A03009 Summary:

BILL NOA03009C
 
SAME ASSAME AS UNI. S02009-C
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F); relates to the STAR personal income tax credit (Part G); relates to the applicability of the STAR credit to cooperative apartment corporations; and repeals certain provisions of the tax law relating thereto (Part H); relates to effectiveness of provisions relating to oil and gas charges (Part I); relates to the veterans' home assistance fund (Part J); relates to life sciences companies (Part K); relates to the employee training incentive program (Part L); relates to extending the empire state film production credit and empire state film post production credit for three years (Part M); relates to a program to provide tax incentives for employers employing at risk youth (Subpart A); relates to establishing the empire state apprenticeship tax credit program (Subpart B) (Part N); relates to extending the alternative fuels and electric vehicle recharging property credit for five years (Part O); relates to the investment tax credit (Part P); relates to the treatment of single member limited liability companies that are disregarded entities in determining eligibility for tax credits (Part Q); relates to extending the top personal income tax rate for two years; relates to the imposition of tax (Part R); relates to extending the high income charitable contribution deduction limitation (Part S); relates to increasing the child and dependent care tax credit (Part T); relates to the financial institution data match system for state tax collection purposes; (Part U); relates to serving an income execution with respect to individual tax debtors without filing a warrant (Part X); relates to the definition of New York source income (Part Z); relates to closing the nonresident partnership asset sale loophole (Part AA); relates to closing the existing tax loopholes for transactions between related entities under article 28 and pursuant to the authority of article 29 of the tax law (Part CC); relates to clarifying the imposition of sales tax on gas service or electric service of whatever nature (Part DD); relates to modifying the funding of and improving the operation of drug testing in horse racing (Part LL); relates to the powers and duties of the state bingo control commission; relates to bingo games (Part MM); relates to allowing for the reprivatization of NYRA (Part NN); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting; extends certain provisions relating to simulcasting and the imposition of certain taxes; (Part OO); relates to vendor fees paid to vendor tracks (Part PP); relates to capital awards to vendor tracks (Part QQ); relates to the New York Jockey Injury Compensation Fund, Inc. (Part SS); relates to changing the calculation of STAR credit (Part TT); relates to the prepaid sales tax on motor fuel and diesel motor fuel under article 28 of the tax law (Part UU); relates to qualified financial instruments of RICS and REITS (Part VV); relates to exempting certain monuments from sales and use taxes (Part WW); relates to certain qualified entities (Part XX); relates to excelsior research and development tax credits (Part YY); relates to eligibility to participate in the excelsior jobs program (Part ZZ); relates to the regulation of transportation network company services; establishes the New York State TNC Accessibility Task Force and the New York state transportation network company review board; repeals certain provisions relating thereto (Part AAA); establishes the county-wide shared services property tax savings law (Part BBB); relates to the minority and women-owned business enterprise program (Part CCC); relates to the establishment of a tax credit for farm donations to food pantries (Part DDD); relates to the imposition of a surcharge on prepaid wireless communications service and repeals certain provisions of the county law relating thereto (Part EEE); relates to the health care facility transformation program (Part FFF); relates to managed long term care plans and demonstrations (Part GGG); relates to establishing the excelsior scholarship (Part HHH); relates to establishing enhanced tuition assistance program awards (Part III); relates to the NY-SUNY 2020 challenge grant program act; and relates to effectiveness of provisions establishing components of the NY-SUNY 2020 challenge grant program (Part JJJ); relates to a New York state part-time scholarship award program (Part KKK); requires the president of the higher education services corporation to report on options to make college more affordable for New York students (Part LLL); relates to establishing the New York state child welfare worker incentive scholarship program and the New York state child welfare worker loan forgiveness incentive program (Part MMM); relates to the schedule of compensation in the case of injury, and to appeals (Subpart A); relates to requiring the drafting of permanency impairment guidelines (Subpart B); relates to a comprehensive pharmacy benefit plan and prescription drug formulary (Subpart C); relates to penalties for failure to pay compensation (Subpart D); relates to assumption of workers' compensation liability policies (Subpart E); relating to effectiveness of certain provisions relating to rates for workers' compensation insurance and setting forth conditions for workers' compensation rate service organization; relates to workers' compensation rate service organizations (Subpart F); relates to requiring a study on independent medical examinations (Subpart G); relates to security for payment of compensation (Subpart H); relates to liability for compensation (Subpart I); relates to assessments for annual expenses; (Subpart J) (Part NNN); relates to allowing an additional New York itemized deduction for union dues not included in federal itemized deductions (Part OOO); relates to the establishment of the office of the inspector general of New York for transportation (Part PPP); authorizes the transfer of certain expenditures and disbursements; repeals a chapter of the laws of 2017 making appropriations for the support of government, as proposed in legislative bills numbers S.5492 and A.7068 (Part QQQ); extends provisions relating to the definition of an authorized entity that may utilize design-build contracts (Part RRR); relates to disability benefits for certain members of the New York city police pension fund (Part SSS); relates to the affordable New York housing program and repeals certain provisions relating thereto (Part TTT); relates to comprehensive economic development reporting; repeals section 438 of the economic development law (Part UUU); relates to statements of those accused of crimes and eyewitness identifications; enhances criminal investigations and prosecutions and promotes confidence in the criminal justice system of this state; relates to the implementation of a plan regarding indigent legal services (Part VVV); relates to proceedings against juvenile and adolescent offenders and the age of juvenile and adolescent offenders and repeals certain provisions of the criminal procedure law relating thereto (Part WWW); provides for the administration of certain funds and accounts related to the 2017-18 budget and authorizes certain payments and transfers; relates to the school tax relief fund and payments, transfers and deposits; relates to the deposit provisions of the tobacco settlement financing corporation act; relates to establishing the retiree health benefit trust fund; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the issuance of bonds; relates to housing program bonds and notes; relates to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; relates to authorizing the urban development corporation to issue bonds to fund project costs for the implementation of a NY-CUNY challenge grant program and increasing the bonding limit for certain state and municipal facilities; relates to increasing the bonding limit for certain public protection facilities; relates to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; relates to funding certain capital projects and the issuance of bonds; repeals sections 58, 59 and 60 of the state finance law relating thereto; provides for the repeal of certain other related provisions (Part XXX); relates to contracts for excellence and the apportionment of public moneys; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to charter school tuition and facility aid for charter schools; relates to apportionment to the Haverstraw-Stony Point central school district; relates to penalties arising from late final cost reports; extends provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to English language learner pupils; relates to the effectiveness of certain provisions relating to the implementation of the No Child Left Behind Act of 2001; relates to transportable classroom units; relates to the state's immunization program; relates to grants for hiring teachers; relates to foundation aid; relates to education of Native American pupils; relates to additional expanded prekindergarten; relates to conforming foundation aid base change to accommodate pulling out community schools; relates to establishing a foundation aid phase-in; relates to maintenance of effort reduction; relates to general aid for public schools; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to the Hendrick Hudson reserve fund; relates to approved reimbursement for preschool integrated special class programs; relates to effectiveness of provisions relating to the universal pre-kindergarten program; amends provisions authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to certain apportionments; relates to contracts for the purchase of certain produce; relates to effectiveness of provisions relating to the lease of school buses by school districts; relates to effectiveness of provisions relating to state aid to school districts and the appropriation of funds for the support of government; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2017-2018 school year; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to withholding a portion of employment preparation education aid and in relation to the effectiveness thereof; amends provisions relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district, in relation to reimbursement to such school district and in relation to the effectiveness thereof; amends provisions relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to suballocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to support of public libraries; amends the effectiveness of certain provisions relating to the support of education; extends certain provisions relating to citizenship requirements for permanent certification as a teacher; relates to serving persons twenty-one years of age or older (Part YYY).
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A03009 Actions:

BILL NOA03009C
 
01/23/2017referred to ways and means
02/17/2017amend (t) and recommit to ways and means
02/17/2017print number 3009a
03/13/2017amend (t) and recommit to ways and means
03/13/2017print number 3009b
04/08/2017amend (t) and recommit to ways and means
04/08/2017print number 3009c
04/08/2017reported referred to rules
04/08/2017reported
04/08/2017rules report cal.44
04/08/2017ordered to third reading rules cal.44
04/08/2017message of necessity - 3 day message
04/08/2017passed assembly
04/08/2017delivered to senate
04/08/2017REFERRED TO FINANCE
04/09/2017SUBSTITUTED FOR S2009C
04/09/20173RD READING CAL.558
04/09/2017MESSAGE OF NECESSITY - 3 DAY MESSAGE
04/09/2017PASSED SENATE
04/09/2017RETURNED TO ASSEMBLY
04/09/2017delivered to governor
04/10/2017signed chap.59
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A03009 Committee Votes:

RULES Chair:Heastie Message of Necessity DATE:04/08/2017AYE/NAY:21/8 Action: Favorable
HeastieAyeKolbNay
GottfriedAyeOaksNay
LentolAyeButlerNay
FarrellAyeCrouchNay
GanttExcusedFinchNay
NolanAyeBarclayNay
WeinsteinAyeRaiaNay
HooperAyeHawleyNay
OrtizAye
PretlowAye
CookAye
GlickAye
MorelleAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliExcused
PerryAye
GalefAye
PaulinAye
TitusAye
Peoples-StokesAye

RULES Chair:Heastie DATE:04/08/2017AYE/NAY:29/0 Action: Favorable
HeastieAyeKolbAye
GottfriedAyeOaksAye
LentolAyeButlerAye
FarrellAyeCrouchAye
GanttExcusedFinchAye
NolanAyeBarclayAye
WeinsteinAyeRaiaAye
HooperAyeHawleyAye
OrtizAye
PretlowAye
CookAye
GlickAye
MorelleAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliExcused
PerryAye
GalefAye
PaulinAye
TitusAye
Peoples-StokesAye

WAYS AND MEANS Chair:Farrell DATE:04/08/2017AYE/NAY:20/9 Action: Favorable refer to committee Rules
FarrellAyeOaksNay
LentolAyeCrouchNay
SchimmingerAyeBarclayNay
DenDekkerAyeFitzpatrickNay
WeinsteinAyeHawleyNay
GlickAyeMalliotakisNay
NolanAyeWalterNay
PretlowAyeMontesanoExcused
PerryAyeCurranNay
ColtonAyeRaNay
CookAye
CahillAye
AubryAye
HooperAye
ThieleAye
CusickExcused
OrtizAye
BenedettoExcused
MoyaExcused
CrespoAye
RodriguezAye
RamosExcused
BraunsteinAye
McDonaldAye
RozicExcused

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A03009 Floor Votes:

DATE:04/08/2017Assembly Vote  YEA/NAY: 98/33
AbbateERCrouchNOGoodellNOLiftonYO'DonnellNOSimanowitzER
AbinantiERCurranNOGottfriedYLopezNOOrtizYSimonY
ArroyoYCusickYGrafNOLupardoYOtisYSimotasY
AubryYCymbrowitzYGuntherERLupinacciYPalmesanoERSkartadosY
BarclayNODavilaYHarrisERMageeERPalumboNOSkoufisY
BarnwellYDe La RosaYHawleyNOMagnarelliERPaulinYSolagesY
BarrettYDenDekkerYHevesiYMalliotakisNOPeoples-StokesYStecNO
BarronERDickensYHikindERMayerYPerryYSteckY
BenedettoYDilanYHooperYMcDonaldYPheffer AmatoYStirpeY
BichotteYDinowitzYHunterYMcDonoughERPichardoYThieleY
BlakeYDiPietroNOHyndmanYMcKevittNOPretlowYTitoneY
BlankenbushNOD'UrsoYJaffeeYMcLaughlinNOQuartYTitusY
BrabenecNOEnglebrightYJean-PierreYMill B NORaNOVanelY
BraunsteinYErrigoNOJenneYMill MGERRaiaYWalkerY
BrindisiYFahyYJohnsNOMill MLYRamosYWallaceY
BronsonYFarrellYJonesYMontesanoERRichardsonERWalshY
BuchwaldYFinchNOJoynerYMorelleYRiveraYWalterY
ButlerNOFitzpatrickYKavanaghERMorinelloYRodriguezYWeinsteinY
ByrneNOFriendNOKearnsYMosleyYRosenthalYWeprinER
CahillYGalefYKimYMoyaYRozicERWilliamsY
CarrollYGanttERKolbNOMurrayNORyanYWoernerY
CastorinaNOGarbarinoNOLalorNONiouYSantabarbaraYWrightY
ColtonYGiglioNOLavineYNolanYSchimmingerYZebrowskiY
CookYGjonajYLawrenceNONorrisNOSeawrightYMr SpkrY
CrespoYGlickYLentolYOaksNOSepulvedaY

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A03009 Memo:

Memo not available
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A03009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 2009--C                                            A. 3009--C
 
                SENATE - ASSEMBLY
 
                                    January 23, 2017
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when  printed to be committed to the Committee on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  committee  discharged,  bill  amended,  ordered
          reprinted  as  amended  and recommitted to said committee -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        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 --
          again reported from said committee with amendments, ordered  reprinted
          as  amended  and  recommitted to said committee -- again reported from
          said committee with  amendments,  ordered  reprinted  as  amended  and
          recommitted to said committee
 
        AN  ACT  intentionally omitted (Part A); intentionally omitted (Part B);
          to amend the tax law and the administrative code of the  city  of  New
          York,  in relation to the school tax reduction credit for residents of
          a city with a population of one million or more; and to repeal section
          54-f of the state finance law relating thereto (Part C); intentionally
          omitted (Part D); intentionally omitted (Part E); to  amend  the  real
          property tax law, in relation to authorizing partial payments of prop-
          erty  taxes  (Part  F);  to amend the tax law, in relation to the STAR
          personal income tax credit (Part G); to amend the  real  property  tax
          law  and  the  tax  law,  in relation to the applicability of the STAR
          credit to cooperative apartment corporations;  and  repealing  certain
          provisions  of the tax law relating thereto (Part H); to amend chapter
          540 of the laws of 1992, amending the real property tax  law  relating
          to oil and gas charges, in relation to the effectiveness thereof (Part
          I);  to amend the state finance law, in relation to the veterans' home
          assistance fund (Part J); to amend the economic  development  law  and
          the tax law, in relation to life sciences companies (Part K); to amend
          the  economic  development  law,  in relation to the employee training
          incentive program (Part L); to amend  the  tax  law,  in  relation  to
          extending  the  empire  state  film production credit and empire state
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12574-08-7

        S. 2009--C                          2                         A. 3009--C
 
          film post production credit for three years (Part  M);  to  amend  the
          labor  law  and  the  tax law, in relation to a program to provide tax
          incentives for employers employing at risk youth (Subpart A);  and  to
          amend  the  labor law and the tax law, in relation to establishing the
          empire state apprenticeship tax credit program (Subpart B)  (Part  N);
          to  amend  the tax law, in relation to extending the alternative fuels
          and electric vehicle recharging property credit for five  years  (Part
          O);  to  amend  the  tax law, in relation to the investment tax credit
          (Part P); to amend the tax law, in relation to the treatment of single
          member limited liability companies that are  disregarded  entities  in
          determining  eligibility  for  tax  credits (Part Q); to amend the tax
          law, in relation to extending the top personal income tax rate for two
          years; and to repeal subparagraph (B) of  paragraph  1  of  subsection
          (a),  subparagraph  (B)  of paragraph 1 of subsection (b) and subpara-
          graph (B) of paragraph 1 of subsection (c) of section 601 of  the  tax
          law,  relating to the imposition of tax (Part R); to amend the tax law
          and the administrative code of the city of New York,  in  relation  to
          extending the high income charitable contribution deduction limitation
          (Part  S);  to  amend the tax law, in relation to increasing the child
          and dependent care tax credit (Part T);  to  amend  the  tax  law,  in
          relation  to the financial institution data match system for state tax
          collection purposes; and providing for the repeal of  such  provisions
          upon  expiration  thereof  (Part  U);  intentionally omitted (Part V);
          intentionally omitted (Part W); to amend chapter 59  of  the  laws  of
          2013,  amending  the  tax  law relating to serving an income execution
          with respect to individual tax debtors without filing  a  warrant,  in
          relation  to  extending  the  provisions authorizing service of income
          executions on individual tax debtors without filing  a  warrant  (Part
          X);  intentionally omitted (Part Y); to amend the tax law, in relation
          to the definition of New York source income (Part Z); to amend the tax
          law, in relation to closing the  nonresident  partnership  asset  sale
          loophole  (Part AA); intentionally omitted (Part BB); to amend the tax
          law, in relation to closing the  existing  tax  loopholes  for  trans-
          actions  between related entities under article 28 and pursuant to the
          authority of article 29 of such law (Part CC); to amend the  tax  law,
          in  relation  to clarifying the imposition of sales tax on gas service
          or electric service of whatever nature (Part DD); intentionally  omit-
          ted  (Part EE); intentionally omitted (Part FF); intentionally omitted
          (Part GG); intentionally  omitted  (Part  HH);  intentionally  omitted
          (Part  II);  intentionally  omitted  (Part  JJ); intentionally omitted
          (Part KK); to amend the racing, pari-mutuel wagering and breeding law,
          in relation to modifying the funding of and improve the  operation  of
          drug testing in horse racing (Part LL); to amend the executive law, in
          relation  to  the powers and duties of the state bingo control commis-
          sion; and to amend the general municipal law,  in  relation  to  bingo
          games  (Part MM); to amend the racing, pari-mutuel wagering and breed-
          ing law, in relation to allowing for the reprivatization of NYRA (Part
          NN); to amend the racing, pari-mutuel wagering and  breeding  law,  in
          relation  to licenses for simulcast facilities, sums relating to track
          simulcast, simulcast of out-of state thoroughbred races,  simulcasting
          of  races  run  by  out-of-state  harness  tracks and distributions of
          wagers; to amend chapter 281 of the laws of 1994 amending the  racing,
          pari-mutuel  wagering  and  breeding  law  and  other laws relating to
          simulcasting; 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

        S. 2009--C                          3                         A. 3009--C
 
          extending  certain  provisions thereof; and to amend the racing, pari-
          mutuel wagering and breeding law, in  relation  to  extending  certain
          provisions  thereof  (Part  OO);  to amend the tax law, in relation to
          vendor  fees paid to vendor tracks (Part PP); to amend the tax law, in
          relation to capital awards to vendor tracks (Part  QQ);  intentionally
          omitted  (Part  RR);  to  amend  the  racing, pari-mutuel wagering and
          breeding law and the workers' compensation law, in relation to the New
          York Jockey Injury Compensation Fund, Inc. (Part SS); to amend the tax
          law and the real property tax law, in relation to changing the  calcu-
          lation  of STAR credit (Part TT); to amend the tax law, in relation to
          the prepaid sales tax on motor fuel and diesel motor fuel under  arti-
          cle  28 thereof (Part UU); to amend the tax law and the administrative
          code of the city of New  York,  in  relation  to  qualified  financial
          instruments  of  RICS  and  REITS  (Part VV); to amend the tax law, in
          relation to exempting certain monuments from sales and use taxes (Part
          WW); to amend the New York state urban development corporation act, in
          relation to certain qualified entities (Part XX); to amend the econom-
          ic development law, in relation to excelsior research and  development
          tax  credits  (Part  YY);  to  amend  the economic development law, in
          relation to eligibility to participate in the excelsior  jobs  program
          (Part  ZZ);  to  amend the vehicle and traffic law, the insurance law,
          the executive law, the general municipal  law  and  the  tax  law,  in
          relation to the regulation of transportation network company services;
          to  establish  the New York State TNC Accessibility Task Force and the
          New York  state  transportation  network  company  review  board;  and
          providing  for the repeal of certain provisions relating thereto (Part
          AAA); to  establish  the  county-wide  shared  services  property  tax
          savings  law  (Part  BBB);  to  amend chapter 261 of the laws of 1988,
          amending the state finance law and other laws relating to the New York
          state infrastructure trust fund,  in  relation  to  the  minority  and
          women-owned  business  enterprise program (Part CCC); to amend the tax
          law, in relation to  the  establishment  of  a  tax  credit  for  farm
          donations  to  food  pantries  (Part  DDD);  to  amend the tax law, in
          relation to the imposition of a surcharge on prepaid wireless communi-
          cations service and to repeal certain provisions  of  the  county  law
          relating  thereto  (Part  EEE);  to  amend  the  public health law, in
          relation to the health  care  facility  transformation  program  (Part
          FFF); to amend the public health law, in relation to managed long term
          care  plans and demonstrations (Part GGG); to amend the education law,
          in relation to establishing the excelsior scholarship (Part  HHH);  to
          amend  the education law, in relation to establishing enhanced tuition
          assistance program awards (Part III); to amend the education  law,  in
          relation to the NY-SUNY 2020 challenge grant program act; and to amend
          chapter  260  of  the laws of 2011, amending the education law and the
          New York state urban development corporation act  relating  to  estab-
          lishing  components  of  the  NY-SUNY 2020 challenge grant program, in
          relation to the effectiveness thereof (Part JJJ); to amend the  educa-
          tion  law, in relation to a New York state part-time scholarship award
          program (Part KKK); requiring the president of  the  higher  education
          services corporation to report on options to make college more afford-
          able  for  New  York  students  and  providing  for the repeal of such
          provisions upon expiration thereof (Part LLL); to amend the  education
          law,  in  relation  to  establishing  the New York state child welfare
          worker incentive scholarship program and  the  New  York  state  child
          welfare worker loan forgiveness incentive program (Part MMM); to amend
          the  workers' compensation law, in relation to the schedule of compen-

        S. 2009--C                          4                         A. 3009--C
 
          sation in the case of injury, and in relation to appeals (Subpart  A);
          to  amend  the workers' compensation law, in relation to requiring the
          drafting of permanency impairment guidelines (Subpart B); to amend the
          workers'  compensation  law,  in  relation to a comprehensive pharmacy
          benefit plan and prescription drug formulary (Subpart C); to amend the
          workers' compensation law, in relation to penalties for failure to pay
          compensation (Subpart D); to amend the workers' compensation  law,  in
          relation  to  assumption  of  workers' compensation liability policies
          (Subpart E); to amend chapter 11 of the  laws  of  2008  amending  the
          workers'  compensation law, the insurance law, the volunteer ambulance
          workers' benefit law  and  the  volunteer  firefighters'  benefit  law
          relating  to  rates  for  workers'  compensation insurance and setting
          forth conditions for workers' compensation rate service  organization,
          in  relation  to the effectiveness thereof; and to amend the insurance
          law, in relation to workers' compensation rate  service  organizations
          (Subpart  F);  to  amend the workers' compensation law, in relation to
          requiring a study on independent medical examinations (Subpart G); and
          to amend the workers' compensation law, in relation  to  security  for
          payment  of  compensation  (Subpart  H); to amend the workers' compen-
          sation law, in relation to liability for compensation (Subpart I); and
          to amend the workers' compensation law, in relation to assessments for
          annual expenses; and providing for the repeal  of  certain  provisions
          upon  expiration thereof (Subpart J) (Part NNN); to amend the tax law,
          in relation to allowing an additional New York itemized deduction  for
          union  dues not included in federal itemized deductions (Part OOO); to
          amend the executive law and the criminal procedure law, in relation to
          the establishment of the office of the inspector general of  New  York
          for  transportation  (Part  PPP);  authorizing the transfer of certain
          expenditures and disbursements; and to repeal a chapter of the laws of
          2017 making appropriations for the support of government, as  proposed
          in  legislative bills numbers S.5492 and A.7068 relating thereto (Part
          QQQ); to amend the infrastructure investment act, in relation  to  the
          definition  of  an  authorized  entity  that  may utilize design-build
          contracts, and in relation to the effectiveness thereof (Part RRR); to
          amend the retirement and social security law, in relation to disabili-
          ty benefits for certain members of the New York  city  police  pension
          fund  (Part  SSS);  to amend the real property tax law, in relation to
          the  affordable  New  York  housing  program  and  to  repeal  certain
          provisions  of  such  law  relating  thereto  (Part TTT); to amend the
          economic development law, in relation to comprehensive economic devel-
          opment reporting; and to repeal section 438 of the  economic  develop-
          ment  law relating thereto (Part UUU); to amend the criminal procedure
          law, the family court act and the executive law, in relation to state-
          ments of those accused of crimes and  eyewitness  identifications,  to
          enhance criminal investigations and prosecutions and to promote confi-
          dence in the criminal justice system of this state; to amend the coun-
          ty  law  and the executive law, in relation to the implementation of a
          plan regarding indigent legal services (Part VVV); to amend the crimi-
          nal procedure law, the penal law, the executive law, the family  court
          act,  the  social services law, the correction law, the county law and
          the state finance law, in relation to proceedings against juvenile and
          adolescent offenders and the age of juvenile and adolescent  offenders
          and  to repeal certain provisions of the criminal procedure law relat-
          ing thereto (Part WWW); to provide for the administration  of  certain
          funds  and  accounts  related  to  the  2017-18 budget and authorizing
          certain payments and transfers; to amend the  state  finance  law,  in

        S. 2009--C                          5                         A. 3009--C
 
          relation  to  the  school  tax relief fund and payments, transfers and
          deposits; to amend chapter 62 of the laws of 2003 amending the general
          business law and other laws relating to implementing the state  fiscal
          plan  for  the 2003-2004 state fiscal year, in relation to the deposit
          provisions of the tobacco settlement  financing  corporation  act;  to
          amend  the  state finance law, in relation to establishing the retiree
          health benefit trust fund; to amend chapter 174 of the  laws  of  1968
          constituting  the New York state urban development corporation act, in
          relation to funding project costs undertaken by non-public schools; to
          amend the  New  York  state  urban  development  corporation  act,  in
          relation  to  funding  project  costs for certain capital projects; to
          amend chapter 389 of the laws of 1997, relating to  the  financing  of
          the  correctional  facilities  improvement fund and the youth facility
          improvement fund, in relation to the issuance of bonds; to  amend  the
          private  housing finance law, in relation to housing program bonds and
          notes; to amend chapter 329 of the laws of 1991,  amending  the  state
          finance  law and other laws relating to the establishment of the dedi-
          cated highway and bridge trust fund, in relation to  the  issuance  of
          bonds;  to  amend the public authorities law, in relation to the issu-
          ance of bonds by the dormitory authority; to amend chapter 61  of  the
          laws  of  2005 relating to providing for the administration of certain
          funds and accounts related to the 2005-2006  budget,  in  relation  to
          issuance  of  bonds by the urban development corporation; to amend the
          New York state urban development corporation act, in relation  to  the
          issuance of bonds; to amend the public authorities law, in relation to
          the state environmental infrastructure projects; to amend the New York
          state  urban  development  corporation act, in relation to authorizing
          the urban development corporation to issue bonds to fund project costs
          for the implementation  of  a  NY-CUNY  challenge  grant  program  and
          increasing  the  bonding limit for certain state and municipal facili-
          ties; to amend chapter 61 of the laws of 2005, relating  to  providing
          for  the  administration  of certain funds and accounts related to the
          2005-2006 budget, in relation to  increasing  the  bonding  limit  for
          certain  public protection facilities; to amend chapter 81 of the laws
          of 2002, relating to providing for the administration of certain funds
          and accounts related to the 2002-2003 budget, in relation to  increas-
          ing  the  aggregate amount of bonds to be issued by the New York state
          urban development corporation; to amend the public authorities law, in
          relation to financing  of  peace  bridge  and  transportation  capital
          projects; to amend the public authorities law, in relation to dormito-
          ries  at  certain  educational  institutions other than state operated
          institutions and statutory or contract colleges under the jurisdiction
          of the state university of New York;  to  amend  the  New  York  state
          medical  care  facilities finance agency act, in relation to bonds and
          mental health facilities improvement notes; to amend the state finance
          law and the public authorities law, in  relation  to  funding  certain
          capital  projects and the issuance of bonds; to repeal sections 58, 59
          and 60 of the state finance law relating thereto;  and  providing  for
          the  repeal  of certain provisions upon expiration thereof (Part XXX);
          and to amend the education law, in relation to  contracts  for  excel-
          lence  and  the apportionment of public moneys; to amend the education
          law, in relation to requiring the commissioner of education to include
          certain information in the official score report of all  students;  to
          amend  the  education  law,  in relation to charter school tuition and
          facility aid for charter schools; relating  to  apportionment  to  the
          Haverstraw-Stony  Point central school district; relating to penalties

        S. 2009--C                          6                         A. 3009--C
 
          arising from late final cost reports; to amend chapter 425 of the laws
          of 2002, amending the education  law  relating  to  the  provision  of
          supplemental  educational services, attendance at a safe public school
          and  the  suspension  of  pupils  who  bring a firearm to or possess a
          firearm at a school, in relation  to  the  effectiveness  thereof;  to
          amend  the  education  law,  in  relation  to English language learner
          pupils; to amend chapter 101 of the laws of 2003, amending the  educa-
          tion  law  relating  to the implementation of the No Child Left Behind
          Act of 2001, in relation to the effectiveness thereof;  to  amend  the
          education  law, in relation to transportable classroom units; to amend
          chapter 507 of the laws of 1974 relating to providing for  the  appor-
          tionment  of  state  monies to certain nonpublic schools, to reimburse
          them for their expenses in complying with certain  state  requirements
          for  the  administration  of state testing and evaluation programs and
          for participation in state programs for the reporting of basic  educa-
          tional data, in relation to the state's immunization program; to amend
          the education law, in relation to grants for hiring teachers; to amend
          the  education law, in relation to foundation aid; to amend the educa-
          tion law, in relation to education of Native American pupils; to amend
          the education law, in relation to additional expanded prekindergarten;
          to amend the education law, in relation to conforming  foundation  aid
          base change to accommodate pulling out community schools; to amend the
          education  law, in relation to establishing a foundation aid phase-in;
          and in relation to maintenance of effort reduction; and in relation to
          general aid for  public  schools;  to  amend  the  education  law,  in
          relation  to  state  aid  adjustments;  to amend the education law, in
          relation to the teachers of tomorrow teacher recruitment and retention
          program; to amend the education law, in relation to  class  sizes  for
          special  classes containing certain students with disabilities; relat-
          ing to the Hendrick Hudson reserve fund; to amend the  education  law,
          in relation to approved reimbursement for preschool integrated special
          class  programs;  to  amend  part  B of chapter 57 of the laws of 2008
          amending the education law relating to the universal  pre-kindergarten
          program,  in  relation  to the effectiveness thereof; to amend chapter
          121 of the laws of 1996 relating to authorizing  the  Roosevelt  union
          free  school  district  to  finance deficits by the issuance of serial
          bonds, in relation to certain apportionments;  to  amend  the  general
          municipal  law,  in  relation to contracts for the purchase of certain
          produce; to amend chapter 472 of the laws of 1998 amending the  educa-
          tion  law relating to the lease of school buses by school districts in
          relation to the effectiveness thereof; to amend chapter 82 of the laws
          of 1995, amending the education law and certain other laws relating to
          state aid to school districts and the appropriation of funds  for  the
          support  of  government,  in relation to the effectiveness thereof; to
          amend chapter 756 of the laws of 1992, relating to funding  a  program
          for work force education conducted by the consortium for worker educa-
          tion in New York city, in relation to reimbursements for the 2017-2018
          school  year;  to  amend  chapter 756 of the laws of 1992, relating to
          funding a program for work force education conducted by the consortium
          for worker education in New York city, in relation  to  withholding  a
          portion of employment preparation education aid and in relation to the
          effectiveness thereof; to amend chapter 89 of the laws of 2016, relat-
          ing  to supplementary funding for dedicated programs for public school
          students in the East Ramapo central school district,  in  relation  to
          reimbursement  to  such  school district and in relation to the effec-
          tiveness thereof; to amend chapter 147 of the laws of  2001,  amending

        S. 2009--C                          7                         A. 3009--C
 
          the  education  law  relating  to  conditional  appointment  of school
          district, charter school or BOCES employees, in relation to the effec-
          tiveness thereof; relating to school bus driver training; relating  to
          special apportionment for salary expenses and public pension accruals;
          relating  to  suballocations  of  appropriations; relating to the city
          school district of the city of Rochester; relating to total foundation
          aid for the purpose of the development, maintenance  or  expansion  of
          certain  magnet  schools  or  magnet school programs for the 2017-2018
          school year; relating to support of public libraries; to amend chapter
          57 of the laws of 2004, relating  to  the  support  of  education,  in
          relation  to  the  effectiveness  thereof; to amend chapter 658 of the
          laws of 2002, amending the  education  law,  relating  to  citizenship
          requirements  for permanent certification as a teacher, in relation to
          extending the effectiveness thereof; to amend the  education  law,  in
          relation  to  serving  persons  twenty-one years of age or older (Part
          YYY)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act enacts into law major components of legislation
     2  which are necessary to implement the state fiscal plan for the 2017-2018
     3  state fiscal year. Each component is  wholly  contained  within  a  Part
     4  identified  as  Parts A through YYY. The effective date for each partic-
     5  ular provision contained within such Part  is  set  forth  in  the  last
     6  section  of  such  Part. Any provision in any section contained within a
     7  Part, including the effective date of the Part, which makes a  reference
     8  to a section "of this act", when used in connection with that particular
     9  component,  shall  be  deemed  to  mean  and  refer to the corresponding
    10  section of the Part in which it is found. Section three of this act sets
    11  forth the general effective date of this act.
 
    12                                   PART A
 
    13                            Intentionally Omitted
 
    14                                   PART B
 
    15                            Intentionally Omitted
 
    16                                   PART C
 
    17    Section 1. Section 54-f of the state finance law is REPEALED.
    18    § 2. Subsection (ggg) of section 606 of  the  tax  law,  as  added  by
    19  section 1 of part E of chapter 60 of the laws of 2016, and as relettered
    20  by  section 1 of part A of chapter 73 of the laws of 2016, is amended to
    21  read as follows:
    22    (ggg) School tax reduction credit for residents of a city with a popu-
    23  lation over one million. (1) For taxable years beginning after two thou-
    24  sand fifteen, a school tax reduction credit shall be allowed to a  resi-
    25  dent  individual  of  the  state  who  is  a  resident  of a city with a
    26  population over one million, as provided  below.  The  credit  shall  be
    27  allowed  against  the  taxes  authorized  by this article reduced by the
    28  credits permitted by this article. If the credit exceeds the tax  as  so
    29  reduced,  the  excess  shall  be  treated as an overpayment of tax to be

        S. 2009--C                          8                         A. 3009--C
 
     1  credited or refunded in accordance with the provisions  of  section  six
     2  hundred  eighty-six  of this article, provided however, that no interest
     3  will be paid thereon. For purposes of this subsection, no  credit  shall
     4  be  granted  to  an  individual  with  respect to whom a deduction under
     5  subsection (c) of section one hundred fifty-one of the internal  revenue
     6  code is allowable to another taxpayer for the taxable year.
     7    (2)  The  amount of the credit under this [paragraph] subsection shall
     8  be determined based upon the taxpayer's income as  defined  in  subpara-
     9  graph  (ii) of paragraph (b) of subdivision four of section four hundred
    10  twenty-five of the real property tax law.
    11    (3) For taxable years beginning in two thousand  sixteen,  the  credit
    12  shall be determined as provided in this paragraph, provided that for the
    13  purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
    14  of  this  paragraph  with income of more than two hundred fifty thousand
    15  dollars shall not receive a credit.
    16    (A) Married individuals filing joint returns and surviving spouses. In
    17  the case of married individuals who make a single return jointly and  of
    18  a surviving spouse, the credit shall be one hundred twenty-five dollars.
    19    (B)  All  others.  In the case of an unmarried individual, a head of a
    20  household or a married individual filing a separate return,  the  credit
    21  shall be sixty-two dollars and fifty cents.
    22    [(3)]  (4) For taxable years beginning after two thousand sixteen, the
    23  credit shall equal the "fixed" amount provided  by  paragraph  (4-a)  of
    24  this  subsection  plus the "rate reduction" amount provided by paragraph
    25  (4-b) of this subsection.
    26    (4-a) The "fixed" amount of the credit shall be determined as provided
    27  in this paragraph, provided that any taxpayer with income of  more  than
    28  two hundred fifty thousand dollars shall not receive such amount.
    29    (A) Married individuals filing joint returns and surviving spouses. In
    30  the  case of married individuals who make a single return jointly and of
    31  a surviving spouse, the "fixed"  amount  of  the  credit  shall  be  one
    32  hundred twenty-five dollars.
    33    (B)  All  others.  In the case of an unmarried individual, a head of a
    34  household or a married individual filing a separate return, the  "fixed"
    35  amount of the credit shall be sixty-two dollars and fifty cents.
    36    (4-b) The "rate reduction" amount of the credit shall be determined as
    37  provided  in  this  paragraph, provided that any taxpayer with income of
    38  more than five hundred thousand dollars shall not receive such amount.
    39    (A) For married individuals who make a single return jointly and for a
    40  surviving spouse:
    41  If the city taxable income is:         The "rate reduction" amount is:
    42  Not over $21,600                       0.171% of the city taxable income
    43  Over $21,600 but not over $500,000     $37 plus 0.228% of excess over
    44                                           $21,600
    45  Over $500,000                              Not applicable
    46    (B) For a head of household:
    47  If the city taxable income is:         The "rate reduction" amount is:
    48  Not over $14,400                       0.171% of the city taxable income
    49  Over $14,400 but not over $500,000     $25 plus 0.228% of excess over
    50                                           $14,400
    51  Over $500,000                              Not applicable
    52    (C) For an unmarried individual or a married individual filing
    53  a separate return:
    54  If the city taxable income is:         The "rate reduction" amount is:
    55  Not over $12,000                       0.171% of the city taxable income
    56  Over $12,000 but not over $500,000     $21 plus 0.228% of excess over

        S. 2009--C                          9                         A. 3009--C
 
     1                                           $12,000
     2  Over $500,000                              Not applicable
     3    (5) Part-year residents. If a taxpayer changes status during the taxa-
     4  ble  year from resident to nonresident, or from nonresident to resident,
     5  the school tax reduction credit authorized by this subsection  shall  be
     6  prorated according to the number of months in the period of residence.
     7    §  3.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
     8  tax law, as amended by section 2 of part B of chapter 59 of the laws  of
     9  2015, are amended to read as follows:
    10    (1)  Resident  married  individuals  filing joint returns and resident
    11  surviving spouses. The tax under this section for each taxable  year  on
    12  the  city  taxable  income of every city resident married individual who
    13  makes a single return jointly with his or her  spouse  under  subsection
    14  (b)  of  section  thirteen  hundred  six of this article and on the city
    15  taxable income of every city resident surviving spouse shall  be  deter-
    16  mined in accordance with the following tables:
 
    17    (A) For taxable years beginning after two thousand [fourteen] sixteen:
    18  If the city taxable income is:         The tax is:
    19  Not over $21,600                       2.7% of the city taxable income
    20  Over $21,600 but not                   $583 plus 3.3% of excess
    21  over $45,000                             over $21,600
    22  Over $45,000 but not                   $1,355 plus 3.35% of excess
    23  over $90,000                             over $45,000
    24  Over $90,000                           $2,863 plus 3.4% of excess
    25                                            over $90,000
 
    26  (B) For taxable year beginning after two thousand fourteen
    27  and before two thousand seventeen:
    28  If the city taxable income is:         The tax is:
    29  Not over $21,600                       2.55% of the city taxable income
    30  Over $21,600 but not                   $551 plus 3.1% of excess
    31  over $45,000                             over $21,600
    32  Over $45,000 but not                   $1,276 plus 3.15% of excess
    33  over $90,000                             over $45,000
    34  Over $90,000 but not                   $2,694 plus 3.2% of excess
    35  over $500,000                            over $90,000
    36  Over $500,000                          $16,803 plus 3.4% of excess
    37                                           over $500,000
 
    38    [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
    39  before two thousand fifteen:
    40  If the city taxable income is:         The tax is:
    41  Not over $21,600                       2.55% of the city taxable income
    42  Over $21,600 but not                   $551 plus 3.1% of excess
    43  over $45,000                             over $21,600
    44  Over $45,000 but not                   $1,276 plus 3.15% of excess
    45  over $90,000                             over $45,000
    46  Over $90,000 but not                   $2,694 plus 3.2% of excess
    47  over $500,000                            over $90,000
    48  Over $500,000                          $15,814 plus 3.4% of excess
    49                                           over $500,000

        S. 2009--C                         10                         A. 3009--C
 
     1    (2) Resident heads of households. The tax under this section for  each
     2  taxable year on the city taxable income of every city resident head of a
     3  household shall be determined in accordance with the following tables:
     4    (A) For taxable years beginning after two thousand [fourteen] sixteen:
 
     5  If the city taxable income is:         The tax is:
     6  Not over $14,400                       2.7% of the city taxable income
     7  Over $14,400 but not                   $389 plus 3.3% of excess
     8  over $30,000                             over $14,400
     9  Over $30,000 but not                   $904 plus 3.35% of excess
    10  over $60,000                             over $30,000
    11  Over $60,000                           $1,909 plus 3.4% of excess
    12                                           over $60,000
 
    13    (B) For taxable years beginning after two thousand fourteen and before
    14  two thousand seventeen:
 
    15  If the city taxable income is:         The tax is:
    16  Not over $14,400                       2.55% of the city taxable income
    17  Over $14,400 but not                   $367 plus 3.1% of excess
    18  over $30,000                             over $14,400
    19  Over $30,000 but not                   $851 plus 3.15% of excess
    20  over $60,000                             over $30,000
    21  Over $60,000 but not                   $1,796 plus 3.2% of excess
    22  over $500,000                            over $60,000
    23  Over $500,000                          $16,869 plus 3.4% of excess
    24                                           over $500,000
 
    25  [(B)] (C) For taxable years beginning after two thousand nine and before
    26  two thousand fifteen:
 
    27  If the city taxable income is:         The tax is:
    28  Not over $14,400                       2.55% of the city taxable income
    29  Over $14,400 but not                   $367 plus 3.1% of excess
    30  over $30,000                             over $14,400
    31  Over $30,000 but not                   $851 plus 3.15% of excess
    32  over $60,000                             over $30,000
    33  Over $60,000 but not                   $1,796 plus 3.2% of excess
    34  over $500,000                            over $60,000
    35  Over $500,000                          $15,876 plus 3.4% of excess
    36                                           Over $500,000

    37    (3)  Resident  unmarried  individuals,  resident  married  individuals
    38  filing separate returns and resident estates and trusts. The  tax  under
    39  this  section  for each taxable year on the city taxable income of every
    40  city resident individual who is not a city resident  married  individual
    41  who  makes  a  single  return  jointly  with  his  or  her  spouse under
    42  subsection (b) of section thirteen hundred six of this article or a city
    43  resident head of household or a city resident surviving spouse,  and  on
    44  the city taxable income of every city resident estate and trust shall be
    45  determined in accordance with the following tables:
 
    46    (A) For taxable years beginning after two thousand [fourteen] sixteen:
 
    47  If the city taxable income is:         The tax is:
    48  Not over $12,000                       2.7% of the city taxable income

        S. 2009--C                         11                         A. 3009--C
 
     1  Over $12,000 but not                   $324 plus 3.3% of excess
     2  over $25,000                             over $12,000
     3  Over $25,000 but not                   $753 plus 3.35% of excess
     4  over $50,000                             over $25,000
     5  Over $50,000                           $1,591 plus 3.4% of excess
     6                                         over $50,000
 
     7    (B) For taxable years beginning after two thousand fourteen and before
     8  two thousand seventeen:
 
     9  If the city taxable income is:         The tax is:
    10  Not over $12,000                       2.55% of the city taxable income
    11  Over $12,000 but not                   $306 plus 3.1% of excess
    12  over $25,000                             over $12,000
    13  Over $25,000 but not                   $709 plus 3.15% of excess
    14  over $50,000                             over $25,000
    15  Over $50,000 but not                   $1,497 plus 3.2% of excess
    16  over $500,000                          over $50,000
    17  Over $500,000                          $16,891 plus 3.4%
    18                                         of excess over $500,000
    19    [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
    20  before two thousand fifteen:
 
    21  If the city taxable income is:         The tax is:
    22  Not over $12,000                       2.55% of the city taxable income
    23  Over $12,000 but not                   $306 plus 3.1% of excess
    24  over $25,000                             over $12,000
    25  Over $25,000 but not                   $709 plus 3.15% of excess
    26  over $50,000                             over $25,000
    27  Over $50,000 but not                   $1,497 plus 3.2% of excess
    28  over $500,000                          over $50,000
    29  Over $500,000                          $15,897 plus 3.4%
    30                                         of excess over $500,000
    31    § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
    32  administrative code of the city of New York, as amended by section 3  of
    33  part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
    34  follows:
    35    (1) Resident married individuals filing  joint  returns  and  resident
    36  surviving  spouses.  The tax under this section for each taxable year on
    37  the city taxable income of every city resident  married  individual  who
    38  makes  a  single return jointly with his or her spouse under subdivision
    39  (b) of section 11-1751 of this chapter and on the city taxable income of
    40  every city resident surviving spouse shall be determined  in  accordance
    41  with the following tables:
 
    42  (A) For taxable years beginning after two thousand [fourteen] sixteen:
 
    43  If the city taxable income is:         The tax is:
    44  Not over $21,600                       2.7% of the city taxable income
    45  Over $21,600 but not                   $583 plus 3.3% of excess
    46  over $45,000                           over $21,600
    47  Over $45,000 but not                   $1,355 plus 3.35% of excess
    48  over $90,000                           over $45,000
    49  Over $90,000                           $2,863 plus 3.4% of excess
    50                                         over $90,000

        S. 2009--C                         12                         A. 3009--C
 
     1    (B) For taxable years beginning after two thousand fourteen and before
     2  two thousand seventeen:
 
     3  If the city taxable income is:         The tax is:
     4  Not over $21,600                       2.55% of the city taxable income
     5  Over $21,600 but not                   $551 plus 3.1% of excess
     6  over $45,000                            over $21,600
     7  Over $45,000 but not                   $1,276 plus 3.15% of excess
     8  over $90,000                            over $45,000
     9  Over $90,000 but not                   $2,694 plus 3.2% of excess
    10  over $500,000                           over $90,000
    11  Over $500,000                          $16,803 plus 3.4% of excess
    12                                          over $500,000
    13    [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
    14  before two thousand fifteen:
 
    15  If the city taxable income is:         The tax is:
    16  Not over $21,600                       2.55% of the city taxable income
    17  Over $21,600 but not                   $551 plus 3.1% of excess
    18  over $45,000                            over $21,600
    19  Over $45,000 but not                   $1,276 plus 3.15% of excess
    20  over $90,000                            over $45,000
    21  Over $90,000 but not                   $2,694 plus 3.2% of excess
    22  over $500,000                           over $90,000
    23  Over $500,000                          $15,814 plus 3.4% of excess
    24                                          over $500,000

    25    (2) Resident heads of households. The tax under this section for  each
    26  taxable year on the city taxable income of every city resident head of a
    27  household shall be determined in accordance with the following tables:
    28    (A) For taxable years beginning after two thousand [fourteen] sixteen:
 
    29  If the city taxable income is:         The tax is:
    30  Not over $14,400                       2.7% of the city taxable income
    31  Over $14,400 but not                   $389 plus 3.3% of excess
    32  over $30,000                           over $14,400
    33  Over $30,000 but not                   $904 plus 3.35% of excess
    34  over $60,000                           over $30,000
    35  Over $60,000                           $1,909 plus 3.4% of excess
    36                                         over $60,000
    37    (B) For taxable years beginning after two thousand fourteen and before
    38  two thousand seventeen:
 
    39  If the city taxable income is:         The tax is:
    40  Not over $14,400                       2.55% of the city taxable income
    41  Over $14,400 but not                   $367 plus 3.1% of excess
    42  over $30,000                            over $14,400
    43  Over $30,000 but not                   $851 plus 3.15% of excess
    44  over $60,000                            over $30,000
    45  Over $60,000 but not                   $1,796 plus 3.2% of excess
    46  over $500,000                           over $60,000
    47  Over $500,000                          $16,869 plus 3.4% of excess
    48                                          over $500,000

    49    [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
    50  before two thousand fifteen:

        S. 2009--C                         13                         A. 3009--C
 
     1  If the city taxable income is:         The tax is:
     2  Not over $14,400                       2.55% of the city taxable income
     3  Over $14,400 but not                   $367 plus 3.1% of excess
     4  over $30,000                            over $14,400
     5  Over $30,000 but not                   $851 plus 3.15% of excess
     6  over $60,000                            over $30,000
     7  Over $60,000 but not                   $1,796 plus 3.2% of excess
     8  over $500,000                           over $60,000
     9  Over $500,000                          $15,876 plus 3.4% of excess
    10                                          over $500,000

    11    (3)  Resident  unmarried  individuals,  resident  married  individuals
    12  filing separate returns and resident estates and trusts. The  tax  under
    13  this  section  for each taxable year on the city taxable income of every
    14  city resident individual who is not a married  individual  who  makes  a
    15  single  return  jointly  with his or her spouse under subdivision (b) of
    16  section 11-1751 of this chapter or a city resident head of  a  household
    17  or  a  city resident surviving spouse, and on the city taxable income of
    18  every city resident estate and trust shall be determined  in  accordance
    19  with the following tables:
 
    20  (A) For taxable years beginning after two thousand [fourteen] sixteen:
 
    21  If the city taxable income is:         The tax is:
    22  Not over $12,000                       2.7% of the city taxable income
    23  Over $12,000 but not                   $324 plus 3.3% of excess
    24  over $25,000                            over $12,000
    25  Over $25,000 but not                   $753 plus 3.35% of excess
    26  over $50,000                            over $25,000
    27  Over $50,000                           $1,591 plus 3.4% of excess
    28                                          over $50,000
    29    (B) For taxable years beginning after two thousand fourteen and before
    30  two thousand seventeen:
    31  If the city taxable income is:         The tax is:
    32  Not over $12,000                       2.55% of the city taxable income
    33  Over $12,000 but not                   $306 plus 3.1% of excess
    34  over $25,000                            over $12,000
    35  Over $25,000 but not                   $709 plus 3.15% of excess
    36  over $50,000                            over $25,000
    37  Over $50,000 but not                   $1,497 plus 3.2% of excess
    38  over $500,000                           over $50,000
    39  Over $500,000                          $16,891 plus 3.4% of excess
    40                                          over $500,000
 
    41    [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
    42  before two thousand fifteen:
 
    43  If the city taxable income is:         The tax is:
    44  Not over $12,000                       2.55% of the city taxable income
    45  Over $12,000 but not                   $306 plus 3.1% of excess
    46  over $25,000                            over $12,000
    47  Over $25,000 but not                   $709 plus 3.15% of excess
    48  over $50,000                            over $25,000
    49  Over $50,000 but not                   $1,497 plus 3.2% of excess
    50  over $500,000                           over $50,000
    51  Over $500,000                          $15,897 plus 3.4% of excess

        S. 2009--C                         14                         A. 3009--C
 
     1                                          over $500,000
 
     2    §  5. Notwithstanding any provision of law to the contrary, the method
     3  of determining the amount to be deducted  and  withheld  from  wages  on
     4  account  of  taxes imposed by or pursuant to the authority of article 30
     5  of the tax law in connection with the implementation of  the  provisions
     6  of  this  act  shall  be  prescribed by the commissioner of taxation and
     7  finance with due consideration to the effect such withholding tables and
     8  methods would have on the receipt and amount of revenue. The commission-
     9  er of taxation and finance shall  adjust  such  withholding  tables  and
    10  methods  in  regard to taxable years beginning in 2017 and after in such
    11  manner as to result, so far  as  practicable,  in  withholding  from  an
    12  employee's  wages  an amount substantially equivalent to the tax reason-
    13  ably estimated to be due for such taxable  years  as  a  result  of  the
    14  provisions  of  this act. Provided, however, for tax year 2017 the with-
    15  holding tables shall reflect  as  accurately  as  practicable  the  full
    16  amount  of  tax  year  2017 liability so that such amount is withheld by
    17  December 31, 2017. In carrying out his or her  duties  and  responsibil-
    18  ities  under  this section, the commissioner of taxation and finance may
    19  prescribe a similar procedure with respect to the taxes required  to  be
    20  deducted  and  withheld  by  local  laws  imposing taxes pursuant to the
    21  authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
    22  of  any  other  law  in  relation  to  such  a procedure to the contrary
    23  notwithstanding.
    24    § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
    25  tion to tax shall be imposed for failure to pay  the  estimated  tax  in
    26  subsection  (c)  of  section  685  of the tax law and subdivision (c) of
    27  section 11-1785 of the administrative code of the city of New York  with
    28  respect  to  any underpayment of a required installment due prior to, or
    29  within thirty days of, the effective date of this act to the extent that
    30  such underpayment was created or increased by  the  amendments  made  by
    31  this  act, provided, however, that the taxpayer remits the amount of any
    32  underpayment prior to or with his or her next  quarterly  estimated  tax
    33  payment.
    34    2. The commissioner of taxation and finance shall take steps to publi-
    35  cize  the  necessary  adjustments  to  estimated  tax and, to the extent
    36  reasonably possible, to inform the taxpayer of the tax liability changes
    37  made by this act.
    38    § 7. This act shall take effect immediately and shall apply to taxable
    39  years beginning on and after January 1, 2017.
 
    40                                   PART D
 
    41                            Intentionally Omitted
 
    42                                   PART E
 
    43                            Intentionally Omitted
 
    44                                   PART F
 
    45    Section 1. Section 928-a of the real property tax  law,  as  added  by
    46  chapter  680  of  the  laws of 1994, subdivision 1 as further amended by
    47  subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
    48  and subdivision 2 as amended by chapter 199 of  the  laws  of  1997,  is
    49  amended to read as follows:

        S. 2009--C                         15                         A. 3009--C
 
     1    §  928-a.  Partial  payment  of  taxes.  1.  (a)  Notwithstanding  the
     2  provisions of any general or special law to the contrary, [the board  of
     3  supervisors  or  the  county legislature of any county may by resolution
     4  authorize the collecting officers in one  or  more  of  the  classes  of
     5  municipal  corporations  described  herein]  each  collecting officer is
     6  hereby authorized to accept  from  any  taxpayer  at  any  time  partial
     7  payments  for  or  on  account  of  taxes,  special ad valorem levies or
     8  special assessments [in such amount or manner] and apply  such  payments
     9  on  the  account  [thereof  in  such manner as may be prescribed by such
    10  resolution; provided, however,  that  such  resolution],  following  the
    11  adoption  of  a resolution by the governing body of the municipal corpo-
    12  ration that employs the collecting officer  allowing  partial  payments.
    13  Such  resolution  may  limit the conditions under which partial payments
    14  will be accepted, in which case partial payments shall  be  accepted  in
    15  accordance with the conditions set forth in the resolution.
    16    (b)  Such  resolution  may  require a service charge not to exceed ten
    17  dollars to be paid with each partial payment. Such service charge  shall
    18  belong to the municipal corporation that employs the collecting officer.
    19    (c)  Where school district taxes are payable to the collecting officer
    20  of a city or town that has acted to allow partial payments, the  govern-
    21  ing  body  of the school district may pass a resolution allowing partial
    22  payments for school district purposes. Such  resolution  may  limit  the
    23  conditions  under which partial payments may be accepted. Where a school
    24  district has passed a resolution  allowing  partial  payments,  and  has
    25  provided a copy to the collecting officer at least sixty days before the
    26  last  date set by law for the delivery of the tax roll to the collecting
    27  officer, the collecting officer shall be authorized  to  accept  partial
    28  payments  of school district taxes under the conditions specified in the
    29  school district's resolution, subject to the following:
    30    (i) If the conditions set by the school district upon partial payments
    31  differ from those set by the city or town, and in the  judgment  of  the
    32  collecting  officer  it  would  be  burdensome  to  administer them, the
    33  collecting officer may  notify  the  school  district  that  the  school
    34  district's  conditions are not acceptable. Such notice shall be provided
    35  no later than fifteen days after the date on which the collecting  offi-
    36  cer  received  a  copy  of the school district resolution, or forty-five
    37  days before the last date set by law for the delivery of the tax roll to
    38  the collecting officer, whichever is later.
    39    (ii) Where such notice has been provided, the collecting officer shall
    40  be authorized to accept partial payments of school district taxes  under
    41  the  same  conditions  as  may  apply  to city or town taxes, unless the
    42  school district notifies the collecting officer that the city or  town's
    43  conditions  are  not  acceptable. Such notice shall be provided no later
    44  than fifteen days after the date on which the school  district  received
    45  the  collecting  officer's  notice, or thirty days before that last date
    46  set by law for the delivery of the tax roll to the  collecting  officer,
    47  whichever is later.
    48    (iii)  Where  such  notice  has  been provided, the collecting officer
    49  shall not be authorized to accept partial payments  of  school  district
    50  taxes.
    51    (d)  Any  resolution adopted pursuant to this section shall be adopted
    52  at least sixty days prior to the preparation and  delivery  of  the  tax
    53  rolls  to  the appropriate collecting officers. A copy of any resolution
    54  [enacting, amending or  repealing  any  such  partial  payment  program]
    55  adopted  pursuant to this section, or amending or repealing a resolution
    56  adopted pursuant to this section, shall be filed with  the  commissioner

        S. 2009--C                         16                         A. 3009--C
 
     1  and,  in the case of a resolution adopted by a school district, with the
     2  city or town clerk, no later than thirty days after the adoption  there-
     3  of.
     4    2. [Such resolution shall apply to one or more of the following class-
     5  es  of  municipal corporations: (a) all towns within the county; (b) all
     6  cities for which the county enforces the collection of delinquent taxes;
     7  or (c) all villages for which the  county  enforces  the  collection  of
     8  delinquent taxes. If the resolution does not specify the class or class-
     9  es  of municipal corporations to which it applies, it shall be deemed to
    10  apply only to the towns in the county.
    11    3.] After any partial payment authorized pursuant to this section  has
    12  been  paid,  interest  and penalties shall be charged against the unpaid
    13  balance only. The acceptance of a partial payment by any official pursu-
    14  ant to this section shall not be deemed to affect any liens  and  powers
    15  of  any  [county]  municipal  corporation  conferred  in  any general or
    16  special act, but such rights and powers shall remain in full  force  and
    17  effect  to  enforce  collection of the unpaid balance of such tax or tax
    18  liens together with interest, penalties and other lawful charges.
    19    3. A collecting officer who is authorized to accept  partial  payments
    20  pursuant to this section may not decline to do so.
    21    4. Nothing contained herein shall be construed to authorize a collect-
    22  ing  officer  to accept a partial payment after the expiration of his or
    23  her warrant, or at any other time that such collecting  officer  is  not
    24  authorized to accept tax payments.
    25    5.  Nothing  contained  herein shall limit the ability of a collecting
    26  officer to accept partial payments of taxes authorized under  any  other
    27  general or special law.
    28    §  2.  This act shall take effect immediately, provided, however, that
    29  in the case of a county  that  had  adopted  a  resolution  pursuant  to
    30  section  928-a  of the real property tax law as such section read on the
    31  date immediately preceding the effective date of this  act,  the  former
    32  provisions  of  such  section  928-a  shall  remain in effect until such
    33  resolution shall be repealed by the county.
 
    34                                   PART G
 
    35    Section 1. Paragraph 7 of subsection (eee) of section 606 of  the  tax
    36  law,  as  amended  by  section  8 of part A of chapter 73 of the laws of
    37  2016, is amended to read as follows:
    38    (7) Disclosure of incomes  and  other  information.    (A)  Where  the
    39  commissioner  has denied a taxpayer's claim for the credit authorized by
    40  this subsection in whole or in part on the grounds that  the  affiliated
    41  income  of  the  parcel  in  question  exceeds the applicable limit, the
    42  commissioner shall have the authority to reveal  to  that  taxpayer  the
    43  names  and incomes of the other taxpayers whose incomes were included in
    44  the computation of such affiliated income.
    45    (B) Notwithstanding any provision of law to the  contrary,  the  names
    46  and  addresses  of individuals who have applied for or are receiving the
    47  credit authorized by this subsection may be disclosed to  assessors  and
    48  county  directors  of  real property tax services. In addition, where an
    49  agreement is in place between the commissioner and the head of  the  tax
    50  department  of  another state, such information may be disclosed to such
    51  official or his or her designees.  Such information shall be  considered
    52  confidential  and shall not be subject to further disclosure pursuant to
    53  the freedom of information law or otherwise.
    54    § 2. This act shall take effect immediately.

        S. 2009--C                         17                         A. 3009--C
 
     1                                   PART H
 
     2    Section  1.  Subparagraph  (ii)  of  paragraph (k) of subdivision 2 of
     3  section 425 of the real property tax law, as amended  by  section  2  of
     4  part  A  of  chapter  405  of  the  laws  of 1999, is amended to read as
     5  follows:
     6    (ii) That proportion of the assessment of such real property owned  by
     7  a  cooperative  apartment  corporation determined by the relationship of
     8  such real property vested in  such  tenant-stockholder  to  such  entire
     9  parcel  and  the  buildings  thereon owned by such cooperative apartment
    10  corporation in which such tenant-stockholder resides shall be subject to
    11  exemption from taxation pursuant to this section and  any  exemption  so
    12  granted  shall  be  credited by the appropriate taxing authority against
    13  the assessed valuation of such real property. Upon the completion of the
    14  final assessment roll, or as soon  thereafter  as  is  practicable,  the
    15  assessor shall forward to the cooperative apartment corporation a state-
    16  ment  setting  forth the exemption attributable to each eligible tenant-
    17  stockholder. The reduction in real property taxes attributable  to  each
    18  eligible  tenant-stockholder shall be credited by the cooperative apart-
    19  ment corporation against the amount of such taxes otherwise  payable  by
    20  or  chargeable  to  such  tenant-stockholder.  The  assessor  shall also
    21  forward to the commissioner, at the time and in the manner prescribed by
    22  the commissioner, a statement setting forth the taxable  assessed  value
    23  attributable   to   each   tenant-stockholder,  without  regard  to  the
    24  exemption, and such other information as  the  commissioner  shall  deem
    25  necessary to properly calculate the STAR credit authorized by subsection
    26  (eee)  of section six hundred six of the tax law for those tenant-stock-
    27  holders who qualify for it.
    28    § 2. Subparagraph (E) of paragraph 1 of subsection  (eee)  of  section
    29  606  of  the tax law, as amended by section 8 of part A of chapter 73 of
    30  the laws of 2016, is amended to read as follows:
    31    (E) "Qualifying taxes" means  the  school  district  taxes  that  were
    32  levied  upon  the taxpayer's primary residence for the associated fiscal
    33  year that were actually paid by the taxpayer during  the  taxable  year;
    34  or,  in  the  case  of a city school district that is subject to article
    35  fifty-two of the education law, the combined city  and  school  district
    36  taxes  that  were  levied  upon the taxpayer's primary residence for the
    37  associated fiscal year that were actually paid by  the  taxpayer  during
    38  the  taxable  year. Provided, however, that in the case of a cooperative
    39  apartment, "qualifying taxes" means the school district taxes that would
    40  have been levied upon the tenant-stockholder's primary residence  if  it
    41  were separately assessed, as determined by the commissioner based on the
    42  statement  provided  by  the  assessor  pursuant to subparagraph (ii) of
    43  paragraph (k) of subdivision two of section four hundred twenty-five  of
    44  the  real  property  tax  law, or in the case of a cooperative apartment
    45  corporation that is described in subparagraph (iv) of paragraph  (k)  of
    46  subdivision two of section four hundred twenty-five of the real property
    47  tax law, one third of such amount. In no case shall the term "qualifying
    48  taxes" be construed to include penalties or interest.
    49    §  3.  Subparagraph  (A) of paragraph 6 of subsection (eee) of section
    50  606 of the tax law is REPEALED.
    51    § 4. This act shall take effect immediately, provided that section one
    52  of this act shall apply to final assessment rolls used  to  levy  school
    53  taxes for school years beginning on and after July 1, 2017, and provided
    54  further  that  sections two and three of this act shall apply to taxable
    55  years beginning on and after January 1, 2017.

        S. 2009--C                         18                         A. 3009--C

     1                                   PART I
 
     2    Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
     3  real property tax law relating to oil and gas  charges,  as  amended  by
     4  section  1  of  part  C of chapter 59 of the laws of 2014, is amended to
     5  read as follows:
     6    § 2. This act shall take effect immediately and  shall  be  deemed  to
     7  have been in full force and effect on and after April 1, 1992; provided,
     8  however that any charges imposed by section 593 of the real property tax
     9  law  as  added  by section one of this act shall first be due for values
    10  for assessment rolls with tentative completion dates after July 1, 1992,
    11  and provided further, that this act  shall  remain  in  full  force  and
    12  effect  until  March  31,  [2018] 2021, at which time section 593 of the
    13  real property tax law as added by section  one  of  this  act  shall  be
    14  repealed.
    15    § 2. This act shall take effect immediately.
 
    16                                   PART J
 
    17    Section  1.  Subdivision  5 of section 81 of the state finance law, as
    18  added by chapter 432 of the laws of 2016, is amended to read as follows:
    19    5. Moneys shall be payable from the fund on the audit and  warrant  of
    20  the  comptroller  on vouchers approved and certified by the commissioner
    21  of health, for veterans' homes operated by the department of health, and
    22  by the [commissioner of education] chancellor of the state university of
    23  New York, for the veterans' home operated by the state university of New
    24  York.
    25    § 2. This act shall take effect immediately and  shall  be  deemed  to
    26  have been in full force and effect on and after November 14, 2016.
 
    27                                   PART K

    28    Section  1.  Section  352 of the economic development law, as added by
    29  section 1 of part MM of chapter 59 of the laws of 2010, subdivisions  7,
    30  8,  9,  10,  12,  13,  14,  15, 16, 17, 18, 19, 20 and 21 as amended and
    31  subdivision 11 as added by section 1 of part K of chapter 59 of the laws
    32  of 2015, is amended to read as follows:
    33    § 352. Definitions. For the purposes of this article:
    34    1. "Agriculture" means both  agricultural  production  (establishments
    35  performing  the complete farm or ranch operation, such as farm owner-op-
    36  erators, tenant farm  operators,  and  sharecroppers)  and  agricultural
    37  support  (establishments  that perform one or more activities associated
    38  with farm operation, such as soil preparation, planting, harvesting, and
    39  management, on a contract or fee basis).
    40    2. "Back office operations" means a business function that may include
    41  one or more of the following activities: customer  service,  information
    42  technology  and data processing, human resources, accounting and related
    43  administrative functions.
    44    3. "Benefit-cost ratio" means the following calculation: the numerator
    45  is the sum of (i) the value of all remuneration projected to be paid for
    46  all net new jobs during the period of participation in the program,  and
    47  (ii)  the value of capital investments to be made by the business enter-
    48  prise during the period of participation in the program, and the denomi-
    49  nator is the amount of total tax benefits under this article  that  will
    50  be used and refunded.

        S. 2009--C                         19                         A. 3009--C
 
     1    4.  "Certificate  of  eligibility"  means  the  document issued by the
     2  department to an applicant that  has  completed  an  application  to  be
     3  admitted  into the excelsior jobs program and has been accepted into the
     4  program by the department. Possession of a  certificate  of  eligibility
     5  does not by itself guarantee the eligibility to claim the tax credit.
     6    5.  "Certificate of tax credit" means the document issued to a partic-
     7  ipant by the department, after the  department  has  verified  that  the
     8  participant has met all applicable eligibility criteria in this article.
     9  The  certificate shall be issued annually if such criteria are satisfied
    10  and shall specify the exact amount of each of the tax credit  components
    11  under  this  article  that  a participant may claim, pursuant to section
    12  three hundred fifty-five of this article, and shall specify the  taxable
    13  year in which such credit may be claimed.
    14    6.  "Distribution center" means a large scale facility involving proc-
    15  essing, repackaging and/or movement of finished or  semi-finished  goods
    16  to retail locations across a multi-state area.
    17    7.  "Entertainment  company" means a corporation, partnership, limited
    18  partnership, or other entity principally engaged in  the  production  or
    19  post  production  of  (i)  motion pictures, which shall include feature-
    20  length films and television  films,  (ii)  instructional  videos,  (iii)
    21  televised  commercial  advertisements,  (iv) animated films or cartoons,
    22  (v) music videos, (vi) television programs, which shall include, but not
    23  be limited to, television series, television pilots,  and  single  tele-
    24  vision  episodes,  or (vii) programs primarily intended for radio broad-
    25  cast. "Entertainment company" shall not include an entity (i) principal-
    26  ly engaged in the live performance of events, including, but not limited
    27  to, theatrical productions, concerts,  circuses,  and  sporting  events,
    28  (ii) principally engaged in the production of content intended primarily
    29  for  industrial, corporate or institutional end-users, (iii) principally
    30  engaged in the production of fundraising  films  or  programs,  or  (iv)
    31  engaged  in  the  production  of  content for which records are required
    32  under section 2257 of title 18, United States  code,  to  be  maintained
    33  with respect to any performer in such production.
    34    8.  "Financial  services  data  centers or financial services customer
    35  back office  operations"  means  operations  that  manage  the  data  or
    36  accounts of existing customers or provide product or service information
    37  and  support  to  customers  of  financial services companies, including
    38  banks, other lenders, securities and commodities  brokers  and  dealers,
    39  investment  banks,  portfolio  managers,  trust  offices,  and insurance
    40  companies.
    41    9. "Investment zone" shall mean an area within the state that had been
    42  designated under paragraph (i) of subdivision (a) and subdivision (d) of
    43  section nine hundred fifty-eight of the general municipal law  that  was
    44  wholly  contained  within  up  to  four distinct and separate contiguous
    45  areas as of the date immediately preceding the date the  designation  of
    46  such  area  expired  pursuant  to section nine hundred sixty-nine of the
    47  general municipal law.
    48    10. "Life sciences"  means  agricultural  biotechnology,  biogenerics,
    49  bioinformatics,  biomedical  engineering,  biopharmaceuticals,  academic
    50  medical centers, biotechnology, chemical synthesis, chemistry  technolo-
    51  gy, medical diagnostics, genomics, medical image analysis, marine biolo-
    52  gy,  medical devices, medical nanotechnology, natural product pharmaceu-
    53  ticals, proteomics, regenerative medicine, RNA interference,  stem  cell
    54  research,  medical and neurological clinical trials, health robotics and
    55  veterinary science.

