  by  the licensee to the commission for deposit into the general
    35  fund. Except as provided in  this  section,  the  commission  shall  not
    36  approve any application to conduct simulcasting into individual or group
    37  residences,  homes  or  other areas for the purposes of or in connection
    38  with pari-mutuel wagering. The commission may approve simulcasting  into
    39  residences,  homes or other areas to be conducted jointly by one or more
    40  regional off-track betting corporations and one or more of  the  follow-
    41  ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
    42  harness racing corporation or association; provided (i) the simulcasting
    43  consists only of those races on which pari-mutuel betting is  authorized
    44  by  this  chapter  at  one  or more simulcast facilities for each of the
    45  contracting off-track betting corporations which  shall  include  wagers
    46  made  in  accordance  with  section  one  thousand fifteen, one thousand
    47  sixteen and one thousand seventeen of  this  article;  provided  further
    48  that  the  contract  provisions or other simulcast arrangements for such
    49  simulcast facility shall be no less favorable than those  in  effect  on
    50  January  first,  two  thousand  five;  (ii)  that each off-track betting
    51  corporation having within its  geographic  boundaries  such  residences,
    52  homes  or  other  areas  technically  capable of receiving the simulcast
    53  signal shall be a contracting party; (iii) the distribution of  revenues
    54  shall  be  subject  to  contractual agreement of the parties except that

        S. 2509--A                         201                        A. 3009--A

     1  statutory payments to  non-contracting  parties,  if  any,  may  not  be
     2  reduced;  provided,  however,  that nothing herein to the contrary shall
     3  prevent a track from televising its races on an irregular basis primari-
     4  ly for promotional or marketing purposes as found by the commission. For
     5  purposes of this paragraph, the provisions of section one thousand thir-
     6  teen  of  this  article  shall  not  apply. Any agreement authorizing an
     7  in-home simulcasting experiment commencing prior to May fifteenth, nine-
     8  teen hundred ninety-five, may, and all its terms, be extended until June
     9  thirtieth, two thousand [twenty-one] twenty-two; provided, however, that
    10  any party to such agreement may elect to terminate such  agreement  upon
    11  conveying written notice to all other parties of such agreement at least
    12  forty-five  days  prior  to  the  effective date of the termination, via
    13  registered mail. Any party to an agreement receiving such notice  of  an
    14  intent  to  terminate, may request the commission to mediate between the
    15  parties new terms and conditions in a replacement agreement between  the
    16  parties  as will permit continuation of an in-home experiment until June
    17  thirtieth, two thousand [twenty-one] twenty-two;  and  (iv)  no  in-home
    18  simulcasting  in  the  thoroughbred special betting district shall occur
    19  without the approval of the regional thoroughbred track.
    20    § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
    21  1007 of the racing, pari-mutuel wagering and breeding law, as separately
    22  amended by chapter 243 and section 2 of part Z of chapter 59 of the laws
    23  of 2020, is amended to read as follows:
    24    (iii) Of the sums retained by a receiving track located in Westchester
    25  county  on  races received from a franchised corporation, for the period
    26  commencing January first, two thousand eight and continuing through June
    27  thirtieth, two thousand [twenty-one] twenty-two, the amount used  exclu-
    28  sively  for  purses  to  be awarded at races conducted by such receiving
    29  track shall be computed as follows: of the sums  so  retained,  two  and
    30  one-half  percent  of the total pools. Such amount shall be increased or
    31  decreased in the amount of fifty percent  of  the  difference  in  total
    32  commissions  determined  by  comparing  the  total commissions available
    33  after July twenty-first,  nineteen  hundred  ninety-five  to  the  total
    34  commissions  that  would have been available to such track prior to July
    35  twenty-first, nineteen hundred ninety-five.
    36    § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
    37  racing,  pari-mutuel wagering and breeding law, as separately amended by
    38  section 3 of part Z of chapter 59 and chapter 243 of the laws  of  2020,
    39  is amended to read as follows:
    40    The  provisions of this section shall govern the simulcasting of races
    41  conducted at thoroughbred tracks located in another state or country  on
    42  any day during which a franchised corporation is conducting a race meet-
    43  ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
    44  thirtieth, two thousand [twenty-one] twenty-two and on any  day  regard-
    45  less  of  whether  or  not a franchised corporation is conducting a race
    46  meeting in Saratoga county at Saratoga thoroughbred racetrack after June
    47  thirtieth, two thousand [twenty-one] twenty-two. On any day on  which  a
    48  franchised  corporation  has  not  scheduled  a  racing  program  but  a
    49  thoroughbred racing corporation located within the state  is  conducting
    50  racing, each off-track betting corporation branch office and each simul-
    51  casting  facility licensed in accordance with section one thousand seven
    52  (that has entered into a written agreement with such  facility's  repre-
    53  sentative  horsemen's  organization, as approved by the commission), one
    54  thousand eight, or one thousand nine of this article shall be authorized
    55  to accept wagers and display the live simulcast signal from thoroughbred