        S. 2009--C                         20                         A. 3009--C
 
     1    11. "Life sciences company" means a business entity or an organization
     2  or institution that devotes the majority of its efforts in  the  various
     3  stages  of research, development, technology transfer and commercializa-
     4  tion related to any life sciences field.
     5    12.  "Manufacturing"  means  the process of working raw materials into
     6  products suitable for use or which gives new shapes, new quality or  new
     7  combinations  to  matter  which has already gone through some artificial
     8  process by the use of machinery, tools,  appliances,  or  other  similar
     9  equipment.  "Manufacturing"  does not include an operation that involves
    10  only the assembly of components,  provided,  however,  the  assembly  of
    11  motor  vehicles  or  other high value-added products shall be considered
    12  manufacturing.
    13    [11.] 13. "Music production"  means  the  process  of  creating  sound
    14  recordings  of  at  least  eight minutes, recorded in professional sound
    15  studios, intended for commercial release. "Music  production"  does  not
    16  include  recording  of  live  concerts, or recordings that are primarily
    17  spoken word or wildlife or nature sounds, or produced for  instructional
    18  use or advertising or promotional purposes.
    19    [12.] 14. "Net new jobs" means:
    20    (a) jobs created in this state that (i) are new to the state,
    21    (ii)  have  not been transferred from employment with another business
    22  located in this state including from a related person in this state,
    23    (iii) are either full-time wage-paying jobs or equivalent to  a  full-
    24  time wage-paying job requiring at least thirty-five hours per week, and
    25    (iv) are filled for more than six months; or
    26    (b)  jobs  obtained by an entertainment company in this state (i) as a
    27  result of the termination of a licensing agreement with  another  enter-
    28  tainment company, (ii) that the commissioner determines to be at risk of
    29  leaving  the state as a direct result of the termination, (iii) that are
    30  either full-time wage-paying jobs or equivalent to a full-time wage-pay-
    31  ing job requiring at least thirty-five hours per week, and (iv) that are
    32  filled for more than six months.
    33    [13.] 15. "Participant" means a business entity that:
    34    (a) has completed an application prescribed by the  department  to  be
    35  admitted into the program;
    36    (b) has been issued a certificate of eligibility by the department;
    37    (c) has demonstrated that it meets the eligibility criteria in section
    38  three  hundred  fifty-three and subdivision two of section three hundred
    39  fifty-four of this article; and
    40    (d) has been certified as a participant by the commissioner.
    41    [14.] 16. "Preliminary schedule of benefits" means the maximum  aggre-
    42  gate  amount  of  each component of the tax credit that a participant in
    43  the excelsior jobs program is eligible to receive pursuant to this arti-
    44  cle.  The schedule shall indicate the annual amount of each component of
    45  the credit a participant may claim in each of its ten years of eligibil-
    46  ity.   The preliminary schedule of  benefits  shall  be  issued  by  the
    47  department  when  the  department approves the application for admission
    48  into the program. The commissioner may  amend  that  schedule,  provided
    49  that  the  commissioner  complies  with the credit caps in section three
    50  hundred fifty-nine of this article.
    51    [15.] 17. "Qualified investment" means an investment in tangible prop-
    52  erty (including a building or a  structural  component  of  a  building)
    53  owned by a business enterprise which:
    54    (a)  is depreciable pursuant to section one hundred sixty-seven of the
    55  internal revenue code;
    56    (b) has a useful life of four years or more;

        S. 2009--C                         21                         A. 3009--C
 
     1    (c) is acquired by purchase as defined in section one  hundred  seven-
     2  ty-nine (d) of the internal revenue code;
     3    (d) has a situs in this state; and
     4    (e) is placed in service in the state on or after the date the certif-
     5  icate of eligibility is issued to the business enterprise.
     6    [16.]  18.  "Regionally  significant project" means (a) a manufacturer
     7  creating at least fifty net new jobs in the state and making significant
     8  capital investment in the state; (b) a business creating at least twenty
     9  net new jobs in agriculture in the state and making significant  capital
    10  investment  in  the  state,  (c) a financial services firm, distribution
    11  center, or back office operation creating at least three hundred net new
    12  jobs in the state and  making  significant  capital  investment  in  the
    13  state,  (d) a scientific research and development firm creating at least
    14  twenty net new jobs in the state, and making significant capital invest-
    15  ment in the state, (e) a life sciences company creating at least  twenty
    16  net  new  jobs in the state and making significant capital investment in
    17  the state or [(e)] (f) an entertainment company creating or obtaining at
    18  least two hundred net new jobs in the state and making significant capi-
    19  tal investment in the state. Other businesses creating three hundred  or
    20  more net new jobs in the state and making significant capital investment
    21  in  the  state  may  be  considered eligible as a regionally significant
    22  project by the commissioner as well. The commissioner  shall  promulgate
    23  regulations  pursuant to section three hundred fifty-six of this article
    24  to determine what constitutes significant capital investment for each of
    25  the project categories indicated in this subdivision and what additional
    26  criteria a business must meet to be eligible as a regionally significant
    27  project, including, but not limited to, whether  a  business  exports  a
    28  substantial  portion of its products or services outside of the state or
    29  outside of a metropolitan statistical area or county within the state.
    30    [17.] 19. "Related  person"  means  a  "related  person"  pursuant  to
    31  subparagraph  (c)  of  paragraph three of subsection (b) of section four
    32  hundred sixty-five of the internal revenue code.
    33    [18.] 20. "Remuneration" means wages and benefits paid to an  employee
    34  by a participant in the excelsior jobs program.
    35    [19.] 21. "Research and development expenditures" mean the expenses of
    36  the  business  enterprise that are qualified research expenses under the
    37  federal research and development credit under section forty-one  of  the
    38  internal  revenue  code  and are attributable to activities conducted in
    39  the state. If the federal research and development credit  has  expired,
    40  then the research and development expenditures shall be calculated as if
    41  the  federal research and development credit structure and definition in
    42  effect in federal tax year two thousand nine were still in effect.
    43    [20.] 22.  "Scientific  research  and  development"  means  conducting
    44  research  and experimental development in the physical, engineering, and
    45  life sciences, including but not limited  to  agriculture,  electronics,
    46  environmental,  biology,  botany,  biotechnology,  computers, chemistry,
    47  food, fisheries, forests, geology, health, mathematics, medicine, ocean-
    48  ography, pharmacy, physics, veterinary, and other allied subjects.   For
    49  the  purposes  of this article, scientific research and development does
    50  not include medical or veterinary laboratory testing facilities.
    51    [21.] 23. "Software development" means the creation of coded  computer
    52  instructions or production or post-production of video games, as defined
    53  in  subdivision one-a of section six hundred eleven of the general busi-
    54  ness law, other than those embedded and used exclusively in advertising,
    55  promotional websites or microsites,  and  also  includes  new  media  as
    56  defined by the commissioner in regulations.

        S. 2009--C                         22                         A. 3009--C
 
     1    §  2.  Subdivisions 1 and 3 of section 353 of the economic development
     2  law, as amended by section 2 of part K of chapter  59  of  the  laws  of
     3  2015, are amended to read as follows:
     4    1. To be a participant in the excelsior jobs program, a business enti-
     5  ty shall operate in New York state predominantly:
     6    (a)  as  a financial services data center or a financial services back
     7  office operation;
     8    (b) in manufacturing;
     9    (c) in software development and new media;
    10    (d) in scientific research and development;
    11    (e) in agriculture;
    12    (f) in the creation or expansion of  back  office  operations  in  the
    13  state;
    14    (g) in a distribution center;
    15    (h)  in  an  industry  with  significant  potential for private-sector
    16  economic growth and development in this  state  as  established  by  the
    17  commissioner  in  regulations  promulgated  pursuant to this article. In
    18  promulgating such regulations the commissioner  shall  include  job  and
    19  investment criteria;
    20    (i) as an entertainment company; [or]
    21    (j) in music production; or
    22    (k) as a life sciences company.
    23    3.  For  the  purposes of this article, in order to participate in the
    24  excelsior jobs program, a business  entity  operating  predominantly  in
    25  manufacturing  must  create at least ten net new jobs; a business entity
    26  operating predominately in agriculture must create at least five net new
    27  jobs; a business entity operating predominantly as a  financial  service
    28  data  center  or  financial services customer back office operation must
    29  create at least fifty net new jobs; a business entity operating predomi-
    30  nantly in scientific research and development must create at least  five
    31  net  new  jobs;  a  business  entity operating predominantly in software
    32  development must create at least five net new jobs;  a  business  entity
    33  creating  or expanding back office operations must create at least fifty
    34  net new  jobs;  a  business  entity  operating  predominately  in  music
    35  production  must  create  at  least five net new jobs; a business entity
    36  operating predominantly as  an  entertainment  company  must  create  or
    37  obtain at least one hundred net new jobs; or a business entity operating
    38  predominantly as a distribution center in the state must create at least
    39  seventy-five  net  new  jobs,  notwithstanding  subdivision five of this
    40  section; or a business entity operating predominately as a life sciences
    41  company must create at least five net new jobs;  or  a  business  entity
    42  must be a regionally significant project as defined in this article; or
    43    §  3. Subdivision 4 of section 353 of the economic development law, as
    44  amended by section 1 of part C of chapter 68 of the  laws  of  2013,  is
    45  amended to read as follows:
    46    4.  A business entity operating predominantly in one of the industries
    47  referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi-
    48  sion one of this section but which does not meet the job requirements of
    49  subdivision three of this section must have at least  twenty-five  full-
    50  time job equivalents unless such business is a business entity operating
    51  predominantly  in manufacturing then it must have at least ten full-time
    52  job equivalents and must demonstrate that its benefit-cost ratio  is  at
    53  least ten to one.
    54    §  4. Subdivision 5 of section 354 of the economic development law, as
    55  amended by section 2 of part O of chapter 60 of the  laws  of  2016,  is
    56  amended to read as follows:

        S. 2009--C                         23                         A. 3009--C

     1    5.  A participant may claim tax benefits commencing in the first taxa-
     2  ble year that the business enterprise  receives  a  certificate  of  tax
     3  credit  or  the first taxable year listed on its preliminary schedule of
     4  benefits, whichever is later. A participant may claim such benefits  for
     5  the  next  nine consecutive taxable years, provided that the participant
     6  demonstrates to the department that it continues to satisfy  the  eligi-
     7  bility  criteria  specified in section three hundred fifty-three of this
     8  article and subdivision two of this section in  each  of  those  taxable
     9  years, and provided that no tax credits may be allowed for taxable years
    10  beginning on or after January first, two thousand [twenty-seven] thirty.
    11  If,  in  any given year, a participant who has satisfied the eligibility
    12  criteria specified in section three hundred fifty-three of this  article
    13  realizes  job  creation less than the estimated amount, the credit shall
    14  be reduced by the proportion of actual job  creation  to  the  estimated
    15  amount,  provided the proportion is at least seventy-five percent of the
    16  jobs estimated.
    17    § 5. Section 359 of  the  economic  development  law,  as  amended  by
    18  section  1  of  part  O of chapter 60 of the laws of 2016, is amended to
    19  read as follows:
    20    § 359. Cap on tax credit. The total amount of tax  credits  listed  on
    21  certificates  of  tax  credit issued by the commissioner for any taxable
    22  year may not exceed the limitations set forth in this section.  One-half
    23  of  any  amount of tax credits not awarded for a particular taxable year
    24  in years two thousand eleven through two  thousand  twenty-four  may  be
    25  used by the commissioner to award tax credits in another taxable year.

    26  Credit components in the aggregate           With respect to taxable
    27  shall not exceed:                            years beginning in:
 
    28            $ 50 million                               2011
    29            $ 100 million                              2012
    30            $ 150 million                              2013
    31            $ 200 million                              2014
    32            $ 250 million                              2015
    33            $ 183 million                              2016
    34            $ 183 million                              2017
    35            $ 183 million                              2018
    36            $ 183 million                              2019
    37            $ 183 million                              2020
    38            $ 183 million                              2021
    39            $ 133 million                              2022
    40            $ 83 million                               2023
    41            $ 36 million                               2024
 
    42    Twenty-five  percent  of  tax credits shall be allocated to businesses
    43  accepted into the  program  under  subdivision  four  of  section  three
    44  hundred  fifty-three  of  this  article  and seventy-five percent of tax
    45  credits shall be allocated to businesses accepted into the program under
    46  subdivision three of section three hundred fifty-three of this article.
    47    Provided, however, if by September thirtieth of a calendar  year,  the
    48  department  has  not  allocated  the full amount of credits available in
    49  that year to either: (i) businesses  accepted  into  the  program  under
    50  subdivision four of section three hundred fifty-three of this article or
    51  (ii)  businesses  accepted  into  the program under subdivision three of
    52  section three hundred fifty-three of this article, the commissioner  may
    53  allocate  any  remaining  tax  credits  to businesses referenced in this

        S. 2009--C                         24                         A. 3009--C
 
     1  paragraph as needed; provided, however, that under no circumstances  may
     2  the  aggregate  statutory  cap  for  all  program years be exceeded. One
     3  hundred percent of the unawarded amounts remaining at  the  end  of  two
     4  thousand twenty-four may be allocated in subsequent years, notwithstand-
     5  ing  the  fifty  percent  limitation  on  any amounts of tax credits not
     6  awarded in taxable years two thousand eleven through two thousand  twen-
     7  ty-four.  Provided,  however,  no tax credits may be allowed for taxable
     8  years beginning on or after January first, two  thousand  [twenty-seven]
     9  thirty.
    10    §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
    11  section 3 of part O of chapter 60 of the laws of  2016,  is  amended  to
    12  read as follows:
    13    (b) To be eligible for the excelsior jobs program credit, the taxpayer
    14  shall  have  been issued a "certificate of tax credit" by the department
    15  of economic development pursuant to subdivision four  of  section  three
    16  hundred  fifty-four  of  the economic development law, which certificate
    17  shall set forth the amount of each credit component that may be  claimed
    18  for  the  taxable year. A taxpayer may claim such credit for ten consec-
    19  utive taxable years commencing  in  the  first  taxable  year  that  the
    20  taxpayer  receives a certificate of tax credit or the first taxable year
    21  listed on its preliminary schedule  of  benefits,  whichever  is  later,
    22  provided  that no tax credits may be allowed for taxable years beginning
    23  on or after January first, two  thousand  [twenty-seven]  thirty.    The
    24  taxpayer shall be allowed to claim only the amount listed on the certif-
    25  icate  of  tax  credit  for  that taxable year. Such certificate must be
    26  attached to the taxpayer's return. No cost or expense paid  or  incurred
    27  by  the  taxpayer shall be the basis for more than one component of this
    28  credit or any other tax credit, except  as  provided  in  section  three
    29  hundred fifty-five of the economic development law.
    30    §  7.  The  tax  law  is amended by adding a new section 43 to read as
    31  follows:
    32    § 43. Life sciences research and development tax credit. (a) Allowance
    33  of credit. (1) A taxpayer that is a qualified life sciences company,  or
    34  that  is  a  sole  proprietor of or a partner in a partnership that is a
    35  qualified life sciences company or a shareholder of a New York S  corpo-
    36  ration  that is a qualified life sciences company, and is subject to tax
    37  under article nine-A or twenty-two of this chapter, shall be  allowed  a
    38  credit  against  such  tax,  pursuant  to  the provisions referred to in
    39  subdivision (e) of this  section,  for  a  period  of  three  years,  as
    40  provided  in  subparagraph (ii) of paragraph two of this subdivision, to
    41  be computed as provided in this section, provided that no  credit  shall
    42  be  allowed  for  taxable years beginning on or after January first, two
    43  thousand twenty-eight. Such credit may be claimed in  the  taxable  year
    44  specified  on the certificate of tax credit issued to the qualified life
    45  sciences company.
    46    (2)(i) For a qualified life sciences company that employs ten or  more
    47  persons during the taxable year, the amount of the credit shall be equal
    48  to  fifteen  percent  of such qualified life sciences company's research
    49  and development expenditures in this state for the taxable year.  For  a
    50  qualified  life  sciences  company  that  employs  less than ten persons
    51  during the taxable year, the amount of the  credit  shall  be  equal  to
    52  twenty  percent  of  such qualified life sciences company's research and
    53  development expenditures in this state for the taxable year.
    54    (ii) The credit shall be allowed only with respect to the first  taxa-
    55  ble  year  during  which  the criteria set forth in this subdivision are
    56  satisfied, and with respect to  each  of  the  two  taxable  years  next

        S. 2009--C                         25                         A. 3009--C
 
     1  following  (but only, with respect to each of such years, if such crite-
     2  ria are satisfied).   Subsequent certifications  of  the  life  sciences
     3  company  by  the  department  of  economic  development pursuant to this
     4  section  shall  not extend the three taxable year time limitation on the
     5  allowance of the credit set forth in the preceding sentence.
     6    (3) The total amount of credit allowable to a qualified life  sciences
     7  company,  or,  if  the  life  sciences  company  is properly included or
     8  required to be included in a combined report,  to  the  combined  group,
     9  taken  in  the aggregate, shall not exceed five hundred thousand dollars
    10  in any taxable year. If the life sciences company  is  a  partner  in  a
    11  partnership  or  shareholder of a New York S corporation, then the total
    12  amount of credit allowable shall be applied at the entity level, so that
    13  the total amount of credit allowable to all the partners or shareholders
    14  of each such entity, taken  in  the  aggregate,  does  not  exceed  five
    15  hundred thousand dollars in any taxable year.
    16    (4) No research and development expenditures made by the life sciences
    17  company  and  used  either  as the basis for the allowance of the credit
    18  provided for pursuant to this section or used in the calculation of  the
    19  credit  provided  pursuant  to  this  section shall be used to claim any
    20  other credit allowed pursuant to this chapter or be used in  the  calcu-
    21  lation of any other credit allowed pursuant to this chapter.
    22    (b)  Maximum  amount  of  credits. The aggregate amount of tax credits
    23  allowed under this section to taxpayers subject to  tax  under  articles
    24  nine-A  and  twenty-two of this chapter in any taxable year shall be ten
    25  million dollars, and shall be allotted from the funds available for  tax
    26  credits  under  article  seventeen of the economic development law. Such
    27  aggregate amount of credits shall be  allocated  by  the  department  of
    28  economic development among taxpayers in order of priority based upon the
    29  date  of  filing an application for allocation of life sciences research
    30  and development tax credit with such department. If the total amount  of
    31  allocated  credits applied for in any particular year exceeds the aggre-
    32  gate amount of tax credits allowed for such  year  under  this  section,
    33  such excess shall be treated as having been applied for on the first day
    34  of the subsequent year.
    35    (c)  Definitions.  As  used  in this section the following terms shall
    36  have the following meanings:
    37    (1) "Certificate of tax credit" means the document issued to a  quali-
    38  fied  life  sciences  company by the department of economic development,
    39  after the department of economic development has verified that such life
    40  sciences company has met all applicable criteria in this section  to  be
    41  eligible  for  the  life  sciences  research  and development tax credit
    42  allowed under this section, including but not limited to verifying  that
    43  the  life  sciences  company is a new business. The certificate shall be
    44  issued annually if such criteria are satisfied  and  shall  specify  the
    45  exact  amount  of  the life sciences research and development tax credit
    46  that may be claimed by such qualified life sciences company, pursuant to
    47  this section, and shall specify the taxable year in  which  such  credit
    48  may be claimed.
    49    (2) "New business" means any business that qualifies as a new business
    50  under  either  paragraph  (f)  of subdivision one of section two hundred
    51  ten-B or paragraph ten of subsection one of section six hundred  six  of
    52  this chapter.
    53    (3)  "Qualified  life sciences company" means a life sciences company,
    54  as defined in subdivision eleven of section three hundred  fifty-two  of
    55  the  economic development law, that has been certified by the department
    56  of economic development as a life sciences company and is  a  new  busi-

        S. 2009--C                         26                         A. 3009--C
 
     1  ness.    Provided  however,  for purposes of the credit authorized under
     2  this section, the department of economic development shall  not  certify
     3  as  a  life sciences company any corporation, partnership, limited part-
     4  nership,  or other entity that has been within the immediately preceding
     5  sixty months a related person to an  entity  that  is  a  life  sciences
     6  company or an entity that is engaged in scientific research and develop-
     7  ment  as  defined  in  subdivision  twenty-two  of section three hundred
     8  fifty-two of the economic development law.
     9    (4) "Research and development expenditures" means  qualified  research
    10  expenses  as  defined  in  subsection  (b) of section 41 of the internal
    11  revenue code, provided, however, that such qualified  research  expenses
    12  shall  not  include  amounts  under  subparagraph  (B) of paragraph 1 of
    13  subsection (b) of section 41 of the internal revenue code and as further
    14  described in paragraph 3 of subsection (b) of section 41 of the internal
    15  revenue code. If section 41 of the internal revenue  code  has  expired,
    16  then the research and development expenses shall be calculated as if the
    17  federal  research  and  development  credit  structure and definition in
    18  effect in section 41 in federal tax year two thousand nine were still in
    19  effect.
    20    (5) "Related person" means a related person as defined in subparagraph
    21  (c) of paragraph three of subsection (b) of section 465 of the  internal
    22  revenue  code.  For  this  purpose,  a "related person" shall include an
    23  entity that would have qualified as a "related person"  if  it  had  not
    24  been  dissolved,  liquidated,  merged  with  another entity or otherwise
    25  ceased to exist or operate.
    26    (d)(1) For purposes of this section, in order to be eligible  for  the
    27  life  sciences  research  and  development tax credit allowed under this
    28  section, a life sciences company must be issued  a  certificate  of  tax
    29  credit  by  the  department of economic development.   The department of
    30  economic development shall verify that such life  sciences  company  has
    31  met all applicable eligibility criteria in this section before issuing a
    32  certificate  of  tax credit, including but not limited to verifying that
    33  the life sciences company is a new business.
    34    (2) The commissioner of economic development,  after  consulting  with
    35  the  commissioner, shall promulgate regulations by October thirty-first,
    36  two thousand seventeen to establish procedures for the allocation of tax
    37  credits allowed under this section. Such  rules  and  regulations  shall
    38  include  provisions  describing  the  application process for the credit
    39  allowed under this section, the due dates  for  such  applications,  the
    40  eligibility  standards for qualified life sciences companies, the stand-
    41  ards which shall be used to evaluate the applications, the documentation
    42  that will be provided to taxpayers to substantiate to the department the
    43  amount of tax credits  allocated  to  such  taxpayers,  and  such  other
    44  provisions  as  deemed  necessary  and  appropriate. Notwithstanding any
    45  other provisions to the contrary in the state  administrative  procedure
    46  act,  such rules and regulations may be adopted on an emergency basis if
    47  necessary to meet such  October  thirty-first,  two  thousand  seventeen
    48  deadline.
    49    (e)  Cross-references.  For  application of the credit provided for in
    50  this section, see the following provisions of this chapter:
    51    (1) article 9-A: section 210-B: subdivision 52.
    52    (2) article 22: section 606: subsection (hhh).
    53    (f) Notwithstanding any provision of this chapter, (i)  employees  and
    54  officers  of  the  department of economic development and the department
    55  shall be allowed and are directed  to  share  and  exchange  information
    56  regarding  the credits applied for, allowed, or claimed pursuant to this

        S. 2009--C                         27                         A. 3009--C
 
     1  section and taxpayers who are applying for credits or who  are  claiming
     2  credits, including information contained in or derived from credit claim
     3  forms  submitted  to  the  department and applications for certification
     4  submitted  to  the  department  of  economic  development,  and (ii) the
     5  commissioner and the commissioner of the department of economic develop-
     6  ment may release the names and addresses of any  taxpayer  claiming  the
     7  credit allowed under this section and the amount of the credit earned by
     8  the  taxpayer.  Provided,  however,  if  a  taxpayer  claims such credit
     9  because it is a member of a limited liability company or a partner in  a
    10  partnership,  only the amount of credit earned by the entity and not the
    11  amount of credit claimed by the taxpayer may be released.
    12    (g) For purposes of the credit allowed under this section, the  number
    13  of  persons  employed  by  a  qualified life sciences company during the
    14  taxable year shall be determined by  ascertaining  the  number  of  such
    15  individuals employed full-time by such company, excluding general execu-
    16  tive  officers,  on  the thirty-first day of March, the thirtieth day of
    17  June, the thirtieth day of September and the thirty-first day of  Decem-
    18  ber  during  each  taxable  year,  by adding together the number of such
    19  individuals ascertained on each of such dates and dividing  the  sum  so
    20  obtained by the number of such dates occurring within such taxable year.
    21  An  individual  employed full-time means an employee in a job consisting
    22  of at least thirty-five hours per week, or two or more employees who are
    23  in jobs that together constitute the equivalent of a  job  of  at  least
    24  thirty-five hours per week (full-time equivalent).
    25    §  8. Section 210-B of the tax law is amended by adding a new subdivi-
    26  sion 52 to read as follows:
    27    52. Life sciences research and development tax credit.  (a)  Allowance
    28  of  credit.  A taxpayer that is eligible pursuant to section forty-three
    29  of this chapter shall be allowed a credit to be computed as provided  in
    30  such section against the tax imposed by this article.
    31    (b)  Application  of credit. The credit allowed under this subdivision
    32  for any taxable year shall not reduce the tax due for such year to  less
    33  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    34  section two hundred ten of this article. Provided, however, that if  the
    35  amount  of  the  credit allowable under this subdivision for any taxable
    36  year reduces the tax to such amount or if the  taxpayer  otherwise  pays
    37  tax based on the fixed dollar minimum amount, the excess shall be treat-
    38  ed  as  an  overpayment  of tax to be credited or refunded in accordance
    39  with the provisions of section one thousand eighty-six of this  chapter.
    40  Provided, further, the provisions of subsection (c) of section one thou-
    41  sand  eighty-eight of this chapter notwithstanding, no interest shall be
    42  paid thereon.
    43    § 9. Section 606 of the tax law is amended by adding a new  subsection
    44  (hhh) to read as follows:
    45    (hhh) Life sciences research and development tax credit. (1) Allowance
    46  of credit. A taxpayer who is eligible pursuant to section forty-three of
    47  this  chapter  shall  be  allowed a credit to be computed as provided in
    48  such section against the tax imposed by this article.
    49    (2) Application of credit. If the amount of the credit allowable under
    50  this subsection for any taxable year exceeds the taxpayer's tax for such
    51  year, the excess shall be treated as an overpayment of tax to be credit-
    52  ed or refunded as provided in section six  hundred  eighty-six  of  this
    53  article, provided, however, that no interest shall be paid thereon.
    54    § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    55  of  the  tax  law  is  amended by adding a new clause (xliii) to read as
    56  follows:

        S. 2009--C                         28                         A. 3009--C
 
     1  (xliii) Life sciences research and      Amount of credit under
     2  development tax credit under            subdivision fifty-two of
     3  subsection (hhh)                        section two hundred ten-B
 
     4    § 11. This act shall take effect immediately, and shall apply to taxa-
     5  ble years beginning on or after January 1, 2018.
 
     6                                   PART L

     7    Section  1.  Section  441 of the economic development law, as added by
     8  section 1 of part O of chapter 59 of the laws of  2015,  is  amended  to
     9  read as follows:
    10    § 441. Definitions. As used in this article, the following terms shall
    11  have the following meanings:
    12    1.  "Approved provider" means an entity meeting such criteria as shall
    13  be established by the commissioner in rules and regulations  promulgated
    14  pursuant  to this article, that may provide eligible training to employ-
    15  ees of a business entity participating in the employee  training  incen-
    16  tive program; provided that, for internship programs, the business enti-
    17  ty  shall  be  an  approved provider or an approved provider in contract
    18  with such business entity. Such criteria shall ensure that any  approved
    19  provider  possess adequate credentials to provide the training described
    20  in an application by a business entity to the  commissioner  to  partic-
    21  ipate in the employee training incentive program.
    22    2. "Commissioner" means the commissioner of economic development.
    23    3.  "Eligible  training"  means  (a)  training provided by an approved
    24  provider that is:
    25    (i) to upgrade, retrain or improve the productivity of employees;
    26    (ii) provided to employees [filling  net  new  jobs,  or  to  existing
    27  employees]  in  connection  with  a  significant capital investment by a
    28  participating business entity;
    29    (iii) determined by the commissioner to satisfy a business need on the
    30  part of a participating business entity;
    31    (iv) not designed to train or upgrade skills as required by a  federal
    32  or state entity;
    33    (v) not training the completion of which may result in the awarding of
    34  a license or certificate required by law in order to perform a job func-
    35  tion; and
    36    (vi) not culturally focused training; or
    37    (b)  an  internship  program  in  advanced technology or life sciences
    38  approved by the commissioner and provided by an approved provider, on or
    39  after August first, two thousand  fifteen,  to  provide  employment  and
    40  experience  opportunities  for  current  students, recent graduates, and
    41  recent members of the armed forces.
    42    4.["Net new job" means a job created in this state that:
    43    (a) is new to the state;
    44    (b) has not been transferred from  employment  with  another  business
    45  located  in  this state through an acquisition, merger, consolidation or
    46  other reorganization of businesses  or  the  acquisition  of  assets  of
    47  another  business,  and  has not been transferred from employment with a
    48  related person in this state;
    49    (c) is either a full-time wage-paying job or equivalent to a full-time
    50  wage-paying job requiring at least thirty-five hours per week;
    51    (d) is filled for more than six months;
    52    (e) is filled by a person who has received eligible training; and

        S. 2009--C                         29                         A. 3009--C

     1    (f) is comprised of tasks the performance of which required the person
     2  filling the job to undergo eligible  training.]  "Life  sciences"  means
     3  agricultural   biotechnology,  biogenerics,  bioinformatics,  biomedical
     4  engineering, biopharmaceuticals, academic medical centers,  biotechnolo-
     5  gy,  chemical  synthesis,  chemistry  technology,  medical  diagnostics,
     6  genomics, medical  image  analysis,  marine  biology,  medical  devices,
     7  medical  nanotechnology,  natural  product  pharmaceuticals, proteomics,
     8  regenerative medicine, RNA interference, stem cell research, medical and
     9  neurological clinical trials, health robotics  and  veterinary  science.
    10  "Life  sciences  company"  is  a  business  entity or an organization or
    11  institution that devotes the majority of  its  efforts  in  the  various
    12  stages  of research, development, technology transfer and commercializa-
    13  tion related to any life sciences field.
    14    5. "Significant capital investment" means a capital investment [of  at
    15  least  one  million dollars] in new business processes or equipment, the
    16  cost of which is equal to or exceeds ten dollars for every one dollar of
    17  tax credit allowed to an eligible business  entity  under  this  program
    18  pursuant to subdivision fifty of section two hundred ten-B or subsection
    19  (ddd) of section six hundred six of the tax law.
    20    6.  "Strategic  industry"  means  an industry in this state, as estab-
    21  lished by the commissioner in regulations promulgated pursuant  to  this
    22  article, based upon the following criteria:
    23    (a) shortages of workers trained to work within the industry;
    24    (b)  technological  disruption  in the industry, requiring significant
    25  capital investment for existing businesses to remain competitive;
    26    (c) the ability of businesses in the industry to relocate  outside  of
    27  the state in order to attract talent;
    28    (d)  the  potential  to  recruit minorities and women to be trained to
    29  work in the industry in which they are traditionally underrepresented;
    30    (e) the potential to create jobs  in  economically  distressed  areas,
    31  which  shall  be  based  on  criteria  indicative  of economic distress,
    32  including poverty rates, numbers of persons receiving public assistance,
    33  and unemployment rates; or
    34    (f) such other criteria as shall be developed by the  commissioner  in
    35  consultation with the commissioner of labor.
    36    § 2.  Section 442 of the economic development law, as added by section
    37  1  of  part  O  of chapter 59 of the laws of 2015, is amended to read as
    38  follows:
    39    § 442. Eligibility criteria. In order to participate in  the  employee
    40  training incentive program, a business entity must satisfy the following
    41  criteria:
    42    1.  (a) The business entity must operate in the state predominantly in
    43  a strategic industry;
    44    (b) The business entity must demonstrate that it is obtaining eligible
    45  training from an approved provider;
    46    (c) The business entity must [create at least ten  net  new  jobs  or]
    47  make  a  significant  capital investment in connection with the eligible
    48  training; and
    49    (d) The  business  entity  must  be  in  compliance  with  all  worker
    50  protection  and  environmental  laws  and  regulations. In addition, the
    51  business entity may not owe past  due  state  taxes  or  local  property
    52  taxes; or
    53    2.  (a)  The business entity, or an approved provider in contract with
    54  such business entity, must be approved by the  commissioner  to  provide
    55  eligible training in the form of an internship program in advanced tech-

        S. 2009--C                         30                         A. 3009--C
 
     1  nology or at a life sciences company pursuant to paragraph (b) of subdi-
     2  vision three of section four hundred forty-one of this article;
     3    (b) The business entity must be located in the state;
     4    (c)  The  business  entity  must  be  in  compliance  with  all worker
     5  protection and environmental laws  and  regulations.  In  addition,  the
     6  business  entity  must  not  have past due state taxes or local property
     7  taxes;
     8    (d) The internship program shall not displace regular employees;
     9    (e) The business entity must have less than one hundred employees; and
    10    (f) Participation of an individual in an internship program shall  not
    11  last more than a total of twelve months.
    12    § 3. This act shall take effect immediately.
 
    13                                   PART M
 
    14    Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
    15  law, as amended by chapter 420 of the laws of 2016, is amended  to  read
    16  as follows:
    17    (5)  For  the  period two thousand fifteen through two thousand [nine-
    18  teen] twenty-two, in addition to the amount  of  credit  established  in
    19  paragraph  two of this subdivision, a taxpayer shall be allowed a credit
    20  equal to the product (or pro rata share of the product, in the case of a
    21  member of a partnership) of ten percent and the amount of wages or sala-
    22  ries paid to individuals directly employed (excluding those employed  as
    23  writers, directors, music directors, producers and performers, including
    24  background actors with no scripted lines) by a qualified film production
    25  company  or a qualified independent film production company for services
    26  performed by those individuals in one of the counties specified in  this
    27  paragraph  in  connection with a qualified film with a minimum budget of
    28  five hundred thousand dollars. For purposes of this  additional  credit,
    29  the services must be performed in one or more of the following counties:
    30  Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
    31  Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,
    32  Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
    33  Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
    34  Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
    35  Schenectady,   Schoharie,   Schuyler,  Seneca,  St.  Lawrence,  Steuben,
    36  [Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
    37  Wyoming, or Yates. The aggregate amount of tax credits allowed  pursuant
    38  to  the  authority  of this paragraph shall be five million dollars each
    39  year during the period two thousand fifteen through two thousand  [nine-
    40  teen]  twenty-two of the annual allocation made available to the program
    41  pursuant to paragraph four of subdivision  (e)  of  this  section.  Such
    42  aggregate  amount of credits shall be allocated by the governor's office
    43  for motion picture and television development among taxpayers  in  order
    44  of  priority based upon the date of filing an application for allocation
    45  of film production credit with such office. If the total amount of allo-
    46  cated credits applied for under this paragraph in any year  exceeds  the
    47  aggregate  amount  of tax credits allowed for such year under this para-
    48  graph, such excess shall be treated as having been applied  for  on  the
    49  first day of the next year. If the total amount of allocated tax credits
    50  applied  for  under this paragraph at the conclusion of any year is less
    51  than five million dollars, the remainder shall be treated as part of the
    52  annual allocation made available to the program  pursuant  to  paragraph
    53  four  of  subdivision  (e) of this section. However, in no event may the
    54  total of the credits allocated under  this  paragraph  and  the  credits

        S. 2009--C                         31                         A. 3009--C
 
     1  allocated  under paragraph five of subdivision (a) of section thirty-one
     2  of this article exceed five million dollars in any year during the peri-
     3  od two thousand fifteen through two thousand [nineteen] twenty-two.
     4    §  2.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
     5  amended by section 1-a of part P of chapter 60 of the laws of  2016,  is
     6  amended to read as follows:
     7    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
     8  subdivision (a) of this section shall be increased by an additional four
     9  hundred twenty million dollars in each year starting in two thousand ten
    10  through  two  thousand  [nineteen]  twenty-two  provided  however, seven
    11  million dollars of the annual allocation  shall  be  available  for  the
    12  empire  state film post production credit pursuant to section thirty-one
    13  of this article in two thousand thirteen and two thousand  fourteen  and
    14  twenty-five  million dollars of the annual allocation shall be available
    15  for the empire state film post production  credit  pursuant  to  section
    16  thirty-one of this article in each year starting in two thousand fifteen
    17  through  two  thousand [nineteen] twenty-two. This amount shall be allo-
    18  cated by the governor's office for motion picture and television  devel-
    19  opment  among  taxpayers  in  accordance  with  subdivision  (a) of this
    20  section. If the commissioner of economic development determines that the
    21  aggregate amount of tax credits available from additional pool 2 for the
    22  empire state film production tax credit have been previously  allocated,
    23  and  determines  that  the pending applications from eligible applicants
    24  for the empire state film post production tax credit pursuant to section
    25  thirty-one of this article is insufficient to  utilize  the  balance  of
    26  unallocated  empire  state  film  post  production tax credits from such
    27  pool, the remainder, after such  pending  applications  are  considered,
    28  shall  be  made  available  for  allocation in the empire state film tax
    29  credit pursuant to this  section,  subdivision  twenty  of  section  two
    30  hundred  ten-B  and  subsection  (gg) of section six hundred six of this
    31  chapter. Also, if the commissioner of  economic  development  determines
    32  that  the aggregate amount of tax credits available from additional pool
    33  2 for the empire state film post production tax credit have been  previ-
    34  ously  allocated,  and  determines  that  the  pending applications from
    35  eligible applicants for the empire  state  film  production  tax  credit
    36  pursuant to this section is insufficient to utilize the balance of unal-
    37  located  film production tax credits from such pool, then all or part of
    38  the remainder, after such pending applications are considered, shall  be
    39  made  available for allocation for the empire state film post production
    40  credit pursuant to this section, subdivision thirty-two of  section  two
    41  hundred  ten-B  and  subsection  (qq) of section six hundred six of this
    42  chapter. The governor's office for motion picture and television  devel-
    43  opment  must  notify  taxpayers of their allocation year and include the
    44  allocation year on the certificate of tax credit. Taxpayers eligible  to
    45  claim  a credit must report the allocation year directly on their empire
    46  state film production credit tax form for each year a credit is  claimed
    47  and include a copy of the certificate with their tax return. In the case
    48  of  a  qualified  film  that  receives  funds from additional pool 2, no
    49  empire state film production credit shall be claimed before the later of
    50  the taxable year the production of the qualified film  is  complete,  or
    51  the taxable year immediately following the allocation year for which the
    52  film  has  been  allocated  credit  by  the governor's office for motion
    53  picture and television development.
    54    § 3. Paragraph 6 of subdivision (a) of section 31 of the tax  law,  as
    55  amended  by  section  2 of part JJ of chapter 59 of the laws of 2014, is
    56  amended to read as follows:

        S. 2009--C                         32                         A. 3009--C
 
     1    (6) For the period two thousand fifteen through  two  thousand  [nine-
     2  teen]  twenty-two,  in  addition  to the amount of credit established in
     3  paragraph two of subdivision (a) of this section, a  taxpayer  shall  be
     4  allowed a credit equal to the product (or pro rata share of the product,
     5  in  the case of a member of a partnership) of ten percent and the amount
     6  of wages or salaries paid to individuals  directly  employed  (excluding
     7  those  employed  as  writers,  directors, music directors, producers and
     8  performers, including background actors  with  no  scripted  lines)  for
     9  services performed by those individuals in one of the counties specified
    10  in this paragraph in connection with the post production work on a qual-
    11  ified  film  with a minimum budget of five hundred thousand dollars at a
    12  qualified post production facility in one of the counties listed in this
    13  paragraph. For purposes of this additional credit, the services must  be
    14  performed  in  one  or more of the following counties: Albany, Allegany,
    15  Broome, Cattaraugus, Cayuga,  Chautauqua,  Chemung,  Chenango,  Clinton,
    16  Cortland,  Delaware,  Erie,  Essex, Franklin, Fulton, Genesee, Hamilton,
    17  Herkimer, Jefferson, Lewis,  Livingston,  Madison,  Monroe,  Montgomery,
    18  Niagara,  Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenecta-
    19  dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
    20  Wayne, Wyoming, or Yates. The aggregate amount of  tax  credits  allowed
    21  pursuant  to  the  authority  of  this  paragraph  shall be five million
    22  dollars each year during the period two  thousand  fifteen  through  two
    23  thousand  [nineteen]  twenty-two of the annual allocation made available
    24  to the empire state film post production credit  pursuant  to  paragraph
    25  four  of  subdivision  (e)  of section twenty-four of this article. Such
    26  aggregate amount of credits shall be allocated by the governor's  office
    27  for  motion  picture and television development among taxpayers in order
    28  of priority based upon the date of filing an application for  allocation
    29  of post production credit with such office. If the total amount of allo-
    30  cated  credits  applied for under this paragraph in any year exceeds the
    31  aggregate amount of tax credits allowed for such year under  this  para-
    32  graph,  such  excess  shall be treated as having been applied for on the
    33  first day of the next year. If the total amount of allocated tax credits
    34  applied for under this paragraph at the conclusion of any year  is  less
    35  than five million dollars, the remainder shall be treated as part of the
    36  annual  allocation  for  two  thousand  seventeen  made available to the
    37  empire state film post production credit pursuant to paragraph  four  of
    38  subdivision  (e)  of section twenty-four of this article. However, in no
    39  event may the total of the credits allocated under  this  paragraph  and
    40  the credits allocated under paragraph five of subdivision (a) of section
    41  twenty-four  of  this  article  exceed  five million dollars in any year
    42  during the period two thousand fifteen through two  thousand  [nineteen]
    43  twenty-two.
    44    § 4. This act shall take effect immediately.
 
    45                                   PART N
 
    46    Section  1.  This part enacts into law major components of legislation
    47  relating to the New York youth jobs program tax credit  and  the  empire
    48  state  apprenticeship  tax  credit  program.  Each  component  is wholly
    49  contained within a Subpart identified  as  Subparts  A  through  B.  The
    50  effective  date for each particular provision contained within a Subpart
    51  is set forth in the last section of such Subpart. Any provision  in  any
    52  section  contained within a Subpart, including the effective date of the
    53  Subpart, which makes reference to a section "of this act", when used  in
    54  connection  with  that particular component, shall be deemed to mean and

        S. 2009--C                         33                         A. 3009--C

     1  refer to the corresponding section of the Subpart in which it is  found.
     2  Section three of this part sets forth the general effective date of this
     3  part.
 
     4                                  SUBPART A
 
     5    Section  1.  The  section heading and subdivisions (a), (d) and (e) of
     6  section 25-a of the labor law, the section heading and subdivisions  (d)
     7  and  (e) as amended by section 1 of part AA of chapter 56 of the laws of
     8  2015, and subdivision (a) as amended by section 1 of part VV of  chapter
     9  60 of the laws of 2016 are amended to read as follows:
    10    Power  to administer the [urban] New York youth jobs program tax cred-
    11  it.
    12    (a) The commissioner is authorized to  establish  and  administer  the
    13  program  established  under  this  section  to provide tax incentives to
    14  employers for employing at risk youth in part-time and  full-time  posi-
    15  tions.  There  will  be  [five]  ten  distinct  pools of tax incentives.
    16  Program one will cover tax incentives allocated for two thousand  twelve
    17  and  two  thousand thirteen. Program two will cover tax incentives allo-
    18  cated in two thousand fourteen. Program three will cover tax  incentives
    19  allocated  in  two  thousand fifteen. Program four will cover tax incen-
    20  tives allocated in two thousand sixteen. Program  five  will  cover  tax
    21  incentives  allocated in two thousand seventeen.  Program six will cover
    22  tax incentives allocated in two thousand eighteen.   Program seven  will
    23  cover  tax incentives allocated in two thousand nineteen.  Program eight
    24  will cover tax incentives allocated in two  thousand  twenty.    Program
    25  nine  will  cover  tax  incentives allocated in two thousand twenty-one.
    26  Program ten will cover tax incentives allocated in two thousand  twenty-
    27  two.  The  commissioner  is  authorized  to  allocate  up to twenty-five
    28  million dollars of tax credits under program one, ten million dollars of
    29  tax credits under program two, twenty million  dollars  of  tax  credits
    30  under  program  three,  [and] fifty million dollars of tax credits under
    31  each of programs four and five, and forty million dollars of tax credits
    32  under programs six, seven, eight, nine and ten.
    33    (d) To participate in the program established under this  section,  an
    34  employer must submit an application (in a form prescribed by the commis-
    35  sioner) to the commissioner after January first, two thousand twelve but
    36  no  later  than November thirtieth, two thousand twelve for program one,
    37  after January first, two thousand fourteen but no  later  than  November
    38  thirtieth,  two  thousand fourteen for program two, after January first,
    39  two thousand fifteen but no later than November thirtieth, two  thousand
    40  fifteen for program three, after January first, two thousand sixteen but
    41  no later than November thirtieth, two thousand sixteen for program four,
    42  [and]  after  January  first,  two  thousand seventeen but no later than
    43  November thirtieth, two thousand seventeen for program five, after Janu-
    44  ary first, two thousand eighteen but no later than  November  thirtieth,
    45  two thousand eighteen for program six, after January first, two thousand
    46  nineteen but no later than November thirtieth, two thousand nineteen for
    47  program  seven,  after  January  first, two thousand twenty but no later
    48  than November thirtieth, two thousand twenty for  program  eight,  after
    49  January  first, two thousand twenty-one but no later than November thir-
    50  tieth, two thousand twenty-one  for  program  nine,  and  after  January
    51  first, two thousand twenty-two but no later than November thirtieth, two
    52  thousand twenty-two for program ten.  The qualified employees must start
    53  their  employment  on or after January first, two thousand twelve but no
    54  later than December thirty-first, two thousand twelve for  program  one,

        S. 2009--C                         34                         A. 3009--C
 
     1  on  or  after  January  first,  two  thousand fourteen but no later than
     2  December thirty-first, two thousand fourteen  for  program  two,  on  or
     3  after  January  first,  two  thousand fifteen but no later than December
     4  thirty-first,  two thousand fifteen for program three, on or after Janu-
     5  ary first, two thousand sixteen but no later than December thirty-first,
     6  two thousand sixteen for program four, [and] on or after January  first,
     7  two  thousand  seventeen  but  no  later than December thirty-first, two
     8  thousand seventeen for program five, on  or  after  January  first,  two
     9  thousand  eighteen but no later than December thirty-first, two thousand
    10  eighteen for program six, on or after January first, two thousand  nine-
    11  teen  but no later than December thirty-first, two thousand nineteen for
    12  program seven, on or after January first, two  thousand  twenty  but  no
    13  later than December thirty-first, two thousand twenty for program eight,
    14  on  or  after  January  first, two thousand twenty-one but no later than
    15  December thirty-first, two thousand twenty-one for program nine, and  on
    16  or after January first, two thousand twenty-two but no later than Decem-
    17  ber  thirty-first, two thousand twenty-two for program ten.  The commis-
    18  sioner shall establish guidelines and criteria that specify requirements
    19  for employers to participate  in  the  program  including  criteria  for
    20  certifying  qualified  employees,  ensuring that the process established
    21  will minimize any undue delay in issuing the certificate of eligibility.
    22  Any regulations that the commissioner determines are  necessary  may  be
    23  adopted  on  an emergency basis notwithstanding anything to the contrary
    24  in section two hundred two of the state  administrative  procedure  act.
    25  Such requirements may include the types of industries that the employers
    26  are  engaged in.  The commissioner may give preference to employers that
    27  are engaged in demand occupations or industries, or in  regional  growth
    28  sectors,  including  but not limited to those identified by the regional
    29  economic  development  councils,  such  as  clean  energy,   healthcare,
    30  advanced  manufacturing  and conservation. In addition, the commissioner
    31  shall give preference to employers who offer  advancement  and  employee
    32  benefit packages to the qualified individuals.
    33    (e)  If, after reviewing the application submitted by an employer, the
    34  commissioner determines that such employer is eligible to participate in
    35  the program established under this section, the commissioner shall issue
    36  the employer a certificate of eligibility that establishes the  employer
    37  as  a  qualified  employer. The certificate of eligibility shall specify
    38  the maximum amount of tax credit that the employer will  be  allowed  to
    39  claim and the program year under which it can be claimed.
    40    §  1-a. Subdivision (b) of section 25-a of the labor law is amended by
    41  adding a new paragraph 4 to read as follows:
    42    (4) For programs six, seven, eight, nine and ten, the tax credit under
    43  each program shall be allocated as follows: (i) twenty  million  dollars
    44  of  tax  credit for qualified employees; and (ii) twenty million dollars
    45  of tax credit for individuals who meet all of  the  requirements  for  a
    46  qualified  employee except for the residency requirement of subparagraph
    47  (ii) of paragraph two of this subdivision, which  individuals  shall  be
    48  deemed  to meet the residency requirements of subparagraph (ii) of para-
    49  graph two of this subdivision if they reside in New York state.
    50    § 2. The subdivision heading of subdivision 36 of section 210-B of the
    51  tax law, as amended by section 2 of part AA of chapter 56 of the laws of
    52  2015, is amended to read as follows:
    53    [Urban] New York youth jobs program tax credit.
    54    § 3. The subsection heading of subsection (tt) of section 606  of  the
    55  tax law, as amended by section 3 of part AA of chapter 56 of the laws of
    56  2015, is amended to read as follows:

        S. 2009--C                         35                         A. 3009--C
 
     1    [Urban] New York youth jobs program tax credit.
     2    §  4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
     3  (i) of section 606 of the tax law, as amended by section 4 of part AA of
     4  chapter 56 of the laws of 2015, is amended to read as follows:
     5  (xxxiii) [Urban] New York youth      Amount of credit under
     6  jobs program tax credit              subdivision thirty-six
     7                                       of section two hundred ten-B
     8    § 5. This act shall take effect immediately.
 
     9                                  SUBPART B
 
    10    Section 1. The labor law is amended by adding a new  section  25-c  to
    11  read as follows:
    12    § 25-c. Power to administer the empire state apprenticeship tax credit
    13  program.  (a) The commissioner is authorized to establish and administer
    14  the empire state apprenticeship tax credit program to provide tax incen-
    15  tives to certified employers for employing qualified apprentices  pursu-
    16  ant to an apprenticeship agreement registered with the department pursu-
    17  ant  to paragraph (d) of subdivision one of section eight hundred eleven
    18  of this chapter. The commissioner is authorized to allocate  up  to  ten
    19  million dollars of tax credits annually, beginning in two thousand eigh-
    20  teen  and  ending  before  two  thousand twenty-three. Any unused annual
    21  allocation of the credit shall be made available in each of  the  subse-
    22  quent years before two thousand twenty-three.
    23    (b)  Definitions.  (1)  The  term "qualified apprenticeship agreement"
    24  means an apprenticeship agreement as defined by  section  eight  hundred
    25  sixteen  of this chapter that has been registered with, and approved by,
    26  the commissioner, for a trade other than a construction trade.
    27    (2) The term "qualified  employer"  means  an  employer  that  has  or
    28  participates   in  a  commissioner  approved  registered  apprenticeship
    29  program.
    30    (3) The term "construction" means constructing, reconstructing, alter-
    31  ing, maintaining, moving, rehabilitating, repairing, renovating,  fabri-
    32  cating, servicing, or demolition of any building, structure, or improve-
    33  ment,   or  component,  or  relating  to  the  excavation  of  or  other
    34  development or improvement to land.
    35    (4) The term "participating employer" means a qualified employer  that
    36  has applied to participate in the empire state apprenticeship tax credit
    37  program  and  received  a preliminary certificate of tax credit from the
    38  commissioner. The preliminary certificate shall state the maximum amount
    39  of the tax credit that the employer may be able to claim if  the  appli-
    40  cant becomes a "certified employer."
    41    (5)  The term "certified employer" means a qualified employer that has
    42  received a final certificate of eligibility from the commissioner  after
    43  the   commissioner  has  determined  that  the  qualified  employer  has
    44  fulfilled all the requisite eligibility criteria to participate  in  the
    45  empire  state  apprenticeship  tax  credit  program  established in this
    46  section. The final certificate of eligibility  shall  state  the  actual
    47  amount  of tax credit that a certified employer is entitled to claim and
    48  the allocation year of the credit.
    49    (6) The term "qualified apprentice" means an individual employed by  a
    50  participating  employer  in a full time position for at least six months
    51  of a calendar year pursuant to a qualified apprenticeship agreement with
    52  a qualified employer. No individual employed  by  a  qualified  employer
    53  shall  be  deemed  a  qualified  apprentice  if  such individual has not

        S. 2009--C                         36                         A. 3009--C
 
     1  completed their apprenticeship training program within one year of their
     2  expected date of completion of their program.
     3    (7) The term "disadvantaged youth" means an individual:
     4    (i)  who is between the ages of sixteen and twenty-four when the youth
     5  begins the apprenticeship; and
     6    (ii) who is low-income or at-risk, as those terms are defined  by  the
     7  commissioner.
     8    (8)  The  term  "mentor" means an individual who provides instruction,
     9  guidance, and support to the apprentice on a  regular  basis  throughout
    10  the  apprentice's  completion  of  the  apprenticeship as the apprentice
    11  seeks employment in the field or industry  of  the  apprenticeship.  The
    12  goal  of  the mentor is to help train the apprentice in his or her trade
    13  and to help the apprentice successfully complete the apprenticeship  and
    14  to secure and retain employment.
    15    (c)(1)  A certified employer shall be entitled to a tax credit against
    16  income or franchise tax for each qualified apprentice. The  base  credit
    17  allowed under this program shall be computed as follows:
    18    (A) (1) two thousand dollars for each first year apprentice; (2) three
    19  thousand  dollars  for  each  second  year  apprentice;(3) four thousand
    20  dollars for each third year apprentice; (4) five  thousand  dollars  for
    21  each fourth year apprentice; and (5) six thousand dollars for each fifth
    22  year  apprentice.  The  apprentice's  status  as a first, second, third,
    23  fourth or fifth year apprentice will be determined on the  last  day  of
    24  the  calendar  year,  or  if the apprentice is no longer employed by the
    25  participating employer on the last day of the calendar year, on the last
    26  day of the apprentice's employment with the participating employer; or
    27    (B) in lieu of the credit specified in subparagraph (A) of this  para-
    28  graph,  for  each qualified apprentice who is considered a disadvantaged
    29  youth for each tax year: (1) five thousand dollars for each  first  year
    30  apprentice;  (2)  six  thousand dollars for each second year apprentice;
    31  and (3) seven thousand dollars for each third,  fourth,  or  fifth  year
    32  apprentice. The apprentice's status as a first, second, third, fourth or
    33  fifth year apprentice will be determined on the last day of the calendar
    34  year,  or  if  the apprentice is no longer employed by the participating
    35  employer on the last day of the calendar year, on the last  day  of  the
    36  apprentice's  employment with the participating employer. If a disadvan-
    37  taged youth begins an apprenticeship before the age  of  twenty-five,  a
    38  certified  employer  shall  be  eligible  to continue to receive the tax
    39  credit for such youth under  this  subparagraph  until  that  apprentice
    40  completes the apprenticeship.
    41    (2)  If an apprentice has been trained in his or her trade by a mentor
    42  for the entirety of the calendar year, the base credit amounts described
    43  in paragraph one of this subdivision shall be increased by five  hundred
    44  dollars.
    45    (3)  The  certified  employer  shall not be allowed a tax credit under
    46  this program for any apprentice, if that apprentice is the basis for any
    47  other state tax credit.
    48    (d) Application and  approval  process.  (1)  To  participate  in  the
    49  program established under this section, a qualified employer must submit
    50  to  the  commissioner an application in a form prescribed by the commis-
    51  sioner. As part of such application, a qualified employer must:
    52    (A) Agree to allow the department of taxation and finance to share its
    53  tax information with the department. However, any information shared  as
    54  a  result  of  this  agreement  shall not be available for disclosure or
    55  inspection under the state freedom of information law.

        S. 2009--C                         37                         A. 3009--C
 
     1    (B) Allow the department and its agents access to any  and  all  books
     2  and records the department may require to monitor compliance.
     3    (2)  After  reviewing a qualified employer's completed application and
     4  determining that the qualified employer will meet the eligibility condi-
     5  tions set forth  under  this  section  and  any  applicable  regulations
     6  promulgated  by  the commissioner, the commissioner may admit the appli-
     7  cant into the program as a participating employer and provide the appli-
     8  cant with a preliminary  certificate  of  eligibility  establishing  the
     9  qualified  employer  as a participating employer and stating the maximum
    10  amount of credit for which the applicant may be eligible.
    11    (3) To receive a final certificate of tax  credit,  the  participating
    12  employer  must  annually submit a final report to the commissioner, in a
    13  form prescribed by the commissioner. The report  must  demonstrate  that
    14  the  applicant  has  satisfied all eligibility requirements and provided
    15  all the information necessary for the commissioner to compute an  actual
    16  amount  of  credit  allowed  for that calendar year, notwithstanding the
    17  fact that a participating employer's taxable year may be a fiscal  year,
    18  as  defined  in  subdivision ten of section two hundred eight of the tax
    19  law.
    20    (4) After reviewing the final report and finding  it  sufficient,  the
    21  commissioner  shall  certify  the  participating employer as a certified
    22  employer and issue a final certificate of tax credit.  Such  certificate
    23  shall include, but not be limited to, the following information:
    24    (A)  The  name  and  employer  identification  number of the certified
    25  employer;
    26    (B) The actual amount of credit to which  the  certified  employer  is
    27  entitled  for  that calendar year, which actual amount cannot exceed the
    28  amount of credit listed on the preliminary certificate but may  be  less
    29  than such amount;
    30    (C) The allocation year of the credit.
    31    (5)  If a certified employer's taxable year is a fiscal year, it shall
    32  be entitled to claim the credit on the return for the fiscal  year  that
    33  includes  the last day of the calendar year covered by the final certif-
    34  icate of tax credit.
    35    (e) The commissioner shall  establish  guidelines  and  criteria  that
    36  specify  requirements  for  qualified  employers  to  participate in the
    37  program including criteria for  certifying  qualified  apprentices.  Any
    38  regulations  that  the  commissioner  determines  are  necessary and are
    39  consistent with the purpose of this article may be adopted on  an  emer-
    40  gency  basis notwithstanding any provisions to the contrary in the state
    41  administrative procedure act. The commissioner may  give  preference  to
    42  qualified  employers  that  hire  and  train disadvantaged youth through
    43  qualified apprenticeship agreements, and qualified  employers  that  are
    44  engaged  in  demand  occupations  or  industries,  or in regional growth
    45  sectors, including those identified by the  department,  such  as  clean
    46  energy,  health care, technology, including software engineering and web
    47  development, advanced manufacturing and conservation. In  addition,  the
    48  commissioner may give preference to employers that employ apprentices in
    49  newly  established  apprenticeship  programs.  The commissioner also may
    50  take the following factors into consideration when evaluating whether to
    51  approve an application in a year subsequent to the year in which a qual-
    52  ified employer was determined to be a certified employer:
    53    (1) the length of the qualified apprenticeship agreement the  employer
    54  has entered into;

        S. 2009--C                         38                         A. 3009--C
 
     1    (2)  how  many  apprentices  have  graduated  from  the apprenticeship
     2  program to which the  qualified  apprentice  employed  by  the  employer
     3  belongs;
     4    (3)  how  many apprentices in the apprenticeship program the qualified
     5  employer has hired; and
     6    (4) any other factors the commissioner deems relevant.
     7    (f) The commissioner shall annually publish a report. Such report must
     8  contain the names and addresses of any certified employer issued a final
     9  certificate of eligibility under this section, the work location of each
    10  apprentice generating credit, the amount of empire state  apprenticeship
    11  tax  credit allowed to the certified employer as specified on such final
    12  certificate of eligibility, and the number of each  of  the  first  year
    13  apprentices,  second  year  apprentices,  third year apprentices, fourth
    14  year apprentices, and fifth year apprentices, and how many  of  each  of
    15  those  types  are considered disadvantaged youth. The commissioner shall
    16  include in such report the relevant industries  of  certified  employers
    17  and  recommendations  for  legislative  or  other  action to further the
    18  intent and  purpose  of  the  empire  state  apprenticeship  tax  credit
    19  program.
    20    (g)  The  commissioner shall promote, publish and disseminate informa-
    21  tion concerning the empire state apprenticeship  tax  credit  and  other
    22  available funding, particularly targeting industries and fields of busi-
    23  ness not currently taking advantage of apprenticeships.
    24    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    25  sion 49 to read as follows:
    26    49. Empire state apprenticeship tax credit. (a) A  taxpayer  that  has
    27  been  certified  by  the  commissioner  of labor as a certified employer
    28  pursuant to section twenty-five-c of the labor law shall  be  allowed  a
    29  credit against the tax imposed by this article equal to the amount spec-
    30  ified  under  subdivision (c) of section twenty-five-c of the labor law.
    31  In no event shall the taxpayer be allowed  a  credit  greater  than  the
    32  amount of the credit listed on the final certificate of eligibility.
    33    (b) The credit allowed under this subdivision for any taxable year may
    34  not  reduce the tax due for that year to less than the amount prescribed
    35  in paragraph (d) of subdivision one of section two hundred ten  of  this
    36  article.  However, if the amount of the credit allowed under this subdi-
    37  vision for any taxable year reduces the tax to that  amount  or  if  the
    38  taxpayer  otherwise  pays  tax based on the fixed dollar minimum amount,
    39  any amount of credit not deductible in that taxable year will be treated
    40  as an overpayment of tax to be credited or refunded in  accordance  with
    41  the  provisions  of  section  one  thousand  eighty-six of this chapter.
    42  Provided, however, no interest will be paid thereon.
    43    § 3. Section 606 of the tax law is amended by adding a new  subsection
    44  (vvv) to read as follows:
    45    (vvv)  Empire  state apprenticeship tax credit. (1)(A) A taxpayer that
    46  has been certified by the commissioner of labor as a certified  employer
    47  pursuant  to  section  twenty-five-c of the labor law shall be allowed a
    48  credit against the tax imposed by this article equal to the amount spec-
    49  ified under subdivision (c) of section twenty-five-c of the  labor  law.
    50  In  no  event  shall  the  taxpayer be allowed a credit greater than the
    51  amount of the credit listed on the final certificate of tax credit.
    52    (B) A taxpayer that is a partner in a partnership, member of a limited
    53  liability company or shareholder in  an  S  corporation  that  has  been
    54  certified  by the commissioner of labor as a certified employer pursuant
    55  to section twenty-five-c of the labor law shall be allowed its pro  rata

        S. 2009--C                         39                         A. 3009--C
 
     1  share of the credit earned by the partnership, limited liability company
     2  or S corporation.
     3    (2)  If the amount of the credit allowed under this subsection exceeds
     4  the taxpayer's tax for the taxable year, any amount of credit not deduc-
     5  tible in that taxable year will be treated as an overpayment of  tax  to
     6  be credited or refunded in accordance with the provisions of section six
     7  hundred  eighty-six of this article. Provided, however, no interest will
     8  be paid thereon.
     9    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    10  of  the  tax  law  is  amended by adding a new clause (xliii) to read as
    11  follows:
    12  (xliii) Empire state apprenticeship          Amount of credit under
    13  tax credit under subsection (vvv)            subdivision forty-nine of
    14                                               section two hundred ten-B
    15    § 5. This act shall take effect immediately and shall apply to taxable
    16  years commencing on or after January 1, 2018.
    17    § 2. Severability. If any clause, sentence, paragraph, subdivision  or
    18  section  of this part shall be adjudged by any court of competent juris-
    19  diction to be invalid, such judgment shall not affect, impair, or inval-
    20  idate the remainder thereof, but shall be confined in its  operation  to
    21  the clause, sentence, paragraph, subdivision or section thereof directly
    22  involved  in  the  controversy  in  which  such judgment shall have been
    23  rendered. It is hereby declared to be the intent of the legislature that
    24  this part would have been enacted even if such  invalid  provisions  had
    25  not been included herein.
    26    §  3.  This act shall take effect immediately; provided, however, that
    27  the applicable effective date of Subparts A and B of this part shall  be
    28  as specifically set forth in the last section of such Subparts.
 
    29                                   PART O
 
    30    Section  1.  Subdivision 6 of section 187-b of the tax law, as amended
    31  by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
    32  read as follows:
    33    6.  Termination. The credit allowed by subdivision two of this section
    34  shall not apply in taxable years beginning after December  thirty-first,
    35  two thousand [seventeen] twenty-two.
    36    §  2. Paragraph (f) of subdivision 30 of section 210-B of the tax law,
    37  as added by section 17 of part A of chapter 59 of the laws of  2014,  is
    38  amended to read as follows:
    39    (f)  Termination. The credit allowed by paragraph (b) of this subdivi-
    40  sion shall not apply in taxable years beginning after  December  thirty-
    41  first, two thousand [seventeen] twenty-two.
    42    §  3.  Paragraph 6 of subsection (p) of section 606 of the tax law, as
    43  amended by section 3 of part G of chapter 59 of the  laws  of  2013,  is
    44  amended to read as follows:
    45    (6) Termination. The credit allowed by this subsection shall not apply
    46  in  taxable  years  beginning  after December thirty-first, two thousand
    47  [seventeen] twenty-two.
    48    § 4. This act shall take effect immediately.
 
    49                                   PART P

    50    Section 1. Legislative findings. The legislature  finds  and  declares
    51  that this act does not alter the meaning of the statutes amended herein;
    52  instead,  it is the intent of the legislature to confirm the long-stand-

        S. 2009--C                         40                         A. 3009--C
 
     1  ing position of the department  of  taxation  and  finance  interpreting
     2  these  statutes, as well as relevant prior statutes, as not allowing the
     3  investment tax credit where tangible personal property and other  tangi-
     4  ble  property  is  principally used by the taxpayer in the production or
     5  distribution of electricity or steam, the delivery of natural gas  after
     6  extraction  from  wells and the production and delivery of water through
     7  pipes and mains.
     8    § 2.  Subparagraph (i) of paragraph (b) of subdivision  1  of  section
     9  210-B  of  the tax law, as amended by section 31 of part T of chapter 59
    10  of the laws of 2015, is amended to read as follows:
    11    (i) A credit shall be allowed under this subdivision with  respect  to
    12  tangible personal property and other tangible property, including build-
    13  ings  and  structural  components  of  buildings, which are: depreciable
    14  pursuant to section one hundred  sixty-seven  of  the  internal  revenue
    15  code, have a useful life of four years or more, are acquired by purchase
    16  as  defined  in  section  one  hundred  seventy-nine (d) of the internal
    17  revenue code, have a situs in this state and are (A) principally used by
    18  the taxpayer in the production of goods  by  manufacturing,  processing,
    19  assembling,  refining,  mining, extracting, farming, agriculture, horti-
    20  culture, floriculture, viticulture or commercial fishing, (B) industrial
    21  waste treatment facilities or air pollution control facilities, used  in
    22  the taxpayer's trade or business, (C) research and development property,
    23  or  (D)  principally used in the ordinary course of the taxpayer's trade
    24  or business as a broker or dealer in connection  with  the  purchase  or
    25  sale  (which  shall include but not be limited to the issuance, entering
    26  into, assumption,  offset,  assignment,  termination,  or  transfer)  of
    27  stocks,  bonds  or  other  securities as defined in section four hundred
    28  seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
    29  defined in section four hundred seventy-five (e) of the Internal Revenue
    30  Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
    31  trade or business of providing investment advisory services for a  regu-
    32  lated  investment  company as defined in section eight hundred fifty-one
    33  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    34  ination services to customers in connection with the  purchase  or  sale
    35  (which  shall include but not be limited to the issuance, entering into,
    36  assumption, offset, assignment, termination, or transfer) of  securities
    37  as  defined  in section four hundred seventy-five (c)(2) of the Internal
    38  Revenue Code, (F) principally used in the ordinary course of the taxpay-
    39  er's business  as  an  exchange  registered  as  a  national  securities
    40  exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
    41  ties Exchange Act of 1934 or a board of trade as defined in subparagraph
    42  one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
    43  fit corporation law or as an entity that is wholly owned by one or  more
    44  such  national securities exchanges or boards of trade and that provides
    45  automation or technical services thereto, or (G) principally used  as  a
    46  qualified  film  production facility including qualified film production
    47  facilities having a situs in an empire zone designated as such  pursuant
    48  to  article  eighteen-B of the general municipal law, where the taxpayer
    49  is providing three or more services to  any  qualified  film  production
    50  company using the facility, including such services as a studio lighting
    51  grid,  lighting  and grip equipment, multi-line phone service, broadband
    52  information technology access,  industrial  scale  electrical  capacity,
    53  food  services,  security  services,  and  heating,  ventilation and air
    54  conditioning. For purposes of clauses (D), (E) and (F) of this  subpara-
    55  graph,  property  purchased  by  a  taxpayer affiliated with a regulated
    56  broker,  dealer,  registered  investment  advisor,  national  securities

        S. 2009--C                         41                         A. 3009--C
 
     1  exchange  or  board of trade, is allowed a credit under this subdivision
     2  if the property is used by  its  affiliated  regulated  broker,  dealer,
     3  registered  investment advisor, national securities exchange or board of
     4  trade  in  accordance with this subdivision. For purposes of determining
     5  if the property is principally used in qualifying uses, the uses by  the
     6  taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
     7  aggregated. In addition, the uses by the taxpayer, its affiliated  regu-
     8  lated  broker,  dealer and registered investment advisor under either or
     9  both of those clauses may be aggregated. Provided, however,  a  taxpayer
    10  shall  not be allowed the credit provided by clauses (D), (E) and (F) of
    11  this subparagraph unless the property is first placed in service  before
    12  October  first,  two  thousand fifteen and (i) eighty percent or more of
    13  the  employees  performing  the  administrative  and  support  functions
    14  resulting  from  or related to the qualifying uses of such equipment are
    15  located in this state or (ii)  the  average  number  of  employees  that
    16  perform  the  administrative  and  support  functions  resulting from or
    17  related to the qualifying uses of such equipment and are located in this
    18  state during the taxable year for which the credit is claimed  is  equal
    19  to  or greater than ninety-five percent of the average number of employ-
    20  ees that perform these functions and are located in  this  state  during
    21  the thirty-six months immediately preceding the year for which the cred-
    22  it  is  claimed,  or (iii) the number of employees located in this state
    23  during the taxable year for which the credit is claimed is equal  to  or
    24  greater  than  ninety percent of the number of employees located in this
    25  state on December thirty-first, nineteen hundred ninety-eight or, if the
    26  taxpayer was not a calendar year taxpayer in  nineteen  hundred  ninety-
    27  eight,  the  last  day  of  its first taxable year ending after December
    28  thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
    29  subject  to  tax in this state after the taxable year beginning in nine-
    30  teen hundred ninety-eight, then the taxpayer is not required to  satisfy
    31  the  employment test provided in the preceding sentence of this subpara-
    32  graph for its first taxable year. For purposes of clause (iii)  of  this
    33  subparagraph  the employment test will be based on the number of employ-
    34  ees located in this state on the last day of the first taxable year  the
    35  taxpayer  is  subject  to tax in this state. If the uses of the property
    36  must be aggregated to determine whether the property is principally used
    37  in qualifying uses, then either each affiliate using the  property  must
    38  satisfy  this  employment test or this employment test must be satisfied
    39  through the aggregation of the employees of the taxpayer, its affiliated
    40  regulated broker, dealer, and registered investment  adviser  using  the
    41  property.  For purposes of [this subdivision, the term "goods" shall not
    42  include electricity] clause (A) of this subparagraph, tangible  personal
    43  property  and other tangible property shall not include property princi-
    44  pally used by the taxpayer in the production or  distribution  of  elec-
    45  tricity, natural gas after extraction from wells, steam, or water deliv-
    46  ered through pipes and mains.
    47    §  3. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
    48  of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
    49  amended to read as follows:
    50    (A)  A  credit  shall be allowed under this subsection with respect to
    51  tangible personal property and other tangible property, including build-
    52  ings and structural components  of  buildings,  which  are:  depreciable
    53  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
    54  code, have a useful life of four years or more, are acquired by purchase
    55  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
    56  revenue code, have a situs in this state and are (i) principally used by

        S. 2009--C                         42                         A. 3009--C

     1  the  taxpayer  in  the production of goods by manufacturing, processing,
     2  assembling, refining, mining, extracting, farming,  agriculture,  horti-
     3  culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
     4  trial  waste  treatment  facilities or air pollution control facilities,
     5  used in the taxpayer's trade or business, (iii) research and development
     6  property, (iv) principally used in the ordinary course of the taxpayer's
     7  trade or business as a broker or dealer in connection with the  purchase
     8  or  sale (which shall include but not be limited to the issuance, enter-
     9  ing into, assumption, offset, assignment, termination, or  transfer)  of
    10  stocks,  bonds  or  other  securities as defined in section four hundred
    11  seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
    12  defined  in section 475(e) of the Internal Revenue Code, (v) principally
    13  used in the ordinary course of  the  taxpayer's  trade  or  business  of
    14  providing investment advisory services for a regulated investment compa-
    15  ny as defined in section eight hundred fifty-one of the Internal Revenue
    16  Code,  or  lending,  loan  arrangement  or  loan origination services to
    17  customers in connection with the purchase or sale (which  shall  include
    18  but  not  be limited to the issuance, entering into, assumption, offset,
    19  assignment, termination,  or  transfer)  of  securities  as  defined  in
    20  section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
    21  or (vi) principally used as a qualified film production facility includ-
    22  ing qualified film production facilities having a  situs  in  an  empire
    23  zone  designated  as  such pursuant to article eighteen-B of the general
    24  municipal law, where the taxpayer is providing three or more services to
    25  any qualified film production company using the facility, including such
    26  services as a studio lighting grid, lighting and grip equipment,  multi-
    27  line  phone service, broadband information technology access, industrial
    28  scale electrical capacity, food services, security services,  and  heat-
    29  ing,  ventilation and air conditioning. For purposes of clauses (iv) and
    30  (v) of this subparagraph, property purchased by  a  taxpayer  affiliated
    31  with  a  regulated  broker,  dealer, or registered investment adviser is
    32  allowed a credit under this subsection if the property is  used  by  its
    33  affiliated  regulated broker, dealer or registered investment adviser in
    34  accordance with this subsection. For  purposes  of  determining  if  the
    35  property is principally used in qualifying uses, the uses by the taxpay-
    36  er  described in clauses (iv) and (v) of this subparagraph may be aggre-
    37  gated. In addition, the uses by the taxpayer, its  affiliated  regulated
    38  broker, dealer and registered investment adviser under either or both of
    39  those clauses may be aggregated. Provided, however, a taxpayer shall not
    40  be  allowed the credit provided by clauses (iv) and (v) of this subpara-
    41  graph unless (I) eighty percent or more of the employees performing  the
    42  administrative  and  support  functions resulting from or related to the
    43  qualifying uses of such equipment are located in this state, or (II) the
    44  average number of employees that perform the administrative and  support
    45  functions  resulting  from  or  related  to  the qualifying uses of such
    46  equipment and are located in this state  during  the  taxable  year  for
    47  which  the  credit  is  claimed  is equal to or greater than ninety-five
    48  percent of the average number of employees that perform these  functions
    49  and  are  located in this state during the thirty-six months immediately
    50  preceding the year for which the credit is claimed, or (III) the  number
    51  of employees located in this state during the taxable year for which the
    52  credit  is  claimed  is  equal  to or greater than ninety percent of the
    53  number of employees located in  this  state  on  December  thirty-first,
    54  nineteen  hundred  ninety-eight  or,  if the taxpayer was not a calendar
    55  year taxpayer in nineteen hundred ninety-eight,  the  last  day  of  its
    56  first  taxable year ending after December thirty-first, nineteen hundred

        S. 2009--C                         43                         A. 3009--C
 
     1  ninety-eight. If the taxpayer becomes subject to tax in this state after
     2  the taxable year beginning in nineteen hundred  ninety-eight,  then  the
     3  taxpayer  is not required to satisfy the employment test provided in the
     4  preceding  sentence of this subparagraph for its first taxable year. For
     5  the purposes of clause (III) of this subparagraph  the  employment  test
     6  will  be  based  on the number of employees located in this state on the
     7  last day of the first taxable year the taxpayer is  subject  to  tax  in
     8  this  state. If the uses of the property must be aggregated to determine
     9  whether the property is principally used in qualifying uses, then either
    10  each affiliate using the property must satisfy this employment  test  or
    11  this  employment  test  must be satisfied through the aggregation of the
    12  employees of the taxpayer, its affiliated regulated broker, dealer,  and
    13  registered  investment adviser using the property. For purposes of [this
    14  subsection, the term "goods" shall not include electricity]  clause  (i)
    15  of  this  subparagraph,  tangible  personal  property and other tangible
    16  property shall not include property principally used by the taxpayer  in
    17  the  production  or  distribution  of  electricity,  natural  gas  after
    18  extraction from wells, steam,  or  water  delivered  through  pipes  and
    19  mains.
    20    § 4. This act shall take effect immediately.
 
    21                                   PART Q
 
    22    Section 1. Legislative findings. The legislature finds it necessary to
    23  revise  a  decision of the tax appeals tribunal that disturbed the long-
    24  standing policy of the department of taxation and  finance  that  single
    25  member limited liability companies that are treated as disregarded enti-
    26  ties  for  federal  income  tax purposes also would be treated as disre-
    27  garded entities for purposes of determining eligibility of the owners of
    28  such entities for tax credits allowed  under  article  9,  9-A,  22,  32
    29  (prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
    30  appeals tribunal, if allowed to stand, will result in the denial of  tax
    31  credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
    32  years received those credits.
    33    § 2. The tax law is amended by adding a new  section  43  to  read  as
    34  follows:
    35    §  43.  Single  member limited liability companies and eligibility for
    36  tax credits. A limited liability company that has a single member and is
    37  disregarded as an entity separate from its owner for federal income  tax
    38  purposes  (without reference to any special rules related to the imposi-
    39  tion of certain federal taxes, including  but  not  limited  to  certain
    40  employment  and excise taxes) shall be disregarded as an entity separate
    41  from its owner for purposes of determining whether or not  the  taxpayer
    42  that  is  the  single member of such limited liability company satisfies
    43  the requirements to be eligible for any tax credit allowed under article
    44  nine, nine-A, twenty-two or thirty-three  of  this  chapter  or  allowed
    45  under  article  thirty-two  of  this chapter prior to the repeal of such
    46  article. Such requirements, including but not limited to  any  necessary
    47  certification, employment or investment thresholds, payment obligations,
    48  and  any  time  period for eligibility, shall be imposed on the taxpayer
    49  and the determination of whether or  not  such  requirements  have  been
    50  satisfied  and  the  computation  of the credit shall be made by deeming
    51  such taxpayer and such limited liability company to be a single  entity.
    52  If  the taxpayer is the single member of more than one limited liability
    53  company that is disregarded as an entity separate from  its  owner,  the
    54  determination  of whether or not the requirements to be eligible for any

        S. 2009--C                         44                         A. 3009--C
 
     1  tax credit allowed under article nine,  nine-A,  twenty-two  or  thirty-
     2  three  of this chapter or allowed under article thirty-two of this chap-
     3  ter prior to the repeal of such article  have  been  satisfied  and  the
     4  computation  of  the  credit  shall be made by deeming such taxpayer and
     5  such limited liability companies to be a single entity.
     6    § 3. This act shall take effect immediately;  provided  however,  that
     7  section  43  of  the tax law, as added by section two of this act, shall
     8  apply to all taxable years for which  the  statute  of  limitations  for
     9  seeking a refund or assessing additional tax is still open.
 
    10                                   PART R
 
    11    Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (a) of
    12  section 601 of the tax law is REPEALED and a  new  subparagraph  (B)  is
    13  added to read as follows:
    14    (B)(i)  For  taxable  years  beginning  in  two  thousand eighteen the
    15  following rates shall apply:
    16  If the New York taxable income is:    The tax is:
    17  Not over $17,150                      4% of the New York taxable
    18                                        income
    19  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    20                                        $17,150
    21  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    22                                        $23,600
    23  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    24                                        $27,900
    25  Over $43,000 but not over $161,550    $2,093 plus 6.33% of excess over
    26                                        $43,000
    27  Over $161,550 but not over $323,200   $9,597 plus 6.57% of excess over
    28                                        $161,550
    29  Over $323,200 but not over $2,155,350 $20,218 plus 6.85% of excess over
    30                                        $323,200
    31  Over $2,155,350                       $145,720 plus 8.82% of excess over
    32                                        $2,155,350
    33    (ii) For taxable years beginning in two thousand nineteen the  follow-
    34  ing rates shall apply:
    35  If the New York taxable income is:    The tax is:
    36  Not over $17,150                      4% of the New York taxable
    37                                        income
    38  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    39                                        $17,150
    40  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    41                                        $23,600
    42  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    43                                        $27,900
    44  Over $43,000 but not over $161,550    $2,093 plus 6.21% of excess over
    45                                        $43,000
    46  Over $161,550 but not over $323,200   $9,455 plus 6.49% of excess over
    47                                        $161,550
    48  Over $323,200 but not over $2,155,350 $19,946 plus 6.85% of excess over
    49                                        $323,200
    50  Over $2,155,350                       $145,448 plus 8.82% of excess over
    51                                        $2,155,350
    52    (iii) For taxable years beginning in two thousand twenty the following
    53  rates shall apply:

        S. 2009--C                         45                         A. 3009--C
 
     1  If the New York taxable income is:    The tax is:
     2  Not over $17,150                      4% of the New York taxable income
     3  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
     4                                        $17,150
     5  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
     6                                        $23,600
     7  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
     8                                        $27,900
     9  Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
    10                                        $43,000
    11  Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
    12                                        $161,550
    13  Over $323,200                         $19,674 plus 6.85% of excess over
    14                                        $323,200
    15    (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
    16  following rates shall apply:
    17  If the New York taxable income is:    The tax is:
    18  Not over $17,150                      4% of the New York taxable income
    19  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    20                                        $17,150
    21  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    22                                        $23,600
    23  Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
    24                                        $27,900
    25  Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
    26                                        $43,000
    27  Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
    28                                        $161,550
    29  Over $323,200                         $19,403 plus 6.85% of excess over
    30                                        $323,200
    31    (v) For taxable years beginning in two thousand twenty-two the follow-
    32  ing rates shall apply:
    33  If the New York taxable income is:    The tax is:
    34  Not over $17,150                      4% of the New York taxable income
    35  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    36                                        $17,150
    37  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    38                                        $23,600
    39  Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over
    40                                        $27,900
    41  Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
    42                                        $161,550
    43  Over $323,200                         $19,124 plus 6.85% of excess over
    44                                        $323,200
    45    (vi) For taxable years beginning  in  two  thousand  twenty-three  the
    46  following rates shall apply:
    47  If the New York taxable income is:    The tax is:
    48  Not over $17,150                      4% of the New York taxable income
    49  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    50                                        $17,150
    51  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    52                                        $23,600
    53  Over $27,900 but not over $161,550    $1,202 plus 5.73% of excess over
    54                                        $27,900
    55  Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over

        S. 2009--C                         46                         A. 3009--C
 
     1                                        $161,550
     2  Over $323,200                         $18,834 plus 6.85% of excess over
     3                                        $323,200
     4    (vii)  For  taxable  years  beginning  in two thousand twenty-four the
     5  following rates shall apply:
     6  If the New York taxable income is:    The tax is:
     7  Not over $17,150                      4% of the New York taxable income
     8  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
     9                                        $17,150
    10  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    11                                        $23,600
    12  Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
    13                                        $27,900
    14  Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over
    15                                        $161,550
    16  Over $323,200                         $18,544 plus 6.85% of excess over
    17                                        $323,200
    18    (viii) For taxable years beginning after two thousand twenty-four  the
    19  following rates shall apply:
    20  If the New York taxable income is:    The tax is:
    21  Not over $17,150                      4% of the New York taxable income
    22  Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
    23                                        $17,150
    24  Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
    25                                        $23,600
    26  Over $27,900 but not over $161,550    $1,202 plus 5.5% of excess over
    27                                        $27,900
    28  Over $161,550 but not over $323,200   $8,553 plus 6.00% of excess over
    29                                        $161,550
    30  Over $323,200                         $18,252 plus 6.85% of excess over
    31                                        $323,200
    32    §  2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
    33  of the tax law is REPEALED and a new subparagraph (B) is added  to  read
    34  as follows:
    35    (B)(i)  For  taxable  years  beginning  in  two  thousand eighteen the
    36  following rates shall apply:
    37  If the New York taxable income is:    The tax is:
    38  Not over $12,800                      4% of the New York taxable income
    39  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
    40  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    41                                        $17,650
    42  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
    43  Over $32,200 but not over $107,650    $1,568 plus 6.33% of excess over
    44                                        $32,200
    45  Over $107,650 but not over $269,300   $6,344 plus 6.57% of excess over
    46                                        $107,650
    47  Over $269,300 but not over $1,616,450 $16,964 plus 6.85% of excess over
    48                                        $269,300
    49  Over $1,616,450                       $109,244 plus 8.82% of excess over
    50                                        $1,616,450
    51    (ii) For taxable years beginning in two thousand nineteen the  follow-
    52  ing rates shall apply:
    53  If the New York taxable income is:    The tax is:
    54  Not over $12,800                      4% of the New York taxable income
    55  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
    56  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over

        S. 2009--C                         47                         A. 3009--C
 
     1                                        $17,650
     2  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
     3  Over $32,200 but not over $107,650    $1,568 plus 6.21% of excess over
     4                                        $32,200
     5  Over $107,650 but not over $269,300   $6,253 plus 6.49% of excess over
     6                                        $107,650
     7  Over $269,300 but not over $1,616,450 $16,744 plus 6.85% of excess over
     8                                        $269,300
     9  Over $1,616,450                       $109,024 plus 8.82% of excess over
    10                                        $1,616,450
    11    (iii) For taxable years beginning in two thousand twenty the following
    12  rates shall apply:
    13  If the New York taxable income is:    The tax is:
    14  Not over $12,800                      4% of the New York taxable income
    15  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
    16  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    17                                        $17,650
    18  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
    19  Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
    20                                        $32,200
    21  Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
    22                                        $107,650
    23  Over $269,300                         $16,524 plus 6.85% of excess over
    24                                        $269,300
    25    (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
    26  following rates shall apply:
    27  If the New York taxable income is:    The tax is:
    28  Not over $12,800                      4% of the New York taxable income
    29  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    30                                        $12,800
    31  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    32                                        $17,650
    33  Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
    34                                        $20,900
    35  Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
    36                                        $32,200
    37  Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
    38                                        $107,650
    39  Over $269,300                         $16,304 plus 6.85% of excess over
    40                                        $269,300
    41    (v) For taxable years beginning in two thousand twenty-two the follow-
    42  ing rates shall apply:
    43  If the New York taxable income is:    The tax is:
    44  Not over $12,800                      4% of the New York taxable income
    45  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    46                                        $12,800
    47  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    48                                        $17,650
    49  Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
    50                                        $20,900
    51  Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
    52                                        $107,650
    53  Over $269,300                         $16,079 plus 6.85% of excess over
    54                                        $269,300
    55    (vi) For taxable years beginning  in  two  thousand  twenty-three  the
    56  following rates shall apply:

        S. 2009--C                         48                         A. 3009--C
 
     1  If the New York taxable income is:    The tax is:
     2  Not over $12,800                      4% of the New York taxable income
     3  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
     4                                        $12,800
     5  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
     6                                        $17,650
     7  Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
     8                                        $20,900
     9  Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over
    10                                        $107,650
    11  Over $269,300                         $15,845 plus 6.85% of excess over
    12                                        $269,300
    13    (vii)  For  taxable  years  beginning  in two thousand twenty-four the
    14  following rates shall apply:
    15  If the New York taxable income is:    The tax is:
    16  Not over $12,800                      4% of the New York taxable income
    17  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    18                                        $12,800
    19  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    20                                        $17,650
    21  Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
    22                                        $20,900
    23  Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
    24                                        $107,650
    25  Over $269,300                         $15,612 plus 6.85% of excess over
    26                                        $269,300
    27    (viii) For taxable years beginning after two thousand twenty-four  the
    28  following rates shall apply:
    29  If the New York taxable income is:    The tax is:
    30  Not over $12,800                      4% of the New York taxable income
    31  Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
    32                                        $12,800
    33  Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
    34                                        $17,650
    35  Over $20,900 but not over $107,650    $901 plus 5.5% of excess over
    36                                        $20,900
    37  Over $107,650 but not over $269,300   $5,672 plus 6.00% of excess over
    38                                        $107,650
    39  Over $269,300                         $15,371 plus 6.85% of excess over
    40                                        $269,300
    41    §  3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
    42  of the tax law is REPEALED and a new subparagraph (B) is added  to  read
    43  as follows:
    44    (B)(i)  For  taxable  years  beginning  in  two  thousand eighteen the
    45  following rates shall apply:
    46  If the New York taxable income is:    The tax is:
    47  Not over $8,500                       4% of the New York taxable income
    48  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    49                                        $8,500
    50  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    51                                        $11,700
    52  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    53                                        $13,900
    54  Over $21,400 but not over $80,650     $1,042 plus 6.33% of excess over
    55                                        $21,400
    56  Over $80,650 but not over $215,400    $4,793 plus 6.57% of excess over

        S. 2009--C                         49                         A. 3009--C
 
     1                                        $80,650
     2  Over $215,400 but not over $1,077,550 $13,646 plus 6.85% of excess over
     3                                        $215,400
     4  Over $1,077,550                       $72,703 plus 8.82% of excess over
     5                                        $1,077,550
     6    (ii)  For taxable years beginning in two thousand nineteen the follow-
     7  ing rates shall apply:
     8  If the New York taxable income is:    The tax is:
     9  Not over $8,500                       4% of the New York taxable income
    10  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    11                                        $8,500
    12  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    13                                        $11,700
    14  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    15                                        $13,900
    16  Over $21,400 but not over $80,650     $1,042 plus 6.21% of excess over
    17                                        $21,400
    18  Over $80,650 but not over $215,400    $4,721 plus 6.49% of excess over
    19                                        $80,650
    20  Over $215,400 but not over $1,077,550 $13,467 plus 6.85% of excess over
    21                                        $215,400
    22  Over $1,077,550                       $72,524 plus 8.82% of excess over
    23                                        $1,077,550
    24    (iii) For taxable years beginning in two thousand twenty the following
    25  rates shall apply:
    26  If the New York taxable income is:    The tax is:
    27  Not over $8,500                       4% of the New York taxable income
    28  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    29                                        $8,500
    30  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    31                                        $11,700
    32  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    33                                        $13,900
    34  Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
    35                                        $21,400
    36  Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
    37                                        $80,650
    38  Over $215,400                         $13,288 plus 6.85% of excess over
    39                                        $215,400
    40    (iv) For taxable  years  beginning  in  two  thousand  twenty-one  the
    41  following rates shall apply:
    42  If the New York taxable income is:    The tax is:
    43  Not over $8,500                       4% of the New York taxable income
    44  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    45                                        $8,500
    46  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    47                                        $11,700
    48  Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
    49                                        $13,900
    50  Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
    51                                        $21,400
    52  Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
    53                                        $80,650
    54  Over $215,400                         $13,109 plus 6.85% of excess over
    55                                        $215,400

        S. 2009--C                         50                         A. 3009--C
 
     1    (v) For taxable years beginning in two thousand twenty-two the follow-
     2  ing rates shall apply:
     3  If the New York taxable income is:    The tax is:
     4  Not over $8,500                       4% of the New York taxable income
     5  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
     6                                        $8,500
     7  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
     8                                        $11,700
     9  Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
    10                                        $13,900
    11  Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
    12                                        $80,650
    13  Over $215,400                         $12,926 plus 6.85% of excess over
    14                                        $215,400
    15    (vi)  For  taxable  years  beginning  in two thousand twenty-three the
    16  following rates shall apply:
    17  If the New York taxable income is:    The tax is:
    18  Not over $8,500                       4% of the New York taxable income
    19  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    20                                        $8,500
    21  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    22                                        $11,700
    23  Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
    24                                        $13,900
    25  Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
    26                                        $80,650
    27  Over $215,400                         $12,738 plus 6.85% of excess over
    28                                        $215,400
    29    (vii) For taxable years beginning  in  two  thousand  twenty-four  the
    30  following rates shall apply:
    31  If the New York taxable income is:    The tax is:
    32  Not over $8,500                       4% of the New York taxable income
    33  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    34                                        $8,500
    35  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    36                                        $11,700
    37  Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
    38                                        $13,900
    39  Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
    40                                        $80,650
    41  Over $215,400                         $12,550 plus 6.85% of excess over
    42                                        $215,400
    43    (viii)  For taxable years beginning after two thousand twenty-four the
    44  following rates shall apply:
    45  If the New York taxable income is:    The tax is:
    46  Not over $8,500                       4% of the New York taxable income
    47  Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
    48                                        $8,500
    49  Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
    50                                        $11,700
    51  Over $13,900 but not over $80,650     $600 plus 5.50% of excess over
    52                                        $13,900
    53  Over $80,650 but not over $215,400    $4,271 plus 6.00% of excess over
    54                                        $80,650
    55  Over $215,400                         $12,356 plus 6.85% of excess over
    56                                        $215,400

        S. 2009--C                         51                         A. 3009--C
 
     1    § 4. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
     2  601  of the tax law, as amended by section 5 of part FF of chapter 59 of
     3  the laws of 2013, 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 [eighteen] twenty.
    18    §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
    19  601 of the tax law, as amended by section 6 of part FF of chapter 59  of
    20  the laws of 2013, 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 [eighteen] twenty.
    35    § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
    36  601  of the tax law, as amended by section 7 of part FF of chapter 59 of
    37  the laws of 2013, 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 [eighteen] twenty.
    52    § 7. This act shall take effect immediately.
 
    53                                   PART S

        S. 2009--C                         52                         A. 3009--C
 
     1    Section 1. Subsection (g) of section 615 of the tax law, as amended by
     2  section  1  of  part  H of chapter 59 of the laws of 2015, is amended to
     3  read as follows:
     4    (g)(1)  With  respect  to  an individual whose New York adjusted gross
     5  income is over one million dollars and no more than ten million dollars,
     6  the New York itemized deduction  shall  be  an  amount  equal  to  fifty
     7  percent  of  any charitable contribution deduction allowed under section
     8  one hundred seventy of the  internal  revenue  code  for  taxable  years
     9  beginning  after  two  thousand  nine and before two thousand [eighteen]
    10  twenty. With respect to an individual  whose  New  York  adjusted  gross
    11  income  is  over  one  million  dollars, the New York itemized deduction
    12  shall be an amount equal to fifty percent of any charitable contribution
    13  deduction allowed under section one  hundred  seventy  of  the  internal
    14  revenue  code  for taxable years beginning in two thousand nine or after
    15  two thousand [seventeen] nineteen.
    16    (2) With respect to an individual whose New York adjusted gross income
    17  is over ten million dollars, the New York itemized deduction shall be an
    18  amount equal to  twenty-five  percent  of  any  charitable  contribution
    19  deduction  allowed  under  section  one  hundred seventy of the internal
    20  revenue code for taxable years beginning after  two  thousand  nine  and
    21  ending before two thousand [eighteen] twenty.
    22    §  2. Subdivision (g) of section 11-1715 of the administrative code of
    23  the city of New York, as amended by section 2 of part H of chapter 59 of
    24  the laws of 2015, is amended to read as follows:
    25    (g) (1) With respect to an individual whose New  York  adjusted  gross
    26  income is over one million dollars but no more than ten million dollars,
    27  the  New  York  itemized  deduction  shall  be  an amount equal to fifty
    28  percent of any charitable contribution deduction allowed  under  section
    29  one  hundred  seventy  of  the  internal  revenue code for taxable years
    30  beginning after two thousand nine and  before  two  thousand  [eighteen]
    31  twenty.  With  respect  to  an  individual whose New York adjusted gross
    32  income is over one million dollars,  the  New  York  itemized  deduction
    33  shall be an amount equal to fifty percent of any charitable contribution
    34  deduction  allowed  under  section  one  hundred seventy of the internal
    35  revenue code for taxable years beginning in two thousand nine  or  after
    36  two thousand [seventeen] nineteen.
    37    (2) With respect to an individual whose New York adjusted gross income
    38  is over ten million dollars, the New York itemized deduction shall be an
    39  amount  equal  to  twenty-five  percent  of  any charitable contribution
    40  deduction allowed under section one  hundred  seventy  of  the  internal
    41  revenue  code  for  taxable  years beginning after two thousand nine and
    42  ending before two thousand [eighteen] twenty.
    43    § 3. This act shall take effect immediately.
 
    44                                   PART T
 
    45    Section 1. Subsection (c) of section 606 of the tax law is amended  by
    46  adding a new paragraph 1-a to read as follows:
    47    (1-a)  For taxable years beginning after two thousand seventeen, for a
    48  taxpayer with New York adjusted gross income of at least fifty  thousand
    49  dollars but less than one hundred fifty thousand dollars, the applicable
    50  percentage  shall  be the applicable percentage otherwise computed under
    51  paragraph one of this subsection multiplied by a factor as follows:
    52    If New York adjusted gross
    53    income is:                                         The factor is:
    54    At least $50,000 and less

        S. 2009--C                         53                         A. 3009--C
 
     1    than $55,000                                       1.1682
     2    At least $55,000 and less
     3    than $60,000                                       1.2733
     4    At least $60,000 and less
     5    than $65,000                                       2.322
     6    At least $65,000 and less
     7    than $150,000                                      3.000
     8    § 2. Subsection (c) of section 606 of the tax law is amended by adding
     9  a new paragraph 1-b to read as follows:
    10    (1-b)  Notwithstanding  anything in this subsection to the contrary, a
    11  taxpayer shall be allowed a credit as provided in this subsection  equal
    12  to the applicable percentage of the credit allowable under section twen-
    13  ty-one  of  the internal revenue code for the same taxable year (without
    14  regard to whether the taxpayer in fact claimed  the  credit  under  such
    15  section  twenty-one  for such taxable year) that would have been allowed
    16  absent the application of section 21(c) of such code for taxpayers  with
    17  more  than two qualifying individuals, provided however, that the credit
    18  shall be calculated as if the dollar limit on  amount  creditable  shall
    19  not exceed seven thousand five hundred dollars if there are three quali-
    20  fying individuals, eight thousand five hundred dollars if there are four
    21  qualifying  individuals,  and nine thousand dollars if there are five or
    22  more qualifying individuals.
    23    § 3. This act shall take effect immediately; provided,  however,  that
    24  section  two  of  this  act shall apply to taxable years beginning on or
    25  after January 1, 2018.
 
    26                                   PART U
 
    27    Section 1. Paragraph (a) of subdivision 1 and paragraph (a) of  subdi-
    28  vision  2  of section 1701 of the tax law, as added by section 1 of part
    29  CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
    30    (a) "Debt" means [all] past-due tax liabilities, including unpaid tax,
    31  interest, and penalty, that the  commissioner  is  required  by  law  to
    32  collect  and  that  have [been reduced to judgment by the docketing of a
    33  New York state tax warrant in the office of a county  clerk  located  in
    34  the  state  of New York or by the filing of a copy of the warrant in the
    35  office of the department of state] become fixed and final such that  the
    36  taxpayer no longer has any right to administrative or judicial review.
    37    (a) To assist the commissioner in the collection of debts, the depart-
    38  ment  must develop and operate a financial institution data match system
    39  for the purpose of identifying and seizing the non-exempt assets of  tax
    40  debtors  as  identified by the commissioner. The commissioner is author-
    41  ized to designate a third party to  develop  and  operate  this  system.
    42  Notwithstanding  any  other provisions of this chapter, the commissioner
    43  is authorized to disclose the debt and the debtor  information  to  such
    44  third  party  and to financial institutions for purposes of this system.
    45  Any third party designated by the commissioner to develop and operate  a
    46  financial  data  match  system must keep all information it obtains from
    47  both the department and the financial institution confidential, and  any
    48  employee, agent or representative of that third party is prohibited from
    49  disclosing  that  information to anyone other than the department or the
    50  financial institution.
    51    § 2. This act shall take effect immediately and shall expire April  1,
    52  2020  when  upon  such  date  the provisions of this act shall be deemed
    53  repealed.

        S. 2009--C                         54                         A. 3009--C
 
     1                                   PART V

     2                            Intentionally Omitted
 
     3                                   PART W
 
     4                            Intentionally Omitted
 
     5                                   PART X
 
     6    Section  1.  Section  2  of  part Q of chapter 59 of the laws of 2013,
     7  amending the tax law, relating  to  serving  an  income  execution  with
     8  respect  to  individual tax debtors without filing a warrant, as amended
     9  by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
    10  read as follows:
    11    § 2. This act shall take effect immediately and shall  expire  and  be
    12  deemed repealed on and after April 1, [2017] 2020.
    13    §  2.  This  act  shall take effect immediately and shall be deemed to
    14  have been in full force and effect on and after April 1, 2017.
 
    15                                   PART Y

    16                            Intentionally Omitted
 
    17                                   PART Z
 
    18    Section 1. Clause 1 of subparagraph (A) of paragraph 1  of  subsection
    19  (b)  of section 631 of the tax law, as added by section 1 of part F-1 of
    20  chapter 57 of the laws of 2009, is amended to read as follows:
    21    (1) For purposes of this subparagraph, the term "real property located
    22  in this state" includes an interest in a partnership, limited  liability
    23  corporation,  S  corporation,  or non-publicly traded C corporation with
    24  one hundred or fewer shareholders (hereinafter the "entity")  that  owns
    25  real  property  that is located in New York [and has a fair market value
    26  that] or owns shares of stock in a cooperative housing corporation where
    27  the cooperative units relating to the shares are located  in  New  York;
    28  provided,  that the sum of the fair market values of such real property,
    29  cooperative shares, and related  cooperative  units  equals  or  exceeds
    30  fifty  percent  of  all  the assets of the entity on the date of sale or
    31  exchange of the taxpayer's interest in the entity.   Only  those  assets
    32  that the entity owned for at least two years before the date of the sale
    33  or  exchange  of the taxpayer's interest in the entity are to be used in
    34  determining the fair market value of all the assets of the entity on the
    35  date of sale or exchange. The gain or loss derived from New York sources
    36  from the taxpayer's sale or exchange of an interest in an entity that is
    37  subject to the provisions of this subparagraph is the total gain or loss
    38  for federal income tax purposes from that sale or exchange multiplied by
    39  a fraction, the numerator of which is the fair market value of the  real
    40  property,  and  the  cooperative  housing  corporation stock and related
    41  cooperative units located in New York on the date of  sale  or  exchange
    42  and  the denominator of which is the fair market value of all the assets
    43  of the entity on the date of sale or exchange.
    44    § 2. This act shall take effect immediately and shall apply to taxable
    45  years beginning on or after January 1, 2017.
 
    46                                   PART AA

        S. 2009--C                         55                         A. 3009--C
 
     1    Section 1. Paragraph 1 of subsection (a) of section  632  of  the  tax
     2  law, as amended by chapter 28 of the laws of 1987, is amended to read as
     3  follows:
     4    (1)  In determining New York source income of a nonresident partner of
     5  any partnership, there shall be included only the portion  derived  from
     6  or  connected with New York sources of such partner's distributive share
     7  of items of partnership income, gain, loss and deduction  entering  into
     8  his  federal  adjusted gross income, as such portion shall be determined
     9  under regulations of the tax commission consistent with  the  applicable
    10  rules  of section six hundred thirty-one of this part.  If a nonresident
    11  is a partner in a partnership where a sale or transfer of the membership
    12  interest of the partner is subject to the  provisions  of  section  one-
    13  thousand sixty of the internal revenue code, then any gain recognized on
    14  the sale or transfer for federal income tax purposes shall be treated as
    15  New  York source income allocated in a manner consistent with the appli-
    16  cable methods and rules for allocation under this article  in  the  year
    17  that the assets were sold or transferred.
    18    § 2. This act shall take effect immediately.
 
    19                                   PART BB
 
    20                            Intentionally Omitted
 
    21                                   PART CC
 
    22    Section  1.  Paragraph 4 of subdivision (b) of section 1101 of the tax
    23  law is amended by adding a new subparagraph (v) to read as follows:
    24    (v) Notwithstanding the provisions of subparagraph (i) of  this  para-
    25  graph, the following sales of tangible personal property shall be deemed
    26  to  be  retail  sales:  (A)  a sale to a single member limited liability
    27  company or a subsidiary for resale to its member or  owner,  where  such
    28  single  member limited liability company or subsidiary is disregarded as
    29  an entity separate from its owner for federal income tax purposes (with-
    30  out reference to any special rules related to the imposition of  certain
    31  federal  taxes),  including  but  not  limited to certain employment and
    32  excise taxes; (B) a sale to a partnership for resale to one or  more  of
    33  its partners; or (C) a sale to a trustee of a trust for resale to one or
    34  more beneficiaries of such trust.
    35    §  2.  Subdivision  2  of  section  1118 of the tax law, as amended by
    36  section 4 of subpart B of part S of chapter 57 of the laws of  2010,  is
    37  amended to read as follows:
    38    (2)(a)  In respect to the use of property or services purchased by the
    39  user while a nonresident of this state, except in the case  of  tangible
    40  personal  property  or  services which the user, in the performance of a
    41  contract, incorporates into real property located in the state. A person
    42  while engaged in any manner in carrying on in this state any employment,
    43  trade, business or profession, shall not be deemed  a  nonresident  with
    44  respect to the use in this state of property or services in such employ-
    45  ment,  trade,  business  or profession. This exemption does not apply to
    46  the use of qualified property where the qualified property is  purchased
    47  primarily to carry individuals, whether or not for hire, who are agents,
    48  employees,  officers,  shareholders,  members,  managers,  partners,  or
    49  directors of (A) the purchaser, where any of  those  individuals  was  a
    50  resident  of this state when the qualified property was purchased or (B)
    51  any affiliated person that was a resident when  the  qualified  property
    52  was  purchased. For purposes of this subdivision: (i) persons are affil-

        S. 2009--C                         56                         A. 3009--C
 
     1  iated persons with respect to each other where one of the persons has an
     2  ownership interest of more than five percent, whether  direct  or  indi-
     3  rect,  in  the  other,  or where an ownership interest of more than five
     4  percent,  whether  direct or indirect, is held in each of the persons by
     5  another person or by a  group  of  other  persons  that  are  affiliated
     6  persons  with  respect  to  each  other; (ii) "qualified property" means
     7  [aircraft,] vessels and motor vehicles; and (iii) "carry" means to  take
     8  any  person from one point to another, whether for the business purposes
     9  or pleasure of that person. For an exception to the exclusions from  the
    10  definition  of  "retail  sale" applicable to [aircraft and] vessels, see
    11  subdivision (q) of section eleven hundred eleven of this article.
    12    (b) Notwithstanding any provision of this article to the contrary, the
    13  exclusion in paragraph (a) of this subdivision shall not  apply  to  the
    14  use  within  the  state  of property or a service purchased outside this
    15  state by a nonresident that is not an individual, unless  such  nonresi-
    16  dent  has  been doing business outside the state for at least six months
    17  prior to the date such nonresident brought such property or service into
    18  this state.
    19    § 3. This act shall take effect immediately.
 
    20                                   PART DD

    21    Section 1. Section 1105-C of the tax law, as added by section 24-a  of
    22  part  Y  of chapter 63 of the laws of 2000, and subdivision (d) as added
    23  by section 1 of part B of chapter 85 of the laws of 2002, is amended  to
    24  read as follows:
    25    §  1105-C.  Reduced  tax rates with respect to certain gas service and
    26  electric service. Notwithstanding any other provisions of  this  article
    27  or article twenty-nine of this chapter:
    28    (a)  The  rates  of  taxes imposed by this article and pursuant to the
    29  authority of article twenty-nine of this chapter on receipts from  every
    30  sale  of  gas  service or electric service of whatever nature (including
    31  the transportation, transmission or distribution of gas or  electricity,
    32  but  not  including  gas  or electricity) shall be [reduced each year on
    33  September first, beginning in the year two thousand, and each year ther-
    34  eafter, at the rate per year of twenty-five  percent  of  the  rates  in
    35  effect on September first, two thousand, so that the rates of such taxes
    36  on  such  receipts shall be] zero percent [on and after September first,
    37  two thousand three] unless the charge is by the vendor  for  transporta-
    38  tion,  transmission  or distribution, regardless of whether such charges
    39  are separately stated in the written contract, if any, or  on  the  bill
    40  rendered  to  such  purchaser and regardless of whether such transporta-
    41  tion, transmission, or distribution is provided  by  such  vendor  or  a
    42  third party.
    43    (b)  [The  provisions of subdivision (b) of section eleven hundred six
    44  of this article shall apply to the reduced rates described  in  subdivi-
    45  sion  (a)  of this section, as if such section referred to this section,
    46  provided that any reference in subdivision (b) of  such  section  eleven
    47  hundred six to the date August first, nineteen hundred sixty-five, shall
    48  be  deemed  to refer, respectively, to September first of the applicable
    49  years described in subdivision (a) of this section, and any reference in
    50  subdivision (b) of such section eleven hundred six to July thirty-first,
    51  nineteen hundred sixty-five, shall be deemed to refer to the  day  imme-
    52  diately preceding each such September first, respectively.
    53    (c)  Nothing  in this section shall be deemed to exempt from the taxes
    54  imposed under this article or pursuant to the authority of article twen-

        S. 2009--C                         57                         A. 3009--C

     1  ty-nine of this chapter any transaction which may not be subject to  the
     2  reduced  rates of such taxes, each year, as set forth in subdivision (a)
     3  of this section in effect on the respective September first.
     4    (d)]  For  [the purpose] purposes of [the reduced rate of tax provided
     5  by] subdivision (a) of this section, [the following  shall  apply  to  a
     6  sale,  other  than  a sale for resale, of the] where the transportation,
     7  transmission or distribution of gas or  electricity  [by  a  vendor  not
     8  subject  to  the supervision of the public service commission where such
     9  transportation, transmission or distribution service being] is sold [is]
    10  wholly within a service area of the state  wherein  the  public  service
    11  commission  [shall  have] has approved by formal order a single retailer
    12  model for the regulated utility which has the  responsibility  to  serve
    13  that  area[.  Where  such  a  vendor makes a sale, other than a sale for
    14  resale, of gas or electricity to be delivered to a customer within  such
    15  service  area  and,  for  the  purpose  of transporting, transmitting or
    16  distributing such gas or electricity, also makes a sale  of  transporta-
    17  tion, transmission or distribution service to such customer], the charge
    18  for  [the]  such transportation, transmission or distribution [of gas or
    19  electricity wholly  within  such  service  area  made  by  such  vendor,
    20  notwithstanding  paragraph  three  of  subdivision (b) of section eleven
    21  hundred one of this article, shall not be included in  the  receipt  for
    22  such  gas or electricity, and, therefore,] when made by the provider who
    23  also sells, other than as a sale for resale,  the  gas  or  electricity,
    24  shall qualify for such reduced rate.
    25    § 2. This act shall take effect immediately.
 
    26                                   PART EE
 
    27                            Intentionally Omitted
 
    28                                   PART FF
 
    29                            Intentionally Omitted
 
    30                                   PART GG

    31                            Intentionally Omitted
 
    32                                   PART HH
 
    33                            Intentionally Omitted
 
    34                                   PART II
 
    35                            Intentionally Omitted
 
    36                                   PART JJ
 
    37                            Intentionally Omitted
 
    38                                   PART KK
 
    39                            Intentionally Omitted
 
    40                                   PART LL

        S. 2009--C                         58                         A. 3009--C
 
     1    Section  1.  Subdivision  2  of section 902 of the racing, pari-mutuel
     2  wagering and breeding law, as amended by chapter 18 of the laws of 2008,
     3  is amended and four new subdivisions 3, 4, 5 and 6 are added to read  as
     4  follows:
     5    2.  Notwithstanding  any  inconsistent provision of the law, all costs
     6  and expenses of the [state racing and wagering board] gaming  commission
     7  for equine drug testing and research shall be paid from an appropriation
     8  from  the  state  treasury, on the certification of the [chairman of the
     9  state racing and wagering board] executive director of  the  commission,
    10  upon  the  audit  and  warrant of the comptroller and pursuant to a plan
    11  developed by  the  [state  racing  and  wagering  board]  commission  as
    12  approved  by  the director of the budget; provided, however, the commis-
    13  sion may direct the assessment imposed pursuant to subdivision three  of
    14  this section to be paid directly to the laboratory authorized to conduct
    15  equine  drug  testing  pursuant  to  subdivision  one  of  this section,
    16  provided however, upon direction of the commission, any amounts directly
    17  paid  to  such   laboratory   shall   constitute   an   encumbrance   of
    18  appropriation.
    19    3.  (a)  The  commission  may  impose an assessment on each race track
    20  licensed or franchised pursuant to this chapter, and an  additional  per
    21  start  fee, for any additional costs and expenses of equine drug testing
    22  and research conducted at a laboratory authorized pursuant  to  subdivi-
    23  sion  one  of  this section, after all other funds for such purpose have
    24  been expended.
    25    (b) (i) The commission shall establish an  assessable  amount  by  May
    26  first  of each year based on the projected deficit of revenues deposited
    27  into the racing regulation account established by section  ninety-nine-i
    28  of the state finance law, including funds deposited pursuant to sections
    29  one  hundred  fifteen, two hundred thirty-six, two hundred thirty-eight,
    30  three hundred seven, three hundred eight, three hundred  eighteen,  five
    31  hundred  twenty-seven, one thousand seven, one thousand eight, one thou-
    32  sand nine, one thousand fourteen, one  thousand  fifteen,  one  thousand
    33  sixteen,  and  one  thousand eighteen of this chapter in relation to the
    34  conduct of racing, the amount of funds paid for  equipment  pursuant  to
    35  subdivision two of section two hundred twenty-eight of this chapter, the
    36  amount  of  funds  received by the commission from the purse enhancement
    37  account for equine health and safety pursuant to paragraph two of subdi-
    38  vision b of section sixteen hundred twelve of the tax law in relation to
    39  video lottery terminal facilities at race tracks  licensed  pursuant  to
    40  articles  two  and  three  of  this  chapter, and by the amount of funds
    41  generated by any other existing fees, taxes and assessments paid by race
    42  tracks or owners licensed pursuant to articles two  and  three  of  this
    43  chapter  for the purpose of equine drug testing, compared to expenses in
    44  the racing regulation account. The commission shall impose the  assessa-
    45  ble  amount  as an assessment upon each race track, and as an additional
    46  per start fee on each owner. In no  event  shall  the  total  assessable
    47  amount  exceed  the total expense projected by the commission for equine
    48  drug testing and research conducted at a laboratory authorized  pursuant
    49  to subdivision one of this section during that year.
    50    (ii)  The  total  value of the assessment imposed upon all race tracks
    51  shall be fifty percent of the assessable amount calculated  by  subpara-
    52  graph  (i)  of this paragraph, and shall be assessed in a manner that is
    53  proportional to the number of starts  at  each  race  track  during  the
    54  previous year.  In no event shall any race track impose the cost of such
    55  assessment, in part or in whole, on any owner or trainer.

        S. 2009--C                         59                         A. 3009--C
 
     1    (iii)  The  total  value  of  the  additional per start fee imposed on
     2  owners licensed pursuant to this chapter as an additional per start  fee
     3  shall  be  fifty percent of the assessable amount calculated by subpara-
     4  graph (i) of this paragraph divided by the total number of starts in the
     5  previous year, and shall be assessed and paid in the same manner, and in
     6  addition to, the fee for the start of a horse in New York state pari-mu-
     7  tuel races provided by section one hundred fifteen-a of this chapter.
     8    4.  Payment of the assessment imposed by this section shall be made to
     9  the commission, or to the laboratory authorized to conduct  equine  drug
    10  testing  if  directed by the commission, by each entity required to make
    11  such payments. Payments of such assessment shall be  made  on  the  last
    12  business  day  of  each  month and shall cover one-twelfth of the annual
    13  assessment, provided however that all such payments required to be  made
    14  on the last day of April shall be due with the May payment. A penalty of
    15  five percent, and interest at the rate of one percent per month from the
    16  date  the  assessment,  is due to the date of the payment of the assess-
    17  ment, and shall be payable in case any assessment imposed by this  chap-
    18  ter  is not paid when due. If the commission determines that any payment
    19  received under this section was paid in error, the commission may  cause
    20  the  same  to  be  refunded without interest out of any monies collected
    21  thereunder, provided an application therefor is filed with  the  commis-
    22  sion within one year from the time the erroneous payment is made.
    23    5.  Any deficit in the racing regulation account on March thirty-first
    24  of each year, excluding any deficit  attributed  to  the  negative  fund
    25  balance as of March thirty-first, two thousand seventeen, shall be added
    26  to  the  assessable  amount for the following year. Fifty percent of any
    27  surplus in such account as of March thirty-first of each  year,  not  to
    28  exceed the amount of the assessment imposed on race tracks in that year,
    29  shall be used to reduce the assessment imposed on each race track in the
    30  following  year  in  proportion to the amount paid by each race track in
    31  the year of the surplus.  Fifty percent of any surplus in  such  account
    32  as of March thirty-first of each year, not to exceed the total amount of
    33  the  additional  start  fees  in  that year, shall be used to reduce the
    34  additional per start fee in the following year. Such reduction shall  be
    35  calculated in the same manner as the additional per start fee.
    36    6. Not later than May first, each year, the commission shall submit to
    37  the  director  of  the budget, the temporary president of the senate and
    38  the speaker of the assembly a report on the  revenue  generated  by  the
    39  assessment,  the  total  cost  of equine drug testing, and any projected
    40  deficit or surplus in the  racing  regulation  account.  The  commission
    41  shall  also  publish  such report on the commission's website as soon as
    42  practicable.
    43    § 2. This act shall take effect immediately.
 
    44                                   PART MM
 
    45    Section 1. Paragraph (b) of subdivision 2 of section 435 of the execu-
    46  tive law, as amended by chapter 164 of the laws of 2003, is  amended  to
    47  read as follows:
    48    (b) No person, firm or corporation, other than an organization [which]
    49  that  is or has been during the preceding twelve months duly licensed to
    50  conduct bingo games, shall sell or distribute bingo supplies  or  equip-
    51  ment  without having first obtained a license therefor upon a written or
    52  electronic application made, verified and filed with the  commission  in
    53  the form prescribed by the rules and regulations of the commission. As a
    54  part  of  its  determination  concerning the applicant's suitability for

        S. 2009--C                         60                         A. 3009--C
 
     1  licensing as a bingo supplier, the [New York state racing  and  wagering
     2  board]  commission  shall require the applicant to furnish to such board
     3  two sets of fingerprints.  Such fingerprints shall be submitted  to  the
     4  division  of  criminal  justice  services  for  a state criminal history
     5  record check, as defined in subdivision one of  section  three  thousand
     6  thirty-five  of  the  education law, and may be submitted to the federal
     7  bureau of investigation for a national criminal  history  record  check.
     8  In each such application for a license under this section shall be stat-
     9  ed the name and address of the applicant; the names and addresses of its
    10  officers,  directors,  shareholders  or  partners;  the  amount of gross
    11  receipts realized on the sale or  distribution  of  bingo  supplies  and
    12  equipment  to  duly  licensed  organizations  during  the last preceding
    13  calendar or  fiscal  year,  and  such  other  information  as  shall  be
    14  prescribed by such rules and regulations. The fee for such license shall
    15  be  a  sum  equal  to  twenty-five dollars plus an amount based upon the
    16  gross sales, if any, of  bingo  equipment  and  supplies  to  authorized
    17  organizations  by  the  applicant during the preceding calendar year, or
    18  fiscal year if the applicant maintains his or her accounts on  a  fiscal
    19  year basis, and determined in accordance with the following schedule:
    20    gross sales of $1,000 to $4,999................$10.00
    21    gross sales of $5,000 to $19,999...............$50.00
    22    gross sales of $20,000 to $49,999.............$200.00
    23    gross sales of $50,000 to $100,000............$500.00
    24    gross sales in excess of $100,000...........$1,000.00
    25    §  2.  Section 476 of the general municipal law is amended by adding a
    26  new subdivision 13 to read as follows:
    27    13. "Ancillary  non-gaming  activity"  shall  mean  any  activity  not
    28  directly  related  to  the  conduct or outcome of any game of bingo, and
    29  shall include assisting at any food  concession,  cleaning,  maintenance
    30  and site preparation at the location where games of bingo are conducted.
    31    § 3. Subdivisions 5 and 6 of section 479 of the general municipal law,
    32  as  amended  by  chapter 328 of the laws of 1994, are amended to read as
    33  follows:
    34    5. No prize shall exceed the sum  or  value  of  [one]  five  thousand
    35  dollars in any single game of bingo.
    36    6.  No series of prizes on any one bingo occasion shall aggregate more
    37  than [three] fifteen thousand dollars.
    38    § 4. Section 480 of the general municipal law, as amended  by  chapter
    39  438  of  the  laws of 1962, paragraph (a) of subdivision 1 as amended by
    40  chapter 611 of the laws of 1963,  paragraph  (b)  of  subdivision  2  as
    41  amended  by  chapter  413  of  the  laws  of 1963, is amended to read as
    42  follows:
    43    § 480. Application for license. 1. To conduct bingo. (a)  Each  appli-
    44  cant  for a license to conduct bingo shall, after obtaining an identifi-
    45  cation number from the control commission, file with the  clerk  of  the
    46  municipality  a  written  or electronic application therefor in the form
    47  prescribed in the rules and regulations of the control commission,  duly
    48  executed and verified, in which such applicant shall [be stated] state:
    49    (1)  the  name  and  address of the applicant together with sufficient
    50  facts relating to [its] such applicant's incorporation and  organization
    51  to enable the governing body of the municipality to determine whether or
    52  not [it] the applicant is a bona fide authorized organization;
    53    (2)  the  names  and  addresses of [its] the applicant's officers; the
    54  place or places where, and the date or dates and the time or times when,
    55  the applicant intends to conduct bingo under the license applied for;

        S. 2009--C                         61                         A. 3009--C
 
     1    (3) in case the applicant intends to lease premises for  this  purpose
     2  from  other than an authorized organization, the name and address of the
     3  licensed commercial lessor of such premises, and the capacity or  poten-
     4  tial  capacity  for  public  assembly  purposes of space in any premises
     5  presently owned or occupied by the applicant;
     6    (4)  the  amount of rent to be paid or other consideration to be given
     7  directly or indirectly for each occasion for  use  of  the  premises  of
     8  another  authorized  organization licensed under this article to conduct
     9  bingo or for use of the premises of a licensed commercial lessor;
    10    (5) all other items of expense intended to  be  incurred  or  paid  in
    11  connection  with  the holding, operating and conducting of such games of
    12  bingo and the names and addresses  of  the  persons  to  whom,  and  the
    13  purposes for which, they are to be paid;
    14    (6)  the  specific  purposes  to which the entire net proceeds of such
    15  games of bingo are to be devoted and in what manner; that no commission,
    16  salary, compensation, reward or recompense will be paid  to  any  person
    17  for  conducting such bingo game or games or for assisting therein except
    18  as in this article otherwise provided; and  such  other  information  as
    19  shall  be  prescribed by [such] the rules and regulations of the commis-
    20  sion.
    21    (b) In each application there shall be designated an active member  or
    22  members  of  the  applicant organization under whom the game or games of
    23  bingo will be conducted and to  the  application  shall  be  appended  a
    24  statement  executed by the member or members so designated, that he, she
    25  or they will be responsible for the  conduct  of  such  bingo  games  in
    26  accordance  with  the  terms  of  the license, [and] the rules and regu-
    27  lations of the commission and [of] this article.
    28    2. Commercial lessor. (a) Each applicant for a license to lease  prem-
    29  ises  to  a  licensed  organization for the purposes of conducting bingo
    30  therein shall file with the clerk of the  municipality  [a  written]  an
    31  application  therefor  in a form prescribed in the rules and regulations
    32  of the control commission duly executed and verified,  which  shall  set
    33  forth  the name and address of the applicant; designation and address of
    34  the premises intended to be covered by the license sought; lawful capac-
    35  ity for public assembly purposes; cost of premises  and  assessed  valu-
    36  ation  for real estate tax purposes, or annual net lease rent, whichever
    37  is applicable; gross rentals received  and  itemized  expenses  for  the
    38  immediately preceding calendar or fiscal year, if any; gross rentals, if
    39  any,  derived  from  bingo  during the last preceding calendar or fiscal
    40  year; computation by which  proposed  rental  schedule  was  determined;
    41  number  of  occasions  on which applicant anticipates receiving rent for
    42  bingo during the ensuing year or shorter period if applicable;  proposed
    43  rent  for  each  such  occasion;  estimated gross rental income from all
    44  other sources during the ensuing year; estimated expenses  itemized  for
    45  ensuing  year  and  amount  of  each  item allocated to bingo rentals; a
    46  statement that the applicant in all respects conforms with the  specifi-
    47  cations  contained  in  the definition of "authorized commercial lessor"
    48  set forth in section four hundred seventy-six of this article, and  such
    49  other  information  as shall be prescribed by [such] the rules and regu-
    50  lations of the commission.
    51    (b) At the end of the license period, a recapitulation,  in  a  manner
    52  prescribed in the rules and regulations of the commission, shall be made
    53  as  between  the licensee and the municipal governing body in respect of
    54  the gross rental actually received during the license period and the fee
    55  paid therefor[, and any]. The licensee shall pay any deficiency  of  fee
    56  thereby  shown  to be due [shall be paid by the licensee] and any excess

        S. 2009--C                         62                         A. 3009--C

     1  of fee thereby shown to have been paid shall be credited to [said]  such
     2  licensee,  in  such  manner  as  the commission by rules and regulations
     3  shall prescribe.
     4    §  5.  Paragraph  (a)  of  subdivision 1 of section 481 of the general
     5  municipal law, as amended by section 17 of part LL of chapter 56 of  the
     6  laws of 2010, is amended to read as follows:
     7    (a)  Issuance  of  licenses to conduct bingo. If the governing body of
     8  the municipality [shall determine] determines that the applicant is duly
     9  qualified to be licensed to conduct bingo under this article;  that  the
    10  member  or  members  of  the  applicant designated in the application to
    11  conduct bingo are bona fide active members  of  the  applicant  and  are
    12  persons of good moral character and have never been convicted of a crime
    13  or,  if  convicted,  have  received  a  pardon  or a certificate of good
    14  conduct or a certificate of relief from disabilities pursuant to article
    15  twenty-three of the correction law; that such games of bingo are  to  be
    16  conducted  in  accordance  with  the  provisions  of this article and in
    17  accordance with the rules and regulations of the  commission,  and  that
    18  the  proceeds thereof are to be disposed of as provided by this article,
    19  and if the governing body  is  satisfied  that  no  commission,  salary,
    20  compensation,  reward or recompense [whatever] what so ever will be paid
    21  or given to any person holding, operating or conducting or assisting  in
    22  the  holding, operation and conduct of any such games of bingo except as
    23  in this article otherwise provided; and that no prize  will  be  offered
    24  and  given  in excess of the sum or value of [one] five thousand dollars
    25  in any single game and that the aggregate  of  all  prizes  offered  and
    26  given  in  all  of such games conducted on a single occasion, under said
    27  license shall not exceed the sum or value of  [three]  fifteen  thousand
    28  dollars,  [it] then the municipality shall issue a license to the appli-
    29  cant for the conduct of bingo upon payment of a license fee of  eighteen
    30  dollars and seventy-five cents for each bingo occasion; provided, howev-
    31  er, that the governing body shall refuse to issue a license to an appli-
    32  cant  seeking  to  conduct  bingo  in  premises of a licensed commercial
    33  lessor where [it] such governing body determines that the premises pres-
    34  ently owned or occupied by [said] such applicant are  in  every  respect
    35  adequate and suitable for conducting bingo games.
    36    §  6.  Section 486 of the general municipal law, as amended by chapter
    37  438 of the laws of 1962, is amended to read as follow:
    38    § 486. Participation by persons under the age of eighteen.  No  person
    39  under  the  age of eighteen years shall be permitted to play any game or
    40  games of bingo conducted pursuant to any license issued under this arti-
    41  cle [unless accompanied by an adult]. No person under the age  of  eigh-
    42  teen  years  shall  be  permitted  to  conduct, operate or assist in the
    43  conduct of any game of bingo conducted pursuant to  any  license  issued
    44  [under]  pursuant to this article. Nothing in this section shall prevent
    45  a person sixteen years of age or older from  performing  ancillary  non-
    46  gaming  activities  conducted  in  conjunction  with  any  game of bingo
    47  conducted pursuant to any license pursuant to this article.
    48    § 7. Intentionally omitted.
    49    § 8. Section 490 of the general municipal law, as amended  by  chapter
    50  99 of the laws of 1988, is amended to read as follows:
    51    §  490.  Advertising  of  bingo  games.  A  licensee may advertise the
    52  conduct of an occasion of bingo to the general public by means of  news-
    53  paper,  radio,  circular,  handbill  and  poster,  [and] by one sign not
    54  exceeding sixty square feet in area, which may be displayed on or  adja-
    55  cent  to  the premises owned or occupied by a licensed authorized organ-
    56  ization, [and when] and through the internet or  television  as  may  be

        S. 2009--C                         63                         A. 3009--C
 
     1  regulated by the rules and regulations of the commission. When an organ-
     2  ization is licensed to conduct bingo occasions on the premises of anoth-
     3  er  licensed authorized organization or of a licensed commercial lessor,
     4  one additional such sign may be displayed on or adjacent to the premises
     5  in  which  the  occasions  are  to be conducted. Additional signs may be
     6  displayed upon any firefighting or ambulance equipment belonging to  any
     7  licensed  authorized  organization  which  is  a volunteer fire company,
     8  volunteer ambulance corps or upon any equipment of a first aid or rescue
     9  squad in and throughout the community  served  by  such  volunteer  fire
    10  company, volunteer ambulance corps or such first aid or rescue squad, as
    11  the  case may be. All advertisements shall be limited to the description
    12  of such event as "bingo", the name of the licensed authorized  organiza-
    13  tion  conducting such bingo occasions, the license number of the author-
    14  ized organization as assigned by the clerk; the prizes offered  and  the
    15  date, location and time of the bingo occasion.
    16    §  9.  Subdivision  1  of section 491 of the general municipal law, as
    17  amended by chapter 667 of the laws  of  1980,  is  amended  to  read  as
    18  follows:
    19    1.  Within  seven  days after the conclusion of any occasion of bingo,
    20  the authorized organization [which] that conducted the same,  and  [its]
    21  such  authorized  organization's members who were in charge thereof, and
    22  when applicable the authorized  organization  [which]  that  rented  its
    23  premises therefor, shall each furnish to the clerk of the municipality a
    24  statement  subscribed by the member in charge and affirmed by [him] such
    25  person as true, under the penalties of perjury, showing  the  amount  of
    26  the  gross receipts derived therefrom and each item of expense incurred,
    27  or paid, and each item of expenditure made or to be made, the  name  and
    28  address of each person to whom each such item has been paid, or is to be
    29  paid,  with  a  detailed description of the merchandise purchased or the
    30  services rendered therefor, the net proceeds derived from such  game  or
    31  rental, as the case may be, and the use to which such proceeds have been
    32  or  are  to  be applied and a list of prizes offered and given, with the
    33  respective values thereof[, and it]. A clerk may make provisions for the
    34  option for the electronic filing of such statement. It shall be the duty
    35  of each licensee to maintain and keep such books and records as  may  be
    36  necessary  to  substantiate  the  particulars of each such statement and
    37  within fifteen days after the end of each calendar quarter during  which
    38  there has been any occasion of bingo, a summary statement of such infor-
    39  mation, in form prescribed by the [state] commission, shall be furnished
    40  in the same manner to the [state racing and wagering board] commission.
    41    §  10.  Subdivision  3-b and paragraph (c) of subdivision 5 of section
    42  186 of the general municipal law, as amended by subdivision 3-b as added
    43  by chapter 550 of the laws of 1994, paragraph (c) of  subdivision  5  as
    44  amended  by  chapter  881  of  the  laws of 1981, are amended to read as
    45  follows:
    46    3-b. "Raffle" shall mean and include those games of chance in which  a
    47  participant  pays  money  in return for a ticket or other receipt and in
    48  which a prize is awarded on the basis of a winning  number  or  numbers,
    49  color  or  colors,  or  symbol  or  symbols  designated on the ticket or
    50  receipt, determined by chance as a result of:
    51    (a) a drawing from among those tickets or receipts previously sold; or
    52    (b) a random event, the results of which correspond  with  tickets  or
    53  receipts previously sold.
    54    (c)  Those  [which  shall]  that otherwise lessen the burdens borne by
    55  government or [which] that are voluntarily undertaken by  an  authorized
    56  organization  to  augment  or supplement services which government would

        S. 2009--C                         64                         A. 3009--C
 
     1  normally render to the people,  including,  in  the  case  of  volunteer
     2  [firemen's]  firefighters  or voluntary emergency medical service activ-
     3  ities, the purchase, erection or maintenance of a building for  a  fire-
     4  house  or  a  volunteer ambulance corps building, activities open to the
     5  public for the enhancement of membership[,] and the purchase  of  equip-
     6  ment  [which] that can reasonably be expected to increase the efficiency
     7  of response to fires, accidents, medical emergencies, public  calamities
     8  and other emergencies.
     9    § 11. Subdivisions 5, 6 and 13 of section 189 of the general municipal
    10  law, subdivision 5 as amended by chapter 434 of the laws of 2016, subdi-
    11  vision  6 as amended by chapter 302 of the laws of 2010, and subdivision
    12  13 as amended by chapter 252 of the laws of 1998, are amended to read as
    13  follows:
    14    5. (a) No single prize awarded by games of chance  other  than  raffle
    15  shall  exceed the sum or value of three hundred dollars, except that for
    16  merchandise wheels, no single prize shall exceed the sum or value of two
    17  hundred fifty dollars, and for bell jar, no single  prize  shall  exceed
    18  the sum or value of one thousand dollars.
    19    (b) No single prize awarded by raffle shall exceed the sum or value of
    20  three hundred thousand dollars.
    21    (c)  No  single wager shall exceed six dollars and for bell jars, coin
    22  boards[,] or merchandise boards, no  single  prize  shall  exceed  [five
    23  hundred]  one  thousand dollars, provided, however, that such limitation
    24  shall not apply to the amount of money or value paid by the  participant
    25  in a raffle in return for a ticket or other receipt.
    26    (d) For coin boards and merchandise boards, the value of a prize shall
    27  be  determined  by  [its costs] the cost of such prize to the authorized
    28  organization or, if donated, [its] the fair market value of such prize.
    29    6. (a) No authorized organization  shall  award  a  series  of  prizes
    30  consisting  of  cash or of merchandise with an aggregate value in excess
    31  of:
    32    (1) ten thousand dollars during the successive operations of  any  one
    33  merchandise wheel[,] ; and
    34    (2)  [three]  six thousand dollars during the successive operations of
    35  any bell jar, coin board[,] or merchandise board.
    36    (b) No series of prizes awarded by  raffle  shall  have  an  aggregate
    37  value in excess of five hundred thousand dollars.
    38    (c) For coin boards and merchandise boards, the value of a prize shall
    39  be  determined  by  [its  cost] the cost of such prize to the authorized
    40  organization or, if donated, [its] the fair market value of such prize.
    41    13. (a) No game of chance, other than  a  raffle  that  complies  with
    42  paragraph  (b) of this subdivision, shall be conducted on other than the
    43  premises of an authorized organization or an authorized games of  chance
    44  lessor.  [Nothing herein shall prohibit the sale of raffle]
    45    (b) Raffle tickets may be sold to the public, and a raffle drawing may
    46  occur,  outside the premises of an authorized organization or an author-
    47  ized games of chance lessor[; or in municipalities which have]  if  such
    48  sales occur, or such drawing occurs, in a municipality that:
    49    (1) has passed a local law, ordinance or resolution in accordance with
    50  sections  one  hundred eighty-seven and one hundred eighty-eight of this
    51  article approving the conduct of games of chance;
    52    (2) [that are] is located in the  county  in  which  the  municipality
    53  issuing  the  raffle  license is located [and] or in [the counties which
    54  are] a county that is contiguous to the county in which the municipality
    55  issuing the raffle license is located[,  provided  those  municipalities

        S. 2009--C                         65                         A. 3009--C

     1  have  authorized  the  licensee, in writing, to sell such raffle tickets
     2  therein and provided, however, that no];
     3    (3)  has  not objected to such sales after the gaming commission gives
     4  notice to such municipality of an authorized organization's  request  to
     5  sell such raffle tickets in such municipality; and
     6    (4)  has  not  objected to the location in such municipality that such
     7  drawing is proposed to occur, after the commission gives notice to  such
     8  municipality  of  an  authorized  organization's request to conduct such
     9  drawing in such municipality. A location of a drawing may be  on  state-
    10  owned  property  so  long  as the authorized organization conducting the
    11  raffle obtains all required authorizations to do so  and  complies  with
    12  this paragraph.
    13    (c)  The  gaming  commission  may  by regulation prescribe the advance
    14  notice an authorized organization must provide to the gaming  commission
    15  in  order  to  take advantage of the provisions of paragraph (b) of this
    16  subdivision, forms in which such a request shall be made  and  the  time
    17  period  in  which  a  municipality  must communicate an objection to the
    18  gaming commission.
    19    (d) No sale of raffle tickets shall be  made  more  than  one  hundred
    20  eighty  days  prior  to the date scheduled for the occasion at which the
    21  raffle will be conducted.
    22    (e) The winner of any single prize in a raffle shall not  be  required
    23  to be present at the time such raffle is conducted.
    24    §  12.  Subdivisions 1 and 2 of section 190-a of the general municipal
    25  law, as amended by chapter 400 of the laws of 2005, are amended to  read
    26  as follows:
    27    1.  Notwithstanding the licensing requirements set forth in this arti-
    28  cle and their filing requirements  set  forth  in  subdivision  four  of
    29  section  one  hundred ninety of this article, an authorized organization
    30  may conduct a raffle without complying with such licensing  requirements
    31  or  such  filing  requirements,  provided,  that such organization shall
    32  derive net proceeds from raffles in an amount less  than  five  thousand
    33  dollars  during  the conduct of one raffle and shall derive net proceeds
    34  from raffles in an amount less than  [twenty]  thirty  thousand  dollars
    35  during one calendar year.
    36    2.  (a)  For  the  purposes of this section, "authorized organization"
    37  shall mean and include any bona fide religious or  charitable  organiza-
    38  tion or bona fide educational, fraternal or service organization or bona
    39  fide organization of veterans [or], volunteer [firefighter, which] fire-
    40  fighters or volunteer ambulance workers that by its charter, certificate
    41  of  incorporation, constitution, or act of the legislature, [shall have]
    42  has among its dominant purposes one or more of the  lawful  purposes  as
    43  defined in this article, provided that each shall operate without profit
    44  to  its  members[,] and provided that each such organization has engaged
    45  in serving one or more of the lawful purposes as defined in this article
    46  for a period of [three years] one year immediately prior to being grant-
    47  ed the filing requirement exemption contained in subdivision one of this
    48  section.
    49    (b) No organization shall be deemed an authorized organization [which]
    50  that is formed primarily for the purpose of conducting games  of  chance
    51  and  [which]  that  does not devote at least seventy-five percent of its
    52  activities to other than conducting games of chance. No political  party
    53  shall be deemed an authorized organization.
    54    §  13. Section 195-d of the general municipal law, as amended by chap-
    55  ter 637 of the laws of 1999, is amended to read as follows:

        S. 2009--C                         66                         A. 3009--C
 
     1    § 195-d. Charge for admission and  participation;  amount  of  prizes;
     2  award  of  prizes. 1. A fee may be charged by any licensee for admission
     3  to any game or games of chance conducted under any license issued  under
     4  this  article. The clerk or department may in its discretion fix a mini-
     5  mum fee.
     6    2.  With the exception of bell jars, coin boards, seal cards, merchan-
     7  dise boards[,] and raffles, every winner shall be determined  and  every
     8  prize  shall  be  awarded  and delivered within the same calendar day as
     9  that upon which the game was played.  No  alcoholic  beverage  shall  be
    10  offered or given as a prize in any game of chance.
    11    3.  A  player  may  purchase  a chance with cash or, if the authorized
    12  organization wishes, with a personal check.
    13    § 14. Section 195-e of  the  general  municipal  law,  as  amended  by
    14  section 94 of the laws of 1981, is amended to read as follows:
    15    §  195-e.  Advertising  games. A licensee may advertise the conduct of
    16  games of chance to the general public by means of  newspaper,  circular,
    17  handbill  and poster, and by one sign not exceeding sixty square feet in
    18  area, which may be displayed on or adjacent to  the  premises  owned  or
    19  occupied  by  a licensed authorized organization, [and when] through the
    20  internet or television as may be regulated by the rules and  regulations
    21  of  the  commission.   When an organization is licensed or authorized to
    22  conduct games of chance on the premises of an authorized games of chance
    23  lessor, one additional such sign may be displayed on or adjacent to  the
    24  premises  in  which the games are to be conducted.  Additional signs may
    25  be displayed upon any [fire fighting] firefighting or  ambulance  equip-
    26  ment belonging to any licensed authorized organization [which] that is a
    27  volunteer  fire company, volunteer ambulance corps or upon any equipment
    28  of a first aid or rescue squad in and throughout the community served by
    29  such volunteer fire company, volunteer ambulance corps or such first aid
    30  or rescue squad, as the case may be. All advertisements shall be limited
    31  to the description of such event as "Games  of  chance"  or  "Las  Vegas
    32  Night",  the  name of the authorized organization conducting such games,
    33  the license number of the authorized organization  as  assigned  by  the
    34  clerk  or department, the prizes offered and the date, location and time
    35  of the event.
    36    § 15.  Subdivision 2 of section 195-f of the general municipal law, as
    37  amended by chapter 678 of the laws  of  2004,  is  amended  to  read  as
    38  follows:
    39    2. Within thirty days after the conclusion of an occasion during which
    40  a  raffle  was  conducted,  the  authorized organization conducting such
    41  raffle and the members in charge of such raffle, and,  when  applicable,
    42  the  authorized  games of chance lessor [which] that rented its premises
    43  therefor, shall each furnish to the clerk or department a statement on a
    44  form prescribed by the [board]  gaming  commission,  subscribed  by  the
    45  member in charge and affirmed by him or her as true, under the penalties
    46  of perjury, showing the number of tickets printed, the number of tickets
    47  sold,  the  price,  and the number of tickets returned to or retained by
    48  the authorized organization as unsold, a description  and  statement  of
    49  the fair market value for each prize actually awarded, the amount of the
    50  gross receipts derived therefrom, each item of expenditure made or to be
    51  made other than prizes, the name and address of each person to whom each
    52  such  item  of  expense  has  been  paid,  or  is to be paid, a detailed
    53  description of the merchandise purchased or the services rendered there-
    54  for, the net proceeds derived from the raffle at such occasion, the  use
    55  to  which the proceeds have been or are to be applied [and]. It shall be
    56  the duty of each licensee to maintain and keep such books and records as

        S. 2009--C                         67                         A. 3009--C
 
     1  may be necessary to substantiate the particulars of each such statement,
     2  provided, however, where the cumulative  net  proceeds  or  net  profits
     3  derived  from  the  conduct  of a raffle or raffles are less than thirty
     4  thousand  dollars  during  any one occasion, in such case, the reporting
     5  requirement shall be satisfied by the filing within thirty days  of  the
     6  conclusion  of  such  occasion  a  verified  statement prescribed by the
     7  [board] gaming commission attesting to the amount of such  net  proceeds
     8  or net profits and the distribution thereof for lawful purposes with the
     9  clerk  or  department and a copy with the [board] gaming commission, and
    10  provided further, however, where the  cumulative  net  proceeds  derived
    11  from  the  conduct  of  a  raffle or raffles are less than five thousand
    12  dollars during any one occasion and less than [twenty]  thirty  thousand
    13  dollars during one calendar year, no reporting shall be required.
    14    §  16. Subdivision 5 of section 195-o of the general municipal law, as
    15  amended by section 637 of the laws  of  1999,  is  amended  to  read  as
    16  follows:
    17    5. Reports. A distributor shall report quarterly to the [board] gaming
    18  commission,  on  a form prescribed by the [board] gaming commission, its
    19  sales of each type of bell jar deal or tickets.  This  report  shall  be
    20  filed  quarterly  on or before the twentieth day of the month succeeding
    21  the end of the quarter in which the sale was made.  The  [board]  gaming
    22  commission  may  require  that a distributor submit the quarterly report
    23  and invoices required by this section via [magnetic] electronic media or
    24  electronic data transfer.
    25    § 17. This act shall take effect on the ninetieth day after  it  shall
    26  have become a law.
 