        S. 2509--A                         202                        A. 3009--A

     1  tracks located in another  state  or  foreign  country  subject  to  the
     2  following provisions:
     3    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
     4  and breeding law, as amended by section 4 of part Z of chapter 59 of the
     5  laws of 2020, is amended to read as follows:
     6    1.  The  provisions  of  this section shall govern the simulcasting of
     7  races conducted at harness tracks located in another  state  or  country
     8  during  the period July first, nineteen hundred ninety-four through June
     9  thirtieth, two thousand [twenty-one] twenty-two.    This  section  shall
    10  supersede all inconsistent provisions of this chapter.
    11    §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
    12  racing, pari-mutuel wagering and breeding law, as amended by  section  5
    13  of  part  Z  of  chapter  59  of the laws of 2020, is amended to read as
    14  follows:
    15    The provisions of this section shall govern the simulcasting of  races
    16  conducted  at thoroughbred tracks located in another state or country on
    17  any day during which a franchised corporation is not conducting  a  race
    18  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
    19  thirtieth,  two  thousand  [twenty-one]  twenty-two.    Every  off-track
    20  betting  corporation  branch  office  and  every  simulcasting  facility
    21  licensed in accordance with section one thousand seven that have entered
    22  into  a written agreement with such facility's representative horsemen's
    23  organization as approved by the commission, one thousand  eight  or  one
    24  thousand  nine  of this article shall be authorized to accept wagers and
    25  display the live  full-card  simulcast  signal  of  thoroughbred  tracks
    26  (which  may  include  quarter  horse or mixed meetings provided that all
    27  such wagering on such races shall be construed to be thoroughbred races)
    28  located in another state or foreign country, subject  to  the  following
    29  provisions;  provided,  however,  no  such  written  agreement  shall be
    30  required of a franchised corporation licensed in accordance with section
    31  one thousand seven of this article:
    32    § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
    33  wagering  and breeding law, as amended by section 6 of part Z of chapter
    34  59 of the laws of 2020, is amended to read as follows:
    35    Notwithstanding any other provision of this chapter,  for  the  period
    36  July  twenty-fifth, two thousand one through September eighth, two thou-
    37  sand [twenty] twenty-one, when a franchised corporation is conducting  a
    38  race  meeting  within the state at Saratoga Race Course, every off-track
    39  betting  corporation  branch  office  and  every  simulcasting  facility
    40  licensed in accordance with section one thousand seven (that has entered
    41  into  a written agreement with such facility's representative horsemen's
    42  organization as approved by the commission), one thousand eight  or  one
    43  thousand  nine  of this article shall be authorized to accept wagers and
    44  display the live simulcast signal from thoroughbred  tracks  located  in
    45  another  state, provided that such facility shall accept wagers on races
    46  run at all in-state thoroughbred  tracks  which  are  conducting  racing
    47  programs subject to the following provisions; provided, however, no such
    48  written agreement shall be required of a franchised corporation licensed
    49  in accordance with section one thousand seven of this article.
    50    §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
    51  racing, pari-mutuel wagering and breeding law and other laws relating to
    52  simulcasting, as amended by section 7 of part Z of  chapter  59  of  the
    53  laws of 2020, is amended to read as follows:
    54    §  32.  This act shall take effect immediately and the pari-mutuel tax
    55  reductions in section six  of  this  act  shall  expire  and  be  deemed
    56  repealed  on  July  1,  [2021]  2022;  provided,  however,  that nothing