    27                                   PART NN
 
    28    Section  1. Section 207 of the racing, pari-mutuel wagering and breed-
    29  ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
    30  c of subdivision 1 as added by section 4, paragraph c of  subdivision  1
    31  as added by section 5 and subdivision 5 as added by section 6 of chapter
    32  457  of the laws of 2012, and paragraph d of subdivision 1 as amended by
    33  section 1 of part C of chapter 73 of the laws of  2016,  is  amended  to
    34  read as follows:
    35    §  207.  Board  of  directors  of a franchised corporation. 1.  a. The
    36  board of directors, to be called the New York racing association  [reor-
    37  ganization]  board,  shall  consist  of seventeen members[, five of whom
    38  shall be elected by the present class A directors of The New York Racing
    39  Association, Inc., eight to be] who shall have equal voting rights:  two
    40  appointed by the governor, two [to be] appointed by the temporary presi-
    41  dent  of  the  senate  and  two  [to be] appointed by the speaker of the
    42  assembly; eight appointed by the executive committee  of  the  New  York
    43  racing  association reorganization board of directors constituted pursu-
    44  ant to chapter four hundred fifty-seven of  the  laws  of  two  thousand
    45  twelve,  which  shall  continue to exist until such time as the appoint-
    46  ments required hereunder are made. The New York racing association  will
    47  include  knowledge  of  the marketplace and communities in which the New
    48  York racing association operates as a factor in board selection; one who
    49  shall be the president and chief executive  officer  of  the  franchised
    50  corporation,  ex  officio  and without term limitation; one appointed by
    51  the New York Thoroughbred Breeders, Inc.; and one appointed by  the  New
    52  York thoroughbred horsemen's association representing at least fifty-one
    53  percent  of  the  horsemen using the facilities of the franchised corpo-
    54  ration. The New York racing association board may include additional  ex

        S. 2009--C                         68                         A. 3009--C
 
     1  officio,  non-voting members as appointed pursuant to a majority vote of
     2  the board. All public appointed members of the board shall be a resident
     3  of New York state.
     4    (i)  The  governor  shall  nominate  a member to serve as chair for an
     5  initial term of three years, who shall serve  at  the  pleasure  of  the
     6  governor,  subject  to  confirmation  by  majority vote of the board [of
     7  directors. All non-ex officio members shall have equal  voting  rights].
     8  Thereafter,  the  board  shall  elect  its chair, who shall serve at the
     9  pleasure of the board, from among its members.
    10    (ii) The term of voting membership on the New York racing  association
    11  board  shall  be  three years. Individual appointees shall be limited to
    12  serving as a voting member the lesser of  three  terms  or  nine  years.
    13  Notwithstanding  the foregoing, the initial term of one member appointed
    14  by each of the governor, temporary president of the senate, and  speaker
    15  of  the  assembly,  the  member  appointed  by the New York thoroughbred
    16  horsemen's association,  and  the  member  appointed  by  the  New  York
    17  Thoroughbred  Breeders, Inc.  shall expire March thirty-first, two thou-
    18  sand eighteen; the initial term of the remaining  members  appointed  by
    19  each  of the governor, temporary president of the senate, and speaker of
    20  the assembly and two members appointed by the New  York  racing  associ-
    21  ation reorganization board shall expire on March thirty-first, two thou-
    22  sand  nineteen;  and  the  remaining members shall serve full three-year
    23  terms.
    24    (iii) In the event of a member vacancy occurring by death, resignation
    25  or otherwise, the respective appointing [officer or officers]  authority
    26  shall  appoint  a  successor  who  shall  hold  office for the unexpired
    27  portion of the term. [A vacancy from  the  members  appointed  from  the
    28  present  board of The New York Racing Association, Inc., shall be filled
    29  by the remaining such members] In the case of  vacancies  among  members
    30  appointed  by the executive committee of the New York racing association
    31  reorganization board of directors constituted pursuant to  chapter  four
    32  hundred  fifty-seven  of  the  laws of two thousand twelve, appointments
    33  thereafter shall be made by the executive  committee  of  the  New  York
    34  racing  association  board  as constituted by the chapter of the laws of
    35  two thousand seventeen that amended this section.
    36    b. The franchised corporation shall establish a compensation committee
    37  to fix salary guidelines, such guidelines to be consistent with an oper-
    38  ation of other first class thoroughbred racing operations in the  United
    39  States;  a  finance  and audit committee, to review annual operating and
    40  capital budgets for each of  the  three  racetracks;  a  nominating  and
    41  governance  committee, to nominate any new directors to be designated by
    42  the franchised corporation to replace  its  existing  directors  and  be
    43  responsible  for  all  issues affecting the governance of the franchised
    44  corporation; an equine safety committee to review  industry  best  prac-
    45  tices  to  improve the safety of horse racing of the three racetracks; a
    46  racing committee to address all issues related to racing operations; and
    47  an executive committee. Each of the  compensation,  finance,  nominating
    48  and  executive  committees shall include at least one [of] public member
    49  from among the directors appointed by the governor[, and  the  executive
    50  committee  shall  include at least one of the directors appointed by the
    51  temporary president of the senate and at  least  one  of  the  directors
    52  appointed by the speaker of the assembly].
    53    [b.  In  addition to these voting members, the board shall have two ex
    54  officio members  to  advise  on  critical  economic  and  equine  health
    55  concerns of the racing industry, one appointed by the New York Thorough-
    56  bred  Breeders  Inc.,  and  one  appointed  by the New York thoroughbred

        S. 2009--C                         69                         A. 3009--C

     1  horsemen's association  (or  such  other  entity  as  is  certified  and
     2  approved pursuant to section two hundred twenty-eight of this article).
     3    c.  All  directors  shall  serve  at  the pleasure of their appointing
     4  authority.]
     5    c. Upon the effective date of this paragraph, the structure of the New
     6  York racing association board [of the franchised corporation]  shall  be
     7  deemed  to  be  incorporated  within and made part of the certificate of
     8  incorporation of the franchised corporation, and no  amendment  to  such
     9  certificate  of  incorporation  shall be necessary to give effect to any
    10  such provision, and any  provision  contained  within  such  certificate
    11  inconsistent in any manner shall be superseded by the provisions of this
    12  section.  Such board shall, however, make appropriate conforming changes
    13  to all governing documents of the franchised corporation  including  but
    14  not  limited  to  corporate  by-laws. Following such conforming changes,
    15  amendments to the by-laws of the franchised corporation shall [only]  be
    16  made only by unanimous vote of the board.
    17    [d.  The  board,  which  shall  become effective upon appointment of a
    18  majority of public members, shall terminate five years from its date  of
    19  creation.]
    20    2.  Members  of  the  New York racing association board [of directors]
    21  shall serve without  compensation  for  their  services,  but  [publicly
    22  appointed  members of the board] shall be entitled to reimbursement from
    23  the franchised corporation for actual and necessary expenses incurred in
    24  the performance of their [official] duties for the board.
    25    3. Members of the New York racing association  board  [of  directors],
    26  except  as  otherwise provided by law, may engage in private employment,
    27  or in a profession or business, however no member shall have any  direct
    28  or  indirect  economic  interest  in  any video lottery gaming facility,
    29  excluding incidental benefits based on purses or awards won in the ordi-
    30  nary conduct of racing operations, or any direct or indirect interest in
    31  any development undertaken at the racetracks of the state  racing  fran-
    32  chise  including real estate development parcels as defined in the fran-
    33  chise agreement.
    34    4. The affirmative vote of a majority  of  members  of  the  New  York
    35  racing association board [of directors] shall be necessary for the tran-
    36  saction  of any business or the exercise of any power or function of the
    37  franchised corporation. The franchised corporation may  delegate  on  an
    38  annual  basis  to one or more of its members, or its officers, agents or
    39  employees, such powers and duties as it may deem proper.
    40    5. Each voting member of the New York  racing  association  board  [of
    41  directors]  of  the franchised corporation shall annually make a written
    42  disclosure to [the] such board of any interest  held  by  the  director,
    43  such director's spouse or unemancipated child, in any entity undertaking
    44  business  in  the  racing or breeding industry. Such interest disclosure
    45  shall be promptly updated, in writing, in  the  event  of  any  material
    46  change.
    47    The  New  York racing association board shall establish parameters for
    48  the reporting and disclosure of such director interests.
    49    6. Each voting  member  of  the  New  York  racing  association  board
    50  appointed  by the executive committee of the New York racing association
    51  reorganization board of directors  shall  seek  a  racetrack  management
    52  license  issued  by  the  gaming commission, any fees for which shall be
    53  waived by the commission. No voting member of the board required by  the
    54  foregoing  to  seek a racetrack management license may vote on any board
    55  matter until such license is issued.

        S. 2009--C                         70                         A. 3009--C
 
     1    7. For purposes of section two hundred twelve  of  this  article,  the
     2  establishment  of  The New York Racing Association, Inc. board of direc-
     3  tors under this section shall not constitute the assumption of the fran-
     4  chise by a successor entity.
     5    8.  The  franchise  corporation  shall not have any direct or indirect
     6  ownership, control, influence, or investment, in any franchise oversight
     7  board approved development or such alternative use as may be approved by
     8  the franchise oversight board conducted on the real  estate  development
     9  parcels as defined in the franchise agreement.
    10    §  2.  Subparagraphs  (ii),  (iii), (vii) and (xvii) of paragraph a of
    11  subdivision 8 of section 212 of the  racing,  pari-mutuel  wagering  and
    12  breeding  law,  as added by chapter 18 of the laws of 2008, are amended,
    13  subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
    14  agraphs (xviii) and (xix) are added to read as follows:
    15    (ii) monitor and enforce compliance  with  definitive  documents  that
    16  comprise  the franchise agreement between the franchised corporation and
    17  the state of New York governing the franchised  corporation's  operation
    18  of  thoroughbred  racing and pari-mutuel wagering at the racetracks. The
    19  franchise agreement shall contain objective performance  standards  that
    20  shall  allow  contract  review in a manner consistent with this chapter.
    21  The franchise oversight board shall notify  the  franchised  corporation
    22  authorized  by  this  chapter  in  writing of any material breach of the
    23  performance standards or repeated non-material breaches which the  fran-
    24  chise  oversight  board may determine collectively constitute a material
    25  breach of the performance standards. Prior to taking any action  against
    26  such franchised corporation, the franchise oversight board shall provide
    27  the  franchised  corporation with the reasonable opportunity to cure any
    28  material breach of the performance standards  or  repeated  non-material
    29  breaches  which the franchise oversight board may determine collectively
    30  constitute a material breach of the performance standards.  Upon a writ-
    31  ten finding of  a  material  breach  of  the  performance  standards  or
    32  repeated  non-material  breaches which the franchise oversight board may
    33  determine collectively constitute a material breach of  the  performance
    34  standards,  the  franchise  oversight board may recommend that the fran-
    35  chise agreement be terminated. The franchise oversight board shall refer
    36  such recommendation to the [racing and wagering board] commission for  a
    37  hearing  conducted  pursuant  to  section two hundred forty-five of this
    38  article for a determination of whether to terminate the franchise agree-
    39  ment with the franchised corporation;
    40    (iii) oversee, monitor and review  all  significant  transactions  and
    41  operations  of  the  franchised  corporation authorized by this chapter;
    42  provided, however, that nothing in  this  section  shall  be  deemed  to
    43  reduce, diminish or impede the authority of the [state racing and wager-
    44  ing  board]  commission  to,  pursuant  to  article one of this chapter,
    45  determine and enforce compliance  by  the  franchised  corporation  with
    46  terms  of racing laws and regulations. Such oversight shall include, but
    47  not be limited to:
    48    (A) review and make recommendations concerning  the  annual  operating
    49  budgets of such franchised corporation;
    50    (B)  review and make recommendations concerning operating revenues and
    51  the establishment of a financial plan;
    52    (C) review and make recommendations  concerning  accounting,  internal
    53  control systems and security procedures;
    54    (D)  review  such  franchised  corporation's  revenue  and expenditure
    55  [polices] policies which shall include collective bargaining  agreements

        S. 2009--C                         71                         A. 3009--C
 
     1  management and employee compensation plans, vendor contracts and capital
     2  improvement plans;
     3    (E)  review  such  franchise  corporation's  compliance with the laws,
     4  rules and regulations applicable to its activities;
     5    (F) make recommendations for establishing model governance  principles
     6  to improve accountability and transparency; and
     7    (G)  receive,  review,  approve  or  disapprove  capital expense plans
     8  submitted annually by the franchised corporation.
     9    (vii) review and  provide  any  recommendations  on  all  simulcasting
    10  contracts  (buy and sell) that are also subject to prior approval of the
    11  [racing and wagering board] commission;
    12    (xvii) request and accept the assistance of any state agency,  includ-
    13  ing  but not limited to, the [racing and wagering board, the division of
    14  the lottery] commission, office of parks, recreation and historic  pres-
    15  ervation,  the  department of environmental conservation and the depart-
    16  ment of taxation and finance, in obtaining information  related  to  the
    17  franchised  corporation's  compliance  with  the  terms of the franchise
    18  agreement;[and]
    19     (xviii) when the franchise oversight board determines  the  financial
    20  position  of the franchised corporation has deviated materially from the
    21  franchised corporation's financial plan, or other such related documents
    22  provided to the franchise oversight board, and  such  deviation  is  not
    23  mitigated  by  the franchised corporation within one hundred eighty days
    24  of the franchise oversight board providing notice of such  determination
    25  to  the  franchised corporation, or when the implementation of such plan
    26  would, in the opinion of the franchise oversight board, pose  a  signif-
    27  icant  risk to the liquidity of the franchised corporation, in any order
    28  or combination:
    29    (A) hire, at the expense of the franchised corporation, an independent
    30  financial adviser to evaluate the financial position of  the  franchised
    31  corporation and report on such to the franchise oversight board; and
    32    (B)  require  the  franchised  corporation to submit for the franchise
    33  oversight board's approval  a  corrective  action  plan  addressing  any
    34  concerns identified as risks by the franchise oversight board.
    35    (xix)  when  the franchise oversight board finds the franchised corpo-
    36  ration has experienced two consecutive years of material losses  due  to
    37  circumstances  within  the  control  of  the  franchised corporation, as
    38  determined by the franchise oversight board,  and  when  the  franchised
    39  corporation  has  failed to address concerns identified by the franchise
    40  oversight board pursuant to subparagraph (xviii) of this paragraph,  the
    41  board  may  by  unanimous  vote  request  the  director of the budget to
    42  impound and escrow racing support payments accruing to  the  benefit  of
    43  the  franchised  corporation  pursuant  to  paragraphs three and four of
    44  subdivision f of section sixteen hundred twelve of the  tax  law.    The
    45  director  of the budget shall release such impounded and escrowed racing
    46  support payments upon notice from the franchise oversight board that the
    47  franchised corporation has achieved the goals of a new corrective action
    48  plan approved by the board.
    49    The director of the budget shall, upon warrant of the franchise  over-
    50  sight  board, approve the use of withheld racing support payments neces-
    51  sary to satisfy financial instruments used to fund board-approved  capi-
    52  tal investments, as approved by the franchise oversight board.
    53    § 3. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
    54  of  the  racing,  pari-mutuel  wagering  and breeding law, as amended by
    55  section 2 of part BB of chapter 60 of the laws of 2016,  is  amended  to
    56  read as follows:

        S. 2009--C                         72                         A. 3009--C
 
     1    (i)  The  pari-mutuel  tax  rate  authorized  by paragraph (a) of this
     2  subdivision shall be effective so long as a franchised corporation noti-
     3  fies the gaming commission by August fifteenth of each  year  that  such
     4  pari-mutuel  tax rate is effective of its intent to conduct a race meet-
     5  ing at Aqueduct racetrack during the months of December, January, Febru-
     6  ary,  March  and April. For purposes of this paragraph such race meeting
     7  shall consist of not less than ninety-five days of racing unless  other-
     8  wise  agreed  to  in writing by the New York Thoroughbred Breeders Inc.,
     9  the New York thoroughbred horsemen's association (or such  other  entity
    10  as  is  certified  and  approved pursuant to section two hundred twenty-
    11  eight of this article) and approved by the commission.  Not  later  than
    12  May  first of each year that such pari-mutuel tax rate is effective, the
    13  gaming commission shall determine whether a  race  meeting  at  Aqueduct
    14  racetrack consisted of the number of days as required by this paragraph.
    15  In  determining  the  number  of  race  days, cancellation of a race day
    16  because of an act of God that the gaming commission approves or  because
    17  of  weather  conditions  that  are  unsafe or hazardous which the gaming
    18  commission approves shall not be construed as a  failure  to  conduct  a
    19  race  day.  Additionally,  cancellation of a race day because of circum-
    20  stances beyond the control of such franchised corporation for which  the
    21  gaming  commission gives approval shall not be construed as a failure to
    22  conduct a race day. If the gaming commission determines that the  number
    23  of  days  of racing as required by this paragraph have not occurred then
    24  the pari-mutuel tax rate in paragraph  (a)  of  this  subdivision  shall
    25  revert  to  the  pari-mutuel tax rates in effect prior to January first,
    26  nineteen hundred ninety-five.
    27    § 4. This act shall take effect April 1, 2017; provided, however, that
    28  section one of this act shall take effect  upon  the  appointment  of  a
    29  majority  of  board members; provided, further, that the state franchise
    30  oversight board shall notify the legislative  bill  drafting  commission
    31  upon  the  occurrence  of such appointments in order that the commission
    32  may maintain an accurate and timely effective data base of the  official
    33  text of the laws of the state of New York in furtherance of effectuating
    34  the  provisions of section 44 of the legislative law and section 70-b of
    35  the public officers law; provided further that the amendments to section
    36  212 of the racing, pari-mutuel wagering and breeding law made by section
    37  two of this act shall not affect the repeal of such section and shall be
    38  deemed repealed therewith.
 
    39                                   PART OO
 
    40    Section 1. Paragraph (a) of subdivision  1  of  section  1003  of  the
    41  racing,  pari-mutuel  wagering and breeding law, as amended by section 1
    42  of part FF of chapter 60 of the laws of 2016,  is  amended  to  read  as
    43  follows:
    44    (a)  Any  racing  association  or  corporation  or  regional off-track
    45  betting corporation, authorized to conduct  pari-mutuel  wagering  under
    46  this  chapter, desiring to display the simulcast of horse races on which
    47  pari-mutuel betting shall be permitted in the manner and subject to  the
    48  conditions  provided for in this article may apply to the commission for
    49  a license so to do. Applications for licenses shall be in such  form  as
    50  may  be  prescribed by the commission and shall contain such information
    51  or other material or evidence as the commission may require. No  license
    52  shall be issued by the commission authorizing the simulcast transmission
    53  of  thoroughbred  races  from a track located in Suffolk county. The fee
    54  for such licenses shall be five hundred dollars per  simulcast  facility

        S. 2009--C                         73                         A. 3009--C
 
     1  and  for  account wagering licensees that do not operate either a simul-
     2  cast facility that is open to the public within the state of New York or
     3  a licensed racetrack within the state, twenty thousand dollars per  year
     4  payable  by  the licensee to the commission for deposit into the general
     5  fund. Except as provided in  this  section,  the  commission  shall  not
     6  approve any application to conduct simulcasting into individual or group
     7  residences,  homes  or  other areas for the purposes of or in connection
     8  with pari-mutuel wagering. The commission may approve simulcasting  into
     9  residences,  homes or other areas to be conducted jointly by one or more
    10  regional off-track betting corporations and one or more of  the  follow-
    11  ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
    12  harness racing corporation or association; provided (i) the simulcasting
    13  consists only of those races on which pari-mutuel betting is  authorized
    14  by  this  chapter  at  one  or more simulcast facilities for each of the
    15  contracting off-track betting corporations which  shall  include  wagers
    16  made  in  accordance  with  section  one  thousand fifteen, one thousand
    17  sixteen and one thousand seventeen of  this  article;  provided  further
    18  that  the  contract  provisions or other simulcast arrangements for such
    19  simulcast facility shall be no less favorable than those  in  effect  on
    20  January  first,  two  thousand  five;  (ii)  that each off-track betting
    21  corporation having within its  geographic  boundaries  such  residences,
    22  homes  or  other  areas  technically  capable of receiving the simulcast
    23  signal shall be a contracting party; (iii) the distribution of  revenues
    24  shall  be  subject  to  contractual agreement of the parties except that
    25  statutory payments to  non-contracting  parties,  if  any,  may  not  be
    26  reduced;  provided,  however,  that nothing herein to the contrary shall
    27  prevent a track from televising its races on an irregular basis primari-
    28  ly for promotional or marketing purposes as found by the commission. For
    29  purposes of this paragraph, the provisions of section one thousand thir-
    30  teen of this article shall  not  apply.  Any  agreement  authorizing  an
    31  in-home simulcasting experiment commencing prior to May fifteenth, nine-
    32  teen hundred ninety-five, may, and all its terms, be extended until June
    33  thirtieth,  two  thousand  [seventeen] eighteen; provided, however, that
    34  any party to such agreement may elect to terminate such  agreement  upon
    35  conveying written notice to all other parties of such agreement at least
    36  forty-five  days  prior  to  the  effective date of the termination, via
    37  registered mail. Any party to an agreement receiving such notice  of  an
    38  intent  to  terminate, may request the commission to mediate between the
    39  parties new terms and conditions in a replacement agreement between  the
    40  parties  as will permit continuation of an in-home experiment until June
    41  thirtieth, two thousand [seventeen] eighteen; and (iv) no in-home simul-
    42  casting in the thoroughbred special betting district shall occur without
    43  the approval of the regional thoroughbred track.
    44    § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
    45  1007 of the racing, pari-mutuel wagering and breeding law, as amended by
    46  section  2  of  part FF of chapter 60 of the laws of 2016, is amended to
    47  read as follows:
    48    (iii) Of the sums retained by a receiving track located in Westchester
    49  county on races received from a franchised corporation, for  the  period
    50  commencing January first, two thousand eight and continuing through June
    51  thirtieth, two thousand [seventeen] eighteen, the amount used exclusive-
    52  ly  for  purses to be awarded at races conducted by such receiving track
    53  shall be computed as follows: of the sums so retained, two and  one-half
    54  percent  of the total pools. Such amount shall be increased or decreased
    55  in the amount of fifty percent of the difference  in  total  commissions
    56  determined by comparing the total commissions available after July twen-

        S. 2009--C                         74                         A. 3009--C
 
     1  ty-first,  nineteen  hundred  ninety-five  to the total commissions that
     2  would have been available to such  track  prior  to  July  twenty-first,
     3  nineteen hundred ninety-five.
     4    §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
     5  racing, pari-mutuel wagering and breeding law, as amended by  section  3
     6  of  part  FF  of  chapter  60 of the laws of 2016, is amended to read as
     7  follows:
     8    The provisions of this section shall govern the simulcasting of  races
     9  conducted  at thoroughbred tracks located in another state or country on
    10  any day during which a franchised corporation is conducting a race meet-
    11  ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
    12  thirtieth,  two  thousand [seventeen] eighteen and on any day regardless
    13  of whether or not a franchised corporation is conducting a race  meeting
    14  in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
    15  eth,  two  thousand  [seventeen] eighteen.   On any day on which a fran-
    16  chised corporation has not scheduled a racing program but a thoroughbred
    17  racing corporation located within the state is conducting racing,  every
    18  off-track  betting  corporation  branch  office  and  every simulcasting
    19  facility licensed in accordance with section one  thousand  seven  (that
    20  have  entered  into  a  written agreement with such facility's represen-
    21  tative horsemen's organization, as  approved  by  the  commission),  one
    22  thousand eight, or one thousand nine of this article shall be authorized
    23  to accept wagers and display the live simulcast signal from thoroughbred
    24  tracks  located  in  another  state  or  foreign  country subject to the
    25  following provisions:
    26    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
    27  and breeding law, as amended by section 4 of part FF of  chapter  60  of
    28  the laws of 2016, is amended to read as follows:
    29    1.  The  provisions  of  this section shall govern the simulcasting of
    30  races conducted at harness tracks located in another  state  or  country
    31  during  the period July first, nineteen hundred ninety-four through June
    32  thirtieth, two thousand [seventeen] eighteen.  This section shall super-
    33  sede all inconsistent provisions of this chapter.
    34    § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
    35  racing,  pari-mutuel  wagering and breeding law, as amended by section 5
    36  of part FF of chapter 60 of the laws of 2016,  is  amended  to  read  as
    37  follows:
    38    The  provisions of this section shall govern the simulcasting of races
    39  conducted at thoroughbred tracks located in another state or country  on
    40  any  day  during which a franchised corporation is not conducting a race
    41  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
    42  thirtieth, two thousand [seventeen] eighteen.   Every off-track  betting
    43  corporation  branch  office  and every simulcasting facility licensed in
    44  accordance with section one thousand seven  that  have  entered  into  a
    45  written  agreement with such facility's representative horsemen's organ-
    46  ization as approved by the commission, one thousand eight or  one  thou-
    47  sand  nine  of  this  article  shall  be authorized to accept wagers and
    48  display the live  full-card  simulcast  signal  of  thoroughbred  tracks
    49  (which  may  include  quarter  horse or mixed meetings provided that all
    50  such wagering on such races shall be construed to be thoroughbred races)
    51  located in another state or foreign country, subject  to  the  following
    52  provisions;  provided,  however,  no  such  written  agreement  shall be
    53  required of a franchised corporation licensed in accordance with section
    54  one thousand seven of this article:

        S. 2009--C                         75                         A. 3009--C

     1    § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
     2  wagering and breeding law, as amended by section 6 of part FF of chapter
     3  60 of the laws of 2016, is amended to read as follows:
     4    Notwithstanding  any  other  provision of this chapter, for the period
     5  July twenty-fifth, two thousand one through September eighth, two  thou-
     6  sand  [sixteen] seventeen, when a franchised corporation is conducting a
     7  race meeting within the state at Saratoga Race Course,  every  off-track
     8  betting  corporation  branch  office  and  every  simulcasting  facility
     9  licensed in accordance with section one thousand seven (that has entered
    10  into a written agreement with such facility's representative  horsemen's
    11  organization  as  approved by the commission), one thousand eight or one
    12  thousand nine of this article shall be authorized to accept  wagers  and
    13  display  the  live  simulcast signal from thoroughbred tracks located in
    14  another state, provided that such facility shall accept wagers on  races
    15  run  at  all  in-state  thoroughbred  tracks which are conducting racing
    16  programs subject to the following provisions; provided, however, no such
    17  written agreement shall be required of a franchised corporation licensed
    18  in accordance with section one thousand seven of this article.
    19    § 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
    20  racing,  pari-mutuel  wagering and breeding law  and other laws relating
    21  to simulcasting, as amended by section 7 of part FF of chapter 60 of the
    22  laws of 2016, is amended to read as follows:
    23    § 32. This act shall take effect immediately and the  pari-mutuel  tax
    24  reductions  in  section  six  of  this  act  shall  expire and be deemed
    25  repealed on  July  1,  [2017]  2018;  provided,  however,  that  nothing
    26  contained  herein  shall be deemed to affect the application, qualifica-
    27  tion, expiration, or repeal of any  provision  of  law  amended  by  any
    28  section  of  this act, and such provisions shall be applied or qualified
    29  or shall expire or be deemed repealed in the same manner,  to  the  same
    30  extent  and on the same date as the case may be as otherwise provided by
    31  law; provided further, however, that sections twenty-three  and  twenty-
    32  five of this act shall remain in full force and effect only until May 1,
    33  1997 and at such time shall be deemed to be repealed.
    34    §  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
    35  racing, pari-mutuel wagering and breeding law and other laws relating to
    36  simulcasting and the imposition of certain taxes, as amended by  section
    37  8  of  part  FF of chapter 60 of the laws of 2016, is amended to read as
    38  follows:
    39    § 54. This act  shall  take  effect  immediately;  provided,  however,
    40  sections  three  through twelve of this act shall take effect on January
    41  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
    42  ing law, as added by section thirty-eight of this act, shall expire  and
    43  be  deemed repealed on July 1, [2017] 2018; and section eighteen of this
    44  act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
    45  two  of this act shall take effect as of the same date as chapter 772 of
    46  the laws of 1989 took effect.
    47    § 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
    48  pari-mutuel  wagering  and breeding law, as amended by section 9 of part
    49  FF of chapter 60 of the laws of 2016, is amended to read as follows:
    50    (a) The  franchised  corporation  authorized  under  this  chapter  to
    51  conduct pari-mutuel betting at a race meeting or races run thereat shall
    52  distribute  all sums deposited in any pari-mutuel pool to the holders of
    53  winning tickets therein, provided such tickets be presented for  payment
    54  before  April  first  of  the year following the year of their purchase,
    55  less an amount which shall be established and  retained  by  such  fran-
    56  chised  corporation  of  between  twelve  to seventeen per centum of the

        S. 2009--C                         76                         A. 3009--C
 
     1  total deposits in pools resulting from on-track regular bets, and  four-
     2  teen  to  twenty-one per centum of the total deposits in pools resulting
     3  from on-track multiple bets and fifteen to twenty-five per centum of the
     4  total  deposits in pools resulting from on-track exotic bets and fifteen
     5  to thirty-six per centum of the total deposits in pools  resulting  from
     6  on-track  super  exotic  bets, plus the breaks. The retention rate to be
     7  established is subject to the prior approval of the  gaming  commission.
     8  Such  rate  may not be changed more than once per calendar quarter to be
     9  effective on the first day of the calendar quarter.  "Exotic  bets"  and
    10  "multiple  bets"  shall  have  the  meanings  set  forth in section five
    11  hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
    12  meaning  set  forth  in  section  three hundred one of this chapter. For
    13  purposes of this section, a "pick six bet" shall mean a  single  bet  or
    14  wager on the outcomes of six races. The breaks are hereby defined as the
    15  odd  cents over any multiple of five for payoffs greater than one dollar
    16  five cents but less than five dollars, over  any  multiple  of  ten  for
    17  payoffs  greater  than  five  dollars but less than twenty-five dollars,
    18  over any multiple of twenty-five for payoffs  greater  than  twenty-five
    19  dollars but less than two hundred fifty dollars, or over any multiple of
    20  fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
    21  retained there shall be paid  by  such  franchised  corporation  to  the
    22  commissioner  of  taxation and finance, as a reasonable tax by the state
    23  for the privilege of conducting pari-mutuel betting on the races run  at
    24  the  race  meetings  held  by such franchised corporation, the following
    25  percentages of the total pool for regular and  multiple  bets  five  per
    26  centum  of regular bets and four per centum of multiple bets plus twenty
    27  per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
    28  centum  plus  twenty per centum of the breaks, and for super exotic bets
    29  seven and one-half per centum plus fifty per centum of the  breaks.  For
    30  the  period  June  first, nineteen hundred ninety-five through September
    31  ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
    32  three per centum and such tax on multiple wagers shall be two  and  one-
    33  half  per  centum,  plus twenty per centum of the breaks. For the period
    34  September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
    35  first,  two  thousand  one, such tax on all wagers shall be two and six-
    36  tenths per centum and for the  period  April  first,  two  thousand  one
    37  through  December  thirty-first, two thousand [seventeen] eighteen, such
    38  tax on all wagers shall be one and six-tenths per centum, plus, in  each
    39  such  period,  twenty  per centum of the breaks. Payment to the New York
    40  state thoroughbred breeding and  development  fund  by  such  franchised
    41  corporation  shall be one-half of one per centum of total daily on-track
    42  pari-mutuel pools resulting from regular, multiple and exotic  bets  and
    43  three  per  centum  of super exotic bets provided, however, that for the
    44  period September tenth, nineteen hundred ninety-nine through March thir-
    45  ty-first, two thousand one, such payment shall be six-tenths of one  per
    46  centum  of  regular,  multiple and exotic pools and for the period April
    47  first, two thousand one  through  December  thirty-first,  two  thousand
    48  [seventeen]  eighteen,  such  payment  shall  be seven-tenths of one per
    49  centum of such pools.
    50    § 10. This act shall take effect immediately.
 
    51                                   PART PP
 
    52    Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of  subdivi-
    53  sion  b  of section 1612 of the tax law, as amended by section 1 of part
    54  EE of chapter 60 of the laws of 2016, is amended to read as follows:

        S. 2009--C                         77                         A. 3009--C
 
     1    (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
     2  agraph, when a vendor track, is located in Sullivan  county  and  within
     3  sixty  miles  from any gaming facility in a contiguous state such vendor
     4  fee shall, for a period of [nine] ten years commencing April first,  two
     5  thousand  eight,  be at a rate of forty-one percent of the total revenue
     6  wagered at the vendor track after payout for  prizes  pursuant  to  this
     7  chapter, after which time such rate shall be as for all tracks in clause
     8  (C) of this subparagraph.
     9    §  2.  This  act  shall take effect immediately and shall be deemed to
    10  have been in full force and effect on and after April 1, 2017.
 
    11                                   PART QQ
 
    12    Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
    13  sion  b of section 1612 of the tax law, as separately amended by section
    14  1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
    15  is amended to read as follows:
    16    (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
    17  this  subparagraph, the track operator of a vendor track and in the case
    18  of Aqueduct, the video lottery  terminal  facility  operator,  shall  be
    19  eligible for a vendor's capital award of up to four percent of the total
    20  revenue  wagered at the vendor track after payout for prizes pursuant to
    21  this chapter, which  shall  be  used  exclusively  for  capital  project
    22  investments  to improve the facilities of the vendor track which promote
    23  or encourage increased attendance at the video lottery  gaming  facility
    24  including,  but  not limited to hotels, other lodging facilities, enter-
    25  tainment  facilities,  retail  facilities,  dining  facilities,   events
    26  arenas,  parking  garages  and  other improvements that enhance facility
    27  amenities; provided that such capital investments shall be  approved  by
    28  the  division, in consultation with the state racing and wagering board,
    29  and that such vendor track demonstrates that such  capital  expenditures
    30  will  increase  patronage at such vendor track's facilities and increase
    31  the amount of revenue generated to support state education programs. The
    32  annual amount of such vendor's capital awards that a vendor track  shall
    33  be  eligible  to  receive  shall  be limited to two million five hundred
    34  thousand dollars, except for Aqueduct racetrack, for which  there  shall
    35  be  no  annual limit, provided, however, that any such capital award for
    36  the Aqueduct video lottery  terminal  facility  operator  shall  be  one
    37  percent  of  the  total  revenue  wagered  at the video lottery terminal
    38  facility after payout for prizes pursuant  to  this  chapter  until  the
    39  earlier  of  the  designation  of  one thousand video lottery devices as
    40  hosted pursuant to paragraph four of subdivision a  of  section  sixteen
    41  hundred  seventeen-a  of this chapter or April first, two thousand nine-
    42  teen and shall then be four percent of the total revenue wagered at  the
    43  video lottery terminal facility after payout for prizes pursuant to this
    44  chapter,  provided,  further,  that  such  capital  award  shall only be
    45  provided pursuant to an agreement with  the  operator  to  construct  an
    46  expansion  of  the  facility, hotel, and convention and exhibition space
    47  requiring a minimum capital investment of three hundred million dollars.
    48  Except for tracks having less than one thousand one hundred video gaming
    49  machines, and except for a vendor track located west of State  Route  14
    50  from  Sodus Point to the Pennsylvania border within New York, and except
    51  for Aqueduct racetrack each track operator shall be required  to  co-in-
    52  vest  an  amount of capital expenditure equal to its cumulative vendor's
    53  capital award. For all tracks, except for Aqueduct racetrack, the amount
    54  of any vendor's capital award that is not used during any one year peri-

        S. 2009--C                         78                         A. 3009--C
 
     1  od may be carried over into subsequent years ending before April  first,
     2  two  thousand [seventeen] eighteen. Any amount attributable to a capital
     3  expenditure approved prior to  April  first,  two  thousand  [seventeen]
     4  eighteen and completed before April first, two thousand [nineteen] twen-
     5  ty;  or approved prior to April first, two thousand [twenty-one] twenty-
     6  two and completed before April first, two thousand [twenty-three]  twen-
     7  ty-four  for  a  vendor  track located west of State Route 14 from Sodus
     8  Point to the Pennsylvania border within New York, shall be  eligible  to
     9  receive  the  vendor's capital award. In the event that a vendor track's
    10  capital expenditures, approved by the division prior to April first, two
    11  thousand [seventeen] eighteen and completed prior to  April  first,  two
    12  thousand [nineteen] twenty, exceed the vendor track's cumulative capital
    13  award  during  the  five  year  period  ending April first, two thousand
    14  [seventeen] eighteen, the vendor shall continue to receive  the  capital
    15  award  after  April  first, two thousand [seventeen] eighteen until such
    16  approved capital expenditures are paid to the vendor  track  subject  to
    17  any  required  co-investment.  In  no  event shall any vendor track that
    18  receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
    19  be eligible for a vendor's capital award under this section. Any  opera-
    20  tor  of  a  vendor  track  which  has received a vendor's capital award,
    21  choosing to divest the capital improvement toward which  the  award  was
    22  applied,  prior  to  the full depreciation of the capital improvement in
    23  accordance with generally accepted accounting  principles,  shall  reim-
    24  burse  the  state  in amounts equal to the total of any such awards. Any
    25  capital award not approved for a capital expenditure at a video  lottery
    26  gaming  facility by April first, two thousand [seventeen] eighteen shall
    27  be deposited into the state lottery fund for education aid; and
    28    § 2. This act shall take effect immediately.
 
    29                                   PART RR
 
    30                            Intentionally Omitted
 
    31                                   PART SS
 
    32    Section 1. Subdivision 6 of section 221  of  the  racing,  pari-mutuel
    33  wagering and breeding law, as amended by chapter 325 of the laws of 2004
    34  and  such  section  as  renumbered by chapter 18 of the laws of 2008, is
    35  amended to read as follows:
    36    6. (a) The fund shall secure workers' compensation insurance  coverage
    37  on  a  blanket  basis for the benefit of all jockeys, apprentice jockeys
    38  and exercise persons licensed pursuant to this article or  article  four
    39  of  this  chapter  who  are  employees under section two of the workers'
    40  compensation law, and may elect, with the approval of the gaming commis-
    41  sion,  to  secure  workers'  compensation  insurance  for  employees  of
    42  licensed  trainers  or  owners.  In  the event the fund elects, with the
    43  approval of the  gaming  commission,  to  secure  workers'  compensation
    44  insurance  for  employees  of  licensed trainers or owners, the fund may
    45  discontinue to secure workers' compensation insurance for  employees  of
    46  licensed  trainers  or  owners  only  upon  prior approval of the gaming
    47  commission.
    48    (b) The fund may elect, with the approval of the gaming commission, to
    49  secure workers' compensation insurance coverage through a form of  self-
    50  insurance,  provided that the fund has met the requirements of the work-
    51  ers' compensation  board,  including,  without  limitation,  subdivision
    52  three of section fifty of the workers' compensation law.

        S. 2009--C                         79                         A. 3009--C
 
     1    §  2. Subdivision 7 of section 221 of the racing, pari-mutuel wagering
     2  and breeding law, as amended by chapter 18 of the laws of 2008  and  the
     3  opening  paragraph  as  amended by section 1 of part PP of chapter 60 of
     4  the laws of 2016, is amended to read as follows:
     5    7. In order to pay the costs of the insurance required by this section
     6  and  by  the workers' compensation law and to carry out its other powers
     7  and duties and to pay for any of its  liabilities  under  section  four-
     8  teen-a  of  the  workers'  compensation  law, the New York Jockey Injury
     9  Compensation Fund, Inc. shall ascertain the total funding necessary  and
    10  establish  the  sums  that  are  to  be  paid by all owners and trainers
    11  licensed or required to be licensed under section two hundred twenty  of
    12  this  article,  to obtain the total funding amount required annually. In
    13  order to provide that any sum required to be paid by an owner or trainer
    14  is equitable, the fund shall establish payment schedules  which  reflect
    15  such  factors  as  are  appropriate,  including  where  applicable,  the
    16  geographic location of the racing corporation  at  which  the  owner  or
    17  trainer  participates, the duration of such participation, the amount of
    18  any purse earnings, the number of horses involved, or such other factors
    19  as the fund shall determine to be fair, equitable and in the best inter-
    20  ests of racing. In no event shall the amount deducted  from  an  owner's
    21  share  of purses exceed two per centum; provided, however, for two thou-
    22  sand [sixteen] seventeen the New York Jockey Injury  Compensation  Fund,
    23  Inc.    may  use  up to two million dollars from the account established
    24  pursuant to subdivision nine of section two hundred eight of this  arti-
    25  cle  to pay the annual costs required by this section and the funds from
    26  such account shall not count  against  the  two  per  centum  of  purses
    27  deducted  from  an  owner's share of purses. The amount deducted from an
    28  owner's share of purses shall not exceed  one  per  centum  after  April
    29  first,  two thousand [seventeen] twenty. In the cases of multiple owner-
    30  ships and limited racing appearances, the fund  shall  equitably  adjust
    31  the sum required.
    32    The  [state  racing  and wagering board] gaming commission shall, as a
    33  condition of racing, require any racing corporation or any  quarterhorse
    34  racing  association  or  corporation  authorized  under  this chapter to
    35  conduct pari-mutuel betting at a race meeting or races run  thereat,  to
    36  require  that  each trainer utilizing the facilities of such association
    37  or corporation and each owner racing a horse shall place or have  placed
    38  on  deposit with the horsemen's bookkeeper of such racing association or
    39  corporation, an amount to be established and paid  in  a  manner  to  be
    40  determined by the fund.
    41    Should  the fund determine that the amount which has been collected in
    42  the manner prescribed is inadequate to pay the annual costs required  by
    43  this  section,  it  shall  notify  the [state racing and wagering board]
    44  gaming commission of the deficiency and the amount of the additional sum
    45  or sums necessary to be paid by each owner and/or trainer  in  order  to
    46  cover  such  deficiency.  The  [state  racing and wagering board] gaming
    47  commission shall, as an  additional  condition  of  racing,  direct  any
    48  racing corporation or any quarterhorse racing association or corporation
    49  authorized  under  this chapter to conduct pari-mutuel betting at a race
    50  meeting or races run thereat, to require each trainer and owner to place
    51  such additional sum or sums on deposit with  the  respective  horsemen's
    52  bookkeeper.
    53    All  amounts  collected  by  a  horsemen's bookkeeper pursuant to this
    54  section shall be transferred to the fund created under this section  and
    55  shall  be  used  by the fund to purchase workers' compensation insurance
    56  for jockeys, apprentice jockeys and exercise persons  licensed  pursuant

        S. 2009--C                         80                         A. 3009--C
 
     1  to  this article or article four of this chapter who are employees under
     2  section two of the workers' compensation law, and at the election of the
     3  fund, with the approval of the gaming  commission,  to  secure  workers'
     4  compensation  insurance  for employees of licensed trainers or owners to
     5  pay for any of its liabilities under section fourteen-a of the  workers'
     6  compensation law and to administer the workers' compensation program for
     7  such  jockeys,  apprentice jockeys and exercise persons and, if approved
     8  by the gaming commission,  employees  of  licensed  trainers  or  owners
     9  required by this section and the workers' compensation law.
    10    In  the event the fund elects, with the approval of the gaming commis-
    11  sion,  to  secure  workers'  compensation  insurance  for  employees  of
    12  licensed trainers or owners, the fund may elect to have the sum required
    13  to be paid by an owner or trainer pursuant to this section be subject to
    14  an  examination  of  workers' compensation claims attributable under the
    15  fund to each such owner or trainer, including the frequency and severity
    16  of accidents and injuries.
    17    § 3. Subdivision 12 of section 221 of the racing, pari-mutuel wagering
    18  and breeding law, as amended by chapter 325 of the laws of 2004 and such
    19  section as renumbered by chapter 18 of the laws of 2008, is amended  and
    20  two new subdivisions 13 and 14 are added to read as follows:
    21    12.  [The fund and the state racing and wagering board shall have such
    22  power as is necessary to implement the provisions of this section.]  For
    23  purposes  of  this  section, the term "employees of licensed trainers or
    24  owners" shall have  the  same  meaning  as  subdivision  twenty-four  of
    25  section two of the workers' compensation law.
    26    13.  a.  There is created a racing safety committee to review the risk
    27  management report submitted to the commission by the fund  on  or  about
    28  September thirtieth, two thousand sixteen and to make non-binding recom-
    29  mendations  for  the  implementation  of the safety proposals and initi-
    30  atives set forth in such report. Such committee shall consist  of  seven
    31  members,  each  to  serve  a  term  of three years, with one member each
    32  appointed by:
    33    (i) the fund;
    34    (ii) the gaming commission;
    35    (iii) the franchised corporation;
    36    (iv) the racing association or corporation licensed pursuant  to  this
    37  article or article four of this chapter to operate the racing and train-
    38  ing facilities at Finger Lakes racetrack;
    39    (v)  the  horsemen's  organization  representing  at  least  fifty-one
    40  percent of the owners and trainers using the  facilities  of  the  fran-
    41  chised corporation;
    42    (vi)  the  horsemen's  organization  representing  at  least fifty-one
    43  percent of the owners and trainers using the facilities  of  the  Finger
    44  Lakes racetrack; and
    45    (vii) the Jockeys' Guild.
    46    The  member of the racing safety committee appointed by the fund shall
    47  serve as chairperson and the  member  of  the  racing  safety  committee
    48  appointed  by the commission shall serve as vice-chairperson. Members of
    49  the racing safety committee shall have equal voting rights.
    50    b. The racing safety committee shall meet within ninety days following
    51  the effective date of this subdivision to review and discuss the  imple-
    52  mentation of the recommendations contained in the risk management report
    53  submitted  to  the  gaming  commission by the fund on or about September
    54  thirtieth, two thousand sixteen. The racing safety committee shall  meet
    55  on  or  after  July first, two thousand seventeen, and at least annually
    56  thereafter, to review the workers' compensation loss information and the

        S. 2009--C                         81                         A. 3009--C
 
     1  status of safety-related findings and recommendations and to develop  an
     2  annual strategic plan to address identified safety issues.
     3    c.  The  members  appointed pursuant to subparagraph (iii) and (iv) of
     4  paragraph a of this subdivision, in consultation with the other  members
     5  of the racing safety committee, shall:
     6    (i)  Within  one  hundred  eighty days following the effective date of
     7  this subdivision, for each track,  develop  safety  rules  for  training
     8  activities  to be documented and communicated, in both English and Span-
     9  ish, to jockeys,  apprentice  jockeys,  and  exercise  persons  licensed
    10  pursuant to this article or article four of this chapter who are employ-
    11  ees  under  section  two  of  the  workers' compensation law, and at the
    12  election of the fund,  with  the  approval  of  the  gaming  commission,
    13  employees  of  licensed  trainers  or  owners.  Such  safety rules shall
    14  include, but not be limited to,  proper  usage  of  personal  protective
    15  equipment,  required response to loose horses, prohibition of cell phone
    16  use while mounted on a horse, general requirements for jogging,  gallop-
    17  ing,  breezing,  ponying  a  horse,  and starting gate safety protocols.
    18  Refresher training related to such safety rules shall be required at the
    19  start of each meet.
    20    (ii) Prior to the start of each meet, following the effective date  of
    21  this subdivision, meet with trainers or their representatives to discuss
    22  and address identified safety issues.
    23    (iii)  Within  one hundred eighty days following the effective date of
    24  this subdivision, for each track, develop a written, documented emergen-
    25  cy response plan to address response protocols to on-track accidents and
    26  incidents, which, at  a  minimum,  shall  include  detailed  information
    27  regarding roles and responsibilities for individuals who are responsible
    28  for  track-related  accidents  and incidents, including, but not limited
    29  to, outriders, emergency medical technicians/paramedics, ambulance driv-
    30  ers, security, and veterinary staff and clockers.
    31    (iv) Within two hundred ten days following the effective date of  this
    32  subdivision,  communicate  the  emergency  response plan to all on-track
    33  personnel as part of new hire orientation and job assignment.
    34    (v) Within two hundred ten days following the effective date  of  this
    35  subdivision,  and  at  least  once  annually thereafter, for each track,
    36  conduct a mock emergency response drill for on-track accidents prior  to
    37  the  opening  of  each race meet. Such emergency response drill shall be
    38  filmed and used for  education  and  training  purposes  for  personnel,
    39  including  in  new  hire  orientation,  and to assess the performance of
    40  individuals involved in the emergency response.
    41    (vi) Within one hundred eighty days following the  effective  date  of
    42  this subdivision, upgrade the current level of emergency medical respon-
    43  ders from emergency medical technicians to paramedics.
    44    14.  The  fund  and  the gaming commission shall have such power as is
    45  necessary to implement the provisions of this section.
    46    § 4. Section 2 of the workers' compensation law is amended by adding a
    47  new subdivision 24 to read as follows:
    48    24. "Employees of licensed trainers or owners" means assistant  train-
    49  ers,  foremen,  watchmen and stable employees, including grooms and hot-
    50  walkers, employed by a trainer or owner licensed pursuant to article two
    51  or four of the racing, pari-mutuel wagering and breeding law.
    52    § 5. The second undesignated paragraph of subdivision 3 of  section  2
    53  of  the workers' compensation law, as amended by chapter 392 of the laws
    54  of 2008, is amended to read as follows:
    55    Notwithstanding any other provision of this chapter and  for  purposes
    56  of  this  chapter only, "employer" shall mean, with respect to a jockey,

        S. 2009--C                         82                         A. 3009--C
 
     1  apprentice jockey or exercise person licensed under article two or  four
     2  of  the  racing,  pari-mutuel  wagering  and  breeding  law,  and at the
     3  election of the New York Jockey Injury Compensation Fund, Inc., with the
     4  approval  of the New York state gaming commission, employees of licensed
     5  trainers or owners, performing services  for  an  owner  or  trainer  in
     6  connection  with  the  training  or racing of a horse at a facility of a
     7  racing association or corporation subject to article two or four of  the
     8  racing,  pari-mutuel wagering and breeding law and subject to the juris-
     9  diction of the New York state [racing and wagering board] gaming commis-
    10  sion, The New York Jockey Injury Compensation Fund, Inc. and all  owners
    11  and  trainers  who are licensed or required to be licensed under article
    12  two or four of the racing, pari-mutuel wagering and breeding law at  the
    13  time  of  any occurrence for which benefits are payable pursuant to this
    14  chapter in respect to the injury or death  of  such  jockey,  apprentice
    15  jockey  [or],  exercise  person  or,  if  approved by the New York state
    16  gaming commission, employee of a licensed trainer or owner.
    17    § 6. The fifth undesignated paragraph of subdivision 4 of section 2 of
    18  the workers' compensation law, as amended by chapter 169 of the laws  of
    19  2007, is amended to read as follows:
    20    Notwithstanding  any other provision of this chapter, and for purposes
    21  of this chapter only, a jockey, apprentice  jockey  or  exercise  person
    22  licensed  under  article two or four of the racing, pari-mutuel wagering
    23  and breeding law, and at the election of  the  New  York  Jockey  Injury
    24  Compensation  Fund, Inc., with the approval of the New York state gaming
    25  commission,  employees  of  licensed  trainers  or  owners,   performing
    26  services  for  an  owner  or  trainer in connection with the training or
    27  racing of a horse at a facility of a racing association  or  corporation
    28  subject  to  article two or four of the racing, pari-mutuel wagering and
    29  breeding law and subject to the  jurisdiction  of  the  New  York  state
    30  [racing  and  wagering board] gaming commission shall be regarded as the
    31  "employee" not solely of such owner or trainer,  but  shall  instead  be
    32  conclusively presumed to be the "employee" of The New York Jockey Injury
    33  Compensation  Fund,  Inc.  and  also  of all owners and trainers who are
    34  licensed or required to be licensed under article two  or  four  of  the
    35  racing,  pari-mutuel wagering and breeding law at the time of any occur-
    36  rence for which benefits are payable pursuant to this chapter in respect
    37  of the injury or death of such jockey, apprentice jockey [or],  exercise
    38  person or, if approved by the New York state gaming commission, employee
    39  of a licensed trainer or owner.
    40    § 7. The third undesignated paragraph of subdivision 5 of section 2 of
    41  the  workers' compensation law, as amended by chapter 392 of the laws of
    42  2008, is amended to read as follows:
    43    Notwithstanding any other provision of this chapter, and for  purposes
    44  of  this  chapter  only,  a jockey, apprentice jockey or exercise person
    45  licensed under article two or four of the racing,  pari-mutuel  wagering
    46  and  breeding  law,  and  at  the election of the New York Jockey Injury
    47  Compensation Fund, Inc., with the approval of the New York state  gaming
    48  commission,   employees  of  licensed  trainers  or  owners,  performing
    49  services for an owner or trainer in  connection  with  the  training  or
    50  racing  of  a horse at a facility of a racing association or corporation
    51  subject to article two or four of the racing, pari-mutuel  wagering  and
    52  breeding  law  and  subject  to  the  jurisdiction of the New York state
    53  [racing and wagering board] gaming commission shall be  regarded  as  in
    54  the "employment" not solely of such owner and trainer, but shall instead
    55  be conclusively presumed to be in the "employment" of The New York Jock-
    56  ey Injury Compensation Fund, Inc. and of all owners and trainers who are

        S. 2009--C                         83                         A. 3009--C

     1  licensed  or  required  to  be licensed under article two or four of the
     2  racing, pari-mutuel wagering and breeding law, at the time of any occur-
     3  rence for which benefits are payable pursuant to this chapter in respect
     4  of  the injury or death of such jockey, apprentice jockey [or], exercise
     5  person or, if approved by the New York state gaming commission, employee
     6  of a licensed trainer or owner.  For the purpose of this  chapter  only,
     7  whether  a  livery  driver's  performance  of covered services, as those
     8  terms are defined in article six-G of  the  executive  law,  constitutes
     9  "employment"  shall  be determined in accordance with section eighteen-c
    10  of this chapter.
    11    § 8. The opening paragraph of section 11 of the workers'  compensation
    12  law,  as  amended by chapter 169 of the laws of 2007, is amended to read
    13  as follows:
    14    The liability of an employer prescribed by the last preceding  section
    15  shall  be  exclusive  and in place of any other liability whatsoever, to
    16  such employee, his or her  personal  representatives,  spouse,  parents,
    17  dependents,  distributees,  or  any person otherwise entitled to recover
    18  damages, contribution or indemnity,  at  common  law  or  otherwise,  on
    19  account  of  such injury or death or liability arising therefrom, except
    20  that if an employer fails to secure the payment of compensation for  his
    21  or  her  injured  employees  and their dependents as provided in section
    22  fifty of this chapter, an injured employee, or his or her  legal  repre-
    23  sentative  in  case of death results from the injury, may, at his or her
    24  option, elect to claim compensation under this chapter, or  to  maintain
    25  an  action  in  the courts for damages on account of such injury; and in
    26  such an action it shall not be necessary to plead or prove freedom  from
    27  contributory  negligence  nor  may the defendant plead as a defense that
    28  the injury was caused by the negligence of a fellow servant nor that the
    29  employee assumed the risk of his or her employment, nor that the  injury
    30  was  due  to  the contributory negligence of the employee. The liability
    31  under this chapter of The New York Jockey Injury Compensation Fund, Inc.
    32  created under section two hundred [thirteen-a] twenty-one of the racing,
    33  pari-mutuel wagering and breeding law shall be limited to the  provision
    34  of  workers' compensation coverage to jockeys, apprentice jockeys [and],
    35  exercise persons, and at the election of  the  New  York  Jockey  Injury
    36  Compensation  Fund, Inc., with the approval of the New York state gaming
    37  commission, employees of licensed  trainers  or  owners  licensed  under
    38  article two or four of the racing, pari-mutuel wagering and breeding law
    39  and  any  statutory penalties resulting from the failure to provide such
    40  coverage.
    41    § 9. Subdivision 4 of section 14-a of the workers'  compensation  law,
    42  as  amended  by  chapter  169 of the laws of 2007, is amended to read as
    43  follows:
    44    4. With respect to a jockey,  apprentice  jockey  or  exercise  person
    45  licensed  under  article two or four of the racing, pari-mutuel wagering
    46  and breeding law, and at the election of  the  New  York  Jockey  Injury
    47  Compensation  Fund, Inc., with the approval of the New York state gaming
    48  commission, an employee of a licensed trainer or owner, who, pursuant to
    49  section two of this chapter, is an employee of all owners  and  trainers
    50  licensed  or  required  to  be licensed under article two or four of the
    51  racing, pari-mutuel wagering and breeding law and The  New  York  Jockey
    52  Injury Compensation Fund, Inc., the owner or trainer for whom such jock-
    53  ey,  apprentice  jockey [or], exercise person or, if approved by the New
    54  York state gaming commission, employee of a licensed  trainer  or  owner
    55  was  performing  services  at  the  time of the accident shall be solely
    56  responsible for the double payments described in subdivision one of this

        S. 2009--C                         84                         A. 3009--C
 
     1  section, to the extent that such payments exceed any  amounts  otherwise
     2  payable  with  respect  to such jockey, apprentice jockey [or], exercise
     3  person or, if approved by the New York state gaming commission, employee
     4  of  a licensed trainer or owner under any other section of this chapter,
     5  and the New York Jockey Injury Compensation Fund,  Inc.  shall  have  no
     6  responsibility for such excess payments, unless there shall be a failure
     7  of  the  responsible  owner or trainer to pay such award within the time
     8  provided under this chapter. In the event of such failure to pay and the
     9  board requires the fund to pay the award on  behalf  of  such  owner  or
    10  trainer who has been found to have violated this section, the fund shall
    11  be  entitled to an award against such owner or trainer for the amount so
    12  paid which shall be collected in the same manner as an award of  compen-
    13  sation.
    14    §  10.  Section  18-a  of the workers' compensation law, as amended by
    15  chapter 169 of the laws of 2007, is amended to read as follows:
    16    § 18-a. Notice: The New York Jockey  Injury  Compensation  Fund,  Inc.
    17  Wherever in this chapter it shall be required that notice be given to an
    18  employer, except for claims involving section fourteen-a of the workers'
    19  compensation  law  such  notice requirement shall be deemed satisfied by
    20  giving notice to the New York Jockey Injury Compensation Fund, Inc.,  in
    21  connection  with  an  injury  to a jockey, apprentice jockey or exercise
    22  person licensed under article two or four  of  the  racing,  pari-mutuel
    23  wagering  and  breeding  law, and at the election of the New York Jockey
    24  Injury Compensation Fund, Inc., with the approval of the New York  state
    25  gaming  commission,  an  employee  of  a licensed trainer or owner, who,
    26  pursuant to section two of this chapter, is an employee  of  all  owners
    27  and  trainers  licensed  or required to be licensed under article two or
    28  four of the racing, pari-mutuel wagering and breeding  law  and  of  the
    29  fund.  In  a  claim involving section fourteen-a of the workers' compen-
    30  sation law such required notice shall be given to  the  employing  owner
    31  and/or trainer of the fund.
    32    § 11. Subdivision 8 of section 50 of the workers' compensation law, as
    33  amended  by  chapter  169  of  the  laws  of 2007, is amended to read as
    34  follows:
    35    8. The requirements of section  ten  of  this  chapter  regarding  the
    36  provision  of  workers' compensation insurance as to owners and trainers
    37  governed by the racing, pari-mutuel wagering and breeding  law  who  are
    38  employers  under  section  two  of this chapter are satisfied in full by
    39  compliance with the requirements imposed upon  owners  and  trainers  by
    40  section  two  hundred [thirteen-a] twenty-one of the racing, pari-mutuel
    41  wagering and breeding law, provided that in  the  event  double  compen-
    42  sation, death benefits, or awards are payable with respect to an injured
    43  employee  under section fourteen-a of this chapter, the owner or trainer
    44  for whom the  injured  jockey,  apprentice  jockey  or  exercise  person
    45  licensed  under  article two or four of the racing, pari-mutuel wagering
    46  and breeding law, and at the election of  the  New  York  Jockey  Injury
    47  Compensation  Fund, Inc., with the approval of the New York state gaming
    48  commission, employee of a  licensed  trainer  or  owner,  is  performing
    49  services  as  a jockey, apprentice jockey or exercise person so licensed
    50  at the time of the accident or, if approved by the New York state gaming
    51  commission, an employee of a licensed trainer or owner  shall  bear  the
    52  sole  responsibility  for  the  amount  payable pursuant to such section
    53  fourteen-a in excess of the amount otherwise payable under this chapter,
    54  unless there shall be a failure of the responsible owner or  trainer  to
    55  pay such award within the time provided under this chapter. In the event
    56  of  such failure to pay and the board requires the fund to pay the award

        S. 2009--C                         85                         A. 3009--C
 
     1  on behalf of such owner or trainer who has been found to  have  violated
     2  section  fourteen-a  of  this  chapter, the fund shall be entitled to an
     3  award against such owner or trainer for the amount so paid  which  shall
     4  be  collected  in  the same manner as an award of compensation. Coverage
     5  directly procured by any owner or trainer for the purpose of  satisfying
     6  the  requirements of this chapter with respect to employees of the owner
     7  or trainer shall not include coverage on any jockey,  apprentice  jockey
     8  or  exercise  person  licensed  under article two or four of the racing,
     9  pari-mutuel wagering and breeding law, and at the election  of  the  New
    10  York Jockey Injury Compensation Fund, Inc., with the approval of the New
    11  York  state  gaming  commission,  any  employee of a licensed trainer or
    12  owner, to the extent that such jockey, apprentice jockey [or],  exercise
    13  person or, if approved by the New York state gaming commission, employee
    14  of  a  licensed trainer or owner is also covered under coverage procured
    15  by The New York Jockey Injury Compensation Fund, Inc.  pursuant  to  the
    16  requirements  of  section  two  hundred  [thirteen-a]  twenty-one of the
    17  racing, pari-mutuel wagering and  breeding  law,  and  to  that  extent,
    18  coverage  procured  by  the  fund  pursuant  to  the requirements of the
    19  racing, pari-mutuel wagering and breeding law shall be considered prima-
    20  ry.
    21    § 12. This act shall take effect immediately.
 
    22                                   PART TT
 
    23    Section 1. Subsection (eee) of section 606 of the tax law  is  amended
    24  by adding a new paragraph 13 to read as follows:
    25    (13) (A) Nothing herein shall be construed to preclude the commission-
    26  er from making a preliminary advance payment of the credit based upon an
    27  estimate  of  the  STAR  tax  savings  applicable  to  a school district
    28  portion, where he or she finds that attempting to ascertain  the  actual
    29  STAR  tax  savings applicable to the school district portion would jeop-
    30  ardize the timely issuance of the payment. When making such an estimate,
    31  the commissioner shall consider the STAR tax savings applicable  in  the
    32  school  district  fiscal  year preceding the associated fiscal year, the
    33  allowable levy growth factor applicable to the calculation  of  the  tax
    34  levy  limit  for  the  associated fiscal year pursuant to paragraph a of
    35  subdivision two of section two thousand twenty-three-a of the  education
    36  law,  taxable  assessed value where appropriate, and such other informa-
    37  tion that in his or her judgment will help make the estimate as accurate
    38  as possible.
    39    (B) Nothing herein shall be construed  to  preclude  the  commissioner
    40  from making a preliminary advance payment of the credit without attempt-
    41  ing  to ascertain the taxpayer's qualifying taxes, where he or she finds
    42  that attempting to ascertain the taxpayer's qualifying taxes would jeop-
    43  ardize the timely issuance of the payment.
    44    (C) If the commissioner determines that a taxpayer received a prelimi-
    45  nary advance payment that is above or below the advance payment to which
    46  he or she was entitled under this  subsection,  the  commissioner  shall
    47  provide  notice  to  such  taxpayer that the next advance payment due to
    48  such taxpayer under this subsection shall be adjusted to reconcile  such
    49  underpayment  or  overpayment; provided, however, the commissioner shall
    50  permit a taxpayer  to  request  that  such  adjustment  be  made  on  an
    51  originally filed timely income tax return for the tax year in which such
    52  overpayment  or  underpayment occurred, provided such return is filed on
    53  or before the due date for such return,  determined  without  regard  to
    54  extensions.

        S. 2009--C                         86                         A. 3009--C
 
     1    (D) A taxpayer who received a preliminary advance payment that consti-
     2  tutes an overpayment shall not be required to pay interest on the amount
     3  of the overpayment.
     4    §  2.  Subparagraph (B) of paragraph 10 of subsection (eee) of section
     5  606 of the tax law, as amended by section 8 of part A of chapter  73  of
     6  the laws of 2016, is amended to read as follows:
     7    (B) On or before [September fifteenth of each year] the date specified
     8  below,  or  as  soon  thereafter  as practicable, the commissioner shall
     9  determine the eligibility of taxpayers for  this  credit  utilizing  the
    10  information  available  to  him or her as obtained from the applications
    11  submitted on or before July first of that year, or such  later  date  as
    12  may  have been prescribed by the commissioner for that purpose, and from
    13  such other sources as the commissioner deems reliable  and  appropriate.
    14  For  those  taxpayers  whom the commissioner has determined eligible for
    15  this credit, the commissioner shall advance  a  payment  in  the  amount
    16  specified  in paragraph three, four or six of this subsection, whichever
    17  is applicable. Such payment shall be issued by [September  thirtieth  of
    18  the  year  the  credit  is allowed] the date specified below, or as soon
    19  thereafter as is practicable; provided that if such  payment  is  issued
    20  after  such date, it shall be subject to interest at the rate prescribed
    21  by subparagraph (A) of paragraph two of subsection (j)  of  section  six
    22  hundred ninety-seven of this article.  Nothing contained herein shall be
    23  deemed to preclude the commissioner from issuing payments after [Septem-
    24  ber  thirtieth] such date to qualified taxpayers whose applications were
    25  made after July first of that year, or such later date as may have  been
    26  prescribed by the commissioner for such purpose.
    27    (i) The applicable dates for this purpose are as follows:
    28    (I)  If the school district tax roll is filed with the commissioner on
    29  or before July first, the determination of eligibility shall be made  by
    30  July fifteenth, or as soon thereafter as is practicable, and the advance
    31  payment  shall  be issued by July thirtieth, or as soon thereafter as is
    32  practicable.
    33    (II) If the school district tax roll is filed  with  the  commissioner
    34  after  July first and on or before September first, the determination of
    35  eligibility shall be made by September fifteenth, or as soon  thereafter
    36  as  is practicable, and the advance payment shall be issued by September
    37  thirtieth, or as soon thereafter as is practicable.
    38    (III) If the school district tax roll is filed with  the  commissioner
    39  after September first, the determination of eligibility shall be made by
    40  the fifteenth day after such filing, or as soon thereafter as is practi-
    41  cable,  and  the  advance  payment  shall be issued by the thirtieth day
    42  after such filing, or as soon thereafter as is practicable.
    43    (ii) Notwithstanding the foregoing provisions of this subparagraph, in
    44  the case of taxpayers whose primary residence is a cooperative apartment
    45  or a mobile home that is subject to the provisions of  subparagraph  (A)
    46  or  (B) of paragraph six of this subsection, the payment shall be issued
    47  by the sixtieth day following receipt of all of the data needed to prop-
    48  erly calculate the credit, or as soon thereafter as is practicable.
    49    § 3. Subdivision 6 of section 1306-a of the real property tax law,  as
    50  amended  by  section  7  of part A of chapter 73 of the laws of 2016, is
    51  amended to read as follows:
    52    6. When the commissioner determines, at  least  [thirty]  twenty  days
    53  prior  to  the  levy of school district taxes, that an advance credit of
    54  the personal income tax credit authorized by subsection (eee) of section
    55  six hundred six of the tax law will be  provided  to  the  owners  of  a
    56  parcel  in that school district, he or she shall so notify the assessor,

        S. 2009--C                         87                         A. 3009--C

     1  the county director of real property tax services, and  the  authorities
     2  of  the school district, who shall cause a statement to be placed on the
     3  tax bill for the parcel in substantially the following  form:  ["A  STAR
     4  check  of  $      will  be  mailed  to  you upon issuance by the NYS Tax
     5  Department".  The commissioner shall advise such officials of the amount
     6  to be entered therein.] "An estimated STAR check will be mailed  to  you
     7  upon issuance by the NYS Tax Department. Any overpayment or underpayment
     8  can be reconciled on your next tax return or STAR credit check."
     9    Notwithstanding  any  provision  of  law to the contrary, in the event
    10  that the parcel in question had been granted a  STAR  exemption  on  the
    11  assessment  roll upon which school district taxes are to be levied, such
    12  exemption shall be deemed null and  void,  shall  be  removed  from  the
    13  assessment  roll, and shall be disregarded when the parcel's tax liabil-
    14  ity is determined. The assessor or other  local  official  or  officials
    15  having  custody  and  control  of  the data file used to generate school
    16  district tax rolls and tax bills shall be  authorized  and  directed  to
    17  change  such file as necessary to enable the school district authorities
    18  to discharge the duties imposed upon them by this subdivision.
    19    § 4. This act shall take effect immediately.
 
    20                                   PART UU
 
    21    Section 1. Paragraph 2 of subdivision (e) of section 1111 of  the  tax
    22  law,  as  amended  by  section 1 of part LL of chapter 59 of the laws of
    23  2014, is amended to read as follows:
    24    (2) (i) Where the motor fuel is imported, manufactured or sold in,  or
    25  diesel  motor fuel is sold or used in the region referred to in subpara-
    26  graph (i) of paragraph one of this subdivision, the tax required  to  be
    27  prepaid  pursuant  to section eleven hundred two of this article on each
    28  gallon of such fuel shall be [seventeen and one-half] sixteen cents.
    29    (ii) Where motor fuel is imported, manufactured or sold in, or  diesel
    30  motor  fuel  is  sold  or used in the region referred to in subparagraph
    31  (ii) of paragraph one of  this  subdivision,  the  tax  required  to  be
    32  prepaid  pursuant  to section eleven hundred two of this article on each
    33  gallon of such fuel shall be [twenty-one] sixteen cents.
    34    (iii) Where motor fuel is imported, manufactured or sold in, or diesel
    35  motor fuel is sold or used in the region  referred  to  in  subparagraph
    36  (iii)  of  paragraph  one  of  this  subdivision, the tax required to be
    37  prepaid pursuant to section eleven hundred two of this article  on  each
    38  gallon of such fuel shall be [sixteen] fifteen cents.
    39    §  2.  Subdivision  (e)  of  section 1111 of the tax law is amended by
    40  adding two new paragraphs 4 and 5 to read as follows:
    41    (4) The commissioner is authorized to adjust the  rates  in  paragraph
    42  two of this subdivision and shall prescribe a schedule of such rates for
    43  each  region  described in paragraph one of this subdivision as provided
    44  in this paragraph.
    45    (i) The schedule required by this paragraph shall be reviewed  semian-
    46  nually during the months of April and October of each year, beginning in
    47  October,  two  thousand  seventeen.  The  commissioner shall determine a
    48  tentative rate of tax that would be required to be prepaid  pursuant  to
    49  section  eleven hundred two of this article on each gallon of motor fuel
    50  or diesel motor fuel sold or used by multiplying  the  regional  average
    51  retail sales prices for such fuel for each region described in paragraph
    52  one  of this subdivision by a number that is seventy-five percent of the
    53  average local sales tax rate in each such region and adding to the prod-
    54  uct thereof the taxes imposed by paragraphs one and two  of  subdivision

        S. 2009--C                         88                         A. 3009--C
 
     1  (m)  of  this  section. The regional average retail sales price shall be
     2  determined for purposes of this subdivision using data  regarding  sales
     3  prices,  which  shall  include,  but  not be limited to, sales prices as
     4  compiled  by  government  or  industry  surveys and sources, taking into
     5  consideration with respect to motor fuel,  the  volumes  and  prices  of
     6  unleaded  motor  fuels, including reformulated or like motor fuels, sold
     7  in this state and with respect to both motor fuel and diesel motor fuel,
     8  the volume and prices of such fuels sold at full service  and  self-ser-
     9  vice  pumps for such fuels, during an immediately preceding period of up
    10  to twelve months ending the last day of March in the case of  the  April
    11  semiannual  review  and  ending the last day of September in the case of
    12  the October semiannual review;  provided,  however,  that  the  regional
    13  average  retail  sales  prices for both motor fuel and diesel motor fuel
    14  shall represent the retail sales prices upon which the  tax  under  this
    15  article  and  pursuant  to  the authority of article twenty-nine of this
    16  chapter is computed (including all federal and state and any local taxes
    17  included in such price) for such period.
    18    (ii) If upon such review, it is determined that the tentative rate  of
    19  tax  that would be required to be prepaid for motor fuel or diesel motor
    20  fuel in any of the regions described in paragraph one of  this  subdivi-
    21  sion  would increase or decrease the rate for such region then in effect
    22  by two or more cents per gallon, the commissioner shall adjust such rate
    23  to be equal to the tentative rate, which shall take effect on the  first
    24  day of June or the first day of December, respectively. Provided, howev-
    25  er, the commissioner shall set the rate of tax required to be prepaid in
    26  the  region  described  in  subparagraph  (ii)  of paragraph one of this
    27  subdivision equal to the rate set forth  in  subparagraph  (i)  of  such
    28  paragraph,  unless the regional average retail sales price in the metro-
    29  politan  commuter  transportation  district  exceeds  four  dollars  per
    30  gallon.  In  such  event,  the commissioner is authorized to establish a
    31  separate rate in the region described  in  such  subparagraph  (ii)  and
    32  shall compute such rate by multiplying the regional average retail sales
    33  prices  for  motor fuel and diesel motor fuel in such region by a number
    34  that is eighty-five percent of the average local sales tax rate in  such
    35  region and adding to the product thereof the taxes imposed by paragraphs
    36  one and two of subdivision (m) of this section.
    37    (iii) The commissioner shall cause to be published on the department's
    38  website  the  schedule  of  rates  and the regional average retail sales
    39  prices of motor fuel and diesel motor fuel fixed  by  this  section,  no
    40  later than ten days prior to the effective date of such rates.  Notwith-
    41  standing  any other provision of law, the calculation and publication of
    42  the rates so fixed by the  provisions  of  this  section  shall  not  be
    43  included  within paragraph (a) of subdivision two of section one hundred
    44  two of the state administrative procedure act relating to the definition
    45  of a rule.
    46    (5) Where a new rate of tax required to be prepaid for motor  fuel  or
    47  diesel  motor  fuel  is  determined by the commissioner, (i) if such new
    48  rate is less than the rate then in effect, on the date the rate  becomes
    49  effective  (A) a registered distributor shall be entitled to a credit in
    50  an amount equal to the difference between the amount of the prepaid  tax
    51  paid  or  incurred  by him or her with respect to motor fuel which he or
    52  she imported and which he or she has in inventory at the time  such  new
    53  rate  becomes effective and the amount of tax which would be due on such
    54  inventory if the prepaid tax were calculated based on such  new  average
    55  price  for the region in which such motor fuel was imported and (B) such
    56  inventory shall then be deemed to have been taxed based on the rate  and

        S. 2009--C                         89                         A. 3009--C
 
     1  all  certifications of tax payment given by the distributor with respect
     2  to motor fuel in such inventory shall indicate a  pass  through  of  the
     3  prepaid  tax  based  on such new price, (ii) if such new rate is greater
     4  than  the existing rate, on the date such new rate becomes effective (A)
     5  such distributor shall become liable to pay an additional tax  equal  to
     6  the difference between the amount of tax which would be due with respect
     7  to motor fuel which he or she imported and which he or she has in inven-
     8  tory  at  the time such new rate becomes effective if the prepaid tax on
     9  such motor fuel were calculated based on such new average price for  the
    10  region  in  which such motor fuel was imported and the amount of prepaid
    11  tax paid or actually incurred by such distributor with respect  to  such
    12  motor  fuel  and  (B)  such  inventory shall then be deemed to have been
    13  taxed based on the new rate and all certifications of tax payment  given
    14  by  the  distributor  with respect to motor fuel in such inventory shall
    15  indicate a pass through of the prepaid tax based on such new rate.  Such
    16  credit  shall  be allowed with respect to or such tax shall be paid with
    17  the return covering the month immediately preceding the month  in  which
    18  such  new rate becomes effective. Any carryover credit may be applied to
    19  subsequent periods.  The amount to be reported as additional  tax  shall
    20  be  paid  and  disposed  of in the same manner as the tax required to be
    21  prepaid by section eleven hundred two of this article.  Such  additional
    22  tax  shall  be  determined, assessed, collected and enforced in the same
    23  manner as the tax required to be prepaid by section eleven  hundred  two
    24  of this article.
    25    § 3. This act shall take effect September 1, 2017.
 
    26                                   PART VV
 
    27    Section  1. The opening paragraph of paragraph (a) of subdivision 5 of
    28  section 210-A of the tax law, as amended by section 4 of part P of chap-
    29  ter 60 of the laws of 2016, is amended to read as follows:
    30    A financial instrument is a "nonqualified financial instrument" if  it
    31  is  not  a qualified financial instrument. A qualified financial instru-
    32  ment means a financial instrument that is of a type described in any  of
    33  clauses  (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this
    34  paragraph and that has been marked to market in the taxable year by  the
    35  taxpayer under section 475 or section 1256 of the internal revenue code.
    36  Further,  if  the  taxpayer  has  in the taxable year marked to market a
    37  financial instrument of the type described in any of  the  clauses  (A),
    38  (B),  (C),  (D),  (G), (H) or (I) of subparagraph two of this paragraph,
    39  then any financial instrument within that type described  in  the  above
    40  specified  clause  or  clauses that has not been marked to market by the
    41  taxpayer under section 475 or section 1256 of the internal revenue  code
    42  is a qualified financial instrument in the taxable year. Notwithstanding
    43  the  two  preceding sentences, (i) a loan secured by real property shall
    44  not be a qualified financial instrument, (ii) if the only loans that are
    45  marked to market by the taxpayer under section 475 or  section  1256  of
    46  the  internal  revenue  code are loans secured by real property, then no
    47  loans shall be qualified financial  instruments,  (iii)  stock  that  is
    48  investment  capital  as  defined in paragraph (a) of subdivision five of
    49  section two hundred eight of this  article  shall  not  be  a  qualified
    50  financial  instrument, and (iv) stock that generates other exempt income
    51  as defined in subdivision six-a of section two  hundred  eight  of  this
    52  article  and  that  is not marked to market under section 475 or section
    53  1256 of the internal revenue  code  shall  not  constitute  a  qualified
    54  financial  instrument with respect to the income from that stock that is

        S. 2009--C                         90                         A. 3009--C
 
     1  described in such subdivision six-a. If a corporation is included  in  a
     2  combined  report, the definition of qualified financial instrument shall
     3  be determined on a combined basis. In the case of a RIC or a  REIT  that
     4  is not a captive RIC or a captive REIT, a qualified financial instrument
     5  means  a  financial  instrument  that  is  of a type described in any of
     6  clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of  this
     7  paragraph,  other  than  (i) a loan secured by real property, (ii) stock
     8  that is investment capital as defined in paragraph  (a)  of  subdivision
     9  five  of section two hundred eight of this article, and (iii) stock that
    10  generates other exempt income as defined in subdivision six-a of section
    11  two hundred eight of this article with respect to the income  from  that
    12  stock that is described in such subdivision six-a.
    13    § 2. Clause (D) of subparagraph 1 of paragraph (d) of subdivision 1 of
    14  section  210 of the tax law, as amended by section 19 of part T of chap-
    15  ter 59 of the laws of 2015, is amended to read as follows:
    16    (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
    17  [and], (C) and (D-1) of this subparagraph, the amount prescribed by this
    18  paragraph will be determined in accordance with the following table:
 
    19  If New York receipts are:                The fixed dollar minimum tax is:
    20   not more than $100,000                               $   25
    21   more than $100,000 but not over $250,000             $   75
    22   more than $250,000 but not over $500,000             $  175
    23   more than $500,000 but not over $1,000,000           $  500
    24   more than $1,000,000 but not over $5,000,000         $1,500
    25   more than $5,000,000 but not over $25,000,000        $3,500
    26   more than $25,000,000 but not over $50,000,000       $5,000
    27   more than $50,000,000 but not over $100,000,000      $10,000
    28   more than $100,000,000 but not over $250,000,000     $20,000
    29   more than $250,000,000 but not over $500,000,000     $50,000
    30   more than $500,000,000 but not over $1,000,000,000   $100,000
    31   Over $1,000,000,000                                  $200,000

    32    § 3. Subparagraph 1 of paragraph (d) of subdivision 1 of  section  210
    33  of  the  tax  law  is  amended  by  adding a new clause (D-1) to read as
    34  follows:
    35    (D-1) In the case of a REIT or a RIC that is not  a  captive  REIT  or
    36  captive  RIC, the amount prescribed by this paragraph will be determined
    37  in accordance with the following table:
 
    38  If New York receipts are:                The fixed dollar minimum tax is:
    39   not more than $100,000                               $   25
    40   more than $100,000 but not over $250,000             $   75
    41   more than $250,000 but not over $500,000             $  175
    42   more than $500,000                                   $  500

    43    § 4. The opening paragraph  of  paragraph  (a)  of  subdivision  5  of
    44  section  11-654.2 of the administrative code of the city of New York, as
    45  amended by section 16 of part P of chapter 60 of the laws  of  2016,  is
    46  amended to read as follows:
    47    A  financial instrument is a "nonqualified financial instrument" if it
    48  is not a qualified financial instrument. A qualified  financial  instru-
    49  ment  means a financial instrument that is of a type described in any of
    50  [clause] clauses (i), (ii),  (iii),  (iv),  (vii),  (viii)  or  (ix)  of
    51  subparagraph two of this paragraph and that has been marked to market in
    52  the  taxable  year  by the taxpayer under section 475 or section 1256 of

        S. 2009--C                         91                         A. 3009--C
 
     1  the internal revenue code. Further, if the taxpayer has in  the  taxable
     2  year  marked  to  market a financial instrument of the type described in
     3  any of [clause] clauses (i), (ii), (iii), (iv), (vii), (viii) or (ix) of
     4  subparagraph two of this paragraph, then any financial instrument within
     5  that  type  described  in the above specified clause or clauses that has
     6  not been marked to market by the taxpayer under section 475  or  section
     7  1256 of the internal revenue code is a qualified financial instrument in
     8  the  taxable  year.  Notwithstanding  the two preceding sentences, (i) a
     9  loan secured by real property shall not be a qualified financial instru-
    10  ment, (ii) if the only loans that are marked to market by  the  taxpayer
    11  under section 475 or section 1256 of the internal revenue code are loans
    12  secured  by  real  property,  then no loans shall be qualified financial
    13  instruments, (iii) stock that is investment capital as defined in  para-
    14  graph (a) of subdivision four of section 11-652 of this subchapter shall
    15  not  be  a qualified financial instrument, and (iv) stock that generates
    16  other exempt income as defined in subdivision five-a of  section  11-652
    17  of this subchapter and that is not marked to market under section 475 or
    18  section  1256 of the internal revenue code shall not constitute a quali-
    19  fied financial instrument with respect to the  income  from  that  stock
    20  that  is  described  in  such  subdivision  five-a.  If a corporation is
    21  included in a combined report, the  definition  of  qualified  financial
    22  instrument  shall  be  determined on a combined basis.  In the case of a
    23  RIC or a REIT that is not a captive RIC or a captive REIT,  a  qualified
    24  financial  instrument  means  a  financial  instrument that is of a type
    25  described in any of clauses (i), (ii), (iii),  (iv),  (vii),  (viii)  or
    26  (ix)  of  subparagraph  two  of  this  paragraph,  other than (i) a loan
    27  secured by real property, (ii)  stock  that  is  investment  capital  as
    28  defined  in  paragraph (a) of subdivision four of section 11-652 of this
    29  subchapter, and (iii)  stock  that  generates  other  exempt  income  as
    30  defined  in subdivision five-a of section 11-652 of this subchapter with
    31  respect to the income from that stock that is described in such subdivi-
    32  sion five-a.
    33    § 5. This act shall take effect immediately and shall apply to taxable
    34  years beginning on or after January 1, 2016.
 
    35                                   PART WW
 
    36    Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
    37  by adding a new paragraph 44 to read as follows:
    38    (44)  monuments  as that term is defined in subdivision (f) of section
    39  fifteen hundred two of the not-for-profit corporation law.
    40    § 2. This act shall take effect on the first day of a sales tax  quar-
    41  terly period, as described in subdivision (b) of section 1136 of the tax
    42  law,  beginning  at least ninety days after the date this act shall have
    43  become a law and shall apply to sales made on or after such date.
 
    44                                   PART XX
 
    45    Section 1. Subdivision 3 of section 16-v of section 1 of  chapter  174
    46  of  the  laws of 1968, constituting the New York state urban development
    47  corporation act, is amended by adding a new paragraph  (e)  to  read  as
    48  follows:
    49    (e)  Notwithstanding  any  other  provision  of law to the contrary, a
    50  qualified entity that has previously been designated as a New York state
    51  incubator and has not fully disbursed any  grants  awarded  pursuant  to

        S. 2009--C                         92                         A. 3009--C
 
     1  this section, shall continue being designated as such by the corporation
     2  for an additional three years.
     3    § 2. This act shall take effect immediately.
 
     4                                   PART YY
 
     5    Section  1.  Subdivision  3 of section 355 of the economic development
     6  law, as amended by section 4 of part G of chapter  61  of  the  laws  of
     7  2011, is amended to read as follows:
     8    3.  Excelsior research and development tax credit component. A partic-
     9  ipant in the excelsior jobs program shall be eligible to claim a  credit
    10  equal  to  fifty  percent  of  the  portion of the participant's federal
    11  research and development tax credit that relates  to  the  participant's
    12  research and development expenditures in New York state during the taxa-
    13  ble  year;  provided however, the excelsior research and development tax
    14  credit shall not exceed [three] six percent of  the  qualified  research
    15  and development expenditures attributable to activities conducted in New
    16  York  state. If the federal research and development credit has expired,
    17  then the research and development expenditures relating to  the  federal
    18  research  and  development  credit shall be calculated as if the federal
    19  research and development credit structure and definition  in  effect  in
    20  two  thousand  nine  were  still  in effect.   Notwithstanding any other
    21  provision of this chapter to  the  contrary,  research  and  development
    22  expenditures  in  this state, including salary or wage expenses for jobs
    23  related to research and development activities in  this  state,  may  be
    24  used  as the basis for the excelsior research and development tax credit
    25  component and the  qualified  emerging  technology  company  facilities,
    26  operations and training credit under the tax law.
    27    § 2. This act shall take effect immediately and shall apply to taxable
    28  years beginning on or after January 1, 2018.
 
    29                                   PART ZZ
 
    30    Section  1.  Subdivision 16 of section 352 of the economic development
    31  law, as amended by section 1 of part K of chapter  59  of  the  laws  of
    32  2015, is amended and a new subdivision 20-a is added to read as follows:
    33    16. "Regionally significant project" means (a) a manufacturer creating
    34  at  least  [fifty]  ten net new jobs in the state and making significant
    35  capital investment in the state; (b) a business creating at least [twen-
    36  ty] ten net new jobs in agriculture in the state and making  significant
    37  capital investment in the state, (c) a financial services firm, distrib-
    38  ution  center,  or  back  office operation creating at least [three] one
    39  hundred net new jobs in the state and making significant capital invest-
    40  ment in the state, (d) a scientific research and development firm creat-
    41  ing at least [twenty] ten net new jobs in the state, and making  signif-
    42  icant  capital  investment  in the state or (e) an entertainment company
    43  creating or obtaining at least two hundred net new jobs in the state and
    44  making significant capital investment in  the  state.  Other  businesses
    45  creating [three] one hundred fifty or more net new jobs in the state and
    46  making  significant  capital  investment  in the state may be considered
    47  eligible as a regionally significant  project  by  the  commissioner  as
    48  well.  The commissioner shall promulgate regulations pursuant to section
    49  three hundred fifty-six of this article to determine  [what  constitutes
    50  significant  capital investment for each of the project categories indi-
    51  cated in this subdivision and] what additional criteria a business  must
    52  meet  to be eligible as a regionally significant project, including, but

        S. 2009--C                         93                         A. 3009--C

     1  not limited to, whether a business exports a substantial portion of  its
     2  products  or  services outside of the state or outside of a metropolitan
     3  statistical area or county within the state.
     4    20-a.  "Significant  capital investment" means a project which will be
     5  either a newly constructed facility or a newly constructed addition  to,
     6  expansion  of  or  improvement  of  a  facility,  consisting of tangible
     7  personal property and other tangible property, including  buildings  and
     8  structural  components  of  buildings,  that are depreciable pursuant to
     9  section one hundred sixty-seven of the internal  revenue  code,  have  a
    10  useful  life  of four years or more, are acquired by purchase as defined
    11  in section one hundred seventy-nine (d) of the  internal  revenue  code,
    12  and  that  is equal to or exceeds (a) one million dollars for a manufac-
    13  turer; (b) two hundred fifty thousand dollars for an  agriculture  busi-
    14  ness;  (c)  three  million dollars for a financial services firm or back
    15  office operation; (d) fifteen million dollars for a distribution center;
    16  (e) three million dollars for  a  scientific  research  and  development
    17  firm; or (f) three million dollars for other businesses.
    18    §  2.  Subdivisions 3 and 4 of section 353 of the economic development
    19  law, subdivision 3 as amended by section 2 of part K of  chapter  59  of
    20  the  laws of 2015 and subdivision 4 as amended by section 1 of part C of
    21  chapter 68 of the laws of 2013, are amended to read as follows:
    22    3. For the purposes of this article, in order to  participate  in  the
    23  excelsior  jobs  program,  a  business entity operating predominantly in
    24  manufacturing must create at least [ten] five net new jobs;  a  business
    25  entity  operating predominately in agriculture must create at least five
    26  net new jobs; a business entity operating predominantly as  a  financial
    27  service data center or financial services customer back office operation
    28  must create at least [fifty] twenty-five net new jobs; a business entity
    29  operating  predominantly  in  scientific  research  and development must
    30  create at least five net new jobs; a business entity operating  predomi-
    31  nantly in software development must create at least five net new jobs; a
    32  business entity creating or expanding back office operations must create
    33  at  least  [fifty] twenty-five net new jobs; a business entity operating
    34  predominately in music production must create  at  least  five  net  new
    35  jobs;  a  business  entity  operating  predominantly as an entertainment
    36  company must create or obtain at least one hundred net new  jobs;  or  a
    37  business  entity operating predominantly as a distribution center in the
    38  state must create at least [seventy-five] fifty net new  jobs,  notwith-
    39  standing  subdivision five of this section; or a business entity must be
    40  a regionally significant project as defined in this article; or
    41    4. A business entity operating predominantly in one of the  industries
    42  referenced  in  paragraphs  (a)  through  (h) of subdivision one of this
    43  section but which does not meet  the  job  requirements  of  subdivision
    44  three  of  this  section  must  have  at least twenty-five full-time job
    45  equivalents unless such business is a business entity operating predomi-
    46  nantly in manufacturing then it must have at least [ten] five  full-time
    47  job  equivalents  and must demonstrate that its benefit-cost ratio is at
    48  least ten to one.
    49    § 3. This act shall take effect immediately.
 
    50                                  PART AAA
 
    51    Section 1. Legislative intent. The purpose of this act  is  to  ensure
    52  the   safety,  reliability,  and  cost-effectiveness  of  transportation
    53  network company (TNC) services within the  state  of  New  York  and  to

        S. 2009--C                         94                         A. 3009--C
 
     1  preserve  and  enhance  access to these important transportation options
     2  for residents and visitors to the state.
     3    §  2.  The  vehicle and traffic law is amended by adding a new article
     4  44-B to read as follows:
     5                                ARTICLE 44-B
     6                   TRANSPORTATION NETWORK COMPANY SERVICES
     7  Section 1691. Definitions.
     8          1692. General provisions.
     9          1693. Financial responsibility of transportation network  compa-
    10                  nies.
    11          1694. Disclosures.
    12          1695. Insurance provisions.
    13          1696. Driver and vehicle requirements.
    14          1697. Maintenance of records.
    15          1698. Audit procedures; confidentiality of records.
    16          1699. Criminal   history   background  check  of  transportation
    17                  network company drivers.
    18          1700. Controlling authority.
    19    § 1691. Definitions. As  used  in  this  article:  1.  "Transportation
    20  network company vehicle" or "TNC vehicle" means a vehicle that is:
    21    (a)  used  by a transportation network company driver to provide a TNC
    22  prearranged trip originating within the state of New York; and
    23    (b) owned, leased or otherwise authorized for use by  the  transporta-
    24  tion network company driver;
    25    (c) such term shall not include:
    26    (i) a taxicab, as defined in section one hundred forty-eight-a of this
    27  chapter and section 19-502 of the administrative code of the city of New
    28  York, or as otherwise defined in local law;
    29    (ii)  a livery vehicle, as defined in section one hundred twenty-one-e
    30  of this chapter, or as otherwise defined in local law;
    31    (iii) a black car, limousine,  or  luxury  limousine,  as  defined  in
    32  section 19-502 of the administrative code of the city of New York, or as
    33  otherwise defined in local law;
    34    (iv)  a for-hire vehicle, as defined in section 19-502 of the adminis-
    35  trative code of the city of New York, or as otherwise defined  in  local
    36  law;
    37    (v) a bus, as defined in section one hundred four of this chapter;
    38    (vi)  any  motor  vehicle weighing more than six thousand five hundred
    39  pounds unloaded;
    40    (vii) any motor vehicle having a seating capacity of more  than  seven
    41  passengers; and
    42    (viii)  any  motor vehicle subject to section three hundred seventy of
    43  this chapter.
    44    2. "Digital network" means any system or service offered  or  utilized
    45  by  a  transportation network company that enables TNC prearranged trips
    46  with transportation network company drivers.
    47    3. "Transportation network company" or "TNC" means  a  person,  corpo-
    48  ration,  partnership,  sole  proprietorship,  or  other  entity  that is
    49  licensed pursuant to this article and is operating  in  New  York  state
    50  exclusively  using  a  digital network to connect transportation network
    51  company passengers to transportation network company drivers who provide
    52  TNC prearranged trips.
    53    4. "Transportation network company driver" or "TNC  driver"  means  an
    54  individual who:

        S. 2009--C                         95                         A. 3009--C
 
     1    (a)  Receives connections to potential passengers and related services
     2  from a transportation network company in exchange for payment of  a  fee
     3  to the transportation network company; and
     4    (b)  Uses  a TNC vehicle to offer or provide a TNC prearranged trip to
     5  transportation network company  passengers  upon  connection  through  a
     6  digital  network  controlled  by  a  transportation  network  company in
     7  exchange for compensation or payment of a fee.
     8    5. "Transportation network company passenger" or "passenger"  means  a
     9  person  or  persons  who  use a transportation network company's digital
    10  network to connect with a  transportation  network  company  driver  who
    11  provides  TNC  prearranged  trips  to  the  passenger in the TNC vehicle
    12  between points chosen by the passenger.
    13    6. (a) "TNC prearranged trip" or "trip" means the provision of  trans-
    14  portation  by  a  transportation  network  company driver to a passenger
    15  provided through the use of a TNC's digital network:
    16    (i) beginning when a transportation network company driver  accepts  a
    17  passenger's request for a trip through a digital network controlled by a
    18  transportation network company;
    19    (ii) continuing while the transportation network company driver trans-
    20  ports the requesting passenger in a TNC vehicle; and
    21    (iii)  ending  when the last requesting passenger departs from the TNC
    22  vehicle.
    23    (b) The term "TNC prearranged trip" does  not  include  transportation
    24  provided through any of the following:
    25    (i) shared expense carpool or vanpool arrangements, including those as
    26  defined in section one hundred fifty-eight-b of this chapter; and
    27    (ii)  use  of  a  taxicab, livery, luxury limousine, or other for-hire
    28  vehicle, as defined in this chapter, section 19-502 of  the  administra-
    29  tive code of the city of New York, or as otherwise defined in local law.
    30    7. "Group policy" means an insurance policy issued pursuant to section
    31  three thousand four hundred fifty-five of the insurance law.
    32    §  1692.  General  provisions.   1. A TNC or a TNC driver shall not be
    33  deemed a common carrier, as defined in subdivision six of section two of
    34  the transportation law; a contract carrier of passengers by motor  vehi-
    35  cle, as defined in subdivision nine of section two of the transportation
    36  law;  or a motor carrier, as defined in subdivision seventeen of section
    37  two of the transportation law. Neither a TNC nor a TNC driver  shall  be
    38  deemed to provide taxicab or for-hire vehicle service while operating as
    39  a  TNC  or  TNC  driver pursuant to this article. Moreover, a TNC driver
    40  shall not be required to register the TNC vehicle such TNC  driver  uses
    41  for  TNC  prearranged  trips as a commercial or for-hire vehicle, as set
    42  forth in article fourteen of this chapter.
    43    2. (a) A TNC may not operate in the state of New  York  without  first
    44  having  obtained a license issued by the department in a form and manner
    45  and with applicable fees as provided for by regulations  promulgated  by
    46  the commissioner.  As a condition of obtaining a license, a TNC shall be
    47  required  to  submit  to  the  department proof of a group policy issued
    48  pursuant to section three thousand four hundred fifty-five of the insur-
    49  ance law. Failure of a TNC to comply with the provisions of this article
    50  may result in applicable penalties,  which  may  include,  but  are  not
    51  limited  to  fines, suspension or revocation of license or a combination
    52  thereof as otherwise provided by law. No license shall be  suspended  or
    53  revoked  except  upon  notice  to the TNC and after an opportunity to be
    54  heard.
    55    (b) Failure of a TNC to obtain a license before operation, pursuant to
    56  this subdivision shall constitute a misdemeanor.

        S. 2009--C                         96                         A. 3009--C
 
     1    3. A TNC must maintain an agent for service of process in the state of
     2  New York.
     3    4. On behalf of a TNC driver, a TNC may charge a fare for the services
     4  rendered  to  passengers;  provided  that, if a fare is collected from a
     5  passenger, the TNC shall disclose to such passenger the fare within  the
     6  TNC's  digital  network.   The TNC shall also provide passengers, before
     7  such passengers enter a TNC vehicle, the actual  fare  or  an  estimated
     8  fare  for  such  TNC prearranged trip through the TNC's digital network.
     9  The TNC shall also post the fair calculation method on its website.
    10    5. A TNC's digital network shall display a picture of the TNC  driver,
    11  and  provide  the make, model, color and license plate number of the TNC
    12  vehicle utilized for providing  the  TNC  prearranged  trip  before  the
    13  passenger enters the TNC vehicle.
    14    6.  Within  a  reasonable period of time following the completion of a
    15  trip, a TNC shall transmit an electronic receipt  to  the  passenger  on
    16  behalf of the TNC driver that lists:
    17    (a) The origin and destination of the trip;
    18    (b) The total time and distance of the trip;
    19    (c) An itemization of the total fare paid, if any;
    20    (d)  A  separate  statement  of  the  applicable  assessment  fee  and
    21  surcharge; and
    22    (e) The TNC name and operating license number.
    23    7. A TNC driver shall not solicit or accept street hails.
    24    8. A TNC shall adopt a policy prohibiting solicitation  or  acceptance
    25  of cash payments for the fares charged to passengers for TNC prearranged
    26  trips  and  notify  TNC  drivers of such policy.   TNC drivers shall not
    27  solicit or accept cash payments from passengers.
    28    9. A TNC shall prevent a TNC driver  from  accepting  TNC  prearranged
    29  trips within a city of a population of one million or more and any coun-
    30  ty or city that has enacted a local law or ordinance pursuant to section
    31  one hundred eighty-two of the general municipal law and has not repealed
    32  such  local  law  or  ordinance, except where the acceptance of a prear-
    33  ranged trip is authorized pursuant to an existing reciprocity agreement.
    34    10. Nothing in this article shall apply to cities with a population of
    35  one million or more.
    36    § 1693.  Financial responsibility of transportation network companies.
    37  1. A TNC driver, or TNC on the TNC driver's behalf through a group poli-
    38  cy, shall maintain insurance that recognizes that the driver  is  a  TNC
    39  driver and provides financial responsibility coverage:
    40    (a) while the TNC driver is logged onto the TNC's digital network; and
    41    (b) while the TNC driver is engaged in a TNC prearranged trip.
    42    2.  (a)  The  following  automobile financial responsibility insurance
    43  requirements shall apply while a TNC driver is  logged  onto  the  TNC's
    44  digital  network but is not engaged in a TNC prearranged trip: insurance
    45  against loss from the liability imposed by law  for  damages,  including
    46  damages  for  care  and loss of services, because of bodily injury to or
    47  death of any person, and injury to or destruction  of  property  arising
    48  out  of the ownership, maintenance, use or operation of a personal vehi-
    49  cle or vehicles within this state, or elsewhere in the United States  in
    50  North  America  or Canada, subject to a limit, exclusive of interest and
    51  costs, with respect to each such occurrence, of  at  least  seventy-five
    52  thousand  dollars  because of bodily injury to or death of one person in
    53  any one accident and, subject to said limit for one person, to  a  limit
    54  of  at least one hundred fifty thousand dollars because of bodily injury
    55  to or death of two or more persons in any one accident, and to  a  limit
    56  of  at  least  twenty-five  thousand  dollars  because  of  injury to or

        S. 2009--C                         97                         A. 3009--C
 
     1  destruction of property of others in any one accident, provided however,
     2  that such policy need not be for a period coterminous with the registra-
     3  tion period of the personal vehicle insured, and coverage  in  satisfac-
     4  tion  of  the financial responsibility requirements set forth in section
     5  three thousand four hundred twenty of the insurance law, article  fifty-
     6  one  of  the  insurance  law, and such other requirements or regulations
     7  that may apply for the purposes of satisfying the financial responsibil-
     8  ity requirements with respect to the use or operation of a  motor  vehi-
     9  cle.
    10    (b) The coverage requirements of paragraph (a) of this subdivision may
    11  be satisfied by any of the following:
    12    (i) insurance maintained by the TNC driver; or
    13    (ii)  insurance provided through a group policy maintained by the TNC;
    14  or
    15    (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
    16    3. (a) The following  automobile  financial  responsibility  insurance
    17  requirements  shall  apply while a TNC driver is engaged in a TNC prear-
    18  ranged trip: insurance against loss from the liability  imposed  by  law
    19  for damages, including damages for care and loss of services, because of
    20  bodily injury to or death of any person, and injury to or destruction of
    21  property arising out of the ownership, maintenance, use, or operation of
    22  a  specific personal vehicle or vehicles within this state, or elsewhere
    23  in the United States in North America or Canada,  subject  to  a  limit,
    24  exclusive  of  interest and costs, with respect to each such occurrence,
    25  of at least one million two hundred fifty thousand  dollars  because  of
    26  bodily injury to or death of any person, and injury to or destruction of
    27  property  provided  however,  that  such policy need not be for a period
    28  coterminous  with  the  registration  period  of  the  personal  vehicle
    29  insured,  and  coverage  in satisfaction of the financial responsibility
    30  requirements set forth in section three thousand four hundred twenty  of
    31  the  insurance  law,  article  fifty-one  of the insurance law; coverage
    32  provided in accordance with subsection (f)  of  section  three  thousand
    33  four  hundred  twenty  of  the  insurance  law,  providing supplementary
    34  uninsured/underinsured motorist insurance  for  bodily  injury,  in  the
    35  amount  of  one  million  two  hundred fifty thousand dollars because of
    36  bodily injury to or death of any person in any one  accident;  and  such
    37  other  requirements  or  regulations  that may apply for the purposes of
    38  satisfying the financial responsibility requirements with respect to the
    39  use or operation of a motor vehicle.
    40    (b) The coverage requirements of paragraph (a) of this subdivision may
    41  be satisfied by any of the following:
    42    (i) insurance maintained by the TNC driver; or
    43    (ii) insurance provided through a group policy maintained by the  TNC;
    44  or
    45    (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
    46    4.  A TNC shall, upon entering into a contractual agreement with a TNC
    47  driver, provide notice to the TNC driver that he or she may  need  addi-
    48  tional insurance coverage including motor vehicle physical damage cover-
    49  age  as described in paragraph nineteen of subsection (a) of section one
    50  thousand one hundred thirteen of the insurance law if  the  TNC  vehicle
    51  being  used by the TNC driver is subject to a lease or loan. A TNC shall
    52  also post this notice on its website in a prominent place,  and  provide
    53  contact information for the department of financial services.
    54    5.  If  insurance  maintained by a TNC driver pursuant to subdivisions
    55  two and three of this  section  has  lapsed  or  does  not  provide  the
    56  required  coverage,  then  the  group  policy  maintained by a TNC shall

        S. 2009--C                         98                         A. 3009--C
 
     1  provide the coverage required by this section beginning with  the  first
     2  dollar of a claim and have the duty to defend such claim.
     3    6.  Coverage  under  a group policy maintained by the TNC shall not be
     4  dependent on the denial of a claim by the insurer that issued the insur-
     5  ance policy used to register the TNC vehicle, nor shall that insurer  be
     6  required to first deny a claim.
     7    7.  (a)  Except  as  provided  in paragraph (b) of this subdivision, a
     8  group policy maintained by a TNC pursuant to subparagraph (ii) of  para-
     9  graph  (b)  of subdivisions two or three of this section shall be placed
    10  with an insurer authorized to write insurance in this state.
    11    (b) If a TNC is unable to purchase a group policy pursuant to subpara-
    12  graph (ii) of paragraph (b) of subdivisions two or three of this section
    13  because such insurance is unavailable from authorized insurers  the  TNC
    14  may  acquire such group insurance with an excess line broker pursuant to
    15  section two thousand one hundred eighteen of the insurance law.
    16    (c) The obligation to determine whether the insurance required by this
    17  section is unavailable from insurers authorized to  write  insurance  in
    18  this  state  shall  be  made  prior to the initial placement and at each
    19  renewal of a policy.
    20    8.  A TNC driver who, while operating a TNC vehicle was logged  on  to
    21  the  TNC's  digital network but not engaged in a TNC prearranged trip or
    22  was engaged in a TNC prearranged trip, and has in effect  the  insurance
    23  required  pursuant  to  this  article,  shall  not  be  deemed  to be in
    24  violation of article six of this chapter during such time that he or she
    25  was logged on to the TNC's digital network but  not  engaged  in  a  TNC
    26  prearranged trip or was engaged in a TNC prearranged trip.
    27    9.  A TNC driver shall carry proof of coverage satisfying subdivisions
    28  two and three of this section with him or her at all times during his or
    29  her use or operation of a TNC vehicle in connection with a TNC's digital
    30  network. Such proof of coverage shall be in such form as the commission-
    31  er shall prescribe, which may be in the form of an insurance identifica-
    32  tion card as defined in section three hundred eleven  of  this  chapter.
    33  Any  insurance  identification card issued pursuant to the provisions of
    34  this article shall be in addition to the insurance  identification  card
    35  required  pursuant to article six of this chapter, and nothing contained
    36  in this article shall be deemed to supersede the  requirements  of  such
    37  article six. Whenever the production of an insurance identification card
    38  is  required  by law, a TNC driver shall (a) produce the insurance iden-
    39  tification card issued pursuant to article six of this chapter and,  (b)
    40  if  such  driver  (i)  was logged onto the TNC's digital network but not
    41  engaged in a TNC prearranged trip or (ii) was engaged in  a  TNC  prear-
    42  ranged trip, such driver shall also produce the insurance identification
    43  card required pursuant to this article.
    44    10.  The  superintendent  of financial services is authorized to issue
    45  such rules and regulations necessary to implement this section.
    46    11. The superintendent of  financial  services  may  promulgate  regu-
    47  lations  to  address  insurance  coverage under this section and section
    48  sixteen hundred ninety-five of this  article  when  a  TNC  driver  uses
    49  multiple digital networks simultaneously.
    50    12.  Nothing  in  this  section  shall impose financial responsibility
    51  requirements upon any entities operating as vehicles for hire in a  city
    52  with a population of one million or more.
    53    13.  An  insurer shall not include a mandatory arbitration clause in a
    54  policy issued pursuant to this section. Nothing in this  section  super-
    55  cedes  the  mandatory arbitration requirements contained in section five
    56  thousand one hundred five of the insurance law.

        S. 2009--C                         99                         A. 3009--C
 
     1    § 1694. Disclosures. A TNC shall disclose in writing  to  TNC  drivers
     2  the  following  before  they  are  allowed to accept a request for a TNC
     3  prearranged trip on the TNC's digital network:
     4    1.  The  insurance  coverage,  including the types of coverage and the
     5  limits for each coverage, that the TNC provides  while  the  TNC  driver
     6  uses a TNC vehicle in connection with a TNC's digital network;
     7    2.  That  the  TNC  driver's own automobile insurance policy might not
     8  provide any coverage while the TNC driver is  logged  on  to  the  TNC's
     9  digital  network  or  is engaged in a TNC prearranged trip, depending on
    10  its terms; and
    11    3. That, if a TNC vehicle has a lien against it,  then  the  continued
    12  use of such TNC vehicle by its TNC driver without physical damage cover-
    13  age may violate the terms of the contract with the lienholder.
    14    §  1695.  Insurance provisions. 1.   Insurers that write motor vehicle
    15  insurance in this state may, in the insurance policy,  exclude  any  and
    16  all coverage afforded under the policy issued to an owner or operator of
    17  a  TNC  vehicle for any loss or injury that occurs while a TNC driver is
    18  logged on to a TNC's digital network or while a driver  provides  a  TNC
    19  prearranged trip, including:
    20    (a) liability coverage for bodily injury and property damage;
    21    (b)  coverage  provided pursuant to article fifty-one of the insurance
    22  law;
    23    (c) uninsured motorist coverage;
    24    (d) supplementary uninsured/underinsured motorist coverage; and
    25    (e) motor vehicle physical damage coverage as described  in  paragraph
    26  nineteen  of subsection (a) of section one thousand one hundred thirteen
    27  of the insurance law.
    28    2. Such exclusions shall apply notwithstanding any  requirement  under
    29  the  law  to the contrary.   Nothing in this section implies or requires
    30  that an owner's policy of liability insurance  or  other  motor  vehicle
    31  insurance  policy  provide coverage while the TNC driver is logged on to
    32  the TNC's digital network, while the TNC driver  is  engaged  in  a  TNC
    33  prearranged  trip  or  while the TNC driver otherwise uses or operates a
    34  TNC vehicle to transport passengers for compensation.
    35    3. Nothing shall be deemed  to  preclude  an  insurer  from  providing
    36  primary,  excess, or umbrella coverage for the TNC driver's TNC vehicle,
    37  if it chose to do so by contract or endorsement.
    38    4. Motor vehicle insurers that exclude the coverage described in  this
    39  article  shall  have  no duty to defend or indemnify any claim expressly
    40  excluded thereunder.  Nothing in this article shall be deemed to invali-
    41  date or limit an exclusion contained in a policy including any policy in
    42  use or approved for use in this state prior to  the  effective  date  of
    43  this section.
    44    5. A motor vehicle insurer that defends or indemnifies a claim against
    45  a TNC driver that is excluded under the terms of its policy shall have a
    46  right  of contribution against other insurers that provide motor vehicle
    47  insurance to the same driver in satisfaction of  the  coverage  require-
    48  ments of the provisions of this article.
    49    6. In a claims coverage investigation, a TNC and any insurer providing
    50  coverage under this article shall, within fifteen days after a claim has
    51  been filed, facilitate the exchange of relevant information with direct-
    52  ly  involved  parties  and  any insurer of the TNC driver if applicable,
    53  including the precise times that a TNC driver logged on and off  of  the
    54  TNC's  digital  network  in the twelve hour period immediately preceding
    55  and in the twelve hour period immediately  following  the  accident  and
    56  disclose  to one another a clear description of the coverage, exclusions

        S. 2009--C                         100                        A. 3009--C
 
     1  and limits provided under any motor vehicle insurance  maintained  under
     2  this article.
     3    7.  The superintendent of financial services may promulgate such rules
     4  and regulations that the superintendent deems  necessary  to  facilitate
     5  the  sharing of information between insurers, when a motor vehicle acci-
     6  dent occurs and at least one of  the  insurers  is  providing  financial
     7  responsibility coverage to a TNC vehicle pursuant to this article.
     8    8. The commissioner shall provide relevant insurance coverage informa-
     9  tion required by this article to the following persons upon request:
    10    (a)  a  person  to whom an accident report pertains or who is named in
    11  such report, or his or her authorized representative; and
    12    (b) any other person or his or her authorized representative  who  has
    13  demonstrated to the satisfaction of the commissioner that such person is
    14  or may be a party to a civil action arising out of the conduct described
    15  in such accident report.
    16    § 1696. Driver and vehicle requirements. 1. (a) At all times, an indi-
    17  vidual acting as a TNC driver shall be permitted by the TNC as follows:
    18    (i) The individual shall submit an application to the TNC, which shall
    19  include information regarding his or her address, age, driver's license,
    20  motor  vehicle  registration,  automobile liability insurance, and other
    21  information required by the TNC;
    22    (ii) The TNC shall conduct, or have a third party conduct, a  criminal
    23  background  check  for each applicant in accordance with section sixteen
    24  hundred ninety-nine of this article and that shall  review  whether  the
    25  applicant:
    26    (A)  is listed on the New York state sex offender registry pursuant to
    27  article six-C of the correction law; and
    28    (B) is a match in the United States Department of Justice National Sex
    29  Offender Public Website;
    30    (iii) The TNC shall obtain and review, or have a  third  party  obtain
    31  and review, a driving history research report for such individual.
    32    (b) The TNC shall not permit an applicant where such applicant:
    33    (i)  fails  to  meet  all  qualifications  pursuant to section sixteen
    34  hundred ninety-nine of this article;
    35    (ii) is a match in the United States Department  of  Justice  National
    36  Sex Offender Public Website;
    37    (iii) does not possess a valid New York driver's license;
    38    (iv)  does  not  possess  proof of registration for the motor vehicles
    39  used to provide TNC prearranged trips;
    40    (v) does not possess proof of automobile liability insurance  for  the
    41  motor  vehicles  used to provide TNC prearranged trips as a TNC vehicle;
    42  or
    43    (vi) is not at least nineteen years of age.
    44    (c) Upon review of all information received and retained  by  the  TNC
    45  and  upon  verifying that the individual is not disqualified pursuant to
    46  this section from receiving a TNC driver permit, a TNC may issue  a  TNC
    47  driver  permit  to  the  applicant. The TNC shall review all information
    48  received relating to such applicant and hold such  information  for  six
    49  years  along  with  a  certification  that  such  applicant qualifies to
    50  receive a TNC driver permit.
    51    (d) (i) A TNC that issues a  TNC  driver's  permit  pursuant  to  this
    52  section  shall  participate  in  the New York License Event Notification
    53  Service (LENS) established by the department  to  obtain  timely  notice
    54  when any of the following violations are added to a TNC driver's driving
    55  record:

        S. 2009--C                         101                        A. 3009--C
 
     1    (A)  unlawfully  fleeing  a  police  officer  in  a  motor  vehicle in
     2  violation of sections 270.25, 270.30 or 270.35 of the penal law;
     3    (B)  reckless driving in violation of section one thousand two hundred
     4  twelve of this chapter;
     5    (C) operating while license or privilege is suspended  or  revoked  in
     6  violation  of  section  five  hundred  eleven of this chapter, excluding
     7  subdivision seven of such section;
     8    (D) operating a motor vehicle under the influence of alcohol or  drugs
     9  in  violation  of  section  one  thousand one hundred ninety-two of this
    10  chapter; and
    11    (E) leaving the scene of an incident without reporting in violation of
    12  subdivision two of section six hundred of this chapter.
    13    (ii) The department may promulgate regulations authorizing  additional
    14  LENS notifications as the commissioner deems necessary to protect public
    15  health and safety.
    16    (iii)  Upon  such notice, a TNC may suspend or revoke any TNC driver's
    17  permit and revoke access to the TNC digital network, only after  consid-
    18  ering  the  number  or  severity  of any such violations, including such
    19  factors as required by this article for obtaining  a  TNC  permit,  when
    20  necessary  to  protect  public  health  and  safety. If, however, such a
    21  notice provides that an applicant has been convicted of a  disqualifying
    22  crime  pursuant  to  section sixteen hundred ninety-nine of this article
    23  such TNC driver's access to the TNC digital network and such  TNC  driv-
    24  er's  permit  shall  both immediately be suspended or revoked. Upon such
    25  revocation or suspension pursuant to this section, the TNC shall provide
    26  the driver with a copy of the LENS record used  to  make  such  determi-
    27  nation.
    28    (e)  No  person shall operate a TNC vehicle or operate as a TNC driver
    29  unless such person holds a valid TNC driver permit  issued  pursuant  to
    30  this  section.  A violation of this paragraph shall be a traffic infrac-
    31  tion punishable by a fine of not less than seventy-five  nor  more  than
    32  three  hundred  dollars,  or  by  imprisonment for not more than fifteen
    33  days, or by both such fine and imprisonment.
    34    (f) The names and identifying  information  of  TNC  drivers  provided
    35  pursuant to paragraph (d) of this subdivision shall be considered infor-
    36  mation,  which if disclosed, would constitute an unwarranted invasion of
    37  personal privacy under the provisions of article six of the public offi-
    38  cers law.
    39    2. A TNC shall implement a zero-tolerance policy regarding a TNC driv-
    40  er's activities while accessing the TNC's digital network.  Such  policy
    41  shall  address  the  issue of operating a vehicle under the influence of
    42  alcohol or drugs while a TNC driver is providing TNC  prearranged  trips
    43  or  is  logged  onto  the TNC's digital network but is not providing TNC
    44  prearranged trips, and the TNC shall provide notice of  this  policy  on
    45  its digital network, as well as procedures to report a complaint about a
    46  TNC  driver  with whom a TNC prearranged trip was commenced and whom the
    47  passenger reasonably suspects was operating a vehicle under  the  influ-
    48  ence of alcohol or drugs during the course of the TNC prearranged trip.
    49    3.  (a)  A TNC shall adopt a policy of non-discrimination on the basis
    50  of destination, race, color, national origin, religious belief, practice
    51  or affiliation, sex, disability, age,  sexual  orientation,  or  genetic
    52  predisposition  with  respect to passengers and potential passengers and
    53  notify TNC drivers of such policy.
    54    (b) TNC drivers shall comply with all applicable laws  regarding  non-
    55  discrimination  against  passengers or potential passengers on the basis
    56  of destination, race, color, national origin, religious belief, practice

        S. 2009--C                         102                        A. 3009--C
 
     1  or affiliation, sex, disability, age,  sexual  orientation,  or  genetic
     2  predisposition  with  respect to passengers and potential passengers and
     3  notify TNC drivers of such policy.
     4    (c)  TNC  drivers  shall  comply  with all applicable laws relating to
     5  accommodation of service animals.
     6    (d) A TNC shall implement and maintain a policy and an oversight proc-
     7  ess of providing accessibility to  passengers  or  potential  passengers
     8  with  a  disability and accommodation of service animals as such term is
     9  defined in section one hundred twenty-three-b  of  the  agriculture  and
    10  markets  law  and  shall to the extent practicable adopt findings estab-
    11  lished by the New York state TNC accessibility task force adopted pursu-
    12  ant to section twenty-one of the chapter of the  laws  of  two  thousand
    13  seventeen  that  added this section.   A TNC shall not impose additional
    14  charges for providing services to  persons  with  physical  disabilities
    15  because of those disabilities.
    16    (e) The New York state division of human rights shall be authorized to
    17  accept,  review  and  investigate  any potential or actual violations of
    18  this subdivision in a form and manner consistent  with  authority  under
    19  article  fifteen  of  the executive law and shall notify the department,
    20  upon a finding of a violation, for purposes of permit suspension.
    21    4. A TNC shall require that any or all motor vehicles that a TNC driv-
    22  er will use as a TNC vehicle to  provide  TNC  prearranged  trips  meets
    23  applicable  New York state vehicle safety and emissions requirements, as
    24  set forth in section three hundred one of this chapter, or  the  vehicle
    25  safety  and  emissions requirements of the state in which the vehicle is
    26  registered.
    27    5. The department shall promulgate regulations to ensure that each TNC
    28  vehicle is easily identified as such and that the TNC for which the  TNC
    29  driver  is  providing the TNC service or TNC prearranged trip is distin-
    30  guishable. Such marking shall be in such form  as  is  approved  by  the
    31  commissioner, and shall be attached, affixed or displayed in such manner
    32  as he or she may prescribe by regulation.
    33    §  1697.  Maintenance  of  records. A TNC shall maintain the following
    34  records:
    35    1. individual trip records for at least six years from the  date  each
    36  trip was provided; and
    37    2. individual records of TNC drivers at least until the six year anni-
    38  versary  of  the  date on which a TNC driver's relationship with the TNC
    39  has ended.
    40    § 1698. Audit procedures;  confidentiality  of  records.  1.  For  the
    41  purpose  of  verifying  that  a  TNC is in compliance with the licensing
    42  requirements of the department, the department shall reserve  the  right
    43  to  audit a sample of records that the TNC is required to maintain, upon
    44  request by the department that shall be fulfilled in no fewer  than  ten
    45  business  days  by  the  TNC. The sample shall be chosen randomly by the
    46  department in a manner agreeable to both parties. The audit  shall  take
    47  place  at  a  mutually  agreed  location  in  New York state. Any record
    48  furnished to the department may exclude information that would  tend  to
    49  identify specific drivers or passengers.
    50    2.  The  names  and  identifying  information  of TNC drivers that are
    51  received pursuant to this section shall be considered information which,
    52  if disclosed, would  constitute  an  unwarranted  invasion  of  personal
    53  privacy under the provisions of article six of the public officers law.
    54    3.  The  department  shall  establish  regulations  for  the filing of
    55  complaints against any TNC driver or TNC pursuant to this section.

        S. 2009--C                         103                        A. 3009--C
 
     1    § 1699. Criminal history background check  of  transportation  network
     2  company  drivers. 1. A TNC shall conduct, or have a third party conduct,
     3  a criminal history background check using a lawful  method  approved  by
     4  the  department  pursuant  to  paragraph  (a) of subdivision two of this
     5  section for persons applying to drive for such company.
     6    2.  (a) The method used to conduct a criminal history background check
     7  pursuant to subdivision one of this  section  shall  be  established  in
     8  regulations  adopted  by the department within thirty days of the effec-
     9  tive date of this subdivision. To ensure safety of  the  passengers  and
    10  the  public  such regulations shall establish the method used to conduct
    11  such background checks and any processes  and  operations  necessary  to
    12  complete  such  checks.  The  review of criminal history information and
    13  determinations about whether or not an applicant is issued a TNC  driver
    14  permit shall be controlled by paragraphs (b), (c) and (d) of this subdi-
    15  vision.
    16    (b)  An applicant shall be disqualified to receive a TNC driver permit
    17  where he or she:
    18    (i) stands convicted in the last three years of:  unlawful  fleeing  a
    19  police  officer  in  a  motor  vehicle  in violation of sections 270.35,
    20  270.30 or 270.25 of the penal law,  reckless  driving  in  violation  of
    21  section  twelve  hundred twelve of this chapter, operating while license
    22  or privilege is suspended  or  revoked  in  violation  of  section  five
    23  hundred  eleven  of  this  chapter,  excluding subdivision seven of such
    24  section, a misdemeanor offense of operating a motor vehicle while  under
    25  the influence of alcohol or drugs in violation of section eleven hundred
    26  ninety-two  of  this  chapter,  or  leaving  the scene of an accident in
    27  violation of subdivision two of section six hundred of this chapter.  In
    28  calculating the three year period under this subparagraph, any period of
    29  time  during  which  the person was incarcerated after the commission of
    30  such offense shall be excluded and  such  three  year  period  shall  be
    31  extended by a period or periods equal to the time spent incarcerated; or
    32    (ii)  stands  convicted  in  the  last  seven  years of: a sex offense
    33  defined in subdivision two of section one hundred sixty-eight-a  of  the
    34  correction  law, a felony offense defined in article one hundred twenty-
    35  five of the penal law, a violent felony offense defined in section 70.02
    36  of the penal law, a class A felony offense defined in the penal  law,  a
    37  felony  offense  defined  in  section  eleven hundred ninety-two of this
    38  chapter, an offense for which registration as a sex offender is required
    39  pursuant to article six-C of the correction law, or any conviction of an
    40  offense in any other jurisdiction that has all the essential elements of
    41  an offense listed in this subparagraph. In calculating  the  seven  year
    42  period  under  this  subparagraph,  any  period of time during which the
    43  person was incarcerated after the commission of such  offense  shall  be
    44  excluded  and  such  seven  year period shall be extended by a period or
    45  periods equal to the time spent incarcerated.
    46    (c) A criminal history record that contains criminal conviction infor-
    47  mation that does not disqualify an applicant pursuant  to  subparagraphs
    48  (i)  or (ii) of paragraph (b) of this subdivision, shall be reviewed and
    49  considered according to the provisions of article twenty-three-A of  the
    50  correction  law  and  subdivisions  fifteen  and  sixteen of section two
    51  hundred ninety-six of the executive law in determining  whether  or  not
    52  the applicant should be issued a TNC driver's permit.
    53    (d)  Upon  receipt of criminal conviction information pursuant to this
    54  section for any applicant, such applicant  shall  promptly  be  provided
    55  with  a  copy  of  such information as well as a copy of article twenty-
    56  three-A of the correction law. Such applicant shall also be informed  of

        S. 2009--C                         104                        A. 3009--C
 
     1  his  or  her  right  to  seek  correction  of  any incorrect information
     2  contained in such criminal history information  pursuant  to  the  regu-
     3  lations  and  procedures established by the division of criminal justice
     4  services.
     5    (e)  The  department  shall  promulgate regulations for the purpose of
     6  implementing the provisions of this subdivision.
     7    3. A TNC shall update the criminal  history  background  check  yearly
     8  during  the  period  in  which the person is authorized to drive for the
     9  company, however, the commissioner may require, pursuant to  regulation,
    10  more frequent criminal history background checks.
    11    4.  To  ensure  safety of the passengers and the public a TNC shall be
    12  responsible for all fees associated  with  the  criminal  history  check
    13  pursuant to subdivision one of this section.
    14    5.  Any TNC found to have violated any requirements established pursu-
    15  ant to this section, shall on the first instance, be subject to a  civil
    16  penalty  of  not  more  than  ten  thousand  dollars. For any subsequent
    17  instance within the period of two years from any initial violation, such
    18  TNC shall be subject to a civil penalty of not more than fifty  thousand
    19  dollars, or the suspension or revocation of its TNC license or both.
    20    §  1700. Controlling authority. 1. Notwithstanding any other provision
    21  of law, the regulation of TNCs and TNC drivers is  governed  exclusively
    22  by  the  provisions of the chapter of the laws of two thousand seventeen
    23  which added this section and any rules promulgated by the state  through
    24  its  agencies  consistent  with  such  chapter. No county, town, city or
    25  village may enact a tax or any fee or other surcharge on a  TNC,  a  TNC
    26  driver,  or  a  TNC  vehicle  used by a TNC driver or require a license,
    27  permit, or additional insurance coverage or  any  other  limitations  or
    28  restrictions,  except  for  a prohibition on pick-up pursuant to section
    29  one hundred eighty-two of the general municipal law, for a  TNC,  a  TNC
    30  driver,  or  a  TNC  vehicle  used  by  a  TNC  driver,  where such fee,
    31  surcharge, unauthorized tax, license, permit, insurance coverage,  limi-
    32  tation  or  restriction, relates to facilitating or providing TNC prear-
    33  ranged trips, or subjects a TNC, a TNC driver, or a TNC vehicle used  by
    34  a TNC driver to operational, or other requirements.
    35    2. Nothing in this article shall authorize any TNC driver to pick-up a
    36  passenger  for purposes of a TNC prearranged trip in a city with a popu-
    37  lation of one million or more or where a county or  city  has  opted  to
    38  prohibit  the  same  pursuant  to  authority consistent with section one
    39  hundred eighty-two of  the  general  municipal  law,  except  where  the
    40  acceptance  of  a prearranged trip is authorized pursuant to an existing
    41  reciprocity agreement.
    42    3. Nothing in this article shall: (a) limit the ability of  a  county,
    43  town, city or village to adopt or amend generally applicable limitations
    44  or  restrictions relating to local traffic or parking control as author-
    45  ized by state law; or (b) preempt any reciprocity agreements,  including
    46  agreements entered into pursuant to section four hundred ninety-eight of
    47  this  chapter,  between  a county, town, city or village that relates to
    48  services regulated by section one  hundred  eighty-one  of  the  general
    49  municipal law.
    50    4.  Nothing in this article shall be construed to limit the ability of
    51  a municipality or other governing authority that  owns  or  operates  an
    52  airport  located  outside  of a city with a population of one million or
    53  more from adopting regulations and  entering  into  contracts  or  other
    54  agreements  relating to the duties and responsibilities on airport prop-
    55  erty of a transportation network company, which may include the  imposi-
    56  tion  and  payment of reasonable fees, provided that any such contracts,

        S. 2009--C                         105                        A. 3009--C
 
     1  agreements, or regulations shall not impose any license or other  opera-
     2  tional  requirement on a transportation network company driver or trans-
     3  portation network company vehicle that is  inconsistent  with  or  addi-
     4  tional to the requirements of this article.
     5    § 3. Section 370 of the vehicle and traffic law is amended by adding a
     6  new subdivision 8 to read as follows:
     7    8.  Notwithstanding any other provision of this article, an individual
     8  shall not be deemed to be engaged in the business of carrying or  trans-
     9  porting passengers for hire if the individual does so solely as a trans-
    10  portation network company driver in accordance with article forty-four-B
    11  of this chapter.
    12    § 4. Section 600 of the vehicle and traffic law, as amended by chapter
    13  49 of the laws of 2005, is amended to read as follows:
    14    § 600. Leaving  scene  of  an  incident without reporting. 1. Property
    15  damage. a. Any person operating a motor vehicle who, knowing  or  having
    16  cause to know that damage has been caused to the real property or to the
    17  personal property, not including animals, of another, due to an incident
    18  involving  the motor vehicle operated by such person shall, before leav-
    19  ing the place where the  damage  occurred,  stop,  exhibit  his  or  her
    20  license  and  insurance  identification card for such vehicle, when such
    21  card is required pursuant to articles six and eight of this chapter, and
    22  give his or her name, residence, including street and number,  insurance
    23  carrier  and  insurance  identification  information  including  but not
    24  limited to the number and effective dates of said individual's insurance
    25  policy, and license number to the party sustaining  the  damage,  or  in
    26  case  the person sustaining the damage is not present at the place where
    27  the damage occurred then he or she shall report  the  same  as  soon  as
    28  physically  able to the nearest police station, or judicial officer.  In
    29  addition to the foregoing, any such person shall also: (i)  produce  the
    30  proof of insurance coverage required pursuant to article forty-four-B of
    31  this  chapter  if  such  person  is a TNC driver operating a TNC vehicle
    32  while the incident occurred who was (A) logged on to the  TNC's  digital
    33  network  but not engaged in a TNC prearranged trip or (B) was engaged in
    34  a TNC prearranged trip; and (ii) disclose whether he or she, at the time
    35  such incident occurred, was (A) logged on to the TNC's  digital  network
    36  but  not  engaged  in a TNC prearranged trip or (B) was engaged in a TNC
    37  prearranged trip.
    38    b. It shall be the duty of any member of a law enforcement agency  who
    39  is  at  the scene of the accident to request the said operator or opera-
    40  tors of the motor vehicles, when physically  capable  of  doing  so,  to
    41  exchange  the  information required hereinabove and such member of a law
    42  enforcement agency shall assist such operator  or  operators  in  making
    43  such exchange of information in a reasonable and harmonious manner.
    44    A violation of the provisions of paragraph a of this subdivision shall
    45  constitute  a  traffic  infraction  punishable  by  a  fine of up to two
    46  hundred fifty dollars or a sentence of imprisonment for  up  to  fifteen
    47  days or both such fine and imprisonment.
    48    2.  Personal  injury.    a.  Any person operating a motor vehicle who,
    49  knowing or having cause to know that personal injury has been caused  to
    50  another  person, due to an incident involving the motor vehicle operated
    51  by such person shall, before leaving the place where the  said  personal
    52  injury  occurred,  stop,  exhibit his or her license and insurance iden-
    53  tification card for such vehicle, when such card is required pursuant to
    54  articles six and eight of this chapter, and give his or her name,  resi-
    55  dence,  including street and street number, insurance carrier and insur-
    56  ance identification information including but not limited to the  number

        S. 2009--C                         106                        A. 3009--C
 
     1  and  effective  dates  of said individual's insurance policy and license
     2  number, to the injured party, if practical, and also to a  police  offi-
     3  cer,  or  in  the event that no police officer is in the vicinity of the
     4  place of said injury, then, he or she shall report said incident as soon
     5  as  physically  able  to the nearest police station or judicial officer.
     6  In addition to the foregoing, any such person shall  also:  (i)  produce
     7  the   proof   of   insurance   coverage  required  pursuant  to  article
     8  forty-four-B of this chapter if such person is a TNC driver operating  a
     9  TNC  vehicle  at  the  time of the incident who was (A) logged on to the
    10  TNC's digital network but not engaged in a TNC prearranged trip  or  (B)
    11  was  engaged  in a TNC prearranged trip; and (ii) disclose whether he or
    12  she, at the time such incident occurred, was (A) logged on to the  TNC's
    13  digital  network  but  not  engaged in a TNC prearranged trip or (B) was
    14  engaged in a TNC prearranged trip.
    15    b. It shall be the duty of any member of a law enforcement agency  who
    16  is  at  the scene of the accident to request the said operator or opera-
    17  tors of the motor vehicles, when physically  capable  of  doing  so,  to
    18  exchange  the  information required hereinabove and such member of a law
    19  enforcement agency shall assist such operator  or  operators  in  making
    20  such exchange of information in a reasonable and harmonious manner.
    21    c.  A  violation  of the provisions of paragraph a of this subdivision
    22  resulting solely from the failure of an operator to exhibit his  or  her
    23  license  and  insurance  identification card for the vehicle or exchange
    24  the information required in such paragraph shall constitute  a  class  B
    25  misdemeanor  punishable by a fine of not less than two hundred fifty nor
    26  more than five hundred  dollars  in  addition  to  any  other  penalties
    27  provided  by law. Any subsequent such violation shall constitute a class
    28  A misdemeanor punishable by a fine of not less  than  five  hundred  nor
    29  more  than  one  thousand  dollars  in  addition  to any other penalties
    30  provided by law. Any violation of the provisions of paragraph a of  this
    31  subdivision,  other  than for the mere failure of an operator to exhibit
    32  his or her license and insurance identification card for such vehicle or
    33  exchange the information required in such paragraph, shall constitute  a
    34  class  A misdemeanor, punishable by a fine of not less than five hundred
    35  dollars nor more than one thousand dollars  in  addition  to  any  other
    36  penalties  provided  by  law.  Any  such violation committed by a person
    37  after such person has previously been  convicted  of  such  a  violation
    38  shall constitute a class E felony, punishable by a fine of not less than
    39  one thousand nor more than two thousand five hundred dollars in addition
    40  to  any other penalties provided by law. Any violation of the provisions
    41  of paragraph a of this subdivision, other than for the mere  failure  of
    42  an  operator  to exhibit his or her license and insurance identification
    43  card for such vehicle or exchange the information required in such para-
    44  graph, where the personal injury involved (i) results in  serious  phys-
    45  ical injury, as defined in section 10.00 of the penal law, shall consti-
    46  tute  a  class  E  felony,  punishable  by  a  fine of not less than one
    47  thousand nor more than five thousand dollars in addition  to  any  other
    48  penalties  provided  by law, or (ii) results in death shall constitute a
    49  class D felony punishable by a fine of not less than  two  thousand  nor
    50  more  than  five  thousand  dollars  in  addition to any other penalties
    51  provided by law.
    52    3. For the purposes of this article, the terms  "TNC",  "TNC  driver",
    53  "TNC  vehicle",  "TNC prearranged trip" and "digital network" shall have
    54  the same meanings as such terms are defined in article  forty-four-B  of
    55  this chapter.