        S. 2509--A                         203                        A. 3009--A

     1  contained herein shall be deemed to affect the  application,  qualifica-
     2  tion,  expiration,  or  repeal  of  any  provision of law amended by any
     3  section of this act, and such provisions shall be applied  or  qualified
     4  or  shall  expire  or be deemed repealed in the same manner, to the same
     5  extent and on the same date as the case may be as otherwise provided  by
     6  law;  provided  further, however, that sections twenty-three and twenty-
     7  five of this act shall remain in full force and effect only until May 1,
     8  1997 and at such time shall be deemed to be repealed.
     9    § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
    10  racing, pari-mutuel wagering and breeding law and other laws relating to
    11  simulcasting  and the imposition of certain taxes, as amended by section
    12  8 of part Z of chapter 59 of the laws of 2020, is  amended  to  read  as
    13  follows:
    14    §  54.  This  act  shall  take  effect immediately; provided, however,
    15  sections three through twelve of this act shall take effect  on  January
    16  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
    17  ing  law, as added by section thirty-eight of this act, shall expire and
    18  be deemed repealed on July 1, [2021] 2022; and section eighteen of  this
    19  act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
    20  two of this act shall take effect as of the same date as chapter 772  of
    21  the laws of 1989 took effect.
    22    §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
    23  pari-mutuel wagering and breeding law, as separately amended by  section
    24  9  of  part  Z  of  chapter  59  and chapter 243 of the laws of 2020, is
    25  amended to read as follows:
    26    (a) The  franchised  corporation  authorized  under  this  chapter  to
    27  conduct pari-mutuel betting at a race meeting or races run thereat shall
    28  distribute  all sums deposited in any pari-mutuel pool to the holders of
    29  winning tickets therein, provided such tickets are presented for payment
    30  before April first of the year following the  year  of  their  purchase,
    31  less an amount that shall be established and retained by such franchised
    32  corporation of between twelve to seventeen percent of the total deposits
    33  in  pools  resulting from on-track regular bets, and fourteen to twenty-
    34  one percent of the total  deposits  in  pools  resulting  from  on-track
    35  multiple  bets  and fifteen to twenty-five percent of the total deposits
    36  in pools resulting from on-track exotic bets and fifteen  to  thirty-six
    37  percent  of  the  total  deposits in pools resulting from on-track super
    38  exotic bets, plus the breaks. The retention rate to  be  established  is
    39  subject to the prior approval of the commission.
    40    Such rate may not be changed more than once per calendar quarter to be
    41  effective  on  the  first day of the calendar quarter. "Exotic bets" and
    42  "multiple bets" shall have  the  meanings  set  forth  in  section  five
    43  hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
    44  meaning set forth in section three hundred  one  of  this  chapter.  For
    45  purposes  of  this  section, a "pick six bet" shall mean a single bet or
    46  wager on the outcomes of six races. The breaks are hereby defined as the
    47  odd cents over any multiple of five for payoffs greater than one  dollar
    48  five  cents  but  less  than  five dollars, over any multiple of ten for
    49  payoffs greater than five dollars but  less  than  twenty-five  dollars,
    50  over  any  multiple  of twenty-five for payoffs greater than twenty-five
    51  dollars but less than two hundred fifty dollars, or over any multiple of
    52  fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
    53  retained  there  shall  be  paid  by  such franchised corporation to the
    54  commissioner of taxation and finance, as a reasonable tax by  the  state
    55  for  the privilege of conducting pari-mutuel betting on the races run at
    56  the race meetings held by such  franchised  corporation,  the  following