        S. 2009--C                         107                        A. 3009--C
 
     1    § 5. Section 601 of the vehicle and traffic law, as amended by chapter
     2  672 of the laws of 2004, is amended to read as follows:
     3    §  601.  Leaving scene of injury to certain animals without reporting.
     4  Any person operating a motor vehicle which shall strike and  injure  any
     5  horse,  dog,  cat or animal classified as cattle shall stop and endeavor
     6  to locate the owner or custodian of such animal or a  police,  peace  or
     7  judicial  officer  of  the  vicinity,  and take any other reasonable and
     8  appropriate action so that the animal may have necessary attention,  and
     9  shall  also promptly report the matter to such owner, custodian or offi-
    10  cer (or if no one of such has been located, then to a police officer  of
    11  some  other  nearby community), exhibiting his or her license and insur-
    12  ance identification card for such vehicle, when such  card  is  required
    13  pursuant  to  articles  six and eight of this chapter, giving his or her
    14  name and residence, including street and street number, insurance carri-
    15  er and insurance identification information and license number. In addi-
    16  tion to the foregoing, any such person shall also: (i) produce the proof
    17  of insurance coverage required pursuant to article forty-four-B of  this
    18  chapter  if  such  person is a TNC driver operating a TNC vehicle at the
    19  time of the incident who was (A) logged on to the TNC's digital  network
    20  but  not  engaged  in a TNC prearranged trip or (B) was engaged in a TNC
    21  prearranged trip; and (ii) disclose whether he or she, at the time  such
    22  incident  occurred,  was  (A) logged on to the TNC's digital network but
    23  not engaged in a TNC prearranged trip or (B) was engaged in a TNC prear-
    24  ranged trip. Violation of this section shall be punishable by a fine  of
    25  not  more  than one hundred dollars for a first offense and by a fine of
    26  not less than fifty nor more than one hundred fifty dollars for a second
    27  offense and each subsequent offense; provided, however where the  animal
    28  that  has been struck and injured is a guide dog, hearing dog or service
    29  dog, as such terms are defined in section  forty-seven-b  of  the  civil
    30  rights  law which is actually engaged in aiding or guiding a person with
    31  a disability, a violation of this section shall be [publishable] punish-
    32  able by a fine of not less than fifty nor more than  one  hundred  fifty
    33  dollars  for  a first offense and by a fine of not less than one hundred
    34  fifty dollars nor more than three hundred dollars for a  second  offense
    35  and each subsequent offense.
    36    §  6. The insurance law is amended by adding two new sections 3455 and
    37  3456 to read as follows:
    38    § 3455. Transportation network company group insurance policies.   (a)
    39  For purposes of this section, the following definitions shall apply:
    40    (1)  "Transportation  network  company" shall have the same meaning as
    41  set forth in article forty-four-B of the vehicle and traffic law.
    42    (2) "Certificate" or "certificate  of  insurance"  means  any  policy,
    43  contract  or other evidence of insurance, or endorsement thereto, issued
    44  to a group member under a transportation network company group policy.
    45    (3) "Transportation network company group policy"  or  "group  policy"
    46  means  a  group  policy,  including  certificates  issued  to  the group
    47  members, where the group policyholder is a transportation network compa-
    48  ny and the policy  provides  insurance  to  the  transportation  network
    49  company and to group members:
    50    (A) in accordance with the requirements of article forty-four-B of the
    51  vehicle and traffic law;
    52    (B) of the type described in paragraph thirteen, fourteen, or nineteen
    53  of  subsection  (a) of section one thousand one hundred thirteen of this
    54  chapter; and
    55    (C) in satisfaction of the financial responsibility  requirements  set
    56  forth  in  section  three  thousand four hundred twenty of this article,

        S. 2009--C                         108                        A. 3009--C
 
     1  subdivision four of section three hundred  eleven  of  the  vehicle  and
     2  traffic  law, article fifty-one of this chapter, and such other require-
     3  ments or regulations that may apply for the purposes of  satisfying  the
     4  financial  responsibility requirements with respect to the use or opera-
     5  tion of a motor vehicle.
     6    (4) "Group member" means a transportation network  company  driver  as
     7  defined in article forty-four-B of the vehicle and traffic law.
     8    (5) "Group policyholder" means a transportation network company.
     9    (6)  "TNC  vehicle" shall have the meaning set forth in article forty-
    10  four-B of the vehicle and traffic law.
    11    (b) An insurer may issue or issue for delivery in this state a  trans-
    12  portation  network  company  group  policy  to  a transportation network
    13  company as a group policyholder only in accordance with  the  provisions
    14  of this section.
    15    (c)(1)  A  transportation  network  company group policy shall provide
    16  coverage for a TNC vehicle in accordance with the requirements of  arti-
    17  cle forty-four-B of the vehicle and traffic law.
    18    (2) A transportation network company group policy may provide:
    19    (A) coverage for limits higher than the minimum limits required pursu-
    20  ant to article forty-four-B of the vehicle and traffic law.
    21    (B) supplementary uninsured/underinsured motorists insurance for bodi-
    22  ly  injury  pursuant to paragraph two of subsection (f) of section three
    23  thousand four hundred twenty of this article;
    24    (C) supplemental spousal liability insurance  pursuant  to  subsection
    25  (g) of section three thousand four hundred twenty of this chapter; and
    26    (D)  motor  vehicle physical damage coverage as described in paragraph
    27  nineteen of subsection (a) of section one thousand one hundred  thirteen
    28  of this chapter.
    29    (3)  The  coverage  described  in  paragraphs  one  and  two  of  this
    30  subsection may be provided in one group  policy  or  in  separate  group
    31  policies.
    32    (4)  A  transportation network company group policy, including certif-
    33  icates, shall be issued by  authorized  insurers  or  from  excess  line
    34  brokers  pursuant  to  section  sixteen  six hundred ninety-three of the
    35  vehicle and traffic law.
    36    (5) A policyholder also may be an insured under a group policy.
    37    (d) The premium for the transportation network company  group  policy,
    38  including  certificates  may  be paid by the group policyholder from the
    39  funds contributed:
    40    (1) wholly by the group policyholder;
    41    (2) wholly by the group members; or
    42    (3) jointly by the group policyholder and the group members.
    43    (e) (1) Any policy dividend, retrospective premium credit,  or  retro-
    44  spective premium refund in respect of premiums paid by the group policy-
    45  holder may:
    46    (A) be applied to reduce the premium contribution of the group policy-
    47  holder, but not in excess of the proportion to its contribution; or
    48    (B) be retained by the group policyholder.
    49    (2)  Any  policy dividend, retrospective premium credit, or retrospec-
    50  tive  premium  refund  not  distributed  under  paragraph  one  of  this
    51  subsection shall be:
    52    (A)  applied  to  reduce  future  premiums  and,  accordingly,  future
    53  contributions, of existing or future group members, or both; or
    54    (B) paid or refunded to those group members insured on  the  date  the
    55  payment  or  refund is made to the group policyholder, if distributed by

        S. 2009--C                         109                        A. 3009--C
 
     1  the group policyholder, or  on  the  date  of  mailing,  if  distributed
     2  directly by the insurer, subject to the following requirements:
     3    (i) The insurer shall be responsible for determining the allocation of
     4  the payment of refund to the group members;
     5    (ii)  If the group policyholder distributes the payment or refund, the
     6  insurer shall be responsible for audit to ascertain that the payment  or
     7  refund is actually made in accordance with the allocation procedure; and
     8    (iii)  If  the group policyholder fails to make the payment or refund,
     9  the insurer shall make the payment or refund directly or use the  method
    10  provided in subparagraph (A) of this paragraph.
    11    (3)  Notwithstanding  paragraphs  one and two of this subsection, if a
    12  dividend accrues upon termination of  coverage  under  a  transportation
    13  network  company  group  policy,  the  premium for which was paid out of
    14  funds contributed by group members specifically for  the  coverage,  the
    15  dividend  shall  be  paid  or  refunded by the group policyholder to the
    16  group members insured on the date the payment or refund is made  to  the
    17  group  policyholder,  net  of  reasonable expenses incurred by the group
    18  policyholder in paying or refunding the dividend to such group members.
    19    (4) For the purposes of this subsection, "dividend" means a return  by
    20  the  insurer  of a transportation network company group policy of excess
    21  premiums to the group policyholder in light of  favorable  loss  experi-
    22  ence,  including  retrospective premium credits or retrospective premium
    23  refunds. The term "dividend" does not  include  reimbursements  or  fees
    24  received  by  a  group  policyholder in connection with the operation or
    25  administration of a transportation network company group policy, includ-
    26  ing administrative reimbursements, fees for  services  provided  by  the
    27  group policyholder, or transactional service fees.
    28    (f)  The insurer shall treat in like manner all eligible group members
    29  of the same class and status.
    30    (g) Each policy written pursuant to this  section  shall  provide  per
    31  occurrence  limits  of  coverage  for each group member in an amount not
    32  less than that required by this article, and may  provide  coverage  for
    33  limits higher than the minimum limits required under the law.
    34    (h)  (1) The insurer shall be responsible for mailing or delivery of a
    35  certificate of insurance to each group member insured under  the  trans-
    36  portation  network  company  group  policy,  provided, however, that the
    37  insurer may delegate the  mailing  or  delivery  to  the  transportation
    38  network  company.  The insurer shall also be responsible for the mailing
    39  or delivery to each group member of an amended certificate of  insurance
    40  or endorsement to the certificate, whenever there is a change in limits;
    41  change  in  type  of  coverage;  addition,  reduction, or elimination of
    42  coverage; or addition of exclusion,  under  the  transportation  network
    43  company group policy or certificate.
    44    (2)  The certificate shall contain in substance all material terms and
    45  conditions of coverage afforded to group members, unless the transporta-
    46  tion network company group policy is incorporated  by  reference  and  a
    47  copy of the group policy accompanies the certificate.
    48    (3) If any coverage afforded to the group member is excess of applica-
    49  ble  insurance coverage, the certificate shall contain a notice advising
    50  the group members that, if the  member  has  other  insurance  coverage,
    51  specified coverages under the transportation network company group poli-
    52  cy will be excess over the other insurance.
    53    (i)  A  group policyholder shall comply with the provisions of section
    54  two thousand one hundred twenty-two of this chapter, in the same  manner
    55  as  an  agent or broker, in any advertisement, sign, pamphlet, circular,

        S. 2009--C                         110                        A. 3009--C
 
     1  card, or other public announcement referring to coverage under a  trans-
     2  portation network company group policy or certificate.
     3    (j) A transportation network company group policy shall not be subject
     4  to  section  three  thousand  four  hundred twenty-five or section three
     5  thousand four hundred twenty-six of  this  article;  provided  that  the
     6  following  requirements shall apply with regard to termination of cover-
     7  age:
     8    (1)(A) An insurer may terminate a group policy or certificate only  if
     9  cancellation is based on one or more of the reasons set forth in subpar-
    10  agraph (A) through (D) or (F) through (H) of paragraph one of subsection
    11  (c)  of  section three thousand four hundred twenty-six of this article;
    12  provided, however, that an act or omission by a group member that  would
    13  constitute the basis for cancellation of an individual certificate shall
    14  not constitute the basis for cancellation of the group policy.
    15    (B)  Where the premium is derived wholly from funds contributed by the
    16  group policyholder, an insurer may cancel an individual certificate only
    17  if cancellation is based on one or more of  the  reasons  set  forth  in
    18  subparagraph  (B),  (C)  or  (H)  of  paragraph one of subsection (c) of
    19  section three thousand four hundred twenty-six of this article.
    20    (2) (A) An insurer's cancellation of a  group  policy,  including  all
    21  certificates,  shall  not  become  effective until thirty days after the
    22  insurer mails or delivers written notice of cancellation  to  the  group
    23  policyholder at the mailing address shown in the policy.
    24    (i) Where all or part of the premium is derived from funds contributed
    25  by  the  group  member  specifically for the coverage, the insurer shall
    26  also mail or deliver written notice of cancellation of the group  policy
    27  to  the group member at the group member's mailing address. Such cancel-
    28  lation shall not become effective until thirty days  after  the  insurer
    29  mails or delivers the written notice to the group member.
    30    (ii)  Where none of the premium is derived from funds contributed by a
    31  group member specifically for the  coverage,  the  group  policy  holder
    32  shall  mail  or  deliver written notice to the group member advising the
    33  group member of the cancellation of the group policy and  the  effective
    34  date  of cancellation. The group policy holder shall mail or deliver the
    35  written notice within ninety days after receiving notice of cancellation
    36  from the insurer.
    37    (B) An insurer's cancellation of an individual certificate  shall  not
    38  become  effective  until thirty days after the insurer mails or delivers
    39  written notice of cancellation to the group member at the group member's
    40  mailing address and to the group policyholder  at  the  mailing  address
    41  shown in the group policy.
    42    (3)  (A) A group policyholder may cancel a group policy, including all
    43  certificates, or any individual certificate, for any reason upon  thirty
    44  days written notice to the insurer and each group member; and
    45    (B)  The  group  policyholder  shall mail or deliver written notice to
    46  each affected group member of the group policyholder's  cancellation  of
    47  the  group policy or certificate and the effective date of cancellation.
    48  The group policyholder shall mail or deliver the written notice  to  the
    49  group  member's mailing address at least thirty days prior to the effec-
    50  tive date of cancellation.
    51    (4) (A) Unless a group policy provides for a longer policy period, the
    52  policy and all certificates shall be issued or renewed  for  a  one-year
    53  policy period.
    54    (B) The group policyholder shall be entitled to renew the group policy
    55  and  all  certificates  upon timely payment of the premium billed to the
    56  group policyholder for the renewal, unless:

        S. 2009--C                         111                        A. 3009--C
 
     1    (i) the insurer mails or delivers to the group  policyholder  and  all
     2  group members written notice of nonrenewal, or conditional renewal; and
     3    (ii) the insurer mails or delivers the written notice at least thirty,
     4  but  not  more than one hundred twenty days prior to the expiration date
     5  specified in the policy or, if no date is specified, the  next  anniver-
     6  sary date of the policy.
     7    (5) Where the group policyholder nonrenews the group policy, the group
     8  policyholder  shall  mail or deliver written notice to each group member
     9  advising the group member of nonrenewal of  the  group  policy  and  the
    10  effective  date  of  nonrenewal.  The  group  policyholder shall mail or
    11  deliver written notice at least thirty days prior to the nonrenewal.
    12    (6) Every notice of cancellation, nonrenewal, or  conditional  renewal
    13  shall  set forth the specific reason or reasons for cancellation, nonre-
    14  newal, or conditional renewal.
    15    (7) (A) An insurer shall not be required under this subsection to give
    16  notice to a group member if the insurer has been advised by  either  the
    17  group  policyholder or another insurer that substantially similar cover-
    18  age has been obtained from the other insurer without lapse of coverage.
    19    (B) A group policyholder shall not be required under  this  subsection
    20  to  give  notice to a group member if substantially similar coverage has
    21  been obtained from another insurer without lapse of coverage.
    22    (8) (A) If, prior to the effective date of  cancellation,  nonrenewal,
    23  or  conditional  renewal  of the group policy, or a certificate, whether
    24  initiated by the insurer, group policyholder or by the group  member  in
    25  regard  to the group member's certificate, coverage attaches pursuant to
    26  the terms of a group policy, then the coverage shall be effective  until
    27  expiration  of  the  applicable period of coverage provided in the group
    28  policy  notwithstanding  the  cancellation,  nonrenewal  or  conditional
    29  nonrenewal of the group policy.
    30    (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may
    31  terminate coverage under an individual certificate on the effective date
    32  of  cancellation, if the certificate is cancelled in accordance with the
    33  provisions of subparagraph (B) of paragraph one of this subsection.
    34    (k) Any mailing or delivery to a group member  required  or  permitted
    35  under  this  section  may  be made by electronic mail if consent to such
    36  method of delivery has been previously received from such group member.
    37    (l) An insurer may issue a transportation network company group policy
    38  to a transportation network company, notwithstanding that it  may  be  a
    39  condition of operating a vehicle on the transportation network company's
    40  digital network for the TNC driver to participate in such group policy.
    41    (m)  An  insurer shall not include a mandatory arbitration clause in a
    42  policy  that  provides  financial  responsibility  coverage  under  this
    43  section except as permitted in section five thousand one hundred five of
    44  the insurance law.
    45    §  3456. Prohibition against cancellation of policy when motor vehicle
    46  is used or operated through a transportation  network  company  program.
    47  (a)  An  insurer  shall  not  cancel an existing motor vehicle insurance
    48  policy solely on the basis that the motor vehicle covered by the  insur-
    49  ance has been made available pursuant to a transportation network compa-
    50  ny  program  in  compliance with article forty-four-B of the vehicle and
    51  traffic law.
    52    (b) The definitions set forth in section three thousand  four  hundred
    53  fifty-five of this article shall apply to this section.
    54    §  6-a. Subsection (g) of section 5102 of the insurance law is amended
    55  to read as follows:

        S. 2009--C                         112                        A. 3009--C
 
     1    (g) "Insurer" means the insurance company or self-insurer, as the case
     2  may be, which provides the financial security required  by  article  six
     3  [or], eight, or forty-four-B of the vehicle and traffic law.
     4    § 7. Subsection (b) of section 5103 of the insurance law is amended by
     5  adding a new paragraph 4 to read as follows:
     6    (4)  Is  injured  while a motor vehicle is being used or operated by a
     7  TNC driver pursuant to article forty-four-B of the vehicle  and  traffic
     8  law, provided, however, that only the insurer issuing the owner's policy
     9  of  liability  insurance  providing coverage for the motor vehicle being
    10  operated by a TNC driver may exclude such coverage and  an  insurer  may
    11  not  include this exclusion in a policy used to satisfy the requirements
    12  under article forty-four-B of the vehicle and traffic law.
    13    § 8. Subsection (d) of section 5106 of the insurance law, as added  by
    14  chapter 452 of the laws of 2005, is amended to read as follows:
    15    (d)   [Where]  (1)  Except  as  provided  in  paragraph  two  of  this
    16  subsection, where there is reasonable belief more than one insurer would
    17  be the source of first party benefits,  the  insurers  may  agree  among
    18  themselves,  if  there  is a valid basis therefor, that one of them will
    19  accept and pay the claim initially. If there is no such agreement,  then
    20  the  first insurer to whom notice of claim is given shall be responsible
    21  for payment. Any such dispute shall be resolved in accordance  with  the
    22  arbitration procedures established pursuant to section five thousand one
    23  hundred five of this article and [regulation] regulations as promulgated
    24  by the superintendent, and any insurer paying first-party benefits shall
    25  be  reimbursed  by  other  insurers for their proportionate share of the
    26  costs of the claim and the allocated expenses of processing  the  claim,
    27  in accordance with the provisions entitled "other coverage" contained in
    28  regulation  and  the  provisions  entitled "other sources of first-party
    29  benefits" contained in regulation. If there is no such insurer  and  the
    30  motor  vehicle accident occurs in this state, then an applicant who is a
    31  qualified person as defined in article fifty-two of this  chapter  shall
    32  institute  the  claim against the motor vehicle accident indemnification
    33  corporation.
    34    (2) A group policy issued pursuant  to  section  three  thousand  four
    35  hundred  fifty-five  of  this chapter shall provide first party benefits
    36  when a dispute exists as to whether a driver was using  or  operating  a
    37  motor  vehicle  in connection with a transportation network company when
    38  loss, damage, injury, or death occurs. A transportation network  company
    39  shall  notify  the  insurer  that issued the owner's policy of liability
    40  insurance of the dispute within ten business days of becoming aware that
    41  the dispute exists. When there is a dispute, the  group  insurer  liable
    42  for  the payment of first party benefits under a group policy shall have
    43  the right to recover the amount paid from the driver's  insurer  to  the
    44  extent  that  the  driver  would  have  been liable to pay damages in an
    45  action at law.
    46    § 9. Subsection (b) of section 2305 of the insurance law,  as  amended
    47  by  chapter  11  of the laws of 2008, paragraph 13 as amended by chapter
    48  136 of the laws of 2008, is amended to read as follows:
    49    (b) rate filings for:
    50    (1) workers' compensation insurance;
    51    (2) motor vehicle insurance, or  surety  bonds,  required  by  section
    52  three  hundred  seventy of the vehicle and traffic law or article forty-
    53  four-B of the vehicle and traffic law;
    54    (3) joint underwriting;
    55    (4) motor vehicle assigned risk insurance;

        S. 2009--C                         113                        A. 3009--C
 
     1    (5) insurance issued by the New York Property  Insurance  Underwriting
     2  Association;
     3    (6)  risk  sharing  plans  authorized  by  section  two thousand three
     4  hundred eighteen of this article;
     5    (7) title insurance;
     6    (8) medical malpractice liability insurance;
     7    (9) insurance issued by the Medical Malpractice Insurance Association;
     8    (10) mortgage guaranty insurance;
     9    (11) credit property insurance, as defined  in  section  two  thousand
    10  three hundred forty of this article; [and]
    11    (12) gap insurance; and
    12    (13)  [Private]  private  passenger  automobile  insurance,  except as
    13  provided in section two thousand three hundred fifty of this article[.],
    14  shall be filed with the superintendent and shall  not  become  effective
    15  unless  either  the  filing  has been approved or thirty days, which the
    16  superintendent may with cause extend an additional thirty days and  with
    17  further  cause  extend  an additional fifteen days, have elapsed and the
    18  filing has not been disapproved as failing to meet the  requirements  of
    19  this  article, including the standard that rates be not otherwise unrea-
    20  sonable. After a rate filing becomes effective, the filing and  support-
    21  ing  information  shall  be  open  to  public inspection. If a filing is
    22  disapproved, then notice of such disapproval order shall be given, spec-
    23  ifying in what respects such filing fails to meet  the  requirements  of
    24  this  article.  Upon  his  or  her  request, the superintendent shall be
    25  provided with support and  assistance  from  the  workers'  compensation
    26  board  and  other state agencies and departments with appropriate juris-
    27  diction. The loss cost multiplier for each  insurer  providing  coverage
    28  for  workers'  compensation, as defined by regulation promulgated by the
    29  superintendent, shall be promptly displayed on the department's  website
    30  and updated in the event of any change.
    31    §  10.  Paragraph 1 of subsection (a) of section 3425 of the insurance
    32  law, as amended by chapter 235 of the laws of 1989, is amended  to  read
    33  as follows:
    34    (1) "Covered  policy"  means  a  contract of insurance, referred to in
    35  this section as "automobile insurance", issued or issued for delivery in
    36  this state, on a risk  located  or  resident  in  this  state,  insuring
    37  against  losses  or liabilities arising out of the ownership, operation,
    38  or use of a motor vehicle, predominantly used for non-business purposes,
    39  when a natural person is the named insured under the policy  of  automo-
    40  bile  insurance;  provided,  however,  that  the use or operation of the
    41  motor vehicle by a transportation network driver as  a  TNC  vehicle  in
    42  accordance  with  article  forty-four-B  of  the vehicle and traffic law
    43  shall not be included in determining whether the motor vehicle is  being
    44  used predominantly for non-business purposes.
    45    §  11. Subdivisions 1 and 3 of section 160-cc of the executive law, as
    46  added by chapter 49 of the laws of 1999, are amended and a new  subdivi-
    47  sion 10 is added to read as follows:
    48    1. "Black car operator" means the registered owner of a for-hire vehi-
    49  cle,  or  a  driver  designated  by such registered owner to operate the
    50  registered owner's for-hire vehicle as the registered owner's authorized
    51  designee, whose injury arose out of  and  in  the  course  of  providing
    52  covered  services  to  a  central dispatch facility that is a registered
    53  member of the New York black car operators'  injury  compensation  fund,
    54  inc.
    55    (a)  For  the  purposes of the administration of this article, a black
    56  car operator shall include a TNC driver that is engaged in a TNC  prear-

        S. 2009--C                         114                        A. 3009--C
 
     1  ranged  trip.  For the purposes of this article, the terms "TNC driver",
     2  "TNC prearranged trip" and "digital network" shall have the  same  mean-
     3  ings  as  such  terms are defined in article forty-four-B of the vehicle
     4  and traffic law.
     5    (b)  For  the  purposes of the administration of this article, a black
     6  car operator shall include a TNC  driver  that  is  logged  onto  a  TNC
     7  digital  network  and  is  not  engaged in a TNC prearranged trip but is
     8  engaged in an activity reasonably related to driving  as  a  TNC  driver
     9  taking  into  consideration the time, place and manner of such activity,
    10  however, that this paragraph shall only apply to a TNC driver  permitted
    11  pursuant  to  article forty-four-B of the vehicle and traffic law within
    12  twelve months of the effective date of this paragraph.
    13    3. "Central dispatch facility"  means  a  central  facility,  wherever
    14  located, including a transportation network company, that (a) dispatches
    15  the  registered  owners  of  for-hire vehicles, or drivers acting as the
    16  designated  agent  of  such  registered  owners,  to  both  pick-up  and
    17  discharge  passengers  in the state, and (b) has certified to the satis-
    18  faction of the department of state that more than ninety percent of  its
    19  for-hire  business  is on a payment basis other than direct cash payment
    20  by a passenger; provided, however,  that  a  central  dispatch  facility
    21  shall  not  include any such central facility that owns fifty percent or
    22  more of the cars it dispatches. For the purposes  of  administration  of
    23  this  article,  central  dispatch facility shall include TNC prearranged
    24  trip as defined in article forty-four-B of the vehicle and traffic law.
    25    10. "Transportation network company" or  "TNC"  shall  have  the  same
    26  meaning  as  the  term is defined in article forty-four-B of the vehicle
    27  and traffic law.
    28    § 12. Subdivision 1 of section 160-ff of the executive law,  as  added
    29  by chapter 49 of the laws of 1999, is amended to read as follows:
    30    1.  [Within  thirty days of the effective date of this article, there]
    31  There shall be appointed a board of directors of the fund, consisting of
    32  [nine] eleven directors, [five] six of whom shall  be  selected  by  the
    33  black  car  assistance corporation; [three] four of whom shall be chosen
    34  by the governor, including one chosen upon  the  recommendation  of  the
    35  temporary president of the senate and one chosen upon the recommendation
    36  of the speaker of the assembly; one chosen to represent a transportation
    37  network  company  as  defined by article forty-four-B of the vehicle and
    38  traffic law; and one of whom shall be the secretary, who shall serve  ex
    39  officio.  [The initial terms of directors other than the secretary shall
    40  be staggered, the three directors appointed by the governor serving  for
    41  initial  terms  of  three years from the effective date of this article,
    42  three of the remaining five directors serving for initial terms  of  two
    43  years  from the effective date of this article and two directors serving
    44  for initial terms of one year from the effective date of  this  article]
    45  The  governor shall appoint the director chosen to represent a transpor-
    46  tation network company no later than December thirty-first, two thousand
    47  seventeen. The [subsequent] terms of all directors other than the secre-
    48  tary shall be three years. The board shall have the power to remove  for
    49  cause any director other than the secretary.
    50    §  13.  Subdivision 3 of section 160-jj of the executive law, as added
    51  by chapter 49 of the laws of 1999, is amended to read as follows:
    52    3. No local licensing authority or the  department  or  the  New  York
    53  state  department  of  motor vehicles shall issue, continue or renew any
    54  license or registration certificate, or permit for the operation of  any
    55  central  dispatch  facility  unless such central dispatch facility, as a
    56  condition of maintaining its license  and/or  registration  certificate,

        S. 2009--C                         115                        A. 3009--C
 
     1  adds the surcharge required by this section to every invoice and billing
     2  for  covered  services  sent  to,  and  every credit payment for covered
     3  services received from, its customers and pays to the fund no later than
     4  the  fifteenth  day  of  each month the total surcharges due pursuant to
     5  this article.
     6    § 14. The general municipal law is amended by adding a new section 182
     7  to read as follows:
     8    § 182. Local regulation of transportation network companies.  1. Every
     9  county, and any city with a population of one hundred thousand  or  more
    10  as  of the last decennial census, may prohibit the pick-up of any person
    11  by a transportation network company as defined by  article  forty-four-B
    12  of the vehicle and traffic law within their geographic boundaries pursu-
    13  ant to the enactment of a local law or ordinance, except that any county
    14  that  contains  a city with a population of one hundred thousand or more
    15  as of the last decennial census shall only be authorized to prohibit the
    16  pick-up of any person by a transportation network company as defined  by
    17  article  forty-four-B  of  the  vehicle  and  traffic law outside of the
    18  geographic boundaries of such city.
    19    2. Any county or city that enacts a local law or ordinance pursuant to
    20  this section or repeals such local law or  ordinance  shall  notify  the
    21  department  of  motor  vehicles.   Such department shall maintain on its
    22  public website a list of all counties and cities  that  have  enacted  a
    23  local  law  or  ordinance pursuant to this section and shall remove from
    24  such list any county or city that repeals such local law or ordinance.
    25    3.  This section shall not apply to a city with a  population  of  one
    26  million or more.
    27    §  15.    Subdivision 1 of section 171-a of the tax law, as amended by
    28  chapter 90 of the laws of 2014, is amended to read as follows:
    29    1. All taxes, interest, penalties and fees collected  or  received  by
    30  the commissioner or the commissioner's duly authorized agent under arti-
    31  cles nine (except section one hundred eighty-two-a thereof and except as
    32  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    33  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    34  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    35  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    36  (except  as otherwise provided in section four hundred eighty-two there-
    37  of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen-
    38  ty-eight (except as otherwise provided in section eleven hundred two  or
    39  eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one
    40  (except  as  otherwise  provided  in section fourteen hundred twenty-one
    41  thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
    42  deposited  daily  in  one  account  with such responsible banks, banking
    43  houses or trust companies as may be designated by  the  comptroller,  to
    44  the credit of the comptroller. Such an account may be established in one
    45  or  more  of such depositories. Such deposits shall be kept separate and
    46  apart from all other money in the possession  of  the  comptroller.  The
    47  comptroller  shall require adequate security from all such depositories.
    48  Of the total revenue collected or received under such articles  of  this
    49  chapter,  the  comptroller  shall retain in the comptroller's hands such
    50  amount as the commissioner may determine to be necessary for refunds  or
    51  reimbursements  under  such articles of this chapter out of which amount
    52  the comptroller shall pay any refunds or reimbursements to which taxpay-
    53  ers shall be entitled under the provisions  of  such  articles  of  this
    54  chapter. The commissioner and the comptroller shall maintain a system of
    55  accounts  showing  the amount of revenue collected or received from each
    56  of the taxes imposed by such articles. The comptroller, after  reserving

        S. 2009--C                         116                        A. 3009--C
 
     1  the  amount  to  pay such refunds or reimbursements, shall, on or before
     2  the tenth day of each month, pay into the state treasury to  the  credit
     3  of  the general fund all revenue deposited under this section during the
     4  preceding  calendar  month  and remaining to the comptroller's credit on
     5  the last day of such preceding month, (i) except  that  the  comptroller
     6  shall  pay  to  the  state  department of social services that amount of
     7  overpayments of tax imposed by article twenty-two of  this  chapter  and
     8  the interest on such amount which is certified to the comptroller by the
     9  commissioner  as  the  amount  to  be  credited against past-due support
    10  pursuant to subdivision six of section one hundred seventy-one-c of this
    11  article, (ii) and except that the comptroller shall pay to the New  York
    12  state  higher education services corporation and the state university of
    13  New York or the city university of New York respectively that amount  of
    14  overpayments  of  tax  imposed by article twenty-two of this chapter and
    15  the interest on such amount which is certified to the comptroller by the
    16  commissioner as the amount to be credited against the amount of defaults
    17  in repayment of guaranteed student loans and state university  loans  or
    18  city  university  loans  pursuant  to  subdivision  five  of section one
    19  hundred seventy-one-d and subdivision six of section one hundred  seven-
    20  ty-one-e of this article, (iii) and except further that, notwithstanding
    21  any  law, the comptroller shall credit to the revenue arrearage account,
    22  pursuant to section ninety-one-a of the state finance law,  that  amount
    23  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
    24  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
    25  thereon,  which  is  certified to the comptroller by the commissioner as
    26  the amount to be credited against a past-due  legally  enforceable  debt
    27  owed  to  a state agency pursuant to paragraph (a) of subdivision six of
    28  section one hundred seventy-one-f of this article, provided, however, he
    29  shall credit to  the  special  offset  fiduciary  account,  pursuant  to
    30  section  ninety-one-c of the state finance law, any such amount credita-
    31  ble as a liability as set forth in paragraph (b) of subdivision  six  of
    32  section  one  hundred  seventy-one-f  of  this  article, (iv) and except
    33  further that the comptroller shall pay to the  city  of  New  York  that
    34  amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
    35  two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any
    36  interest thereon that is certified to the comptroller by the commission-
    37  er  as  the  amount  to be credited against city of New York tax warrant
    38  judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
    39  article,  (v)  and  except  further  that the comptroller shall pay to a
    40  non-obligated spouse that amount of overpayment of tax imposed by  arti-
    41  cle twenty-two of this chapter and the interest on such amount which has
    42  been credited pursuant to section one hundred seventy-one-c, one hundred
    43  seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
    44  one hundred seventy-one-l of this article and which is certified to  the
    45  comptroller  by  the  commissioner  as the amount due such non-obligated
    46  spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
    47  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
    48  a  like  amount which the comptroller shall pay into the treasury to the
    49  credit of the general fund from  amounts  subsequently  payable  to  the
    50  department  of  social  services,  the state university of New York, the
    51  city university of New York, or the  higher  education  services  corpo-
    52  ration,  or  the  revenue  arrearage account or special offset fiduciary
    53  account pursuant to section ninety-one-a or ninety-one-c  of  the  state
    54  finance  law, as the case may be, whichever had been credited the amount
    55  originally withheld from such overpayment, and  (vii)  with  respect  to
    56  amounts  originally  withheld  from such overpayment pursuant to section

        S. 2009--C                         117                        A. 3009--C
 
     1  one hundred seventy-one-l of this article and paid to the  city  of  New
     2  York,  the  comptroller shall collect a like amount from the city of New
     3  York.
     4    §  16.  Subdivision  1  of section 171-a of the tax law, as amended by
     5  section 54 of part A of chapter 59 of the laws of 2014,  is  amended  to
     6  read as follows:
     7    1.  All  taxes,  interest, penalties and fees collected or received by
     8  the commissioner or the commissioner's duly authorized agent under arti-
     9  cles nine (except section one hundred eighty-two-a thereof and except as
    10  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    11  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    12  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    13  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    14  (except as otherwise provided in section four hundred eighty-two  there-
    15  of),  twenty-one,  twenty-two,  twenty-six, [twenty-six-B,] twenty-eight
    16  (except as otherwise provided in section eleven hundred  two  or  eleven
    17  hundred   three   thereof),  twenty-eight-A,  twenty-nine-B,  thirty-one
    18  (except as otherwise provided in  section  fourteen  hundred  twenty-one
    19  thereof),  thirty-three  and  thirty-three-A  of  this  chapter shall be
    20  deposited daily in one account  with  such  responsible  banks,  banking
    21  houses  or  trust  companies as may be designated by the comptroller, to
    22  the credit of the comptroller. Such an account may be established in one
    23  or more of such depositories. Such deposits shall be kept  separate  and
    24  apart  from  all  other  money in the possession of the comptroller. The
    25  comptroller shall require adequate security from all such  depositories.
    26  Of  the  total revenue collected or received under such articles of this
    27  chapter, the comptroller shall retain in the  comptroller's  hands  such
    28  amount  as the commissioner may determine to be necessary for refunds or
    29  reimbursements under such articles of this chapter out of  which  amount
    30  the comptroller shall pay any refunds or reimbursements to which taxpay-
    31  ers  shall  be  entitled  under  the provisions of such articles of this
    32  chapter. The commissioner and the comptroller shall maintain a system of
    33  accounts showing the amount of revenue collected or received  from  each
    34  of  the taxes imposed by such articles. The comptroller, after reserving
    35  the amount to pay such refunds or reimbursements, shall,  on  or  before
    36  the  tenth  day of each month, pay into the state treasury to the credit
    37  of the general fund all revenue deposited under this section during  the
    38  preceding  calendar  month  and remaining to the comptroller's credit on
    39  the last day of such preceding month, (i) except  that  the  comptroller
    40  shall  pay  to  the  state  department of social services that amount of
    41  overpayments of tax imposed by article twenty-two of  this  chapter  and
    42  the interest on such amount which is certified to the comptroller by the
    43  commissioner  as  the  amount  to  be  credited against past-due support
    44  pursuant to subdivision six of section one hundred seventy-one-c of this
    45  article, (ii) and except that the comptroller shall pay to the New  York
    46  state  higher education services corporation and the state university of
    47  New York or the city university of New York respectively that amount  of
    48  overpayments  of  tax  imposed by article twenty-two of this chapter and
    49  the interest on such amount which is certified to the comptroller by the
    50  commissioner as the amount to be credited against the amount of defaults
    51  in repayment of guaranteed student loans and state university  loans  or
    52  city  university  loans  pursuant  to  subdivision  five  of section one
    53  hundred seventy-one-d and subdivision six of section one hundred  seven-
    54  ty-one-e of this article, (iii) and except further that, notwithstanding
    55  any  law, the comptroller shall credit to the revenue arrearage account,
    56  pursuant to section ninety-one-a of the state finance law,  that  amount

        S. 2009--C                         118                        A. 3009--C
 
     1  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
     2  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
     3  thereon,  which  is  certified to the comptroller by the commissioner as
     4  the  amount  to  be credited against a past-due legally enforceable debt
     5  owed to a state agency pursuant to paragraph (a) of subdivision  six  of
     6  section one hundred seventy-one-f of this article, provided, however, he
     7  shall  credit  to  the  special  offset  fiduciary  account, pursuant to
     8  section ninety-one-c of the state finance law, any such amount  credita-
     9  ble  as  a liability as set forth in paragraph (b) of subdivision six of
    10  section one hundred seventy-one-f  of  this  article,  (iv)  and  except
    11  further  that  the  comptroller  shall  pay to the city of New York that
    12  amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
    13  two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
    14  interest thereon that is certified to the comptroller by the commission-
    15  er as the amount to be credited against city of  New  York  tax  warrant
    16  judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
    17  article, (v) and except further that the  comptroller  shall  pay  to  a
    18  non-obligated  spouse that amount of overpayment of tax imposed by arti-
    19  cle twenty-two of this chapter and the interest on such amount which has
    20  been credited pursuant to section one hundred seventy-one-c, one hundred
    21  seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
    22  one  hundred seventy-one-l of this article and which is certified to the
    23  comptroller by the commissioner as the  amount  due  such  non-obligated
    24  spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
    25  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
    26  a like amount which the comptroller shall pay into the treasury  to  the
    27  credit  of  the  general  fund  from amounts subsequently payable to the
    28  department of social services, the state university  of  New  York,  the
    29  city  university  of  New  York, or the higher education services corpo-
    30  ration, or the revenue arrearage account  or  special  offset  fiduciary
    31  account  pursuant  to  section ninety-one-a or ninety-one-c of the state
    32  finance law, as the case may be, whichever had been credited the  amount
    33  originally  withheld  from  such  overpayment, and (vii) with respect to
    34  amounts originally withheld from such overpayment  pursuant  to  section
    35  one  hundred  seventy-one-l  of this article and paid to the city of New
    36  York, the comptroller shall collect a like amount from the city  of  New
    37  York.
    38    §  17. Paragraph 34 of subdivision (b) of section 1101 of the tax law,
    39  as amended by section 1 of part WW of chapter 57 of the laws of 2010, is
    40  amended to read as follows:
    41    (34) Transportation service. The service of transporting, carrying  or
    42  conveying  a  person  or  persons by livery service; whether to a single
    43  destination or to multiple destinations; and  whether  the  compensation
    44  paid  by  or  on behalf of the passenger is based on mileage, trip, time
    45  consumed or any other basis. A service that  begins  and  ends  in  this
    46  state  is deemed intra-state even if it passes outside this state during
    47  a portion of the trip. However, transportation service does not  include
    48  transportation  of  persons  in connection with funerals. Transportation
    49  service includes transporting, carrying, or conveying  property  of  the
    50  person  being  transported,  whether  owned  by  or  in the care of such
    51  person.  Notwithstanding the foregoing, transportation service shall not
    52  include a TNC prearranged trip, as  that  term  is  defined  in  article
    53  forty-four-B  of  the  vehicle  and  traffic law, that is subject to tax
    54  under article twenty-nine-B of this chapter.  In  addition  to  what  is
    55  included  in  the  definition  of  "receipt"  in paragraph three of this
    56  subdivision, receipts from the sale of transportation service subject to

        S. 2009--C                         119                        A. 3009--C
 
     1  tax include any handling, carrying, baggage, booking  service,  adminis-
     2  trative,  mark-up,  additional,  or other charge, of any nature, made in
     3  conjunction  with  the  transportation  service.  Livery  service  means
     4  service  provided by limousine, black car or other motor vehicle, with a
     5  driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
     6  one million or more in this state, an  affiliated  livery  vehicle,  and
     7  excluding any scheduled public service. Limousine means a vehicle with a
     8  seating  capacity of up to fourteen persons, excluding the driver. Black
     9  car means a for-hire vehicle dispatched from a central facility. "Affil-
    10  iated livery vehicle" means a for-hire  motor  vehicle  with  a  seating
    11  capacity  of up to six persons, including the driver, other than a black
    12  car or luxury limousine, that is authorized and licensed by the taxi and
    13  limousine commission of a city of one million or more to  be  dispatched
    14  by  a base station located in such a city and regulated by such taxi and
    15  limousine commission; and the charges for service provided by an  affil-
    16  iated  livery  vehicle  are on the basis of flat rate, time, mileage, or
    17  zones and not on a garage to garage basis.
    18    § 18. The tax law is amended by adding a new article 29-B to  read  as
    19  follows:
    20                                ARTICLE 29-B
    21           STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY
    22                              PREARRANGED TRIPS
    23  Section 1291. Definitions.
    24          1292. Imposition.
    25          1293. Presumption.
    26          1294. Returns and payment of state assessment fee.
    27          1295. Records to be kept.
    28          1296. Secrecy of returns and reports.
    29          1297. Practice and procedure.
    30          1298. Deposit and disposition of revenue.
    31    §  1291.  Definitions.  (a) "Person" means an individual, partnership,
    32  limited liability company, society, association,  joint  stock  company,
    33  corporation,  estate,  receiver, trustee, assignee, referee or any other
    34  person  acting  in  a  fiduciary  or  representative  capacity,  whether
    35  appointed  by  a  court or otherwise, any combination of individuals and
    36  any other form of unincorporated enterprise owned or conducted by two or
    37  more persons.
    38    (b) "City" means a city of a million or more located in the  metropol-
    39  itan  commuter  transportation  district  established  by section twelve
    40  hundred sixty-two of the public authorities law.
    41    (c) "Transportation network company" or  "TNC"  shall  have  the  same
    42  meaning  as  the  term is defined in article forty-four-B of the vehicle
    43  and traffic law.
    44    (d) "TNC prearranged trip" shall have the same meaning as the term  is
    45  defined in article forty-four-B of the vehicle and traffic law.
    46    (e) "TNC driver" shall have the same meaning as the term is defined in
    47  article forty-four-B of the vehicle and traffic law.
    48    (f)  "TNC  vehicle" shall have the same meaning as the term is defined
    49  in article forty-four-B of the vehicle and traffic law.
    50    (g) "Gross trip fare" means the sum of the base fare charge,  distance
    51  charge and time charge for a complete TNC prearranged trip at the appli-
    52  cable rate charged by the TNC at the time such trip is arranged.
    53    §  1292.  Imposition.  There  is  hereby  imposed on every TNC a state
    54  assessment fee of 4% of the gross trip fare  of  every  TNC  prearranged
    55  trip  provided by such TNC that originates anywhere in the state outside
    56  the city and terminates anywhere in this state.

        S. 2009--C                         120                        A. 3009--C
 
     1    § 1293. Presumption. For the purpose of the proper  administration  of
     2  this  article and to prevent evasion of the state assessment fee imposed
     3  by this article, it shall be presumed that every  TNC  prearranged  trip
     4  that originates anywhere in the state outside the city is subject to the
     5  state  assessment fee. This presumption shall prevail until the contrary
     6  is proven by the person liable for the fee.
     7    § 1294. Returns and payment of state assessment fee. (a) Every  person
     8  liable for the state assessment fee imposed by this article shall file a
     9  return  on a calendar-quarterly basis with the commissioner. Each return
    10  shall show the number of TNC prearranged trips,  the  total  gross  trip
    11  fares  and  the  amount of fees due thereon in the quarter for which the
    12  return is filed, together with such other information as the commission-
    13  er may require.  The returns required by this  section  shall  be  filed
    14  within  thirty days after the end of the quarterly period covered there-
    15  by. If the commissioner deems  it  necessary  in  order  to  ensure  the
    16  payment of the state assessment fee imposed by this article, the commis-
    17  sioner  may  require  returns  to  be  made  for  shorter  periods  than
    18  prescribed by the foregoing provisions of this section,  and  upon  such
    19  dates  as  the  commissioner  may  specify. The form of returns shall be
    20  prescribed by the commissioner and shall contain such information as the
    21  commissioner may deem necessary for the proper  administration  of  this
    22  article. The commissioner may require amended returns to be filed within
    23  thirty days after notice and to contain the information specified in the
    24  notice. The commissioner may require that the returns be filed electron-
    25  ically.
    26    (b)  Every  person required to file a return under this article shall,
    27  at the time of filing such return, pay to the commissioner the total  of
    28  all state assessment fees on the correct number of trips subject to such
    29  fee  under  this  article. The amount so payable to the commissioner for
    30  the period for which a return is required to be filed shall be  due  and
    31  payable  to the commissioner on the date specified for the filing of the
    32  return for such period, without regard to whether a return is  filed  or
    33  whether  the  return that is filed correctly shows the correct number of
    34  trips, gross trip fares or amount of fees due thereon. The  commissioner
    35  may require that the fee be paid electronically.
    36    §  1295. Records to be kept. Every person liable for the state assess-
    37  ment fee imposed by this article shall keep:
    38    (a) records of every TNC prearranged trip subject to the state assess-
    39  ment fee under this article, and of all amounts  paid,  charged  or  due
    40  thereon, in such form as the commissioner may require;
    41    (b)  true  and  complete  copies,  including electronic copies, of any
    42  records required to be kept by a state  agency  that  is  authorized  to
    43  permit or regulate a TNC; and
    44    (c) such other records and information as the commissioner may require
    45  to perform his or her duties under this article.
    46    §  1296. Secrecy of returns and reports. (a) Except in accordance with
    47  proper judicial order or as otherwise  provided  by  law,  it  shall  be
    48  unlawful  for  the  commissioner, any officer or employee of the depart-
    49  ment, any person engaged or retained by the department on an independent
    50  contract basis, or any person who in any manner may acquire knowledge of
    51  the contents of a return or report filed with the commissioner  pursuant
    52  to  this article, to divulge or make known in any manner any particulars
    53  set forth or disclosed in any such  return  or  report.    The  officers
    54  charged  with  the  custody  of  such  returns  and reports shall not be
    55  required to produce any of them or evidence  of  anything  contained  in
    56  them  in  any action or proceeding in any court, except on behalf of the

        S. 2009--C                         121                        A. 3009--C
 
     1  commissioner in an action or proceeding under  the  provisions  of  this
     2  chapter or in any other action or proceeding involving the collection of
     3  a  state assessment fee due under this article to which the state or the
     4  commissioner  is a party or a claimant, or on behalf of any party to any
     5  action, proceeding or hearing under the provisions of this article  when
     6  the  returns,  reports  or  facts shown thereby are directly involved in
     7  such action, proceeding or hearing, in any of which events the court, or
     8  in the case of a hearing, the division of tax appeals  may  require  the
     9  production  of,  and  may  admit into evidence, so much of said returns,
    10  reports or of the facts shown thereby, as are pertinent to  the  action,
    11  proceeding  or  hearing and no more. The commissioner or the division of
    12  tax appeals may, nevertheless, publish a copy or a summary of any  deci-
    13  sion rendered after a hearing required by this article.  Nothing in this
    14  section  shall be construed to prohibit the delivery to a person who has
    15  filed a return or report or to such person's duly  authorized  represen-
    16  tative  of  a certified copy of any return or report filed in connection
    17  with such person's state assessment fee.  Nor  shall  anything  in  this
    18  section  be construed to prohibit the publication of statistics so clas-
    19  sified as to prevent the identification of particular returns or reports
    20  and the items thereof, or the inspection  by  the  attorney  general  or
    21  other  legal representatives of the state of the return or report of any
    22  person required to pay the state assessment fee who shall  bring  action
    23  to  review  the  state  assessment fee based thereon, or against whom an
    24  action or proceeding under this chapter  has  been  recommended  by  the
    25  commissioner  or  the  attorney  general  or has been instituted, or the
    26  inspection of the returns or reports required under this article by  the
    27  comptroller  or duly designated officer or employee of the state depart-
    28  ment of audit and control, for purposes of the audit of a refund of  any
    29  state  assessment fee paid by a person required to pay the state assess-
    30  ment fee under this article. Provided, further, nothing in this  section
    31  shall  be  construed  to  prohibit the disclosure, in such manner as the
    32  commissioner deems appropriate, of the names and other appropriate iden-
    33  tifying information of those persons required to  pay  state  assessment
    34  fee under this article.
    35    (b) Notwithstanding the provisions of subdivision (a) of this section,
    36  the commissioner, in his or her discretion, may require or permit any or
    37  all persons liable for any state assessment fee imposed by this article,
    38  to  make  payment to banks, banking houses or trust companies designated
    39  by the commissioner and to file returns with such banks, banking  houses
    40  or  trust companies as agents of the commissioner, in lieu of paying any
    41  such state assessment fee directly to  the  commissioner.  However,  the
    42  commissioner  shall  designate  only such banks, banking houses or trust
    43  companies as are already designated by the comptroller  as  depositories
    44  pursuant to section twelve hundred eighty-eight of this chapter.
    45    (c) Notwithstanding the provisions of subdivision (a) of this section,
    46  the  commissioner may permit the secretary of the treasury of the United
    47  States or such secretary's delegate, or the authorized representative of
    48  either such officer, to inspect any return filed under this article,  or
    49  may  furnish to such officer or such officer's authorized representative
    50  an abstract of any such return or supply such  person  with  information
    51  concerning  an  item  contained  in any such return, or disclosed by any
    52  investigation of liability under this article, but such permission shall
    53  be granted or such information furnished only if the laws of the  United
    54  States  grant  substantially  similar  privileges to the commissioner or
    55  officer of this state charged  with  the  administration  of  the  state
    56  assessment  fee imposed by this article, and only if such information is

        S. 2009--C                         122                        A. 3009--C
 
     1  to be used for purposes of tax administration only; and provided further
     2  the commissioner may furnish to the commissioner of internal revenue  or
     3  such  commissioner's  authorized representative such returns filed under
     4  this article and other tax information, as such commissioner may consid-
     5  er  proper,  for  use in court actions or proceedings under the internal
     6  revenue code, whether civil or criminal, where a written request  there-
     7  for  has  been made to the commissioner by the secretary of the treasury
     8  of the United States or such secretary's delegate, provided the laws  of
     9  the United States grant substantially similar powers to the secretary of
    10  the  treasury  of  the  United  States or his or her delegate. Where the
    11  commissioner has so authorized use of returns and other  information  in
    12  such  actions  or  proceedings, officers and employees of the department
    13  may testify in such actions or proceedings in respect to such returns or
    14  other information.
    15    (d) Returns and reports filed under this article  shall  be  preserved
    16  for  three years and thereafter until the commissioner orders them to be
    17  destroyed.
    18    (e) (1) Any officer or employee of the state  who  willfully  violates
    19  the  provisions  of  subdivision  (a) of this section shall be dismissed
    20  from office and be incapable of holding any public office for  a  period
    21  of five years thereafter.
    22    (2)  Cross-reference: For criminal penalties, see article thirty-seven
    23  of this chapter.
    24    § 1297. Practice and procedure. The provisions of article twenty-seven
    25  of this chapter shall apply with respect to the  administration  of  and
    26  procedure with respect to the state assessment fee imposed by this arti-
    27  cle  in  the  same  manner  and with the same force and effect as if the
    28  language of such article twenty-seven had been incorporated in full into
    29  this article and had expressly referred  to  the  state  assessment  fee
    30  under  this  article,  except  to  the extent that any such provision is
    31  either inconsistent with a provision of this article or is not  relevant
    32  to this article.
    33    § 1298.  Deposit and disposition of revenue. All taxes, fees, interest
    34  and penalties collected or received by the commissioner under this arti-
    35  cle  shall  be  deposited  and disposed of pursuant to the provisions of
    36  section one hundred seventy-one-a of this chapter.
    37    § 19. The tax law is amended by adding a new section 1822 to  read  as
    38  follows:
    39    §  1822.  Violation  of  the  state  assessment  fee on transportation
    40  network company prearranged trips. Any willful act or  omission  by  any
    41  person  that constitutes a violation of any provision of article twenty-
    42  nine-B of this chapter shall constitute a misdemeanor.
    43    § 20. Section 1825 of the tax law, as amended by section 89 of part  A
    44  of chapter 59 of the laws of 2014, is amended to read as follows:
    45    §  1825.  Violation  of secrecy provisions of the tax law.--Any person
    46  who violates the provisions of subdivision (b)  of  section  twenty-one,
    47  subdivision one of section two hundred two, subdivision eight of section
    48  two  hundred  eleven, subdivision (a) of section three hundred fourteen,
    49  subdivision one or two of section  four  hundred  thirty-seven,  section
    50  four  hundred  eighty-seven,  subdivision  one  or  two  of section five
    51  hundred fourteen, subsection (e) of section  six  hundred  ninety-seven,
    52  subsection  (a)  of section nine hundred ninety-four, subdivision (a) of
    53  section eleven hundred forty-six, section twelve  hundred  eighty-seven,
    54  section  twelve  hundred ninety-six, subdivision (a) of section fourteen
    55  hundred eighteen, subdivision (a) of section fifteen  hundred  eighteen,
    56  subdivision  (a)  of section fifteen hundred fifty-five of this chapter,

        S. 2009--C                         123                        A. 3009--C
 
     1  and subdivision (e) of section 11-1797 of the administrative code of the
     2  city of New York shall be guilty of a misdemeanor.
     3    §  21. 1. For purposes of this section, transportation network company
     4  shall mean a  transportation  network  company  as  defined  by  article
     5  forty-four-B of the vehicle and traffic law.
     6    2.  There  is  hereby  established  the  New York State Transportation
     7  Network Company Accessibility Task Force to analyze and advise on how to
     8  maximize effective and integrated transportation  services  for  persons
     9  with  disabilities in the transportation network company market. The New
    10  York State Transportation Network Company Accessibility Task Force shall
    11  consist of eleven members. Two members of the New York State Transporta-
    12  tion Network Company Accessibility Task Force shall be appointed by  the
    13  speaker  of  the assembly. Two members of the New York State Transporta-
    14  tion Network Company Accessibility Task Force shall be appointed by  the
    15  temporary  president  of the senate. Seven members of the New York State
    16  Transportation  Network  Company  Accessibility  Task  Force  shall   be
    17  appointed  by the governor and shall include, but not be limited to, two
    18  representatives of groups who serve persons with  disabilities  and  two
    19  representatives  from  a  transportation  network  company. The governor
    20  shall designate two chairpersons to the New  York  State  Transportation
    21  Network Company Accessibility Task Force.
    22    3.  The  New  York  State Transportation Network Company Accessibility
    23  Task Force shall study the demand responsive transportation  marketplace
    24  and shall, in addition to any responsibilities assigned by the governor:
    25  (a)  conduct a needs assessment concerning the demand for demand respon-
    26  sive  accessible  transportation;  (b)  conduct  a  resource  assessment
    27  concerning  the availability of accessible demand responsive transporta-
    28  tion services for persons with disabilities; (c) identify  opportunities
    29  for,  and barriers to, increasing accessible demand responsive transpor-
    30  tation service for persons with mobility disabilities; (d) propose stra-
    31  tegies  for  increasing  accessible  demand  responsive   transportation
    32  service  for  persons with disabilities; and (e) any other issues deter-
    33  mined important to the  task  force  in  establishing  a  recommendation
    34  pursuant to subdivision five of this section.
    35    4.  The  New  York  State Transportation Network Company Accessibility
    36  Task Force shall hold public hearings and  provide  an  opportunity  for
    37  public  comment  on  the activities described in subdivision two of this
    38  section.
    39    5. The New York State  Transportation  Network  Company  Accessibility
    40  Task  Force  shall complete a report addressing the activities described
    41  in subdivision two of this section and make a recommendation,  supported
    42  by  such  activities, recommending the amount of accessibility necessary
    43  for adequate transportation for disabled passengers in order to  utilize
    44  such  services  and  present such findings at a public meeting where its
    45  members shall accept such report, pursuant to majority vote of the  task
    46  force,  and  present  such  report  to  the governor, the speaker of the
    47  assembly and the temporary president of the senate, and make such report
    48  publicly available for review on or before January first,  two  thousand
    49  nineteen.
    50    6.  Upon  making  the  report  described  in  subdivision five of this
    51  section, the New York State Transportation Network Company Accessibility
    52  Task Force shall be deemed dissolved.
    53    § 22. 1. For purposes of this section, transportation network  company
    54  ("TNC")  and  TNC  driver  shall have the same meaning as such terms are
    55  defined by article 44-B of the vehicle and  traffic  law.  Region  shall

        S. 2009--C                         124                        A. 3009--C
 
     1  mean  one or more of the following named areas comprised of the counties
     2  indicated:
     3    (a)  Western  New  York:  Allegany, Cattaraugus, Chautauqua, Erie, and
     4  Niagara counties;
     5    (b) Finger Lakes: Genesee, Livingston, Monroe, Ontario, Orleans, Sene-
     6  ca, Wayne, Wyoming, and Yates counties;
     7    (c) Southern Tier:  Broome,  Chemung,  Chenango,  Delaware,  Schuyler,
     8  Steuben, Tioga, and Tompkins counties;
     9    (d)  Central New York: Cayuga, Cortland, Madison, Onondaga, and Oswego
    10  counties;
    11    (e) Mohawk Valley: Fulton, Herkimer, Montgomery, Oneida,  Otsego,  and
    12  Schoharie counties;
    13    (f)  North  Country:  Clinton,  Essex,  Franklin, Hamilton, Jefferson,
    14  Lewis, and St. Lawrence counties;
    15    (g) Capital Region: Albany, Columbia,  Greene,  Rensselaer,  Saratoga,
    16  Schenectady, Warren, and Washington counties;
    17    (h)  Mid-Hudson: Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster,
    18  and Westchester counties; and
    19    (i) Long Island: Nassau, and Suffolk counties.
    20    2. (a) There is hereby established the New York  State  Transportation
    21  Network Company Review Board.  The board shall consist of 16 members who
    22  shall be selected as follows:
    23    (i)  one shall be the commissioner of the department of motor vehicles
    24  or his or her designee who shall serve as the chairperson;
    25    (ii) one shall be the superintendent of the  department  of  financial
    26  services or his or her designee;
    27    (iii)  one shall be the commissioner of the department of labor or his
    28  or her designee;
    29    (iv) one shall be the superintendent of the New York state  police  or
    30  his or her designee;
    31    (v)  one shall be the commissioner of the New York state department of
    32  economic development or his or her designee;
    33    (vi) eleven shall be appointed by  the  governor;  provided,  however,
    34  that  one shall be a representative of the New York black car operators'
    35  injury compensation fund inc., one shall be a representative of a trans-
    36  portation network company, and all regions as provided for  in  subdivi-
    37  sion 1 of this section shall be represented;
    38    (vii) three of such representatives of regions shall be appointed upon
    39  recommendation of the temporary president of the senate; and
    40    (viii)  three  of  such  representatives of regions shall be appointed
    41  upon recommendation of the speaker of the assembly.
    42    (b) The regional members appointed shall represent cities with a popu-
    43  lation over one hundred thousand and a county contained within a  region
    44  as  provided  for  in  subdivision 1 of this section; provided, however,
    45  that no two members shall represent the same region.  Such cities  shall
    46  not include a city with a population of one million or more.
    47    3.  The  New  York  state  transportation network company review board
    48  shall review issues related to the general operation of TNCs within  the
    49  state. Such issues shall include, but not be limited to: (a) TNC licens-
    50  ing;  (b)  TNC Driver permitting; (c) geographic operation; (d) consumer
    51  protection; (e) economic impact; (f) anti-discrimination;  (g)  workers'
    52  compensation;  (h)  local  government related impact; (i) public safety;
    53  (j) surge pricing; and (k) any other issue deemed appropriate and proper
    54  by the board.
    55    4. The New York state  transportation  network  company  review  board
    56  shall  hold no more than four public hearings and provide an opportunity

        S. 2009--C                         125                        A. 3009--C
 
     1  for the public, local government officials, and other interested parties
     2  to comment on areas pertinent to the activities of the  board.  The  New
     3  York  state  transportation  network company review board shall complete
     4  and submit a comprehensive report addressing the activities described in
     5  subdivision  three  of  this section on or before January 1, 2019.  Upon
     6  formal adoption by the review board, such report shall be  presented  to
     7  the governor, the speaker of the assembly and the temporary president of
     8  the  senate.  Upon  the  presentation of such report, the New York state
     9  transportation network review board shall be deemed dissolved.
    10    § 23. Severability clause. If any provision of this act or the  appli-
    11  cation  thereof  is held invalid, such invalidity shall not affect other
    12  provisions or applications of this act which can be given effect without
    13  the invalid provision or application, and to this end the provisions  of
    14  this act are declared to be severable.
    15    §  24.  Each agency that is designated to perform any function or duty
    16  pursuant to this act shall be authorized to establish  rules  and  regu-
    17  lations  for  the  administration  and  execution of such authority in a
    18  manner consistent with the provisions of this act and for the protection
    19  of the public, health, safety and welfare of persons within this state.
    20    § 25. The New York black car operators injury compensation fund,  inc.
    21  shall  complete a study on the impact of the inclusion of TNC drivers on
    22  such fund no later than ten months from the effective date of this act.
    23    § 26. This act shall take effect on the ninetieth day after  it  shall
    24  have  become  a  law;  provided  that the amendments to subdivision 1 of
    25  section 171-a of the tax law made by section fifteen of this  act  shall
    26  not  affect  the  expiration of such subdivision and shall expire there-
    27  with, when upon such date the provisions of section sixteen of this  act
    28  shall  take  effect; provided however that coverage provided pursuant to
    29  paragraph (b) of subdivision 1 of section 160-cc of the executive law as
    30  added by section eleven of this act shall be deemed  repealed  one  year
    31  from  the  effective  date  of this act; provided, further, that any TNC
    32  driver permitted to operate prior to the repeal of such paragraph  shall
    33  not see a reduction in coverage.
 