        S. 2509--A                         204                        A. 3009--A

     1  percentages of the total pool for regular and multiple bets five percent
     2  of regular bets and four percent of multiple bets plus twenty percent of
     3  the  breaks;  for  exotic  wagers seven and one-half percent plus twenty
     4  percent  of  the  breaks,  and  for super exotic bets seven and one-half
     5  percent plus fifty percent of the breaks.
     6    For the period April first, two thousand one through December  thirty-
     7  first,  two  thousand  [twenty-one]  twenty-two,  such tax on all wagers
     8  shall be one and six-tenths percent, plus, in each such  period,  twenty
     9  percent of the breaks. Payment to the New York state thoroughbred breed-
    10  ing  and  development  fund by such franchised corporation shall be one-
    11  half of one percent of total daily on-track pari-mutuel pools  resulting
    12  from regular, multiple and exotic bets and three percent of super exotic
    13  bets  and  for the period April first, two thousand one through December
    14  thirty-first, two thousand [twenty-one] twenty-two, such  payment  shall
    15  be seven-tenths of one percent of regular, multiple and exotic pools.
    16    § 10. This act shall take effect immediately.

    17                                   PART EE

    18    Section  1.  Section 19 of part W-1 of chapter 109 of the laws of 2006
    19  amending the tax law and other laws relating  to  providing  exemptions,
    20  reimbursements  and  credits  from various taxes for certain alternative
    21  fuels, as amended by section 1 of part U of chapter 60 of  the  laws  of
    22  2016, is amended to read as follows:
    23    §  19. This act shall take effect immediately; provided, however, that
    24  sections one through thirteen of this act shall take effect September 1,
    25  2006 and shall be deemed repealed on September 1, [2021] 2026  and  such
    26  repeal  shall  apply  in  accordance  with  the  applicable transitional
    27  provisions of sections 1106 and 1217 of the tax law, and shall apply  to
    28  sales  made,  fuel  compounded or manufactured, and uses occurring on or
    29  after such date, and with respect to sections seven  through  eleven  of
    30  this  act,  in  accordance  with  applicable  transitional provisions of
    31  sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
    32  commissioner  of  taxation  and finance shall be authorized on and after
    33  the date this act shall have become a law to adopt and amend  any  rules
    34  or  regulations  and  to  take  any  steps  necessary  to  implement the
    35  provisions of this act; provided further that sections fourteen  through
    36  sixteen  of  this  act  shall take effect immediately and shall apply to
    37  taxable years beginning on or after January 1, 2006.
    38    § 2. This act shall take effect immediately.

    39                                   PART FF

    40    Section 1. Subsection (e) of section 42 of the tax law,  as  added  by
    41  section  1  of  part RR of chapter 60 of the laws of 2016, is amended to
    42  read as follows:
    43    (e) For taxable years beginning on or after January first,  two  thou-
    44  sand  seventeen  and  before  January  first, two thousand eighteen, the
    45  amount of the credit allowed under this section shall be  equal  to  the
    46  product  of  the total number of eligible farm employees and two hundred
    47  fifty dollars. For taxable years beginning on or  after  January  first,
    48  two  thousand  eighteen and before January first, two thousand nineteen,
    49  the amount of the credit allowed under this section shall  be  equal  to
    50  the  product  of  the  total number of eligible farm employees and three
    51  hundred dollars. For taxable years beginning on or after January  first,
    52  two thousand nineteen and before January first, two thousand twenty, the

        S. 2509--A                         205                        A. 3009--A

     1  amount  of  the  credit allowed under this section shall be equal to the
     2  product of the total number of eligible farm employees and five  hundred
     3  dollars.  For  taxable  years  beginning  on or after January first, two
     4  thousand  twenty  and before January first, two thousand twenty-one, the
     5  amount of the credit allowed under this section shall be  equal  to  the
     6  product  of the total number of eligible farm employees and four hundred
     7  dollars. For taxable years beginning on  or  after  January  first,  two
     8  thousand  twenty-one and before January first, two thousand [twenty-two]
     9  twenty-five, the amount of the credit allowed under this  section  shall
    10  be  equal  to the product of the total number of eligible farm employees
    11  and six hundred dollars.
    12    § 2. Section 5 of part RR of chapter 60 of the laws of  2016  amending
    13  the  tax  law  relating to creating a farm workforce retention credit is
    14  amended to read as follows:
    15    § 5. This act shall take effect immediately and shall  apply  only  to
    16  taxable  years  beginning on or after January 1, 2017 and before January
    17  1, [2022] 2025.
    18    § 3. This act shall take effect immediately.