    34                                  PART BBB
 
    35    Section  1.  County-wide shared services property tax savings plan. 1.
    36  Notwithstanding the provisions of  the  municipal  home  rule  law,  the
    37  alternative  county  government  law,  or  any other general, special or
    38  local law to the contrary, the chief executive officer  of  each  county
    39  outside  of  a  city of one million or more shall prepare a property tax
    40  savings plan for shared, coordinated and efficient  services  among  the
    41  county, cities, towns and villages within such county.
    42    Such  plan  may include school districts, boards of cooperative educa-
    43  tional services, and special improvement districts within such county if
    44  the school district,  board  of  cooperative  educational  services,  or
    45  special improvement district has a representative on the shared services
    46  panel.
    47    2. a. There shall be a shared services panel in each county consisting
    48  of  the chief executive officer of the county, who shall serve as chair,
    49  and one representative from each city, town, and village in the county.
    50    b. The chief executive officer of each town, city and village shall be
    51  the representative to the shared services panel and shall be the  mayor,
    52  if a city or a village, or shall be the supervisor, if a town.
    53    c.  The  chief  executive  officer of the county may invite any school
    54  district, any board of  cooperative  educational  services,  and/or  any

        S. 2009--C                         126                        A. 3009--C
 
     1  special  improvement  district in the county to participate in the coun-
     2  ty-wide shared services property tax savings plan. Upon such invitation,
     3  the governing body of such school district, board of cooperative  educa-
     4  tional  services,  and/or a special improvement district may accept such
     5  invitation by selecting a representative  of  such  governing  body,  by
     6  majority vote, to serve as a member of the shared services panel.
     7    d.  In the development of the county-wide shared services property tax
     8  savings plan, the chief executive officer of the county shall  regularly
     9  consult  with, and take recommendations from, all the representatives of
    10  the shared services panel, as well as with and from  the  representative
    11  of  each collective bargaining unit of the county and the cities, towns,
    12  and villages as well as  from  the  representative  of  each  collective
    13  bargaining  unit  of any participating school district, board of cooper-
    14  ative educational services and special improvement district.
    15    3. Public input, as well as input from  civic,  business,  labor,  and
    16  community leaders, shall be accepted by the chief executive officer, the
    17  county  legislative  body  and the shared services panel on the proposed
    18  county-wide shared services property tax  savings  plan.  To  facilitate
    19  such  input,  three or more public hearings shall be arranged to be held
    20  within the county. All such public hearings shall be conducted prior  to
    21  the  submission  of the county-wide shared services property tax savings
    22  plan to a vote of the shared services panel, and public  notice  of  all
    23  such  hearings  shall  be provided at least one week prior in the manner
    24  prescribed in subdivision 1 of section 104 of the public  officers  law.
    25  Civic, business, labor, and community leaders, as well as members of the
    26  public,  shall  be  permitted  to  provided public testimony at any such
    27  hearings.
    28    4. a. Such property tax savings plan shall contain new recurring prop-
    29  erty tax savings through actions such as, but not limited to, the elimi-
    30  nation of duplicative services; shared services, such as joint  purchas-
    31  ing, shared highway equipment, shared storage facilities, shared plowing
    32  services, and energy and insurance purchasing cooperatives; reduction in
    33  back   office   administrative  overhead;  and  better  coordination  of
    34  services.
    35    b. The chief executive officer of the county shall submit such proper-
    36  ty tax savings plan to the county legislative body no later than  August
    37  first,  two  thousand seventeen. Such property tax savings plan shall be
    38  accompanied by a  certification  as  to  the  accuracy  of  the  savings
    39  contained therein.
    40    c.  The  county legislative body shall review and consider the county-
    41  wide shared services plan submitted to it in accordance with paragraph b
    42  of this subdivision. A majority of the members of such body may issue an
    43  advisory report making recommendations as deemed  necessary.  The  chief
    44  executive  officer  may  make  modifications  to  the plan based on such
    45  recommendations. If modifications are made by the chief executive  offi-
    46  cer, he or she shall produce an updated certification as to the accuracy
    47  of the savings contained therein.
    48    d.  The  county  shared  services panel shall consider the county-wide
    49  shared services tax savings plan. A majority vote of the panel shall  be
    50  required for approval of such plan, provided however that each member of
    51  the  panel  may,  prior to the panel-wide vote, cause to be removed from
    52  the plan any proposed action that affects the unit of  local  government
    53  represented  by  the  respective  member. Written notice of such removal
    54  shall be provided to the chief executive officer of the county prior  to
    55  the panel-wide vote on the plan.

        S. 2009--C                         127                        A. 3009--C
 
     1    e.  If  a  county  does  not  achieve  an  approved county-wide shared
     2  services property tax savings plan by the deadlines required  for  2017,
     3  then  it  shall release to the public a report on the proposal, the vote
     4  of the panel which vote shall require each panel member, in  writing  to
     5  state  the  reason for such vote.  The county shall then follow the same
     6  procedures defined in this section to attempt  to  produce  an  approved
     7  county-wide  shared  services property tax savings plan by the deadlines
     8  required for 2018.
     9    5. a. Upon approval of the shared services panel, the chief  executive
    10  officer  of  the  county  shall finalize the county-wide shared services
    11  property tax savings plan and shall transmit  to  the  director  of  the
    12  division  of the budget a certification of the plan and its property tax
    13  savings plan.  The chief executive officer of the county shall  finalize
    14  any  such approved county-wide shared services property tax savings plan
    15  no later than September fifteenth, two thousand seventeen, and any  such
    16  plan  shall  be  publicly  disseminated  to residents of the county in a
    17  concise, clear, and coherent manner using words with common and everyday
    18  meanings.
    19    b. The beginning of the plan publicly disseminated shall  contain  the
    20  information and shall be in the form set forth hereinbelow:
 
    21        County-wide Shared Services Property Tax Savings Plan Summary
 
    22  Row 1     Participating Cities   (insert number of cities in the
    23                                   county as well as the number and list
    24                                   of such cities with a representative
    25                                   on the panel who voted on such plan)
    26  Row 2     Participating Towns    (insert number of towns in the county
    27                                   as well as the number and list of
    28                                   such towns with a representative
    29                                   on the panel who voted on such plan)
    30  Row 3     Participating Villages (insert number of villages in the
    31                                   county as well as the number and list of
    32                                   such villages with a representative
    33                                   on the panel who voted on such plan)
    34  Row 4     Participating school   (insert number of school districts,
    35            districts, BOCES, and  BOCES, and special improvement
    36            special improvement    districts in the county as
    37            districts              well as the number and list of
    38                                   such school districts, BOCES, and
    39                                   special improvement districts
    40                                   with a representative on the
    41                                   panel who voted on such plan)
    42  Row 5     2017 Local             (insert sum total of property
    43            Government property    taxes levied in the year
    44            taxes                  2017 by the county, cities, towns,
    45                                   villages, school districts,
    46                                   BOCES, and special improvement
    47                                   districts within such county)
    48  Row 6     2017 Participating     (insert sum total of property
    49            Entities property      taxes levied in the year 2017 by the
    50            taxes                  county, any cities, towns, villages,
    51                                   school districts, BOCES, and
    52                                   special improvements districts
    53                                   identified as participating in
    54                                   the panel in rows one through

        S. 2009--C                         128                        A. 3009--C

     1                                   four above)
     2  Row 7     Total Anticipated      (insert sum total of net
     3            Savings                savings in such plan certified
     4                                   as being anticipated in calendar
     5                                   year 2018, calendar year 2019,
     6                                   and annually thereafter)
     7  Row 8     Anticipated Savings    (insert sum total of net
     8            as a Percentage of     savings in such plan
     9            Participating          certified as being anticipated
    10            Entities property      in calendar year 2018 as a
    11            taxes                  percentage of the sum total in
    12                                   Row 6, calendar year 2019
    13                                   as a percentage of the sum total
    14                                   in Row 6, and annually
    15                                   thereafter as a percentage of the
    16                                   sum total in Row 6)
    17  Row 9     Anticipated            (insert the amount of the
    18            Savings to the         savings that the average
    19            Average Taxpayer       taxpayer in the county
    20                                   will realize in calendar year
    21                                   2018, calendar year 2019,
    22                                   and annually thereafter if the
    23                                   net savings certified
    24                                   in the plan are realized)
    25  Row 10    Anticipated            (insert the percentage amount a
    26            Costs/Savings to       homeowner can expect his or her
    27            the Average            property taxes to increase or
    28            Homeowner              decrease in calendar year 2018,
    29                                   calendar year 2019, and
    30                                   annually thereafter if
    31                                   the net savings certified in the
    32                                   plan are realized)
    33  Row 11    Anticipated            (insert the percentage amount a
    34            Costs/Savings to       business can expect its property
    35            the Average            taxes to increase or decrease in
    36            Business               calendar year 2018, calendar year
    37                                   2019, and annually thereafter if
    38                                   the net savings certified in the
    39                                   plan are realized)
    40    c.  The  chief  executive officer of the county shall conduct a public
    41  presentation of the plan no later than October 15, 2017.  Public  notice
    42  of such public presentation shall be provided at least one week prior in
    43  the  manner  prescribed  in  subdivision  1 of section 104 of the public
    44  officers law.
    45    d. Any such finalized property tax savings plan which would  have  the
    46  effect of transferring or abolishing a function or duty of the county or
    47  of  the  cities, towns, villages, districts or other units of government
    48  wholly contained in the county, shall not become  operative  unless  and
    49  until  it  is approved in accordance with subdivision (h) of section one
    50  of article nine of the state constitution.
    51    6. a. If the county-wide property  tax  savings  plan  shall  fail  to
    52  obtain  the approval of the shared services panel, voting on the plan in
    53  accordance with this section, the chief executive officer of the  county
    54  shall  resubmit  such  plan  to the shared services panel, in accordance
    55  with the procedures established for  first  consideration  of  the  plan

        S. 2009--C                         129                        A. 3009--C
 
     1  outlined by this section, no later than August first, two thousand eigh-
     2  teen.
     3    b.  Any proposed county-wide shared services property tax savings plan
     4  prepared for reconsideration by the shared services panel, shall  follow
     5  the  same  procedures  prescribed in this section for original consider-
     6  ation in two thousand seventeen. No county-wide shared services property
     7  tax savings plan shall be deemed approved, or may be finalized,  without
     8  approval of such plan by the shared services panel.
     9    c.  If  the  shared  services  panel approves the proposed county-wide
    10  shared services property tax savings plan for 2018, the chief  executive
    11  officer  of  the  county  shall  finalize  any such approved county-wide
    12  shared services property  tax  savings  plan  no  later  than  September
    13  fifteenth,  two  thousand  eighteen, and any such plan shall be publicly
    14  disseminated to residents of the county in a concise, clear, and  coher-
    15  ent manner using words with common and everyday meanings.
    16    d.  The  beginning of the plan publicly disseminated shall contain the
    17  information and shall be in the form set forth hereinbelow:
    18        County-wide Shared Services Property Tax Savings Plan Summary
 
    19  Row 1     Participating Cities      (insert number of cities in the
    20                                      county as well as the number
    21                                      and list of such cities with
    22                                      a representative on the
    23                                      panel who voted on such plan)
    24  Row 2     Participating Towns       (insert number of towns in the
    25                                      county as well as the number
    26                                      and list of such towns with
    27                                      a representative on the
    28                                      panel who voted on such plan)
    29  Row 3     Participating Villages    (insert number of villages in the
    30                                      county as well as the number
    31                                      and list of such villages with
    32                                      a representative on the
    33                                      panel who voted on such plan)
    34  Row 4     Participating school      (insert number of school
    35            districts, BOCES, and     districts, BOCES, and special
    36            special improvement       improvement
    37            districts                 districts in the county
    38                                      as well as the number
    39                                      and list of such school districts,
    40                                      BOCES, and special improvement
    41                                      districts with a representative
    42                                      one the panel who voted on
    43                                      such plan)
    44  Row 5     2018 Local Government     (insert sum total of property taxes
    45            property                  levied in the year 2018 by the
    46            taxes                     county, cities, towns, villages,
    47                                      school districts, BOCES, and
    48                                      special improvement districts
    49                                      within such county)
    50  Row 6     2018 Participating        (insert sum total of property taxes
    51            Entities property         levied in the year 2018 by the
    52            taxes                     county, any cities, towns, villages,
    53                                      school districts, BOCES,
    54                                      and special improvement districts
    55                                      identified as participating

        S. 2009--C                         130                        A. 3009--C
 
     1                                      in the panel in
     2                                      rows one through four above)
     3  Row 7     Total Anticipated         (insert sum total of net savings in
     4            Savings                   such plan certified as being
     5                                      anticipated in calendar year 2019,
     6                                      calendar year 2020, and annually
     7                                      thereafter)
     8  Row 8     Anticipated Savings       (insert sum total of net savings in
     9            as a Percentage           such plan certified as being
    10            of Participating          anticipated in calendar year 2019
    11            Entities property         as a percentage of the
    12            taxes                     sum total in Row 6, calendar
    13                                      year 2020 as a percentage of the
    14                                      sum total in Row 6, and annually
    15                                      thereafter as a percentage
    16                                      of the sum total in Row 6)
    17  Row 9     Anticipated Savings       (insert the amount of
    18            to the Average            the savings that the average
    19            Taxpayer                  taxpayer in the county will
    20                                      realize in calendar year 2019,
    21                                      calendar year 2020, and
    22                                      annually thereafter if the net
    23                                      savings certified in the plan
    24                                      are realized)
    25  Row 10    Anticipated               (insert the percentage amount a
    26            Costs/Savings to          homeowner can expect his or her
    27            the Average               property taxes to increase or
    28            Homeowner                 decrease in calendar year
    29            2019, calendar year
    30                                      2020, and annually thereafter if
    31                                      the net savings certified in the
    32                                      plan are realized)
    33  Row 11    Anticipated               (insert the percentage amount a
    34            Costs/Savings to          business can expect its property
    35            the Average               taxes to increase or decrease in
    36            Business                  calendar year 2019, calendar year
    37                                      2020, and annually thereafter if
    38                                      the net savings certified in the
    39                                      plan are realized)
    40    e.  The  chief  executive officer of the county shall conduct a public
    41  presentation of the plan no later than October 15, 2018.  Public  notice
    42  of such public presentation shall be provided at least one week prior in
    43  the  manner  prescribed  in  subdivision  1 of section 104 of the public
    44  officers law.
    45    f. Any such finalized property tax savings plan which would  have  the
    46  effect of transferring or abolishing a function or duty of the county or
    47  of  the  cities, towns, villages, districts or other units of government
    48  wholly contained in the county, shall not become  operative  unless  and
    49  until  it  is approved in accordance with subdivision (h) of section one
    50  of article nine of the state constitution.
    51    7. For the purposes of this part "chief executive officer"  means  the
    52  county executive, county manager or other chief executive of the county,
    53  or where none, the chair of the county legislative body.
    54    8.  Each  county  plan  may  be eligible for one-time funding to match
    55  savings in such plan, subject to available appropriation. The  secretary
    56  of  state  shall develop an application, approved by the director of the

        S. 2009--C                         131                        A. 3009--C
 
     1  budget, with any necessary requirements to receive such  matching  fund-
     2  ing.  Savings that are actually and demonstrably realized by the partic-
     3  ipating local governments are eligible for matching funding. For actions
     4  that  are a part of an approved plan finalized in 2017, savings from new
     5  actions implemented on or after January 1, 2018 are eligible for  match-
     6  ing  funding.  For actions that are a part of an approved plan finalized
     7  in 2017, savings achieved from January 1, 2018 through December 31, 2018
     8  are eligible for matching funding. For actions that are  a  part  of  an
     9  approved plan finalized in 2018, savings from new actions implemented on
    10  or  after January 1, 2019 are eligible for matching funding. For actions
    11  that are a part of an approved plan finalized in 2018, savings  achieved
    12  from January 1, 2019 through December 31, 2019 are eligible for matching
    13  funding.  Only  net  savings  between  local governments for each action
    14  would be eligible for matching funding. Savings from internal  efficien-
    15  cies  or  any  other  actions  taken  by  a local government without the
    16  participation of another local government are not eligible for  matching
    17  funding.  Each county and all of the local governments within the county
    18  that are part of any action to be implemented as part  of  the  approved
    19  plan  must  collectively apply for the matching funding and agree on the
    20  distribution and use of any matching funding in  order  to  qualify  for
    21  matching funding.
    22    9. Where the implementation of any component of such finalized proper-
    23  ty  tax savings plan is, by any other general or special law, subject to
    24  a public hearing, a mandatory  or  permissive  referendum,  consents  of
    25  governmental agencies, or other requirements applicable to the making of
    26  contracts, then implementation of such component shall be conditioned on
    27  compliance with such requirements.
    28    10.  If  any clause, sentence, paragraph, subdivision, section or part
    29  of this act shall be adjudged by any court or competent jurisdiction  to
    30  be  invalid,  such  judgment shall not affect, impair, or invalidate the
    31  remainder thereof, but shall be confined in its operation to the clause,
    32  sentence, paragraph,  subdivision,  section  or  part  thereof  directly
    33  involved  in  the  controversy  in  which  such judgment shall have been
    34  rendered. It is hereby declared to be the intent of the legislature that
    35  this act would have been enacted if such invalid provisions had not been
    36  included herein.
    37    § 2. School district and board  of  cooperative  educational  services
    38  participation in county-wide shared services property tax savings plans.
    39  Notwithstanding  any  provision  of  the  education  law,  or  any other
    40  provision of law, rule  or  regulation,  to  the  contrary,  any  school
    41  district or board of cooperative educational services may participate in
    42  a  county-wide  shared  services  property  tax savings plan established
    43  pursuant to the provisions of this chapter, and may further  participate
    44  in  any  of  the  activities  listed  in paragraph a of subdivision 4 of
    45  section one of this act  with  any  participating  county,  town,  city,
    46  village,  special  improvement district, school district and/or board of
    47  cooperative  educational  services  participating  in  such  county-wide
    48  shared services property tax saving plan.
    49    § 3. This act shall take effect immediately.
 
    50                                  PART CCC
 
    51    Section  1. The opening paragraph of subdivision (h) of section 121 of
    52  chapter 261 of the laws of 1988, amending  the  state  finance  law  and
    53  other  laws relating to the New York state infrastructure trust fund, as

        S. 2009--C                         132                        A. 3009--C
 
     1  amended by section 2 of part Q of chapter 58 of the  laws  of  2015,  is
     2  amended to read as follows:
     3    The  provisions  of  [section] sections sixty-two through sixty-six of
     4  this act shall expire April fifteenth, two thousand eighteen,  provided,
     5  however,  that  if  the  statewide disparity study regarding the partic-
     6  ipation of  minority  and  women-owned  business  enterprises  in  state
     7  contracts  required pursuant to subdivision one of section three hundred
     8  twelve-a of the executive law is completed and delivered to the governor
     9  and the legislature on or before June thirtieth, two thousand seventeen,
    10  then the provisions of sections sixty-two through sixty-six of this  act
    11  shall   expire   on  December  thirty-first,  two  thousand  [seventeen]
    12  eighteen, except that:
    13    § 2. This act shall take effect immediately.
 
    14                                  PART DDD
 
    15    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
    16  subsection (n-2) to read as follows:
    17    (n-2)  Credit for farm donations to food pantries. (1) General. In the
    18  case of a taxpayer who is an eligible farmer, there shall be  allowed  a
    19  credit,  to be computed as hereinafter provided, against the tax imposed
    20  by this article for taxable years beginning on and after January  first,
    21  two  thousand  eighteen.  The  amount of the credit shall be twenty-five
    22  percent of the fair market value of the taxpayer's  qualified  donations
    23  made  to any eligible food pantry during the taxable year, not to exceed
    24  five thousand dollars per taxable year. If the taxpayer is a partner  in
    25  a partnership or a shareholder of a New York S corporation, then the cap
    26  imposed  by the preceding sentence shall be applied at the entity level,
    27  so that the aggregate credit allowed to all partners or shareholders  of
    28  such entity in the taxable year does not exceed five thousand dollars.
    29    (2) Eligible farmer. For purposes of this subsection, the term "eligi-
    30  ble farmer" means a taxpayer whose federal gross income from farming for
    31  the  taxable year is at least two-thirds of excess federal gross income.
    32  Excess federal gross income means the amount  of  federal  gross  income
    33  from  all sources for the taxable year reduced by the sum (not to exceed
    34  thirty thousand dollars) of those items included in federal gross income
    35  that consist of: (i) earned income,  (ii)  pension  payments,  including
    36  social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
    37  purposes of this paragraph, the term "earned income" shall  mean  wages,
    38  salaries, tips and other employee compensation, and those items of gross
    39  income that are includible in the computation of net earnings from self-
    40  employment.  For  the  purposes  of  this  paragraph,  payments from the
    41  state's farmland protection program, administered by the  department  of
    42  agriculture  and markets, shall be included as federal gross income from
    43  farming for otherwise eligible farmers.
    44    (3) Qualified donation. For purposes  of  this  subsection,  the  term
    45  "qualified  donation" means a donation of any apparently wholesome food,
    46  as defined in section 170(e)(3)(C)(vi) of  the  internal  revenue  code,
    47  grown  or produced within this state, by an eligible farmer to an eligi-
    48  ble food pantry.
    49    (4) Eligible food pantry. For purposes of this  subsection,  the  term
    50  "eligible  food pantry" means any food pantry, food bank, or other emer-
    51  gency food program operating within this state that  has  qualified  for
    52  tax exemption under section 501(c)(3) of the internal revenue code.
    53    (5)   Determination  of  fair  market  value.  For  purposes  of  this
    54  subsection, to determine the fair market value of  apparently  wholesome

        S. 2009--C                         133                        A. 3009--C
 
     1  food  donated  to an eligible food pantry, the standards set forth under
     2  section 170(e)(3)(C)(v) of the internal revenue code shall apply.
     3    (6)  Record  of  donation.  To claim a credit under this subsection, a
     4  taxpayer must get and keep a receipt from the eligible food pantry show-
     5  ing: (i) the name of  the  eligible  food  pantry;  (ii)  the  date  and
     6  location  of  the  qualified  donation;  and (iii) a reasonably detailed
     7  description of the qualified donation. A letter or other written  commu-
     8  nication  from  the  eligible  food  pantry acknowledging receipt of the
     9  contribution and containing the information in subparagraphs (i),  (ii),
    10  and (iii) of this paragraph will serve as a receipt.
    11    (7)  Application of credit. A taxpayer shall be allowed a credit under
    12  this subsection against the tax imposed by this article. However, if the
    13  amount of credit allowed under this  subsection  for  any  taxable  year
    14  exceeds  the taxpayer's tax for such year, the excess will be treated as
    15  an overpayment of tax to be credited or refunded in accordance with  the
    16  provisions  of section six hundred eighty-six of this article. Provided,
    17  however, the provisions of subsection (c) of section six hundred  eight-
    18  y-eight of this article notwithstanding, no interest will be paid there-
    19  on.
    20    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    21  of the tax law is amended by adding a new  clause  (xliii)  to  read  as
    22  follows:
 
    23  (xliii) Farm donations to food       Amount of credit under
    24  pantries credit under                subdivision fifty-two of
    25  subsection (n-2)                     section two hundred ten-B
    26    § 3. Subsection (c) of section 615 of the tax law is amended by adding
    27  a new paragraph 9 to read as follows:
    28    (9)  with  respect to a taxpayer who has claimed the farm donations to
    29  food pantries credit pursuant to subsection (n-2) of section six hundred
    30  six of this article, the taxpayer's New York itemized  deductions  shall
    31  be  reduced  by  any  charitable  contribution  deduction  allowed under
    32  section one hundred seventy of the internal revenue code with respect to
    33  such donations.
    34    § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
    35  sion 52 to read as follows:
    36    52.  Credit  for  farm donations to food pantries. (a) General. In the
    37  case of a taxpayer that is an eligible farmer, there shall be allowed  a
    38  credit,  to  be computed as hereinafter provided against the tax imposed
    39  by this article for taxable years beginning on and after January  first,
    40  two  thousand  eighteen.  The  amount of the credit shall be twenty-five
    41  percent of the fair market value of the taxpayer's  qualified  donations
    42  made  to any eligible food pantry during the taxable year, not to exceed
    43  five thousand dollars per taxable year. If the taxpayer is a partner  in
    44  a  partnership,  then the cap imposed by the preceding sentence shall be
    45  applied at the entity level, so that the aggregate credit allowed to all
    46  partners of such entity in the taxable year does not exceed  five  thou-
    47  sand dollars.
    48    (b)  Eligible  farmer.  For  purposes  of  this  subdivision, the term
    49  "eligible farmer" means a taxpayer whose federal gross income from farm-
    50  ing for the taxable year is at least two-thirds of excess federal  gross
    51  income.    Excess federal gross income means the amount of federal gross
    52  income from all sources for the taxable year in excess of  thirty  thou-
    53  sand  dollars. For purposes of this paragraph, payments from the state's
    54  farmland protection program, administered by the department of  agricul-

        S. 2009--C                         134                        A. 3009--C
 
     1  ture and markets, shall be included as federal gross income from farming
     2  for otherwise eligible farmers.
     3    (c)  Qualified  donation.  For  purposes of this subdivision, the term
     4  "qualified donation" means a donation of apparently wholesome  food,  as
     5  defined  in section 170(e)(3)(C)(vi) of the internal revenue code, grown
     6  or produced within this state, by an eligible farmer to an eligible food
     7  pantry.
     8    (d) Eligible food pantry. For purposes of this subdivision,  the  term
     9  "eligible  food pantry" means any food pantry, food bank, or other emer-
    10  gency food program operating within this state that  has  qualified  for
    11  tax exemption under section 501(c)(3) of the internal revenue code.
    12    (e)  Determination of fair market value. For purposes of this subdivi-
    13  sion, to determine the fair market value of  apparently  wholesome  food
    14  donated  to  an  eligible  food  pantry,  the  standards set forth under
    15  section 170(e)(3)(C)(v) of the internal revenue code shall apply.
    16    (f) Record of donation. To claim a credit under  this  subdivision,  a
    17  taxpayer must get and keep a receipt from the eligible food pantry show-
    18  ing:  (i)  the  name  of  the  eligible  food  pantry; (ii) the date and
    19  location of the qualified donation;  and  (iii)  a  reasonably  detailed
    20  description  of the qualified donation. A letter or other written commu-
    21  nication from the eligible food  pantry  acknowledging  receipt  of  the
    22  contribution  and containing the information in subparagraphs (i), (ii),
    23  and (iii) of this paragraph will serve as a receipt.
    24    (g) Application of credit. The credit allowed under  this  subdivision
    25  for  any  taxable year will not reduce the tax due for such year to less
    26  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    27  section two hundred ten of this article. However, if the amount of cred-
    28  it  allowed  under this subdivision for any taxable year reduces the tax
    29  to such amount or if the taxpayer otherwise pays tax based on the  fixed
    30  dollar  minimum amount, any amount of credit thus not deductible in such
    31  taxable year will be treated as an overpayment of tax to be credited  or
    32  refunded  in  accordance  with  the  provisions  of section one thousand
    33  eighty-six of this  chapter.    Provided,  however,  the  provisions  of
    34  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    35  notwithstanding, no interest will be paid thereon.
    36    § 5. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
    37  amended by adding a new subparagraph 22 to read as follows:
    38    (22)  the amount of any deduction for charitable contributions allowed
    39  under section one hundred seventy of the internal revenue  code  to  the
    40  extent  such  contributions  are used as the basis of the calculation of
    41  the farm donations to food pantries credit under  subdivision  fifty-two
    42  of section two hundred ten-B of this article.
    43    § 6. This act shall take effect immediately.
 
    44                                  PART EEE
 
    45    Section 1. Subdivisions 1, 2, 3 and 4 of section 186-f of the tax law,
    46  as  added  by section 3 of part B of chapter 56 of the laws of 2009, are
    47  amended to read as follows:
    48    1. Definitions. As used in this section, where not  otherwise  specif-
    49  ically defined and unless a different meaning is clearly required:
    50    (a)  "Place  of  primary  use"  has  the  same meaning as that term is
    51  defined in paragraph twenty-six of subdivision  (b)  of  section  eleven
    52  hundred one of this chapter.
    53    (b) "Wireless communications customer" means mobile telecommunications
    54  customer  as  defined  in  subparagraph (i) of paragraph twenty-seven of

        S. 2009--C                         135                        A. 3009--C
 
     1  subdivision (b) of section eleven  hundred  one  of  this  chapter,  who
     2  contracts for or is the end user of wireless communications service.
     3    (c)  "Wireless  communications  device"  means  any  equipment used to
     4  access a wireless communications service.
     5    (d) "Wireless communications  service"  means  all  commercial  mobile
     6  services,  as  that term is defined in section 332(d) of title 47 of the
     7  United States Code, as amended from time to  time,  including,  but  not
     8  limited  to,  all  broadband  personal communications services, wireless
     9  radio telephone  services,  geographic  area  specialized  and  enhanced
    10  specialized  mobile  radio services, and incumbent-wide area specialized
    11  mobile radio licensees, which offer real time,  two-way  voice  or  data
    12  service  that  is  interconnected  with  the  public  switched telephone
    13  network  or  otherwise  provides  access  to  emergency   communications
    14  services.
    15    (e)  "Wireless  communications  service supplier" means a home service
    16  provider as defined in subparagraph (ii) of  paragraph  twenty-seven  of
    17  subdivision  (b) of section eleven hundred one of this chapter, provided
    18  that the home service provider provides wireless communications  service
    19  and has one or more wireless communications customers in New York state.
    20    (f)  "Prepaid  wireless communications seller" means a person making a
    21  retail sale of prepaid wireless communications service.
    22    (g) "Prepaid wireless communications service" means a  prepaid  mobile
    23  calling service as defined in paragraph twenty-two of subdivision (b) of
    24  section eleven hundred one of this chapter.
    25    2.  Public  safety  communications  surcharge.  (a) (1) A surcharge on
    26  wireless communications service provided to  a  wireless  communications
    27  customer  with  a  place  of primary use in this state is imposed at the
    28  rate of one dollar and twenty cents per month on each wireless  communi-
    29  cations  device  in service during any part of each month. The surcharge
    30  must be reflected and made payable on bills  rendered  to  the  wireless
    31  communications customer for wireless communication service.
    32    (2) A surcharge is imposed on the retail sale of each prepaid wireless
    33  communications service, whether or not any tangible personal property is
    34  sold therewith, at the rate of ninety cents per retail sale. A sale of a
    35  prepaid wireless communications service occurs in this state if the sale
    36  takes  place  at  a seller's business location in the state. If the sale
    37  does not take place at the seller's  place  of  business,  it  shall  be
    38  conclusively  determined  to  take  place  at  the  purchaser's shipping
    39  address or, if there is no item  shipped,  at  the  purchaser's  billing
    40  address,  or,  if the seller does not have that address, at such address
    41  as approved by the commissioner that reasonably reflects the  customer's
    42  location  at the time of the sale of the prepaid wireless communications
    43  service.
    44    (b) [Each wireless communications service supplier providing  wireless
    45  communications  service in New York state must act as a collection agent
    46  for the state for the collection of the surcharge. The wireless communi-
    47  cations  service  supplier  has  no  legal  obligation  to  enforce  the
    48  collection  of  the surcharge from its customers. However, each wireless
    49  communications service supplier must collect and  retain  the  name  and
    50  address  of any wireless communications customer with a place of primary
    51  use in this state that refuses or fails to pay the surcharge, as well as
    52  the cumulative amount  of  the  surcharge  remaining  unpaid,  and  must
    53  provide  this  information to the commissioner at the time and according
    54  to  the  procedures  the  commissioner  may  provide.]  The  [surcharge]
    55  surcharges  must be reported and paid to the commissioner on a quarterly
    56  basis on or before the [fifteenth] twentieth day of the month  following

        S. 2009--C                         136                        A. 3009--C
 
     1  each  quarterly  period  ending on the last day of February, May, August
     2  and November, respectively. The payments must be accompanied by a return
     3  in  the  form  and  containing  the  information  the  commissioner  may
     4  prescribe.
     5    (c)  The  [surcharge] surcharges must be added as a separate line item
     6  to bills furnished by a wireless communications service supplier to  its
     7  customers,  or  must  be  added as a separate line item to a sales slip,
     8  invoice, receipt, or other statement of  the  price,  if  any,  that  is
     9  furnished  by  a  prepaid wireless communications seller to a purchaser,
    10  and must be identified as the "public safety communications  surcharge".
    11  [Each  wireless communications customer who is subject to the provisions
    12  of this section remains liable to the state for the surcharge due  under
    13  this section until it has been paid to the state, except that payment to
    14  a  wireless communications service supplier is sufficient to relieve the
    15  customer from further liability for the surcharge.]
    16    (d) Each wireless communications service supplier and prepaid wireless
    17  communications seller is entitled to retain, as an  administrative  fee,
    18  an  amount  equal to [two] three percent of fifty-eight and three-tenths
    19  percent of the total collections of the [surcharge]  surcharges  imposed
    20  by this section, provided that the supplier or seller files any required
    21  return and remits the surcharge due to the commissioner on or before its
    22  due date.
    23    3.  [Applicability  of  article  twenty-seven. For purposes of article
    24  twenty-seven of this chapter as applied to this section by  section  two
    25  hundred  seven-b of this article, the term "taxpayer" in article twenty-
    26  seven refers to a wireless communications service  supplier  subject  to
    27  this  section  or  a  wireless  communications  customer subject to this
    28  section, as the case may be, and the term "tax" in article  twenty-seven
    29  refers to the surcharge imposed by this section.
    30    4.  Exemptions. The state of New York and any of its agencies, instru-
    31  mentalities and political subdivisions are] Exemption. Lifeline  consum-
    32  ers  shall  be  exempt  from  the [surcharge] surcharges imposed by this
    33  section.
    34    4. Applicable provisions. (a) Except as  otherwise  provided  in  this
    35  section, the surcharges imposed under this section shall be administered
    36  and  collected by the commissioner in a like manner as the taxes imposed
    37  by article twenty-eight of this chapter. All the provisions  of  article
    38  twenty-eight of this chapter, including the provisions relating to defi-
    39  nitions, exemptions, returns, personal liability for the tax, collection
    40  of  tax from the customer, payment of tax, and the administration of the
    41  taxes imposed by such article, shall apply  to  the  surcharges  imposed
    42  under  the  authority  of this section so far as those provisions can be
    43  made applicable to the surcharges imposed by  this  section,  with  such
    44  modifications  as  may  be  necessary  in order to adapt the language of
    45  those provisions to  the  surcharges  imposed  by  this  section.  Those
    46  provisions shall apply with the same force and effect as if the language
    47  of  those  provisions had been set forth in full in this section, except
    48  to the extent that any of those provisions is either inconsistent with a
    49  provision of this section or is not relevant to the surcharge imposed by
    50  this section. For purposes of this section, any reference in this  chap-
    51  ter  to a tax or the taxes imposed by article twenty-eight of this chap-
    52  ter shall be deemed also to refer to  the  surcharges  imposed  by  this
    53  section unless a different meaning is clearly required.
    54    (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
    55  sion:

        S. 2009--C                         137                        A. 3009--C
 
     1    (1) the exemptions provided for in section eleven hundred  sixteen  of
     2  this chapter, other than the exemptions in paragraphs one, two and three
     3  of  subdivision  (a)  of that section, shall not apply to the surcharges
     4  imposed by this section.
     5    (2)  the  credit provided in subdivision (f) of section eleven hundred
     6  thirty-seven of this chapter shall not apply to this section.
     7    § 2. Sections 308-a, 308-b, 308-c, 309-d, 308-e, 308-f, 308-g,  308-h,
     8  308-k,  308-l,  308-m,  308-n, 308-p, 308-q, 308-r, 308-s, 308-t, 308-u,
     9  308-v, 308-w, 308-x and 308-y of the county law are REPEALED.
    10    § 3. The tax law is amended by adding a new section 186-g to  read  as
    11  follows:
    12    § 186-g. Wireless communications surcharge authorized. 1. Definitions.
    13  As  used  in  this section, where not otherwise specifically defined and
    14  unless a different meaning is clearly required, all of  the  definitions
    15  of  section  one hundred eighty-six-f of this article shall apply to the
    16  surcharges authorized by this section.
    17    2. Imposition of surcharge. (a) Notwithstanding any other provision of
    18  law to the contrary, and in addition to any other tax or fee imposed  by
    19  this  chapter  or any other law, a city having a population of a million
    20  or more, and a county, other than a county wholly within  such  a  city,
    21  acting  through  its  local  legislative  body, is hereby authorized and
    22  empowered to adopt and  amend  local  laws,  ordinances  or  resolutions
    23  imposing a surcharge within the territorial limits of such city or coun-
    24  ty  to  take  effect  on or after December first, two thousand seventeen
    25  that  shall  include  both  (i)  wireless  communications  service,   as
    26  described  in  paragraph (b) of this subdivision; and (ii) prepaid wire-
    27  less communications service, as  described  in  paragraph  (c)  of  this
    28  subdivision.
    29    (b)  Such  surcharge  on wireless communications service provided to a
    30  wireless communications customer with a place of primary use in  a  city
    31  or  county  authorized to impose the surcharge by this subdivision shall
    32  be imposed at the rate of thirty cents per month on each wireless commu-
    33  nications device in service during any part of the month. The  surcharge
    34  must  be  reflected  and  made payable on bills rendered to the wireless
    35  communications customer for wireless communications service.
    36    (c) Such surcharge on the retail sale of each prepaid wireless  commu-
    37  nications service, whether or not any tangible personal property is sold
    38  therewith,  shall be imposed at the rate of thirty cents per retail sale
    39  within a city or county authorized  to  impose  the  surcharge  by  this
    40  subdivision.  A sale of a prepaid wireless communications service occurs
    41  in such city or county if the sale takes place at  a  seller's  business
    42  location  in such city or county. If the sale does not take place at the
    43  seller's place of business, it shall be conclusively determined to  take
    44  place  at the purchaser's shipping address in such city or county or, if
    45  there is no item shipped, at the purchaser's  billing  address  in  such
    46  city  or  county,  or, if the seller does not have that address, at such
    47  address that reasonably reflects the customer's location at the time  of
    48  the sale of the prepaid wireless communications service.
    49    3.  Any  such  local  law, ordinance or resolution adopted pursuant to
    50  this section shall state the amount of the surcharges and  the  date  on
    51  which  both  the wireless communications service supplier shall begin to
    52  add such surcharge to the billings of  its  customers  and  the  prepaid
    53  wireless  communications  seller  shall  begin to collect such surcharge
    54  from its customers. No such local law, ordinance or resolution shall  be
    55  effective  unless  a certified copy of such law, ordinance or resolution
    56  is mailed by registered or certified mail to the commissioner in accord-

        S. 2009--C                         138                        A. 3009--C

     1  ance with the provisions of subdivisions (d) and (e) of  section  twelve
     2  hundred ten of this chapter.
     3    4.  Exemption.  Lifeline consumers shall be exempt from the surcharges
     4  imposed by this section.
     5    5. The surcharges must be reported and paid to the commissioner  on  a
     6  quarterly  basis  on  or before the twentieth day of the month following
     7  each quarterly period ending on the last day of  February,  May,  August
     8  and November, respectively. The payments must be accompanied by a return
     9  in  the  form  and  containing  the  information  the  commissioner  may
    10  prescribe.
    11    6. The surcharges must be added as  a  separate  line  item  to  bills
    12  furnished  by  a wireless communications service supplier to its custom-
    13  ers, or must be added as a separate line item to a sales slip,  invoice,
    14  receipt, or other statement of the price, if any, that is furnished by a
    15  prepaid wireless communications seller to a purchaser, and must be iden-
    16  tified as the "public safety communications surcharge".
    17    7.  Each wireless communications service supplier and prepaid wireless
    18  communications seller is entitled to retain, as an  administrative  fee,
    19  an  amount  equal  to three percent of its collections of the surcharges
    20  imposed under the authority of this section, provided that the  supplier
    21  or  seller files any required return and remits the surcharge due to the
    22  commissioner on or before its due date.
    23    8. Applicable provisions. (a) Except as  otherwise  provided  in  this
    24  section, any surcharge imposed under the authority of this section shall
    25  be  administered  and  collected by the commissioner in a like manner as
    26  the taxes imposed by articles twenty-eight and twenty-nine of this chap-
    27  ter. All the provisions of article twenty-eight and twenty-nine of  this
    28  chapter,  including  the provisions relating to definitions, exemptions,
    29  returns, personal liability for the tax,  collection  of  tax  from  the
    30  customer, payment of tax, and the administration of the taxes imposed by
    31  such  article, shall apply to the surcharges imposed under the authority
    32  of this section so far as those provisions can be made applicable to the
    33  surcharges imposed under  the  authority  of  this  section,  with  such
    34  modifications  as  may  be  necessary  in order to adapt the language of
    35  those provisions to the surcharges imposed under the authority  of  this
    36  section.  Those provisions shall apply with the same force and effect as
    37  if the language of those provisions had been set forth in full  in  this
    38  section,  except  to  the  extent that any of those provisions is either
    39  inconsistent with a provision of this section or is not relevant to  the
    40  surcharge  imposed under the authority of this section.  For purposes of
    41  this section, any reference in this  chapter  to  a  tax  or  the  taxes
    42  imposed  by  articles twenty-eight and twenty-nine of this chapter shall
    43  be deemed also to refer to the surcharges imposed under the authority of
    44  this section unless a different meaning is clearly required.
    45    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    46  sion:
    47    (1)  the  exemptions provided for in section eleven hundred sixteen of
    48  this chapter, other than the exemptions in paragraphs one, two and three
    49  of subdivision (a) of that section, shall not apply  to  the  surcharges
    50  imposed under the authority of this section;
    51    (2)  the  credit provided in subdivision (f) of section eleven hundred
    52  thirty-seven of this chapter shall not apply to this section.
    53    9. All surcharge  monies  remitted  to  the  commissioner  under  this
    54  section  shall  be  expended  only upon authorization of the legislative
    55  body of a city or county that imposes the  surcharges  pursuant  to  the
    56  authority  of  subdivision  two of this section, and only for payment of

        S. 2009--C                         139                        A. 3009--C
 
     1  system costs, eligible wireless 911 service costs, or other costs  asso-
     2  ciated  with  the  administration,  design,  installation, construction,
     3  operation, or maintenance of public safety communications networks or  a
     4  system  to  provide  enhanced  wireless 911 service serving such city or
     5  county, including, but not limited to, hardware, software,  consultants,
     6  financing  and other acquisition costs.  Such city or county shall sepa-
     7  rately account for and keep adequate books and records of the amount and
     8  object or purpose of all expenditures of all such monies. If, at the end
     9  of any fiscal year, the total amount of  all  such  monies  exceeds  the
    10  amount necessary for payment of the above mentioned costs in such fiscal
    11  year,  such excess shall be reserved and carried over for the payment of
    12  those costs in the following fiscal year.
    13    § 4. This  act  shall  take  effect  immediately;  provided,  however,
    14  sections one and two of this act shall take effect December 1, 2017; and
    15  section  one  of this act shall apply to wireless communications service
    16  and prepaid wireless communications service provided on and  after  that
    17  date.
 
    18                                  PART FFF
 
    19    Section  1.  The  public health law is amended by adding a new section
    20  2825-e to read as follows:
    21    § 2825-e. Health care facility transformation program:  statewide  II.
    22  1.  A  statewide  health  care facility transformation program is hereby
    23  established under the joint administration of the commissioner  and  the
    24  president  of  the  dormitory authority of the state of New York for the
    25  purpose of strengthening and protecting continued access to health  care
    26  services in communities. The program shall provide funding in support of
    27  capital  projects, debt retirement, working capital or other non-capital
    28  projects that facilitate health care transformation  activities  includ-
    29  ing,  but  not  limited  to, merger, consolidation, acquisition or other
    30  activities intended to create financially sustainable systems of care or
    31  preserve or expand essential health care services. Grants shall  not  be
    32  available  to  support  general  operating expenses. The issuance of any
    33  bonds or notes hereunder shall be subject  to  section  sixteen  hundred
    34  eighty-r  of the public authorities law and the approval of the director
    35  of the division of the budget, and any projects funded through the issu-
    36  ance of bonds or notes hereunder shall be approved by the New York state
    37  public authorities control board, as required under section fifty-one of
    38  the public authorities law.
    39    2. The commissioner and the president of the dormitory authority shall
    40  enter into an agreement, subject to approval  by  the  director  of  the
    41  budget,  and  subject  to section sixteen hundred eighty-r of the public
    42  authorities law, for the purposes of awarding, distributing, and  admin-
    43  istering  the  funds made available pursuant to this section. Such funds
    44  may be distributed by the commissioner for  capital  grants  to  general
    45  hospitals,  residential health care facilities, diagnostic and treatment
    46  centers and clinics licensed pursuant to  this  chapter  or  the  mental
    47  hygiene  law,  and  community-based  health care providers as defined in
    48  subdivision three of this section for works or purposes that support the
    49  purposes set forth in this section. A copy of such  agreement,  and  any
    50  amendments thereto, shall be provided to the chair of the senate finance
    51  committee,  the  chair of the assembly ways and means committee, and the
    52  director of the division of the budget no later than thirty  days  prior
    53  to  the  release  of  a  request for applications for funding under this
    54  program.  Priority shall be given to new applications for  projects  not

        S. 2009--C                         140                        A. 3009--C
 
     1  funded under section twenty-eight hundred twenty-five-d of this article.
     2  Projects  awarded, in whole or part, under sections twenty-eight hundred
     3  twenty-five-a and twenty-eight hundred  twenty-five-b  of  this  article
     4  shall  not  be  eligible  for grants or awards made available under this
     5  section.
     6    3. Notwithstanding  section  one  hundred  sixty-three  of  the  state
     7  finance  law or any inconsistent provision of law to the contrary, up to
     8  five hundred million dollars of the funds appropriated for this  program
     9  shall be awarded without a competitive bid or request for proposal proc-
    10  ess  for  grants  to  health  care  providers  (hereafter "applicants").
    11  Provided, however, that a minimum of  seventy-five  million  dollars  of
    12  total awarded funds shall be made to community-based health care provid-
    13  ers, which for purposes of this section shall be defined as a diagnostic
    14  and  treatment center licensed or granted an operating certificate under
    15  this article; a mental health clinic licensed or  granted  an  operating
    16  certificate under article thirty-one of the mental hygiene law; an alco-
    17  hol  and substance abuse treatment clinic licensed or granted an operat-
    18  ing certificate under article thirty-two of the mental  hygiene  law;  a
    19  primary  care  provider  or  a  home care provider certified or licensed
    20  pursuant to article thirty-six of this chapter; or  other  purposes  and
    21  community-based  providers  designated  by  the commissioner pursuant to
    22  information obtained pursuant to subdivision  four-a  of  this  section.
    23  Eligible  applicants  shall  be those deemed by the commissioner to be a
    24  provider that fulfills or will fulfill a  health  care  need  for  acute
    25  inpatient,  outpatient,  primary,  home  care or residential health care
    26  services in a community.
    27    4. Notwithstanding subdivision two of this section or any inconsistent
    28  provision of law to the contrary, and upon approval of the  director  of
    29  the  budget,  the  commissioner  may  award  up to three hundred million
    30  dollars of the  funds  made  available  pursuant  to  this  section  for
    31  unfunded  project  applications submitted in response to the request for
    32  applications number 1607010255 issued by the department on July  twenti-
    33  eth, two thousand sixteen pursuant to section twenty-eight hundred twen-
    34  ty-five-d  of  this  article,  provided  however  that the provisions of
    35  subdivision three of this section shall apply.
    36    4-a. Authorized amounts to be awarded pursuant to applications submit-
    37  ted in response to the request for application number  1607010255  shall
    38  be  awarded no later than May first, two thousand seventeen. The commis-
    39  sioner shall not issue a  request  for  application  for  the  remaining
    40  appropriated  amounts on or before June first, two thousand seventeen to
    41  allow stakeholder, community, and legislative  input  regarding  program
    42  eligibility, award criteria and the process by which the remaining funds
    43  will be awarded.
    44    5.  In  determining awards for eligible applicants under this section,
    45  the commissioner shall consider stakeholder, community, and  legislative
    46  input pursuant to subdivision four-a of this section, and other criteria
    47  including, but not limited to:
    48    (a)  The  extent  to which the proposed project will contribute to the
    49  integration of health care services or the long term  sustainability  of
    50  the applicant or preservation of essential health services in the commu-
    51  nity or communities served by the applicant;
    52    (b)  The  extent  to  which the proposed project or purpose is aligned
    53  with delivery system reform incentive payment  ("DSRIP")  program  goals
    54  and objectives;
    55    (c) Consideration of geographic distribution of funds;

        S. 2009--C                         141                        A. 3009--C
 
     1    (d)  The  relationship  between  the  proposed  project and identified
     2  community need;
     3    (e)  The  extent  to  which  the  applicant  has access to alternative
     4  financing;
     5    (f) The extent that the proposed project furthers the  development  of
     6  primary care and other outpatient services;
     7    (g)  The extent to which the proposed project benefits Medicaid enrol-
     8  lees and uninsured individuals;
     9    (h) The extent to  which  the  applicant  has  engaged  the  community
    10  affected  by  the  proposed  project  and  the manner in which community
    11  engagement has shaped such project; and
    12    (i) The extent to which the proposed project addresses potential  risk
    13  to patient safety and welfare.
    14    6.  Disbursement  of  awards  made  pursuant  to this section shall be
    15  conditioned on the awardee achieving  certain  process  and  performance
    16  metrics  and  milestones  as  determined  in  the sole discretion of the
    17  commissioner. Such metrics and milestones shall be structured to  ensure
    18  that  the  goals of the project are achieved, and such metrics and mile-
    19  stones shall be included  in  grant  disbursement  agreements  or  other
    20  contractual documents as required by the commissioner.
    21    7.  The  department shall provide a report on a quarterly basis to the
    22  chairs of the senate finance, assembly ways and means, and senate health
    23  and assembly health committees. Such reports shall be submitted no later
    24  than sixty days after the close of the quarter, and shall  include,  for
    25  each  award,  the name of the applicant, a description of the project or
    26  purpose, the amount of the  award,  disbursement  date,  and  status  of
    27  achievement  of  process and performance metrics and milestones pursuant
    28  to subdivision five of this section.
    29    § 2. This act shall take effect immediately and  shall  be  deemed  to
    30  have been in full force and effect on and after April 1, 2017.
 
    31                                  PART GGG
 
    32    Section  1.  Subparagraph  (i)  of  paragraph  (g) of subdivision 7 of
    33  section 4403-f of the public health law, as amended by section  41-b  of
    34  part H of chapter 59 of the laws of 2011, is amended to read as follows:
    35    (i)  Managed long term care plans and demonstrations may enroll eligi-
    36  ble persons in the plan  or  demonstration  upon  the  completion  of  a
    37  comprehensive  assessment  that shall include, but not be limited to, an
    38  evaluation of the medical, social, cognitive, and environmental needs of
    39  each prospective enrollee in such program. This  assessment  shall  also
    40  serve  as  the basis for the development and provision of an appropriate
    41  plan of care for the enrollee. Upon approval of federal waivers pursuant
    42  to paragraph (b) of this subdivision which  require  medical  assistance
    43  recipients who require community-based long term care services to enroll
    44  in  a  plan, and upon approval of the commissioner, a plan may enroll an
    45  applicant who is currently receiving home and  community-based  services
    46  and  complete the comprehensive assessment within thirty days of enroll-
    47  ment provided that the plan continues to cover transitional  care  until
    48  such time as the assessment is completed.
    49    §  2.  This act shall take effect immediately; provided, however, that
    50  the amendments to subparagraph (i) of paragraph (g) of subdivision 7  of
    51  section  4403-f of the public health law made by section one of this act
    52  shall not affect the expiration and reversion of such  subparagraph  and
    53  shall  be  deemed to expire therewith; provided, further that the amend-
    54  ments to subparagraph (i) of paragraph (g) of subdivision 7  of  section

        S. 2009--C                         142                        A. 3009--C
 
     1  4403-f  of  the  public health law made by section one of this act shall
     2  not affect the repeal of such section and shall be deemed repealed ther-
     3  ewith.
 
     4                                  PART HHH
 
     5    Section  1. The education law is amended by adding a new section 669-h
     6  to read as follows:
     7    § 669-h. Excelsior scholarship. 1. Eligibility. An excelsior  scholar-
     8  ship  award shall be made to an applicant who: (a) is matriculated in an
     9  approved program leading to an undergraduate degree at a New York  state
    10  public  institution of higher education; (b) if enrolled in (i) a public
    11  institution of higher education prior to application, has  completed  at
    12  least  thirty  combined  credits  per year following the student's start
    13  date, or its equivalent, applicable to his or her program or programs of
    14  study or (ii) an institution of higher education prior  to  application,
    15  has  completed  at  least thirty combined credits per year following the
    16  student's start date, or  its  equivalent,  applicable  to  his  or  her
    17  program  or programs of study and which were accepted upon transfer to a
    18  public institution of higher education; (c) enrolls in at  least  twelve
    19  credits  per semester and completes at least thirty combined credits per
    20  year following the student's start date, or its  equivalent,  applicable
    21  to  his  or  her  program or programs of study except in limited circum-
    22  stances as prescribed by the corporation in regulation. Notwithstanding,
    23  in the student's last semester, the student may take at least one course
    24  needed to meet his or her graduation  requirements  and  enroll  in  and
    25  complete  at  least  twelve credit hours or its equivalent. For students
    26  who are disabled as defined by the Americans With  Disabilities  Act  of
    27  1990,  42  USC  12101,  the  corporation shall prescribe rules and regu-
    28  lations that allow applicants who are disabled to  be  eligible  for  an
    29  award  pursuant  to  this section based on modified criteria; (d) has an
    30  adjusted gross income, as defined in this subdivision, equal to or  less
    31  than: (i) one hundred thousand dollars for recipients receiving an award
    32  in the two thousand seventeen--two thousand eighteen academic year; (ii)
    33  one  hundred  ten  thousand dollars for recipients receiving an award in
    34  the two thousand eighteen--two  thousand  nineteen  academic  year;  and
    35  (iii)  one hundred twenty-five thousand dollars for recipients receiving
    36  an award in the two thousand nineteen--two thousand twenty academic year
    37  and thereafter; and (e) complies with the applicable provisions of  this
    38  article  and  all  requirements  promulgated  by the corporation for the
    39  administration of the program. Adjusted gross income shall be the  total
    40  of  the  combined  adjusted gross income of the applicant and the appli-
    41  cant's parents or the applicant and the applicant's spouse, if  married,
    42  as  reported  on the federal income tax return, or as otherwise obtained
    43  by the corporation, for the calendar year coinciding with the  tax  year
    44  established  by  the  U.S. department of education to qualify applicants
    45  for federal student financial aid programs authorized by Title IV of the
    46  Higher Education Act of nineteen hundred sixty-five, as amended, for the
    47  school year in which application for assistance is made.
    48    2. Amount. Within amounts appropriated therefor and  based  on  avail-
    49  ability  of  funds, awards shall be granted beginning with the two thou-
    50  sand seventeen--two thousand eighteen academic year  and  thereafter  to
    51  applicants  that  the corporation has determined are eligible to receive
    52  such awards. The corporation shall grant such awards in an amount up  to
    53  five thousand five hundred dollars or actual tuition, whichever is less;
    54  provided,  however, (a) a student who receives educational grants and/or

        S. 2009--C                         143                        A. 3009--C
 
     1  scholarships that cover the student's full cost of attendance shall  not
     2  be eligible for an award under this program; and (b) an award under this
     3  program  shall  be  applied to tuition after the application of payments
     4  received  under  the  tuition assistance program pursuant to section six
     5  hundred sixty-seven of this subpart, tuition credits pursuant to section
     6  six hundred eighty-nine-a of this article, federal Pell  grant  pursuant
     7  to  section  one  thousand  seventy of title twenty of the United States
     8  code, et. seq., and any other program that covers the  cost  of  attend-
     9  ance,  and  the  award under this program shall be reduced in the amount
    10  equal to such payments, provided  that  the  combined  benefits  do  not
    11  exceed five thousand five hundred dollars. Upon notification of an award
    12  under  this  program, the institution shall defer the amount of tuition.
    13  Notwithstanding paragraph h of subdivision two of section three  hundred
    14  fifty-five  and  paragraph (a) of subdivision seven of section six thou-
    15  sand two hundred six of this chapter, and any other law, rule  or  regu-
    16  lation  to the contrary, the undergraduate tuition charged by the insti-
    17  tution to recipients of an award  shall  not  exceed  the  tuition  rate
    18  established  by  the institution for the two thousand sixteen--two thou-
    19  sand seventeen academic year provided, however, that in the two thousand
    20  twenty-one--two thousand twenty-two academic year and every  four  years
    21  thereafter,  the  undergraduate  tuition  charged  by the institution to
    22  recipients of an award shall be reset to equal the tuition  rate  estab-
    23  lished  by  the  institution for the forthcoming academic year, provided
    24  further that the tuition  credit  calculated  pursuant  to  section  six
    25  hundred  eighty-nine-a  of  this  article  shall  be  applied toward the
    26  tuition rate charged for recipients of  an  award  under  this  program.
    27  Provided  further  that  the  state  university of New York and the city
    28  university of New York shall provide an  additional  tuition  credit  to
    29  students receiving an award to cover the remaining cost of tuition.
    30    3. Duration. An eligible recipient shall not receive an award for more
    31  than  four  academic  years  of  full-time  undergraduate  study or five
    32  academic years if the program of study normally requires five years.  An
    33  eligible  recipient  enrolled  in  an eligible two year program of study
    34  shall not receive an award for more than two academic years.    Notwith-
    35  standing, such duration may be extended for an allowable interruption of
    36  study  including,  but not limited to, death of a family member, medical
    37  leave, military service, and  parental  leave,  as  established  by  the
    38  corporation in regulation.
    39    4.  Conditions.  (a) An applicant who would be eligible for a New York
    40  state tuition assistance program award pursuant to section  six  hundred
    41  sixty-seven  of  this  subpart  and/or  a federal Pell grant pursuant to
    42  section one thousand seventy of title twenty of the United States  code,
    43  et. seq., is required to apply for each such award.
    44    (b)  An  applicant who has earned a bachelor's degree is ineligible to
    45  receive an award pursuant to this section.
    46    (c) An applicant who has earned an associate's degree is ineligible to
    47  receive an award for a two  year  program  of  study  pursuant  to  this
    48  section.
    49    (d)  Notwithstanding  paragraph  c  of subdivision four of section six
    50  hundred sixty-one of this part, a school shall certify that a  recipient
    51  has  achieved  a grade point average necessary for successful completion
    52  of his or her coursework to receive payment under the award.
    53    (e) A recipient shall agree to reside exclusively in New  York  state,
    54  and shall not be employed in any other state, for a continuous number of
    55  years  equal  to the duration of the award received within six months of
    56  receipt of his or her final award payment, and sign a contract with  the

        S. 2009--C                         144                        A. 3009--C
 
     1  corporation  to  have  his or her full award converted to a student loan
     2  according to a schedule to be determined  by  the  corporation  if  such
     3  student  fails  to fulfill this requirement. The terms and conditions of
     4  this  paragraph  may, as established by the rules and regulations of the
     5  corporation, be deferred: (i) to complete undergraduate study;  or  (ii)
     6  to  attend graduate school on at least a half-time basis. Any obligation
     7  to comply with such provisions as outlined  in  this  paragraph  may  be
     8  cancelled   upon   the  death  of  the  recipient.  Notwithstanding  any
     9  provisions of this paragraph to the contrary, the corporation is author-
    10  ized to promulgate rules and regulations to provide for  the  waiver  or
    11  suspension of any financial obligation which would involve extreme hard-
    12  ship.
    13    (f)  Notwithstanding paragraph (c) of subdivision one of this section,
    14  a student who otherwise satisfies all of  the  requirements  under  this
    15  section  but  fails to complete at least thirty combined credits, or its
    16  equivalent, applicable to his or her program or programs of study in any
    17  year shall be eligible to receive an award payment for the first  semes-
    18  ter  of such year, provided however, the student shall be ineligible for
    19  any further payments under this section.
    20    5. Recipient selection. The president may establish: (a)  an  applica-
    21  tion  deadline  and (b) a method of selecting recipients if in any given
    22  year there are insufficient funds to cover the needs of all  the  appli-
    23  cants  provided  that priority shall be given to eligible applicants who
    24  are currently in attendance at a public institution of higher education.
    25    6. Rules and regulations.  The corporation is authorized to promulgate
    26  rules and regulations, and may promulgate emergency regulations,  neces-
    27  sary for the implementation of the provisions of this section including,
    28  but  not limited to, the criteria for distributing the awards, which may
    29  include a lottery or other form of random selection.
    30    § 2. This act shall take effect immediately.

    31                                  PART III
 
    32    Section 1. The education law is amended by adding a new section  667-d
    33  to read as follows:
    34    §  667-d.  Enhanced  tuition awards. 1.   Recipient qualifications. a.
    35  Establishment.  Enhanced tuition awards are available for  students  who
    36  are  enrolled  in  approved  programs  in  private not-for-profit degree
    37  granting institutions except those institutions set forth in paragraph b
    38  of subdivision four of section six hundred sixty-one of  this  part  and
    39  who demonstrate the ability to complete such courses, in accordance with
    40  standards  established  by  the  commissioner;  provided, that, no award
    41  shall exceed one hundred percent of the amount of tuition charged.
    42    b. Application for other awards. A student who would be eligible for a
    43  tuition assistance program award pursuant to section six hundred  sixty-
    44  seven  of  this  subpart and/or a federal Pell grant pursuant to section
    45  one thousand seventy of title twenty of  the  United  States  code,  et.
    46  seq.,  is  required  to  apply  for  each such award. Any award shall be
    47  applied to tuition after the application of payments received under  the
    48  tuition  assistance  program pursuant to section six hundred sixty-seven
    49  of this subpart.
    50    c. GPA requirements.  Notwithstanding paragraph c of subdivision  four
    51  of  section  six  hundred sixty-one of this part, a school shall certify
    52  that a recipient has  achieved  a  grade  point  average  necessary  for
    53  successful  completion of his or her coursework to receive payment under
    54  the award.

        S. 2009--C                         145                        A. 3009--C
 
     1    d. Credit requirements.  An award shall be made to an  applicant  who:
     2  (i)  if  enrolled in (A) a private institution of higher education prior
     3  to application, has completed at least thirty combined credits per  year
     4  following the student's start date, or its equivalent, applicable to his
     5  or her program or programs of study or (B) a public institution of high-
     6  er  education  prior  to  application,  has  completed  at  least thirty
     7  combined credits per year following the student's  start  date,  or  its
     8  equivalent,  applicable  to  his or her program or programs of study and
     9  which were accepted upon transfer to a  private  institution  of  higher
    10  education;  (ii)  enrolls  in  at  least twelve credits per semester and
    11  completes at least  thirty  combined  credits  per  year  following  the
    12  student's  start  date,  or  its  equivalent,  applicable  to his or her
    13  program  or  programs  of  study  except  in  limited  circumstances  as
    14  prescribed  by  the  corporation  in regulation. Notwithstanding, in the
    15  student's last semester, the student may take at least one course needed
    16  to meet his or her graduation requirements and enroll in and complete at
    17  least twelve credit hours or its equivalent.  For students who are disa-
    18  bled as defined by the Americans With Disabilities Act of 1990,  42  USC
    19  12101,  the corporation shall prescribe rules and regulations that allow
    20  applicants who are disabled to be eligible for an award pursuant to this
    21  section based on modified criteria.
    22    e. Notwithstanding paragraph d of  this  subdivision,  a  student  who
    23  otherwise satisfies all of the requirements under this section but fails
    24  to  complete at least thirty combined credits, or its equivalent, appli-
    25  cable to his or her program or programs of study in any  year  shall  be
    26  eligible  to  receive  an  award  payment for the first semester of such
    27  year, provided however, the student shall be ineligible for any  further
    28  payments under this section.
    29    f.  Additional requirements.  A recipient shall agree to reside exclu-
    30  sively in New York state, and shall not be employed in any other  state,
    31  for  a  continuous  number  of  years equal to the duration of the award
    32  received within six months of receipt of his or her final award payment,
    33  and sign a contract with the corporation to have his or her  full  award
    34  converted  to a student loan according to a schedule to be determined by
    35  the corporation if such student fails to fulfill this  requirement.  The
    36  terms  and conditions of this paragraph may, as established by the rules
    37  and regulations of the corporation, be deferred: (i) to complete  under-
    38  graduate  study;  or  (ii) to attend graduate school on at least a half-
    39  time basis. Any obligation to comply with such provisions as outlined in
    40  this paragraph may  be  cancelled  upon  the  death  of  the  recipient.
    41  Notwithstanding  any provisions   of this paragraph to the contrary, the
    42  corporation is authorized to promulgate rules and regulations to provide
    43  for the waiver or suspension of any  financial  obligation  which  would
    44  involve extreme hardship.
    45    g.  Failure  to  meet  the conditions of the award shall not otherwise
    46  disqualify a student's eligibility to receive an award under section six
    47  hundred sixty-seven of this subpart.
    48    2. Duration. No undergraduate shall be eligible  for  more  than  four
    49  academic  years of study, or five academic years if the program of study
    50  normally requires five years.  An undergraduate student enrolled  in  an
    51  eligible two-year program approved by the commissioner shall be eligible
    52  for  no  more  than two academic years.   Under no circumstances shall a
    53  student receive an award for  a  two-year  program  for  more  than  two
    54  consecutive  years  of  academic  study or four consecutive semesters of
    55  academic study; or at a four or five-year program, for  more  than  four
    56  consecutive  years  or  eight consecutive semesters of academic study or

        S. 2009--C                         146                        A. 3009--C
 
     1  five consecutive years, or ten consecutive semesters  of  study  if  the
     2  program  normally  requires five years.   Notwithstanding, such duration
     3  may be extended for an allowable interruption of  study  including,  but
     4  not  limited  to,  death  of  a  family  member, medical leave, military
     5  service, and parental leave, as established by the corporation in  regu-
     6  lation.
     7    3.  Income. An award shall be made to an applicant who has an adjusted
     8  gross income, as defined in this subdivision, equal to or less than: (i)
     9  one hundred thousand dollars for recipients receiving an  award  in  the
    10  two  thousand  seventeen--two  thousand eighteen academic year; (ii) one
    11  hundred ten thousand dollars for recipients receiving an  award  in  the
    12  two  thousand  eighteen--two  thousand nineteen academic year; and (iii)
    13  one hundred twenty-five thousand dollars  for  recipients  receiving  an
    14  award  in  the  two thousand nineteen--two thousand twenty academic year
    15  and thereafter. Adjusted gross income shall be the total of the combined
    16  adjusted gross income of the applicant and the  applicant's  parents  or
    17  the applicant and the applicant's spouse, if married, as reported on the
    18  federal  income tax return, or as otherwise obtained by the corporation,
    19  for the calendar year coinciding with the tax year  established  by  the
    20  U.S.  department  of education to qualify applicants for federal student
    21  financial aid programs authorized by Title IV of  the  Higher  Education
    22  Act  of  nineteen hundred sixty-five, as amended, for the school year in
    23  which application for assistance is made.
    24    4. Amount. Within the  amounts  appropriated  therefor  and  based  on
    25  availability  of  funds,  awards shall be granted beginning with the two
    26  thousand seventeen--two thousand eighteen academic year  and  thereafter
    27  to  applicants  that  the  corporation  has  determined  are eligible to
    28  receive such awards. The amount of the award under this program shall be
    29  such that the sum of the  award  plus  a  student's  tuition  assistance
    30  program  award  pursuant  to  section  six  hundred  sixty-seven of this
    31  subpart plus the institution's matching award  pursuant  to  subdivision
    32  five of this section shall equal six thousand dollars.
    33    5.  Matching  awards.  Commencing with the two thousand seventeen--two
    34  thousand eighteen academic year  and  thereafter,  participating  insti-
    35  tutions  shall  credit each recipient's remaining tuition expenses in an
    36  amount equal to the recipient's award under this  section.  Such  credit
    37  shall  be  applied after the recipient has received an institutional aid
    38  package, if any, to ensure that this program does  not  reduce  institu-
    39  tional aid that would otherwise be granted.
    40    6.  Tuition. The rate of tuition charged to an individual receiving an
    41  award shall not be increased for the duration of time that such individ-
    42  ual receives an award.
    43    7. College option. An institution may choose not to participate in the
    44  program and students attending any non-participating college  may  still
    45  be  eligible  to receive an award pursuant to section six hundred sixty-
    46  seven of this subpart.
    47    8. Recipient selection. The president may establish: a. an application
    48  deadline and b. a method of selecting recipients if in  any  given  year
    49  there  are  insufficient  funds to cover the needs of all the applicants
    50  provided that priority shall be given to  eligible  applicants  who  are
    51  currently in attendance at an institution of higher education.
    52    9.  Rules and regulations. The corporation is authorized to promulgate
    53  rules and regulations, and may promulgate emergency regulations,  neces-
    54  sary for the implementation of the provisions of this section including,
    55  but  not limited to, the criteria for distributing the awards, which may
    56  include a lottery or other form of random selection.

        S. 2009--C                         147                        A. 3009--C
 
     1    § 2. This act shall take effect immediately.
 