    19                                   PART GG

    20    Section 1. Subdivision 4 of section 22 of the public housing  law,  as
    21  amended  by  section  5  of part H of chapter 60 of the laws of 2016, is
    22  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 [four]  twelve  million  dollars.  The
    26  limitation  provided  by  this subdivision applies only to allocation of
    27  the aggregate dollar amount of credit by the commissioner, and does  not
    28  apply to allowance to a taxpayer of the credit with respect to an eligi-
    29  ble low-income building for each year of the credit period.
    30    § 2. Subdivision 4 of section 22 of the public housing law, as amended
    31  by section one 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 [twelve] twenty million dollars. The
    35  limitation provided by this subdivision applies only  to  allocation  of
    36  the  aggregate dollar amount of credit by the commissioner, and does not
    37  apply to allowance to a taxpayer of the credit with respect to an eligi-
    38  ble low-income building for each year of the credit period.
    39    § 3. Subdivision 4 of section 22 of the public housing law, as amended
    40  by section two 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 [twenty] twenty-eight million dollars.
    44  The limitation provided by this subdivision applies only  to  allocation
    45  of  the  aggregate dollar amount of credit by the commissioner, and does
    46  not apply to allowance to a taxpayer of the credit with  respect  to  an
    47  eligible low-income building for each year of the credit period.
    48    § 4. Subdivision 4 of section 22 of the public housing law, as amended
    49  by section three of this act, is amended to read as follows:
    50    4.  Statewide  limitation. The aggregate dollar amount of credit which
    51  the commissioner may allocate to  eligible  low-income  buildings  under
    52  this  article  shall  be  one  hundred [twenty-eight] thirty-six million
    53  dollars. The limitation provided by this  subdivision  applies  only  to
    54  allocation of the aggregate dollar amount of credit by the commissioner,

        S. 2509--A                         206                        A. 3009--A

     1  and does not apply to allowance to a taxpayer of the credit with respect
     2  to an eligible low-income building for each year of the credit period.
     3    § 5. Subdivision 4 of section 22 of the public housing law, as amended
     4  by section four of this act, is 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  [thirty-six]  forty-four million
     8  dollars. The limitation provided by this  subdivision  applies  only  to
     9  allocation of the aggregate dollar amount of credit by the commissioner,
    10  and does not apply to allowance to a taxpayer of the credit with respect
    11  to an eligible low-income building for each year of the credit period.
    12    §  6.  This  act  shall  take  effect  immediately; provided, however,
    13  section two of this act shall take effect April 1, 2022;  section  three
    14  of  this  act  shall take effect April 1, 2023; section four of this act
    15  shall take effect April 1, 2024; and section five of this act shall take
    16  effect April 1, 2025.

    17                                   PART HH

    18    Section 1. Section 5 of part HH of chapter 59 of  the  laws  of  2014,
    19  amending  the  tax  law  relating to a musical and theatrical production
    20  credit, as amended by section 1 of part III of chapter 59 of the laws of
    21  2018, is amended to read as follows:
    22    § 5. This act shall take effect immediately, provided that section two
    23  of this act shall take effect on January 1, 2015,  and  shall  apply  to
    24  taxable  years  beginning  on  or after January 1, 2015, with respect to
    25  "qualified production expenditures"  and  "transportation  expenditures"
    26  paid  or incurred on or after such effective date, regardless of whether
    27  the  production  of  the  qualified  musical  or  theatrical  production
    28  commenced  before such date, provided further that this act shall expire
    29  and be deemed repealed [8 years after such date] January 1, 2026.
    30    § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as
    31  added by section 1 of part HH of chapter 59 of  the  laws  of  2014,  is
    32  amended to read as follows:
    33    (1)  The  aggregate  amount of tax credits allowed under this section,
    34  subdivision forty-seven of section two hundred ten-B and subsection  (u)
    35  of section six hundred six of this chapter in any calendar year shall be
    36  [four]  eight million dollars. Such aggregate amount of credits shall be
    37  allocated by the department of economic development among  taxpayers  in
    38  order of priority based upon the date of filing an application for allo-
    39  cation of musical and theatrical production credit with such department.
    40  If  the  total amount of allocated credits applied for in any particular
    41  year exceeds the aggregate amount of tax credits allowed for  such  year
    42  under  this section, such excess shall be treated as having been applied
    43  for on the first day of the subsequent year.
    44    § 3. This act shall take effect immediately, provided,  however,  that
    45  the  amendments  to  section  24-a of the tax law made by section two of
    46  this act shall not affect the expiration and repeal of such section  and
    47  shall be deemed to expire and repeal therewith.

    48                                   PART II

    49    Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi-
    50  vision  29  of  section 210-B of the tax law, as amended by section 1 of
    51  part B of chapter 59 of the  laws  of  2020,  are  amended  to  read  as
    52  follows:

        S. 2509--A                         207                        A. 3009--A

     1    (a) 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 subdivision, against the tax imposed by
     5  this  article,  for hiring and employing, for not less than one year and
     6  for not less than thirty-five hours each week, a qualified veteran with-
     7  in the state.  The taxpayer may claim the credit in the  year  in  which
     8  the  qualified veteran completes one year of employment by the taxpayer.
     9  If the taxpayer claims the credit allowed under  this  subdivision,  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    (2) 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    § 2. Paragraph 1 and subparagraph (B) of  paragraph  2  of  subsection
    17  (a-2)  of  section 606 of the tax law, as amended by section 2 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 subsection, against the tax imposed by this
    23  article, for hiring and employing, for not less than one  year  and  for
    24  not  less  than  thirty-five hours each week, a qualified veteran within
    25  the state.  The taxpayer may claim the credit in the year in  which  the
    26  qualified  veteran  completes one year of employment by the taxpayer. If
    27  the taxpayer claims  the  credit  allowed  under  this  subsection,  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    § 3. Paragraph 1 and subparagraph (B) of paragraph  2  of  subdivision
    35  (g-1)  of section 1511 of the tax law, as amended by section 3 of part B
    36  of chapter 59 of the laws of 2020, are amended to read as follows:
    37    (1) Allowance of credit. For taxable years beginning on or after Janu-
    38  ary first, two thousand fifteen and before January first,  two  thousand
    39  [twenty-two]  twenty-four,  a  taxpayer shall be allowed a credit, to be
    40  computed as provided in this subdivision, against  the  tax  imposed  by
    41  this  article,  for hiring and employing, for not less than one year and
    42  for not less than thirty-five hours each week, a qualified veteran with-
    43  in the state.  The taxpayer may claim the credit in the  year  in  which
    44  the  qualified veteran completes one year of employment by the taxpayer.
    45  If the taxpayer claims the credit allowed under  this  subdivision,  the
    46  taxpayer may not use the hiring of a qualified veteran that is the basis
    47  for  this  credit  in  the  basis of any other credit allowed under this
    48  article.
    49    (B) who commences employment by the qualified  taxpayer  on  or  after
    50  January  first,  two  thousand  fourteen,  and before January first, two
    51  thousand [twenty-one] twenty-three; and
    52    § 4. This act shall take effect immediately.

    53                                   PART JJ

        S. 2509--A                         208                        A. 3009--A

     1    Section 1. Section 12 of part V of chapter 61 of  the  laws  of  2011,
     2  amending the economic development law, the tax law and the real property
     3  tax law, relating to establishing the economic transformation and facil-
     4  ity redevelopment program and providing tax benefits under that program,
     5  is amended to read as follows:
     6    §  12.  This act shall take effect immediately and shall expire and be
     7  deemed repealed December 31, [2021] 2031.
     8    § 2. Paragraph (a) of subdivision 11 of section 400  of  the  economic
     9  development law, as amended by section 1 of part GG of chapter 58 of the
    10  laws of 2020, is amended to read as follows:
    11    (a)  a  correctional facility, as defined in paragraph (a) of subdivi-
    12  sion four of section two of the correction law, that has  been  selected
    13  by  the governor of the state of New York for closure after April first,
    14  two thousand eleven but no later than March thirty-first,  two  thousand
    15  [twenty-one] twenty-six; or
    16    §  3.  This act shall take effect immediately; provided, however, that
    17  the amendments to section 400 of the economic development  law  made  by
    18  section  two of this act shall not affect the repeal of such section and
    19  shall be deemed repealed therewith.

    20                                   PART KK

    21    Section 1. The opening paragraph of section 1310 of the general  busi-
    22  ness  law,  as added by section 2 of part X of chapter 55 of the laws of
    23  2018, is amended to read as follows:
    24    Except as otherwise provided in this article,  the  program  shall  be
    25  implemented,  and  enrollment  of employees shall begin[, within twenty-
    26  four months after the effective date of  this  article]  no  later  than
    27  December  thirty-first, two thousand twenty-one.  The provisions of this
    28  section shall be in force after the board opens the program for  enroll-
    29  ment.
    30    §  2.  Section 1315 of the general business law, as added by section 2
    31  of part X of chapter 55 of the laws of  2018,  is  amended  to  read  as
    32  follows:
    33    § 1315. Delayed implementation. The board may delay the implementation
    34  of  the  program  an  additional  twelve  months beyond the [twenty-four
    35  months] date established in section thirteen hundred ten of this article
    36  if the board determines that  further  delay  is  necessary  to  address
    37  legal,  financial or other programmatic concerns impacting the viability
    38  of the program.  The board shall provide reasonable notice of such delay
    39  to the governor, the commissioner, the  speaker  of  the  assembly,  the
    40  temporary  president  of  the senate, the chair of the assembly ways and
    41  means committee, the chair of the senate finance committee, the chair of
    42  the assembly labor committee, and the chair of the senate labor  commit-
    43  tee.
    44    § 3. This act shall take effect immediately.

    45                                   PART LL

    46    Section 1. For the period from and after March 1, 2020 until such time
    47  as  the  licensee  and  the  video lottery gaming facility that are each
    48  subject to subdivision 2 of section  1355  of  the  racing,  pari-mutuel
    49  wagering  and  breeding  law,  as  added  by the Upstate New York Gaming
    50  Economic Development Act of 2013, as amended, have each been continuous-
    51  ly operating without any restrictions related to Covid-19 for  at  least
    52  six  full  and consecutive calendar months, the payments to the relevant

        S. 2509--A                         209                        A. 3009--A

     1  horsemen and breeders required by subdivision 2 of section 1355  of  the
     2  racing,  pari-mutuel  wagering and breeding law, as added by the Upstate
     3  New York Gaming Economic Development Act of 2013, as amended, shall  not
     4  accrue  and  shall  be  permanently waived and forgiven. The accrual and
     5  obligation to make payments under such subdivision  2  of  such  section
     6  1355 shall recommence at such time as the licensee and the video lottery
     7  gaming  facility  that  are  each  subject to such subdivision 2 of such
     8  section  1355  have  each  been  continuously  operating   without   any
     9  restrictions  related  to Covid-19 for at least six full and consecutive
    10  calendar months. Payments to the relevant horsemen and breeders for  the
    11  period  beginning  January  1,  2020  through February 28, 2020 shall be
    12  payable in six equal monthly installments of $106,407 per month  over  a
    13  six-month  period  beginning with the first month after the licensee has
    14  been continuously operating without any restrictions related to Covid-19
    15  for at least six full and consecutive calendar months.
    16    § 2. This act shall take effect immediately.
    17    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    18  sion, section or part of this act shall be  adjudged  by  any  court  of
    19  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    20  impair, or invalidate the remainder thereof, but shall  be  confined  in
    21  its  operation  to the clause, sentence, paragraph, subdivision, section
    22  or part thereof directly involved in the controversy in which such judg-
    23  ment shall have been rendered. It is hereby declared to be the intent of
    24  the legislature that this act would  have  been  enacted  even  if  such
    25  invalid provisions had not been included herein.
    26    §  3.  This  act shall take effect immediately provided, however, that
    27  the applicable effective date of Parts A through LL of this act shall be
    28  as specifically set forth in the last section of such Parts.
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