     2                                  PART JJJ
 
     3    Section  1.  Subparagraph 4 of paragraph h of subdivision 2 of section
     4  355 of the education law, as amended by section 1 of part D  of  chapter
     5  54 of the laws of 2016, is amended to read as follows:
     6    (4)  The trustees shall not impose a differential tuition charge based
     7  upon need or  income.  Except  as  hereinafter  provided,  all  students
     8  enrolled  in  programs  leading to like degrees at state-operated insti-
     9  tutions of the state university shall  be  charged  a  uniform  rate  of
    10  tuition  except for differential tuition rates based on state residency.
    11  Provided, however, that the trustees may authorize the presidents of the
    12  colleges of technology and the colleges of agriculture and technology to
    13  set differing rates of tuition for each of  the  colleges  for  students
    14  enrolled  in degree-granting programs leading to an associate degree and
    15  non-degree granting programs so long  as  such  tuition  rate  does  not
    16  exceed  the  tuition  rate  charged to students who are enrolled in like
    17  degree programs or degree-granting undergraduate programs leading  to  a
    18  baccalaureate  degree  at other state-operated institutions of the state
    19  university of New York. Notwithstanding  any  other  provision  of  this
    20  subparagraph, the trustees may authorize the setting of a separate cate-
    21  gory  of  tuition  rate, that shall be greater than the tuition rate for
    22  resident students and  less  than  the  tuition  rate  for  non-resident
    23  students,  only  for  students enrolled in distance learning courses who
    24  are not residents of the state. Except as otherwise authorized  in  this
    25  subparagraph,  the  trustees  shall  not adopt changes affecting tuition
    26  charges prior to the enactment of the annual  budget,  provided  however
    27  that:
    28    (i)  Commencing  with  the  two  thousand  eleven--two thousand twelve
    29  academic year and ending  in  the  two  thousand  fifteen--two  thousand
    30  sixteen academic year the state university of New York board of trustees
    31  shall  be  empowered  to  increase  the  resident  undergraduate rate of
    32  tuition by not more than three hundred dollars over the resident  under-
    33  graduate  rate  of tuition adopted by the board of trustees in the prior
    34  academic year, provided however that commencing with  the  two  thousand
    35  eleven--two thousand twelve academic year [and each year thereafter] and
    36  ending in the two thousand sixteen--two thousand seventeen academic year
    37  if  the  annual resident undergraduate rate of tuition would exceed five
    38  thousand dollars, then a tuition credit for each  eligible  student,  as
    39  determined  and  calculated  by  the  New  York  state  higher education
    40  services corporation pursuant to section six  hundred  eighty-nine-a  of
    41  this  title, shall be applied toward the tuition charged for each semes-
    42  ter, quarter or term of study. Tuition for  each  semester,  quarter  or
    43  term  of study shall not be due for any student eligible to receive such
    44  tuition credit until  the  tuition  credit  is  calculated  and  applied
    45  against  the  tuition charged for the corresponding semester, quarter or
    46  term.
    47    (ii) Commencing with the two thousand seventeen--two thousand eighteen
    48  academic year and ending in the two thousand twenty--two thousand  twen-
    49  ty-one  academic year the state university of New York board of trustees
    50  shall be empowered  to  increase  the  resident  undergraduate  rate  of
    51  tuition  by  not  more than two hundred dollars over the resident under-
    52  graduate rate of tuition adopted by the board of trustees in  the  prior
    53  academic year, provided, however that if the annual resident undergradu-
    54  ate  rate  of tuition would exceed five thousand dollars, then a tuition

        S. 2009--C                         148                        A. 3009--C
 
     1  credit for each eligible student, as determined and  calculated  by  the
     2  New York state higher education services corporation pursuant to section
     3  six  hundred  eighty-nine-a  of  this title, shall be applied toward the
     4  tuition charged for each semester, quarter or term of study. Tuition for
     5  each semester, quarter or term of study shall not be due for any student
     6  eligible  to  receive  such  tuition  credit until the tuition credit is
     7  calculated and applied against the tuition charged for the corresponding
     8  semester, quarter or term.  Provided, further that the revenue resulting
     9  from an increase in the rate of  tuition  shall  be  allocated  to  each
    10  campus  pursuant  to a plan approved by the board of trustees to support
    11  investments  in  new  classroom  faculty,  instruction,  initiatives  to
    12  improve  student success and on-time completion and a tuition credit for
    13  each eligible student.
    14    (iii)  On  or  before  November  thirtieth,  two   thousand   [eleven]
    15  seventeen,  the  trustees  shall approve and submit to the chairs of the
    16  assembly ways and means committee and the senate finance  committee  and
    17  to  the  director  of the budget a master tuition plan setting forth the
    18  tuition rates that  the  trustees  propose  for  resident  undergraduate
    19  students  for  the [five] four year period commencing with the two thou-
    20  sand [eleven] seventeen--two thousand [twelve]  eighteen  academic  year
    21  and  ending in the two thousand [fifteen] twenty--two thousand [sixteen]
    22  twenty-one academic year, and shall submit any  proposed  amendments  to
    23  such  plan  by  November  thirtieth  of  each subsequent year thereafter
    24  through November thirtieth, two thousand [fifteen] twenty, and  provided
    25  further, that with the approval of the board of trustees, each universi-
    26  ty  center  may  increase  non-resident undergraduate tuition rates each
    27  year by not more than ten percent over the tuition rates  of  the  prior
    28  academic  year  for  a  six year period commencing with the two thousand
    29  eleven--two thousand twelve academic year and ending in the two thousand
    30  sixteen--two thousand seventeen academic year.
    31    [(iii)] (iv) Beginning in state fiscal year  two  thousand  twelve-two
    32  thousand  thirteen and ending in state fiscal year two thousand fifteen-
    33  -two thousand sixteen, the state shall appropriate  and  make  available
    34  general fund operating support, including fringe benefits, for the state
    35  university  in  an amount not less than the amount appropriated and made
    36  available in the prior state fiscal year; provided, however, that if the
    37  governor declares a fiscal emergency, and communicates such emergency to
    38  the temporary president of the senate and speaker of the assembly, state
    39  support for operating expenses at the state university and city  univer-
    40  sity  may  be  reduced in a manner proportionate to one another, and the
    41  aforementioned provisions shall not apply.
    42    (v) Beginning in state fiscal year two thousand  seventeen--two  thou-
    43  sand  eighteen  and ending in state fiscal year two thousand twenty--two
    44  thousand twenty-one, the state  shall  appropriate  and  make  available
    45  general fund operating support, including fringe benefits, for the state
    46  university  in  an amount not less than the amount appropriated and made
    47  available in the prior state fiscal year; provided, however, that if the
    48  governor declares a fiscal emergency, and communicates such emergency to
    49  the temporary president of the senate and speaker of the assembly, state
    50  support for operating expenses at the state university and city  univer-
    51  sity  may  be  reduced in a manner proportionate to one another, and the
    52  aforementioned  provisions shall not apply; provided further, the  state
    53  shall  appropriate and make available general fund support to fully fund
    54  the tuition credit pursuant to subdivision two of  section  six  hundred
    55  sixty-nine-h of this title.

        S. 2009--C                         149                        A. 3009--C
 
     1    [(iv)] (vi) For the state university fiscal years commencing two thou-
     2  sand  eleven--two  thousand  twelve and ending two thousand fifteen--two
     3  thousand sixteen, each university center may set aside a portion of  its
     4  tuition  revenues  derived  from  tuition increases to provide increased
     5  financial  aid  for New York state resident undergraduate students whose
     6  net taxable income is eighty thousand dollars or  more  subject  to  the
     7  approval  of  a NY-SUNY 2020 proposal by the governor and the chancellor
     8  of the state university of New York. Nothing in this paragraph shall  be
     9  construed  as  to  authorize  that  students whose net taxable income is
    10  eighty thousand dollars or more  are  eligible  for  tuition  assistance
    11  program awards pursuant to section six hundred sixty-seven of this chap-
    12  ter.
    13    §  2.  Paragraph (a) of subdivision 7 of section 6206 of the education
    14  law, as amended by section 2 of part D of chapter  54  of  the  laws  of
    15  2016, is amended to read as follows:
    16    (a)  The  board  of  trustees  shall establish positions, departments,
    17  divisions and faculties; appoint and in accordance with  the  provisions
    18  of  law  fix  salaries  of instructional and non-instructional employees
    19  therein; establish and conduct courses and curricula;  prescribe  condi-
    20  tions of student admission, attendance and discharge; and shall have the
    21  power  to  determine  in its discretion whether tuition shall be charged
    22  and to regulate tuition charges, and  other  instructional  and  non-in-
    23  structional  fees and other fees and charges at the educational units of
    24  the city university. The trustees shall review  any  proposed  community
    25  college  tuition  increase  and the justification for such increase. The
    26  justification provided by the community college for such increase  shall
    27  include  a  detailed  analysis of ongoing operating costs, capital, debt
    28  service expenditures, and all revenues. The trustees shall not impose  a
    29  differential  tuition  charge  based  upon  need or income. All students
    30  enrolled in programs leading to like  degrees  at  the  senior  colleges
    31  shall  be  charged  a  uniform  rate of tuition, except for differential
    32  tuition rates  based  on  state  residency.  Notwithstanding  any  other
    33  provision of this paragraph, the trustees may authorize the setting of a
    34  separate  category  of  tuition  rate,  that  shall  be greater than the
    35  tuition rate for resident students and less than the  tuition  rate  for
    36  non-resident  students,  only for students enrolled in distance learning
    37  courses who are not residents of the state; provided, however, that:
    38    (i) Commencing with  the  two  thousand  eleven--two  thousand  twelve
    39  academic  year  and  ending  in  the  two thousand fifteen--two thousand
    40  sixteen academic year, the city university of New York board of trustees
    41  shall be empowered  to  increase  the  resident  undergraduate  rate  of
    42  tuition  by not more than three hundred dollars over the resident under-
    43  graduate rate of tuition adopted by the board of trustees in  the  prior
    44  academic  year,  provided  however that commencing with the two thousand
    45  eleven--two thousand twelve academic year  and  [each  year  thereafter]
    46  ending  with  the  two thousand sixteen--two thousand seventeen academic
    47  year if the annual resident undergraduate rate of tuition  would  exceed
    48  five  thousand dollars, then a tuition credit for each eligible student,
    49  as determined and calculated by the  New  York  state  higher  education
    50  services  corporation  pursuant  to section six hundred eighty-nine-a of
    51  this chapter, shall be applied  toward  the  tuition  charged  for  each
    52  semester,  quarter  or term of study. Tuition for each semester, quarter
    53  or term of study shall not be due for any student  eligible  to  receive
    54  such  tuition  credit until the tuition credit is calculated and applied
    55  against the tuition charged for the corresponding semester,  quarter  or
    56  term.

        S. 2009--C                         150                        A. 3009--C
 
     1    (ii) Commencing with the two thousand seventeen--two thousand eighteen
     2  academic  year and ending in the two thousand twenty--two thousand twen-
     3  ty-one academic year the city university of New York board  of  trustees
     4  shall  be  empowered  to  increase  the  resident  undergraduate rate of
     5  tuition  by  not  more than two hundred dollars over the resident under-
     6  graduate rate of tuition adopted by the board of trustees in  the  prior
     7  academic  year, provided however that if the annual resident undergradu-
     8  ate rate of tuition would exceed five thousand dollars, then  a  tuition
     9  credit  for  each  eligible student, as determined and calculated by the
    10  New York state higher education services corporation pursuant to section
    11  six hundred eighty-nine-a of this title, shall  be  applied  toward  the
    12  tuition charged for each semester, quarter or term of study. Tuition for
    13  each semester, quarter or term of study shall not be due for any student
    14  eligible  to  receive  such  tuition  credit until the tuition credit is
    15  calculated and applied against the tuition charged for the corresponding
    16  semester, quarter or term.  Provided, further that the revenue resulting
    17  from an increase in the rate of  tuition  shall  be  allocated  to  each
    18  campus  pursuant  to a plan approved by the board of trustees to support
    19  investments  in  new  classroom  faculty,  instruction,  initiatives  to
    20  improve  student success and on-time completion and a tuition credit for
    21  each eligible student.
    22    (iii)  On  or  before  November  thirtieth,  two   thousand   [eleven]
    23  seventeen,  the  trustees  shall approve and submit to the chairs of the
    24  assembly ways and means committee and the senate finance  committee  and
    25  to  the  director  of the budget a master tuition plan setting forth the
    26  tuition rates that  the  trustees  propose  for  resident  undergraduate
    27  students  for  the [five] four year period commencing with the two thou-
    28  sand [eleven] seventeen--two thousand [twelve]  eighteen  academic  year
    29  and  ending in the two thousand [fifteen] twenty--two thousand [sixteen]
    30  twenty-one academic year, and shall submit any  proposed  amendments  to
    31  such  plan  by  November  thirtieth  of  each subsequent year thereafter
    32  through November thirtieth, two thousand [fifteen] twenty.
    33    [(iii)] (iv) Beginning in state fiscal year two  thousand  twelve--two
    34  thousand  thirteen and ending in state fiscal year two thousand fifteen-
    35  -two thousand sixteen, the state shall appropriate  and  make  available
    36  state support for operating expenses, including fringe benefits, for the
    37  city  university  in an amount not less than the amount appropriated and
    38  made available in the prior state fiscal year; provided,  however,  that
    39  if the governor declares a fiscal emergency, and communicates such emer-
    40  gency to the temporary president of the senate and speaker of the assem-
    41  bly,  state  support  for operating expenses of the state university and
    42  city university may be reduced in a manner proportionate to one another,
    43  and the aforementioned provisions shall not apply.
    44    (v) Beginning in state fiscal year two thousand  seventeen--two  thou-
    45  sand  eighteen  and ending in state fiscal year two thousand twenty--two
    46  thousand twenty-one, the state  shall  appropriate  and  make  available
    47  general  fund operating support, including fringe benefits, for the city
    48  university in an amount not less than the amount appropriated  and  made
    49  available in the prior state fiscal year; provided, however, that if the
    50  governor declares a fiscal emergency, and communicates such emergency to
    51  the temporary president of the senate and speaker of the assembly, state
    52  support  for operating expenses at the state university and city univer-
    53  sity may be reduced in a manner proportionate to one  another,  and  the
    54  aforementioned   provisions shall not apply; provided further, the state
    55  shall appropriate and make available general fund support to fully  fund

        S. 2009--C                         151                        A. 3009--C
 
     1  the  tuition  credit  pursuant to subdivision two of section six hundred
     2  sixty-nine-h of this chapter.
     3    §  3.  Section  359  of  the  education law is amended by adding a new
     4  subdivision 6 to read as follows:
     5    6. The state university trustees shall  annually  report  on  how  the
     6  revenue generated has been invested in faculty, instruction, initiatives
     7  to  improve student success and on-time completion and student financial
     8  assistance for the duration of the four year tuition plan. The  trustees
     9  shall submit the report by September first of each subsequent year.
    10    §  4.  Section  6206  of  the education law is amended by adding a new
    11  subdivision 19 to read as follows:
    12    19. The city university trustees shall  annually  report  on  how  the
    13  revenue generated has been invested in faculty, instruction, initiatives
    14  to  improve student success and on-time completion and student financial
    15  assistance for the duration of the four year tuition plan. The  trustees
    16  shall submit the report by September first of each subsequent year.
    17    § 5. Section 16 of chapter 260 of the laws of 2011 amending the educa-
    18  tion law and the New York state urban development corporation act relat-
    19  ing  to  establishing  components  of  the  NY-SUNY 2020 challenge grant
    20  program, as amended by section 5 of part D of chapter 54 of the laws  of
    21  2016, is amended to read as follows:
    22    §  16. This act shall take effect July 1, 2011; provided that sections
    23  one, two, three, four, five, six, eight, nine, ten, eleven,  twelve  and
    24  thirteen of this act shall expire [6] 10 years after such effective date
    25  when upon such date the provisions of this act shall be deemed repealed;
    26  and  provided  further  that  sections  fourteen and fifteen of this act
    27  shall expire 5 years after such effective date when upon such  date  the
    28  provisions of this act shall be deemed repealed.
    29    §  6. This act shall take effect immediately; provided that the amend-
    30  ments to subparagraph 4 of paragraph h of subdivision 2 of  section  355
    31  of  the education law made by section one of this act and the amendments
    32  to paragraph (a) of subdivision 7 of section 6206 of the  education  law
    33  made  by section two of this act shall not affect the expiration of such
    34  provisions and shall be deemed to expire therewith.
 
    35                                  PART KKK
 
    36    Section 1. The education law  is  amended  by  adding  a  new  section
    37  667-c-1 to read as follows:
    38    §  667-c-1.  New York state part-time scholarship (PTS) award program.
    39  1. The New York state part-time scholarship (PTS) award program is here-
    40  by established for  the  purpose  of  providing  scholarship  awards  to
    41  students  who  attend a community college at the state university of New
    42  York (SUNY) or the city University of New York  (CUNY)  on  a  part-time
    43  basis.
    44    2. To be eligible, an applicant must meet the qualifications of subdi-
    45  visions three and five of section six hundred sixty-one of this article,
    46  enroll  in  at  least six but less then twelve credit hours at a SUNY or
    47  CUNY community college in the 2017-2018 academic  year,  or  thereafter,
    48  and maintain a grade point average of 2.0.
    49    3.  a. Such awards shall be made to eligible applicants in the follow-
    50  ing priority:
    51    (i) first, to applicants who have received payment of an award  pursu-
    52  ant  to  this section in a prior year and remain in good academic stand-
    53  ing; and

        S. 2009--C                         152                        A. 3009--C
 
     1    (ii) second, to applicants in descending order based on financial need
     2  as determined by the corporation and; provided that awards made shall be
     3  proportionate to the total applications received for  students  accepted
     4  for  undergraduate study at SUNY and CUNY respectively. Provided, howev-
     5  er,  in  the program's first year, first priority shall be in accordance
     6  with this subparagraph.
     7    b. In the event that there are  more  applicants  who  have  the  same
     8  priority  than  there  are  remaining  scholarships, the president shall
     9  distribute the remaining number of  such  scholarships  by  means  of  a
    10  lottery or other form of random selection.
    11    4.  Within  amounts  appropriated  therefor, the president shall grant
    12  awards to eligible applicants to cover the cost of six credit hours  per
    13  semester  at a SUNY or CUNY community college, provided however, that no
    14  such award shall exceed fifteen hundred dollars per semester.
    15    5. PTS awards shall be granted pursuant to this section  for  no  more
    16  than  four  consecutive  academic semesters pursuant to future appropri-
    17  ations for the continuation of this program.
    18    6. The corporation is authorized to promulgate rules and  regulations,
    19  and  may promulgate emergency regulations, necessary for the implementa-
    20  tion of the provisions of this section.
    21    § 2. This act shall take effect immediately.
 
    22                                  PART LLL
 
    23    Section 1. On or before June 30, 2018, the  president  of  the  higher
    24  education  services  corporation shall report on options to make college
    25  more affordable for New York students and their families and shall issue
    26  such report to the governor, the temporary president of the senate,  the
    27  speaker of the assembly, the senate finance committee, the assembly ways
    28  and  means committee and the higher education committees of the legisla-
    29  ture.
    30    § 2. The report shall, at a minimum: (1) explore options for a program
    31  to allow qualified residents to refinance student loan debt at favorable
    32  interest rates including options to  refinance  student  loan  debt  for
    33  individuals  who  have  been  out of college for at least ten years; (2)
    34  analyze alternative methods to provide student loan  debt  relief  which
    35  shall  include  a  review  of  other states' policies on minimizing such
    36  debt; (3) review student housing at the state university of New York and
    37  city university of New York which shall include a comparison of  student
    38  charges  and  facility  operational costs, as well as occupancy policies
    39  and requirements; (4) review programs and options to enable families  to
    40  prepare  for  college  costs through various programs including pre-paid
    41  tuition programs and other college savings programs; (5) examine afford-
    42  ability initiatives at public and private colleges which may include but
    43  not be limited to textbook affordability, reducing the cost  of  student
    44  housing,  student transportation, reduction of administrative costs, and
    45  the creation of on-campus or community job opportunity for students; (6)
    46  and in consultation with the chancellor of the state university  of  New
    47  York  and  the chancellor of the city university of New York examine the
    48  process by which students, who are receiving support through opportunity
    49  programs or other programs that provide additional academic support, are
    50  able to maintain such support when such students transfer to a different
    51  campus or transfer from a community college to a senior or  state  oper-
    52  ated  college.   Information presented in the report will allow colleges
    53  to explore opportunities to implement college affordability options.

        S. 2009--C                         153                        A. 3009--C
 
     1    § 3. This act shall take effect immediately and shall  expire  and  be
     2  deemed repealed January 1, 2019.
 
     3                                  PART MMM
 
     4    Section  1.  Legislative intent. The legislature hereby recognizes the
     5  need to invest in individuals committed to working in the field of child
     6  welfare  by  providing  higher  education  incentives  for  current  and
     7  prospective  employees.  This  workforce  is  in  charge of ensuring the
     8  health, safety, and well-being of our state's most  vulnerable  children
     9  and  families. By providing current and prospective employees the oppor-
    10  tunity for affordable higher education, we are enhancing  their  ability
    11  to  meet  the needs of the children and youth in care, many of whom have
    12  experienced profound trauma, as well as providing the skills  needed  to
    13  operate in today's changing health landscape.
    14    §  2.  The  education  law is amended by adding a new section 679-h to
    15  read as follows:
    16    § 679-h. New York state child  welfare  worker  incentive  scholarship
    17  program.  1.  Purpose.  The president shall grant scholarship awards for
    18  the purpose of enhancing the proficiency of current child welfare  work-
    19  ers  in New York state. Such awards shall be made on a competitive basis
    20  to applicants who are currently employed at a  voluntary  not-for-profit
    21  child  welfare  agency in New York state licensed by the office of chil-
    22  dren and family services, or employed within  such  state  agency  as  a
    23  child  welfare  worker,  with  at  least  two  years' experience and are
    24  enrolling in an approved program to obtain a degree  that  will  enhance
    25  their ability to work in such agency.
    26    2.  Eligibility. To be eligible for an award pursuant to this section,
    27  applicants  shall:  a. be currently employed at a voluntary not-for-pro-
    28  fit child welfare agency in New York state licensed  by  the  office  of
    29  children and family services, with at least two years of qualified expe-
    30  rience;
    31    b.  be  matriculated in an undergraduate or graduate degree program at
    32  an institution of higher education located within New York  state  in  a
    33  program of study that would enhance their ability to work in such agency
    34  as determined by the president;
    35    c. agree to work in a voluntary not-for-profit child welfare agency in
    36  New York state licensed by the office of children and family services as
    37  a child welfare worker on a full time basis for a period of no less than
    38  five  continuous  years  upon completion of such degree program within a
    39  reasonable period of time and maintain residency in New York  state  for
    40  such period of employment; and
    41    d.  comply  with  subdivisions  three  and five of section six hundred
    42  sixty-one of this part.
    43    3. Award conditions and requirements.  a. Within amounts  appropriated
    44  therefore  and  based  on  availability  of funds, scholarships shall be
    45  granted beginning with the two thousand seventeen -- two thousand  eigh-
    46  teen  academic  year and thereafter on a competitive basis to applicants
    47  whom the corporation has certified are eligible to receive such  awards;
    48  and who agree to work in a voluntary not-for-profit child welfare agency
    49  in New York state licensed by the office of children and family services
    50  as  a  child welfare worker on a full time basis for a period of no less
    51  than five continuous years upon  completion  of  such  degree  within  a
    52  reasonable  period  of time and maintain residency in New York state for
    53  such period of employment.

        S. 2009--C                         154                        A. 3009--C
 
     1    b. An applicant must make every reasonable effort to obtain employment
     2  in a voluntary not-for-profit child welfare agency  in  New  York  state
     3  licensed  by  the  office  of  children  and  family services as a child
     4  welfare worker upon graduation.
     5    4.  Amount. The corporation shall grant such awards within the amounts
     6  appropriated for such purpose and based on availability of funds accord-
     7  ing to a schedule to be determined by the corporation in an amount:
     8    a. equal to the tuition charged to state resident  students  attending
     9  an undergraduate or graduate degree program, as applicable, at the state
    10  university  of New York; the average mandatory fees charged at the state
    11  university of New York, or the actual tuition and fees  charged  to  the
    12  recipient,  whichever  is  less;  and  the  average  non-tuition cost of
    13  attendance, as determined by the corporation  and  as  approved  by  the
    14  director  of  the  budget,  for a student at the state university of New
    15  York or actual non-tuition  cost  of  attendance  at  such  institution,
    16  whichever  is  less  provided  that  the scholarship shall not exceed an
    17  amount that is equal to the total  cost  of  attendance  determined  for
    18  federal Title IV student financial aid purposes, less all other scholar-
    19  ships  and  grants provided by New York state, other states, the federal
    20  government, or other governments, and the amount of educational benefits
    21  paid under any  program  that  would  duplicate  the  purposes  of  this
    22  program,  provided that any scholarships or grants provided to a recipi-
    23  ent by the institution which are intended to fund  any  portion  of  the
    24  difference  between  the  annual  state  award  and  the actual costs of
    25  attendance at any such institution shall not be considered to  duplicate
    26  the purposes of this program.
    27    b. not to exceed twenty thousand dollars for a master's degree program
    28  at  a  private  institution;  the  average mandatory fees charged at the
    29  private institution, or the actual  tuition  and  fees  charged  to  the
    30  recipient,  whichever  is  less;  and  the  average  non-tuition cost of
    31  attendance, as determined by the corporation  and  as  approved  by  the
    32  director  of  the  budget,  for a student at such private institution or
    33  actual non-tuition cost of attendance at such institution, whichever  is
    34  less,  provided  that the scholarship shall not exceed an amount that is
    35  equal to the total cost of attendance determined for  federal  Title  IV
    36  student  financial  aid purposes, less all other scholarships and grants
    37  provided by New York state, other states,  the  federal  government,  or
    38  other governments, and the amount of educational benefits paid under any
    39  program that would duplicate the purposes of this program, provided that
    40  any  scholarships  or  grants provided to a recipient by the institution
    41  which are intended to fund any portion of  the  difference  between  the
    42  annual state award and the actual costs of attendance at any such insti-
    43  tution  shall  not  be  considered  to  duplicate  the  purposes of this
    44  program.
    45    5. Other awards. Award recipients shall be eligible to apply for other
    46  awards.
    47    6. Duration. An award shall entitle the recipient to  annual  payments
    48  for either an associate's degree, bachelor's degree, or graduate degree.
    49  An  eligible recipient enrolled in an eligible two year program of study
    50  shall not receive an award for more than two academic years. An eligible
    51  recipient enrolled in an eligible undergraduate program of  study  shall
    52  not  receive an award for more than four academic years of undergraduate
    53  study or five academic years if the program of study  normally  requires
    54  five  years.  An  eligible  recipient  enrolled in a graduate program of
    55  study shall not receive an award  for  more  than  two  academic  years.

        S. 2009--C                         155                        A. 3009--C
 
     1  Notwithstanding,  such  duration may be extended for an allowable inter-
     2  ruption of study as determined by the corporation.
     3    7.  Penalties  for noncompliance.   a. The corporation may collect the
     4  full amount of the award given pursuant to this section, plus  interest,
     5  according to a schedule to be determined by the corporation, if: (i) the
     6  recipient  fails  to  complete  their degree program within a reasonable
     7  time as determined by the  corporation;  or  (ii)  one  year  after  the
     8  completion  of  the  degree program it is found that a recipient did not
     9  begin full-time employment at a voluntary not-for-profit  child  welfare
    10  agency  in  New York state licensed by the office of children and family
    11  services as a child welfare worker; or  (iii)  the  recipient  fails  to
    12  complete  five  continuous  years of full-time employment at a voluntary
    13  not-for-profit child welfare agency in the state licensed by the  office
    14  of  children  and  family services as a child welfare worker or maintain
    15  residency in New York state for such period of employment; or  (iv)  the
    16  recipient fails to respond to requests by the corporation for the status
    17  of  his  or  her academic or professional progress. The terms and condi-
    18  tions of this subdivision shall be deferred for any interruption  in  an
    19  undergraduate  or  graduate  study  or  employment as established by the
    20  rules and regulations of the corporation. Any obligation to comply  with
    21  such  provisions as outlined in this section shall be cancelled upon the
    22  death of the recipient. Notwithstanding any provisions of this  subdivi-
    23  sion  to the contrary, the corporation is authorized to promulgate rules
    24  and regulations necessary for the waiver of suspension of any  financial
    25  obligation which would involve extreme hardship.
    26    8. Recipient selection. The president may establish:
    27    a. an application deadline; and
    28    b.  a  method  of  selecting recipients if in any given year there are
    29  insufficient funds to cover the needs of all  applicants  and  returning
    30  recipients.
    31    9.  Rules and regulations. The corporation is authorized to promulgate
    32  rules and regulations, and may promulgate emergency regulations,  neces-
    33  sary for the implementation of the provisions of this section including,
    34  but  not  limited to, the criteria to distributing the awards, which may
    35  include a lottery or other form of random selection,  and  the  rate  of
    36  interest charges for repayment of the student loan.
    37    §  3.  The  education  law is amended by adding a new section 679-i to
    38  read as follows:
    39    § 679-i.  New York state child welfare worker loan forgiveness  incen-
    40  tive  program.  1.  Purpose.  the  president  shall  grant  student loan
    41  forgiveness awards for the purpose of attracting workers to be  employed
    42  in  voluntary  not-for-profit  child  welfare agencies in New York state
    43  licensed by the office of  children  and  family  services  as  a  child
    44  welfare  worker.  Such  awards  shall be made on a competitive basis, in
    45  accordance with rules and regulations promulgated by the corporation for
    46  such purposes, to applicants who meet the eligibility criteria.
    47    2. Eligibility. To be eligible for an award pursuant to this  section,
    48  applicants shall:
    49    a.  have  graduated  and  obtained an undergraduate or graduate degree
    50  from a college or university located in New York state;
    51    b. have outstanding student loan debt from obtaining such degree;
    52    c. agree to work in a voluntary not-for-profit child welfare agency in
    53  New York state licensed by the office of children and family services as
    54  a child welfare worker, on a full time basis for a  period  of  no  less
    55  than five years;
    56    d. apply for this program within two years of college graduation; and

        S. 2009--C                         156                        A. 3009--C
 
     1    e.  comply  with  subdivisions  three  and five of section six hundred
     2  sixty-one of this part.
     3    3.  Awards.  Awards  shall  be  granted to qualified applicants in the
     4  amount of up to ten thousand dollars per year,  per  applicant,  not  to
     5  exceed  a  duration  of five years and not to exceed the total amount of
     6  such applicant's student loan debt. The  corporation  shall  grant  such
     7  awards  within  amounts  appropriated for such purposes and based on the
     8  availability of funds. No one applicant shall receive more than a  total
     9  of fifty thousand dollars upon the end of a five-year period.
    10    4.  Priority.  First  priority  shall  be given to applicants who have
    11  received payment of an award pursuant to this section in  a  prior  year
    12  and  remain  eligible.  Second priority shall be given to applicants who
    13  are completing the second, third, fourth  or  fifth  year  of  full-time
    14  employment  at  a  voluntary  not-for-profit child welfare agency in New
    15  York state licensed by the office of children and family services. Third
    16  priority shall be given to an applicant  who  can  demonstrate  economic
    17  need  but  did  not  receive  an  award  during  the  first year of this
    18  program's operation. If larger numbers of applicants are eligible pursu-
    19  ant to this subdivision than funds available, applicants shall be chosen
    20  pursuant to  rules  and  regulations  promulgated  by  the  corporation;
    21  provided,  however, that each applicant chosen shall receive an award of
    22  up to ten thousand dollars in each year such applicant is accepted  into
    23  the program.
    24    5.  Rules and regulations. The corporation is authorized to promulgate
    25  rules and regulations, and may promulgate emergency regulations,  neces-
    26  sary for the implementation of the provisions of this section.
    27    § 4. This act shall take effect immediately.
 
    28                                  PART NNN
 
    29    Section  1.  This  act enacts into law components of legislation which
    30  are necessary to implement legislation relating to workers' compensation
    31  and insurance. Each component is wholly contained within a Subpart iden-
    32  tified as Subparts A through J. The effective date for  each  particular
    33  provision contained within such Subpart is set forth in the last section
    34  of  such  Subpart.  Any  provision  in  any  section  contained within a
    35  Subpart, including the effective date of  the  Subpart,  which  makes  a
    36  reference  to a section "of this act", when used in connection with that
    37  particular component, shall be deemed to mean and refer  to  the  corre-
    38  sponding  section  of the Subpart in which it is found. Section three of
    39  this act sets forth the general effective date of this act.
 
    40                                  SUBPART A
 
    41    Section 1. Paragraph w of subdivision 3 of section 15 of the  workers'
    42  compensation  law,  as  amended  by  chapter  6  of the laws of 2007, is
    43  amended to read as follows:
    44    w. Other cases. In all other cases of  permanent  partial  disability,
    45  the  compensation  shall  be  sixty-six  and  two-thirds  percent of the
    46  difference between the injured employee's average weekly wages  and  his
    47  or her wage-earning capacity thereafter in the same employment or other-
    48  wise.    Compensation  under  this paragraph shall be payable during the
    49  continuance of such permanent partial disability, without the  necessity
    50  for  the claimant who is entitled to benefits at the time of classifica-
    51  tion to demonstrate ongoing attachment to the labor market, but  subject
    52  to  reconsideration of the degree of such impairment by the board on its

        S. 2009--C                         157                        A. 3009--C
 
     1  own motion or upon application of any party  in  interest  however,  all
     2  compensation  payable  under  this  paragraph  shall not exceed (i) five
     3  hundred twenty-five weeks in cases in which  the  loss  of  wage-earning
     4  capacity is greater than ninety-five percent; (ii) five hundred weeks in
     5  cases  in which the loss of wage-earning capacity is greater than ninety
     6  percent but not more than ninety-five percent; (iii) four hundred seven-
     7  ty-five weeks in cases in which the loss  of  wage-earning  capacity  is
     8  greater  than eighty-five percent but not more than ninety percent; (iv)
     9  four hundred fifty weeks in cases in  which  the  loss  of  wage-earning
    10  capacity  is  greater  than eighty percent but not more than eighty-five
    11  percent; (v) four hundred twenty-five weeks in cases in which  the  loss
    12  of  wage-earning  capacity  is greater than seventy-five percent but not
    13  more than eighty percent; (vi) four hundred weeks in cases in which  the
    14  loss  of  wage-earning  capacity is greater than seventy percent but not
    15  more than seventy-five percent; (vii) three hundred  seventy-five  weeks
    16  in  cases  in  which  the  loss of wage-earning capacity is greater than
    17  sixty percent but not more than seventy percent;  (viii)  three  hundred
    18  fifty  weeks  in  cases  in  which  the loss of wage-earning capacity is
    19  greater than fifty percent but not more than sixty percent;  (ix)  three
    20  hundred  weeks  in  cases  in which the loss of wage-earning capacity is
    21  greater than forty percent but not more  than  fifty  percent;  (x)  two
    22  hundred  seventy-five  weeks  in cases in which the loss of wage-earning
    23  capacity is greater than thirty percent but not more than forty percent;
    24  (xi) two hundred fifty weeks in cases in which the loss of  wage-earning
    25  capacity  is  greater  than  fifteen  percent  but  not more than thirty
    26  percent; and (xii) two hundred twenty-five weeks in cases in  which  the
    27  loss  of wage-earning capacity is fifteen percent or less.  For a claim-
    28  ant with a date of accident or disablement after the effective  date  of
    29  the  chapter  of  the  laws  of two thousand seventeen that amended this
    30  subdivision, where the carrier or  employer  has  provided  compensation
    31  pursuant  to  subdivision five of this section beyond one hundred thirty
    32  weeks from the date of accident or disablement, all subsequent weeks  in
    33  which  compensation was paid shall be considered to be benefit weeks for
    34  purposes of this section, with the carrier or employer receiving  credit
    35  for  all  such  subsequent  weeks  against the amount of maximum benefit
    36  weeks when permanent partial disability under  this  section  is  deter-
    37  mined.  In the event of payment for intermittent temporary partial disa-
    38  bility paid after one hundred thirty weeks from the date of accident  or
    39  disablement,  such time shall be reduced to a number of weeks, for which
    40  the carrier will receive a credit against  the  maximum  benefit  weeks.
    41  For  a  claimant with a date of accident or disablement after the effec-
    42  tive date of the chapter of the laws  of  two  thousand  seventeen  that
    43  amended  this  subdivision,  when permanency is at issue, and a claimant
    44  has submitted medical evidence that he or she is not at maximum  medical
    45  improvement, and the carrier has produced or has had a reasonable oppor-
    46  tunity  to produce an independent medical examination concerning maximum
    47  medical improvement, and the board has determined that the  claimant  is
    48  not  yet at maximum medical improvement, the carrier shall not receive a
    49  credit for benefit weeks prior  to  a  finding  that  the  claimant  has
    50  reached  maximum  medical  improvement,  at which time the carrier shall
    51  receive credit for any weeks of temporary disability  paid  to  claimant
    52  after  such finding against the maximum benefit weeks awarded under this
    53  subdivision. For those claimants  classified  as  permanently  partially
    54  disabled  who  no  longer  receive  indemnity payments because they have
    55  surpassed  their  number  of  maximum  benefit  weeks,   the   following
    56  provisions will apply:

        S. 2009--C                         158                        A. 3009--C
 
     1    (1)  There  will be a presumption that medical services shall continue
     2  notwithstanding the completion of the time period for  compensation  set
     3  forth  in this section and the burden of going forward and the burden of
     4  proof will lie with the carrier, self-insured employer or  state  insur-
     5  ance  fund in any application before the board to discontinue or suspend
     6  such services. Medical services will continue during the pendency of any
     7  such application and any appeals thereto.
     8    (2) The board is directed to promulgate regulations that establish  an
     9  independent  review  and  appeal  by  an  outside agent or entity of the
    10  board's choosing of any  administrative  law  judge's  determination  to
    11  discontinue  or suspend medical services before a final determination of
    12  the board.
    13    § 2. Subdivisions 3 and 4 of section 35 of the  workers'  compensation
    14  law, as added by chapter 6 of the laws of 2007, the opening paragraph of
    15  subdivision  4 as further amended by section 104 of part A of chapter 62
    16  of the laws of 2011, are amended to read as follows:
    17    3. Extreme hardship redetermination. In cases where the loss of  wage-
    18  earning capacity is greater than [eighty] seventy-five percent, a claim-
    19  ant  may  request,  within the year prior to the scheduled exhaustion of
    20  indemnity benefits under paragraph w of  subdivision  three  of  section
    21  fifteen  of  this  article,  that  the  board reclassify the claimant to
    22  permanent total disability or total industrial disability due to factors
    23  reflecting extreme hardship.
    24    4. Annual safety net reporting. The [commissioner of labor] board,  in
    25  conjunction  with  the [board] commissioner of labor and the superinten-
    26  dent of financial services, shall track  all  claimants  who  have  been
    27  awarded  permanent  partial  disability  status  and  report annually on
    28  December first, beginning in two thousand eight, to  the  governor,  the
    29  speaker  of  the  assembly,  the  majority leader of the senate, and the
    30  chairs of the labor, ways and means and finance committees of the assem-
    31  bly and senate:
    32    (i) The number of said claimants who have:
    33    (1) returned to gainful employment;
    34    (2) been recategorized as being totally industrially disabled;
    35    (3) remain subject to duration limitations set forth in paragraph w of
    36  subdivision three of section fifteen of this article; and
    37    (4) not returned to work, and whose indemnity payments have expired.
    38    (ii) The additional steps the commissioner contemplates are  necessary
    39  to  minimize the number of workers who have neither returned to work nor
    40  been recategorized from permanent partial disability.
    41    § 3. Section 23 of  the  workers'  compensation  law,  as  amended  by
    42  section  10  of part GG of chapter 57 of the laws of 2013, is amended to
    43  read as follows:
    44    § 23. Appeals. An award or decision of the board shall  be  final  and
    45  conclusive  upon  all  questions within its jurisdiction, as against the
    46  state fund or between the parties, unless reversed or modified on appeal
    47  therefrom as hereinafter provided. Any  party  may  within  thirty  days
    48  after  notice  of  the filing of an award or decision of a referee, file
    49  with the board an application in writing for a modification  or  rescis-
    50  sion  or  review of such award or decision, as provided in this chapter.
    51  The board shall render its decision upon such application in writing and
    52  shall include in such decision a statement of the facts which formed the
    53  basis of its action on the issues raised before it on such  application.
    54  Within  thirty  days after notice of the decision of the board upon such
    55  application has been served upon the  parties,  or  within  thirty  days
    56  after notice of an administrative redetermination review decision by the

        S. 2009--C                         159                        A. 3009--C
 
     1  chair  pursuant  to  subdivision  five of section fifty-two, section one
     2  hundred thirty-one or section one hundred forty-one-a  of  this  chapter
     3  has been served upon any party in interest, an appeal may be taken ther-
     4  efrom  to the appellate division of the supreme court, third department,
     5  by any party in interest, including an employer  insured  in  the  state
     6  fund;  provided,  however,  that any party in interest may within thirty
     7  days after notice of the filing of the board panel's decision  with  the
     8  secretary  of  the board, make application in writing for review thereof
     9  by the full board. If the decision or determination was that of a  panel
    10  of the board and there was a dissent from such decision or determination
    11  other  than a dissent the sole basis of which is to refer the case to an
    12  impartial specialist, or if there was a decision or determination by the
    13  panel which reduced the loss of wage earning capacity finding made by  a
    14  compensation  claims  referee  pursuant to subparagraph w of subdivision
    15  three of section fifteen of this article from a percentage at  or  above
    16  the  percentage set forth in subdivision three of section thirty-five of
    17  this article whereby a claimant  would  be  eligible  to  apply  for  an
    18  extreme  hardship  redetermination  to a percentage below the threshold,
    19  the full board shall review and affirm, modify or rescind such  decision
    20  or  determination  in  the  same  manner as herein above provided for an
    21  award or decision of a referee.  If the decision  or  determination  was
    22  that of a unanimous panel of the board, or there was a dissent from such
    23  decision  or  determination the sole basis of which is to refer the case
    24  to an impartial specialist, the board may in its sole discretion  review
    25  and affirm, modify or rescind such decision or determination in the same
    26  manner  as  herein above provided for an award or decision of a referee.
    27  Failure to apply for review by the full board shall not bar any party in
    28  interest from taking an appeal directly to the court as above  provided.
    29  The board may also, in its discretion certify to such appellate division
    30  of  the  supreme  court, questions of law involved in its decision. Such
    31  appeals and the question so certified shall be heard in a summary manner
    32  and shall have precedence over all other civil cases in such court.  The
    33  board  shall  be  deemed  a party to every such appeal from its decision
    34  upon such application, and the chair shall be deemed a  party  to  every
    35  such  appeal  from  an  administrative  redetermination  review decision
    36  pursuant to subdivision five of section fifty-two of this  chapter.  The
    37  attorney  general  shall  represent  the board and the chair thereon. An
    38  appeal may also be taken to the court of appeals in the same manner  and
    39  subject  to  the  same  limitations  not inconsistent herewith as is now
    40  provided in the civil practice law and rules. It shall not be  necessary
    41  to  file exceptions to the rulings of the board. An appeal to the appel-
    42  late division of the supreme court, third department, or to the court of
    43  appeals, shall not operate as a stay  of  the  payment  of  compensation
    44  required by the terms of the award or of the payment of the cost of such
    45  medical,  dental,  surgical,  optometric or other attendance, treatment,
    46  devices, apparatus or other necessary items the employer is required  to
    47  provide  pursuant to section thirteen of this article which are found to
    48  be fair and reasonable. Where such award is modified or  rescinded  upon
    49  appeal,  the appellant shall be entitled to reimbursement in a sum equal
    50  to the compensation in dispute paid to the respondent in addition  to  a
    51  sum  equal  to the cost of such medical, dental, surgical, optometric or
    52  other attendance, treatment, devices, apparatus or other necessary items
    53  the employer is required to provide pursuant to section thirteen of this
    54  article paid by the appellant pending adjudication of the  appeal.  Such
    55  reimbursement  shall be paid from administration expenses as provided in
    56  section one hundred fifty-one of this chapter upon audit and warrant  of

        S. 2009--C                         160                        A. 3009--C
 
     1  the comptroller upon vouchers approved by the chair. Where such award is
     2  subject  to  the provisions of section twenty-seven of this article, the
     3  appellant shall pay directly to the  claimant  all  compensation  as  it
     4  becomes due during the pendency of the appeal, and upon affirmance shall
     5  be  entitled  to credit for such payments. Neither the chair, the board,
     6  the commissioners of the state insurance fund nor the claimant shall  be
     7  required  to  file  a  bond upon an appeal to the court of appeals. Upon
     8  final determination of such an appeal, the board or chair, as  the  case
     9  may  be, shall enter an order in accordance therewith. Whenever a notice
    10  of appeal is served or an application made to the board by the  employer
    11  or  insurance  carrier  for a modification or rescission or review of an
    12  award or decision, and the board shall find that such notice  of  appeal
    13  was served or such application was made for the purpose of delay or upon
    14  frivolous  grounds,  the  board  shall impose a penalty in the amount of
    15  five hundred dollars upon  the  employer  or  insurance  carrier,  which
    16  penalty shall be added to the compensation and paid to the claimant. The
    17  penalties  provided  herein shall be collected in like manner as compen-
    18  sation. A party against whom an award of compensation shall be made  may
    19  appeal  from  a  part  of such award. In such a case the payment of such
    20  part of the award as is not appealed from shall not prejudice any rights
    21  of such party on appeal, nor be  taken  as  an  admission  against  such
    22  party.  Any appeal by an employer from an administrative redetermination
    23  review decision pursuant to subdivision five  of  section  fifty-two  of
    24  this  chapter  shall  in  no  way serve to relieve the employer from the
    25  obligation to timely pay compensation and benefits otherwise payable  in
    26  accordance with the provisions of this chapter.
    27    Nothing  contained  in  this section shall be construed to inhibit the
    28  continuing jurisdiction of the board as provided in section one  hundred
    29  twenty-three of this chapter.
    30    § 4. This act shall take effect immediately.
 
    31                                  SUBPART B
 
    32    Section  1.  Subdivision  3 of section 15 of the workers' compensation
    33  law is amended by adding a new paragraph x to read as follows:
    34    x. Impairment guidelines. The chair shall consult with representatives
    35  of labor, business, medical providers, insurance carriers, and  self-in-
    36  sured employers regarding revisions to permanency impairment guidelines,
    37  including  permitting review and comment by such representatives' chosen
    38  medical advisors, and after consultation shall, in accordance  with  the
    39  state  administrative  procedure act, propose for public comment revised
    40  permanency guidelines concerning medical evaluation  of  impairment  and
    41  the  determination  of permanency as set forth in paragraphs a through v
    42  of this subdivision by September first,  two  thousand  seventeen,  with
    43  such  guidelines  to be adopted by the chair by January first, two thou-
    44  sand eighteen.  The permanency impairment guidelines shall be reflective
    45  of advances in modern medicine that enhance healing and result in better
    46  outcomes. In the event the chair fails to adopt such  permanency  guide-
    47  lines to be effective by January first, two thousand eighteen, the chair
    48  shall  adopt, by emergency regulation, permanency impairment guidelines.
    49  The permanency impairment guidelines  adopted  by  emergency  regulation
    50  shall  be  either  the  impairment  guidelines  proposed by the chair on
    51  September first, two thousand seventeen  or  the  permanency  impairment
    52  guidelines  created  by  the  consultant  to  the board and submitted to
    53  representatives of labor, business, medical providers, insurance  carri-
    54  ers,  and self-insured employers, as voted on in an emergency meeting of

        S. 2009--C                         161                        A. 3009--C
 
     1  the board to be held on December twenty-ninth, two  thousand  seventeen.
     2  In  the  event  the board is unable to reach a decision at such meeting,
     3  the chair shall select the permanency guidelines to be adopted by  emer-
     4  gency  regulations.  Emergency regulations shall be in effect for ninety
     5  days or until such time as permanent  regulations  are  adopted  by  the
     6  chair.    As of January first, two thousand eighteen the 2012 permanency
     7  impairment guidelines pertaining to paragraphs a through v  of  subdivi-
     8  sion  three  of  section fifteen of this article are repealed, and shall
     9  have no effect. The board shall train adjudication and  other  staff  to
    10  ensure timely and effective implementation.
    11    § 2. This act shall take effect immediately.
 
    12                                  SUBPART C
 
    13    Section  1.  The  workers' compensation law is amended by adding a new
    14  section 13-p to read as follows:
    15    § 13-p. Comprehensive prescription drug  formulary.  The  chair  shall
    16  establish  a  comprehensive  prescription  drug  formulary  on or before
    17  December thirty-first, two thousand  seventeen.  The  prescription  drug
    18  formulary  shall  include  a tiered list of high-quality, cost-effective
    19  medications that are pre-approved to be  prescribed  and  dispensed,  as
    20  well as additional non-preferred drugs that can be prescribed with prior
    21  approval.  Such  prescription  drug  formulary, shall include but not be
    22  limited to implementation of a pharmacy reimbursement strategy, adminis-
    23  tration of a prescription drug rebate program  for  formulary  drugs,  a
    24  pre-approval  program,  drug  utilization review, and limitations on the
    25  prescribing of compounded medications and  compounded  topical  prepara-
    26  tions.    The board shall promulgate regulations to permit an interested
    27  party to submit a request to the medical director of the board to  alter
    28  or  amend  the  formulary to consider changing the status of a drug from
    29  non-preferred to preferred. Regulations  may  include  a  provision  for
    30  reasonable costs and fees associated with the review.
    31    § 2. This act shall take effect immediately.

    32                                  SUBPART D
 
    33    Section  1.  Paragraph (a) of subdivision 2 of section 25 of the work-
    34  ers' compensation law, as amended by chapter 635 of the laws of 1996, is
    35  amended to read as follows:
    36    (a) In case the employer decides to controvert the  right  to  compen-
    37  sation, it shall, either on or before the eighteenth day after disabili-
    38  ty  or  within  ten days after it has knowledge of the alleged accident,
    39  whichever period is the greater, file a notice with the chair, on a form
    40  prescribed by the chair, that compensation is not being paid, giving the
    41  name of the claimant, name of the employer, date of the alleged accident
    42  and the reason why compensation is not being paid.   When  a  claim  for
    43  compensation  is  filed  with medical evidence of work related injury or
    44  illness, and the claimant is disabled and not working, and the  claimant
    45  is  otherwise  entitled  to compensation, and the employer is not making
    46  payment to the claimant as required herein, and  the  employer  has  not
    47  controverted  the  claim,  and the efforts to resolve the issue with the
    48  carrier have not been successful,  the  claimant  may  request,  in  the
    49  format  prescribed  by the chair, a hearing to be held within forty-five
    50  days of the board's receipt of such request.
    51    If the insurance carrier shall fail either to file notice  of  contro-
    52  versy  or  begin payment of compensation within the prescribed period or

        S. 2009--C                         162                        A. 3009--C

     1  within ten days after receipt of  a  copy  of  the  notice  required  in
     2  section  one hundred ten of this chapter, whichever period is the great-
     3  er, the board may[, after a hearing,] impose a penalty in the amount  of
     4  three hundred dollars, which shall be in addition to all other penalties
     5  provided  for  in  this  chapter and shall be paid to the claimant. Such
     6  penalty shall be collected in like manner as an award of compensation.
     7    § 2. Subdivision 3 of section 25 of the workers' compensation  law  is
     8  amended by adding a new paragraph (g) to read as follows:
     9    (g) Notwithstanding any other provision in this chapter, the chair may
    10  by  regulation  elect to establish a performance standard concerning the
    11  subject of any penalty or assessment provision applicable to  an  insur-
    12  ance  carrier or self-insured employer, where such penalty or assessment
    13  is remittable to the New York state  treasury,  or  chair,  but  not  to
    14  claimants  or  any  other  payee or fund, and impose a single penalty or
    15  assessment upon the failure to  meet  that  promulgated  standard,  with
    16  notice  to  the carrier or self-insured employer. The penalty or assess-
    17  ment imposed in the aggregate shall be payable to the chair. Such aggre-
    18  gate penalty or assessment shall be based upon the number of  violations
    19  as  multiplied  against the applicable penalty or assessment, but may be
    20  negotiated by the chair's designee in full satisfaction of  the  penalty
    21  or  assessment.  A  final agreement between the chair's designee and the
    22  carrier or self-insured employer may be submitted and  approved  subject
    23  to  section  thirty-two of this article, without notice to any claimant.
    24  Any aggregate penalty or assessment issued herein shall be issued admin-
    25  istratively, and the board, and the chair may,  by  regulation,  specify
    26  the method of review or redetermination, and the presentment of evidence
    27  and objections shall occur solely upon the documentation. The carrier or
    28  self-insured  employer  shall  receive credit for any instances in which
    29  the aggregate penalty or assessment is inclusive of a penalty or assess-
    30  ment previously issued and paid in an individual claim or proceeding.  A
    31  final  determination  is subject to review under section twenty-three of
    32  this article, except that no stay in payment of the penalty  or  assess-
    33  ment  shall apply pending the outcome of the application for administra-
    34  tive review. Failure to pay the finally determined  penalty  or  assess-
    35  ment,  or  the  penalty  or  assessment  agreed upon pursuant to section
    36  thirty-two of this article, within ten days of filing, shall  result  in
    37  the imposition of a twenty-percent penalty, payable to the chair. In the
    38  event  of the carrier or self-insured employer instituting or continuing
    39  an issue without reasonable grounds, the provisions of subdivision three
    40  of section one hundred fourteen-a of this chapter shall  be  applicable.
    41  Aggregate penalties shall be borne exclusively by insurance carriers and
    42  licensed  representatives  pursuant  to  subdivision  three-b of section
    43  fifty of this article and the costs  shall  not  be  passed  to  insured
    44  employers.
    45    § 3. This act shall take effect immediately.
 
    46                                  SUBPART E
 
    47    Section  1.  Subdivision  3 of section 50 of the workers' compensation
    48  law, as amended by section 3 of part G of chapter  57  of  the  laws  of
    49  2011,  the closing paragraph as further amended by section 104 of part A
    50  of chapter 62 of the laws of 2011, is amended to read as follows:
    51    3. By furnishing satisfactory proof to  the  chair  of  his  financial
    52  ability  to  pay  such  compensation for himself, or to pay such compen-
    53  sation on behalf of a group of employers in accordance with  subdivision
    54  ten  of  this section, in which case the chair shall require the deposit

        S. 2009--C                         163                        A. 3009--C
 
     1  with the chair of such securities as the chair may deem necessary of the
     2  kind prescribed in subdivisions one, two,  three,  four  and  five,  and
     3  subparagraph  (a) of paragraph three of subdivision seven of section two
     4  hundred  thirty-five  of the banking law, or the deposit of cash, or the
     5  filing of irrevocable letters of credit issued by  a  qualified  banking
     6  institution  as  defined by rules promulgated by the chair or the filing
     7  of a bond of a surety company authorized to transact  business  in  this
     8  state,  in  an  amount to be determined by the chair, or the posting and
     9  filing as aforesaid of a combination of such  securities,  cash,  irrev-
    10  ocable  letters  of credit and surety bond in an amount to be determined
    11  by the chair, to secure his liability to pay the  compensation  provided
    12  in this chapter. Any such surety bond must be approved as to form by the
    13  chair.  If  an employer or group of employers posts and files a combina-
    14  tion of securities, cash, irrevocable letters of credit and surety  bond
    15  as  aforesaid,  and  if  it becomes necessary to use the same to pay the
    16  compensation provided in this chapter, the chair shall  first  use  such
    17  securities  or  cash or irrevocable letters of credit and, when the full
    18  amount thereof has been exhausted, he shall then require the  surety  to
    19  pay  forthwith to the chair all or any part of the penal sum of the bond
    20  for that purpose. The chair may also require an agreement on the part of
    21  the employer or group of employers to  pay  any  awards  commuted  under
    22  section twenty-seven of this chapter, into the special fund of the state
    23  fund,  as  a condition of his being allowed to remain uninsured pursuant
    24  to this section. The chair shall have the authority to deny the applica-
    25  tion of an employer or group of employers to pay such  compensation  for
    26  himself  or  to  revoke his consent furnished, under this section at any
    27  time, for good cause shown. The employer or group of employers  qualify-
    28  ing under this subdivision shall be known as a self-insurer.
    29    If  for  any  reason  the  status of an employer or group of employers
    30  under this subdivision is terminated, the securities or the surety bond,
    31  or the securities, cash, or irrevocable letters  of  credit  and  surety
    32  bond,  on  deposit referred to herein shall remain in the custody of the
    33  chair for such time as the chair may deem proper and warranted under the
    34  circumstances. In lieu thereof, and at the discretion of the chair,  the
    35  employer, his or her heirs or assigns or others carrying on or liquidat-
    36  ing  such  business,  may execute an assumption of workers' compensation
    37  liability insurance policy [securing] as described  herein.  Separately,
    38  the  chair  may execute an assumption of workers' compensation liability
    39  insurance policy as described herein on  behalf  of  the  special  funds
    40  created  under  the provisions of subdivisions eight and nine of section
    41  fifteen and section twenty-five-a of this chapter,  and  notwithstanding
    42  any  provision  to  the  contrary the chair may execute an assumption of
    43  workers' compensation liability insurance policy on behalf of the  unin-
    44  sured employers' fund.  An assumption of workers' compensation liability
    45  policy  referred  to herein shall secure such further and future contin-
    46  gent liability as may directly or indirectly arise from  prior  injuries
    47  to  workers and be incurred by reason of any change in condition of such
    48  workers warranting the board making subsequent  awards  for  payment  of
    49  additional  compensation. Such policy shall be in a form approved by the
    50  superintendent of financial services and issued by the state fund or any
    51  insurance company licensed to issue this  class  of  insurance  in  this
    52  state  or,  upon  application  by the chair, any other insurance company
    53  deemed by the superintendent of financial services to be  an  acceptable
    54  issuer.  In the event that such policy is issued by an insurance company
    55  other  than the state fund, then said policy shall be deemed of the kind
    56  specified in paragraph fifteen of subsection (a) of section one thousand

        S. 2009--C                         164                        A. 3009--C
 
     1  one hundred thirteen of the insurance law and covered  by  the  workers'
     2  compensation  security  fund as created and governed by article six-A of
     3  this chapter. It shall only be issued  for  a  single  complete  premium
     4  payment  in  advance  [by  the employer or group of employers] and in an
     5  amount deemed acceptable by the chair and the superintendent  of  finan-
     6  cial  services.    In  lieu  of the applicable premium charge ordinarily
     7  required to be imposed by  a  carrier,  said  premium  shall  include  a
     8  surcharge in an amount to be determined by the chair to: (i) satisfy all
     9  assessment  liability  due and owing to the board and/or the chair under
    10  this chapter; and (ii) satisfy all  future  assessment  liability  under
    11  this section, and which surcharge shall be adjusted from time to time to
    12  reflect  any  changes to the assessment of group self-insured employers,
    13  including any changes enacted by the chapter of the laws of two thousand
    14  eleven amending sections fifteen and one hundred fifty-one of this chap-
    15  ter. Said surcharge shall be payable to the board  simultaneous  to  the
    16  execution of the assumption of workers' compensation liability insurance
    17  policy.  However,  the  payment  of  said surcharge does not relieve the
    18  carrier from any other liability, including liability owed to the super-
    19  intendent of financial services pursuant to article six-A of this  chap-
    20  ter.  When  issued such policy shall be non-cancellable without recourse
    21  for any cause during the continuance of the  liability  secured  and  so
    22  covered.
    23    §  1-a.  Subparagraph (b) of paragraph 2 of subdivision 3-a of section
    24  50 of the workers' compensation law, as amended by section 4 of  part  G
    25  of chapter 57 of the laws of 2011, is amended to read as follows:
    26    (b)  Where  such  plan is adopted the group self-insurer shall furnish
    27  satisfactory proof to the chair of its financial  ability  to  pay  such
    28  compensation  for  the members in the industry covered by it, its reven-
    29  ues, their source and assurance of continuance. The chair shall  require
    30  the deposit with the chair of such securities as may be deemed necessary
    31  of  the  kind prescribed in subdivisions one, two, three, four and five,
    32  and subparagraph (a) of paragraph three of subdivision seven of  section
    33  two hundred thirty-five of the banking law or the deposit of cash or the
    34  filing  of  irrevocable  letters of credit issued by a qualified banking
    35  institution as defined by rules promulgated by the chair or  the  filing
    36  of  a  bond  of a surety company authorized to transact business in this
    37  state, in an amount to be determined to secure its liability to pay  the
    38  compensation  of each employer as above provided.  Such surety bond must
    39  be approved as to form by the chair. The chair shall require each  group
    40  self-insurer  to  provide  regular  reports no less than annually, which
    41  shall include but not be limited to audited financial statements,  actu-
    42  arial opinions and payroll information containing proof that it is fully
    43  funded.  Such  reports  shall  also include a contribution year analysis
    44  detailing contributions  and  expenses  associated  with  each  specific
    45  contribution  year.  For  purposes of this paragraph, proof that a group
    46  self-insurer is fully funded shall at a minimum include proof  of  unre-
    47  stricted cash and investments permitted by regulation of the chair of at
    48  least  one hundred percent of the total liabilities, including the esti-
    49  mate presented in the actuarial opinion submitted by the group  self-in-
    50  surer  in accordance with this chapter. The chair by regulation, may set
    51  further financial standards for group self-insurers. Any group  self-in-
    52  surer  that fails to show that it is fully funded shall be deemed under-
    53  funded, and must submit a plan for achieving fully funded  status  which
    54  may  include  a deficit assessment on members of such group self-insurer
    55  which shall be subject to approval or modification  by  the  chair.  The
    56  amount  of  such  under-funding, as measured by the actuarial opinion or

        S. 2009--C                         165                        A. 3009--C

     1  assumption of loss policy quotation submitted by  the  group,  shall  be
     2  considered  unfunded  claims  as set forth in subdivision two of section
     3  sixteen hundred eighty-q of the  public  authorities  law  as  added  by
     4  section 35 of Part GG of chapter 57 of the laws of 2013.
     5    §  2.  Subdivision (i) of section 32 of the workers' compensation law,
     6  as added by chapter 6 of the  laws  of  2007,  paragraph  5  as  further
     7  amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
     8  amended to read as follows:
     9    (i) (1) The waiver agreement management office may  contract  with  an
    10  insurance  carrier,  self-insured  employer, state insurance fund or any
    11  third party to assume  liability  for,  manage,  administer,  or  settle
    12  claims  on  its  behalf, so long as (A) such contract is approved by the
    13  special disability fund advisory committee and (B)  such  [third]  party
    14  shall  agree  to be subject to any guidelines or directives as the chair
    15  may issue.
    16    (2) The chair may, with approval of the special disability fund  advi-
    17  sory  committee  and  on  such terms as the committee deems appropriate,
    18  [shall have discretion to] procure  one  or  more  private  entities  to
    19  assume  the  liability for and [management, administration or settlement
    20  of] manage, administer, or settle all or a portion of the claims in  the
    21  special  disability fund including, without limitation, by obtaining "an
    22  assumption of  workers'  compensation  liability  insurance  policy"  as
    23  defined  in subdivision three of section fifty of this chapter. Any such
    24  policy shall expressly provide and, notwithstanding any other  provision
    25  of  law,  operate  to release from any further liability (i) the special
    26  disability fund and (ii) the insurance carrier, including  as  the  case
    27  may be the state insurance fund, originally liable for any claim covered
    28  by  the  assumption  of workers' compensation liability insurance policy
    29  securing such further and future contingent liability as may arise  from
    30  any  such  claim,  including  from  prior  injuries  to employees and be
    31  incurred by reason of any change in the condition of such employees  for
    32  payment of additional compensation. Notwithstanding any other provisions
    33  of  law, no consultation or approval of any employer, insurance carrier,
    34  self-insurer or the state insurance fund shall be required  before  such
    35  office may enter into any such policy of waiver agreement, or before the
    36  board  may  approve such waiver agreement. Any such procurement shall be
    37  conducted in accordance with state finance law, except as otherwise  set
    38  forth  below.  The  chair shall not award any contract that has not been
    39  approved by the special disability  fund  advisory  committee.  Notwith-
    40  standing  the  foregoing,  the  chair of the workers' compensation board
    41  may, if approved by the special disability fund advisory committee,  and
    42  on such terms as the committee deems appropriate:
    43    (A)  waive  any  informality  in a bid, and either reject all bids and
    44  again advertise for bids, or interview at least two  responsible  quali-
    45  fied bidders and negotiate and enter into a contract with one or more of
    46  such bidders; or
    47    (B)  group  claims  to  be assigned, in whole or in part, based on the
    48  insurance carrier, self-insured employer or state insurance fund that is
    49  receiving or will receive reimbursement on those claims from the  second
    50  disability fund. Such grouping shall be permissible notwithstanding that
    51  any  insurance carrier may have greater access to information, or may be
    52  able to provide better terms, in regard to claims so grouped.
    53    (3) [Any such contract shall expressly provide that the special  disa-
    54  bility  fund is no longer liable for the claims covered by the contract,
    55  and require security of either cash, an indemnity policy, or such  secu-
    56  rity as is otherwise sufficient to cover any losses incurred as a result

        S. 2009--C                         166                        A. 3009--C

     1  of  the  failure  or  default of the entity or entities awarded any such
     2  contract, including as a result of the insolvency of  any  such  entity.
     3  The  chair  may waive all or part of such security, and may impose other
     4  reasonable  methods  of  insuring  payment, upon approval of the special
     5  disability fund advisory committee.] Any policy executed  by  the  chair
     6  pursuant  to this section shall be in the form of an assumption of work-
     7  ers' compensation liability insurance policy securing such  further  and
     8  future  contingent liability as may arise from any claim covered by such
     9  policy, including prior injuries to workers and be incurred by reason of
    10  any change in the condition of such workers warranting the board  making
    11  subsequent  awards  for  payment of additional compensation. Such policy
    12  shall be in a form approved by the superintendent of financial  services
    13  and issued by the state insurance fund or any insurance company licensed
    14  to  issue this class of insurance in this state, or deemed acceptable as
    15  an issuer upon application by the chair to the superintendent as  speci-
    16  fied in subdivision three of section fifty of this chapter. In the event
    17  that  such policy is issued by an insurance company other than the state
    18  insurance fund, then said policy shall be deemed of the  kind  specified
    19  in  paragraph  fifteen  of  subsection  (a)  of section one thousand one
    20  hundred thirteen of the  insurance  law  and  covered  by  the  workers'
    21  compensation  security  fund as created and governed by article six-a of
    22  this chapter. Such policy shall only be issued  for  a  single  complete
    23  premium  paid in advance and in an amount deemed acceptable by the chair
    24  and the superintendent of financial services. When  issued  such  policy
    25  shall  be  noncancellable  without  recourse  for  any  cause during the
    26  continuance of the liability secured and so covered.
    27    (4) Notwithstanding any other provision of this  article,  the  waiver
    28  agreement management office may request in writing any information rele-
    29  vant  to  its entry into or management of waiver agreements from (A) any
    30  insurance carrier, employer, or the state insurance fund, if that entity
    31  has submitted a claim for reimbursement from the special disability fund
    32  as to the claimant to whom the information relates; or (B)  the  special
    33  funds  conservation  committee.  The  party  to whom the request is made
    34  shall provide the requested information  within  fourteen  days  of  the
    35  request, unless before that date it files an objection with the board to
    36  any  information  which  is  subject  to a recognized privilege or whose
    37  production is otherwise barred by law. The objecting party shall provide
    38  the requested information within  five  business  days  of  the  board's
    39  rejection of its objection.
    40    (5)  No  carrier,  self-insured  employer  or the state insurance fund
    41  shall assume the liability for, or management, administration or settle-
    42  ment of any claims under this section on which it holds reserves, beyond
    43  such reserves as are permitted by regulation of  the  superintendent  of
    44  financial services for purposes of this provision. No carrier may assume
    45  liability for any claims in the special disability fund under this para-
    46  graph  unless  the  carrier  maintains, on a stand alone basis, separate
    47  from its parent or any affiliated  entities,  an  interactive  financial
    48  strength  rating  from a nationally recognized statistical rating organ-
    49  ization that is considered secure or deemed acceptable  by  the  special
    50  disability fund advisory committee.
    51    (6)  The  director of the budget shall notify in writing the chairs of
    52  the senate finance committee and the assembly ways and  means  committee
    53  of  any  plans  to  transfer all or a portion of the portfolio of claims
    54  determined to be eligible for reimbursement from the special  disability
    55  fund  or  to [contract with any party to take responsibility in whole or
    56  in part for the administration of a  material  portion  of  the  claims,

        S. 2009--C                         167                        A. 3009--C

     1  including  the procurement process to be used to select parties involved
     2  in such transfer or contract,] enter  into  an  assumption  of  workers'
     3  compensation  liability  insurance policy, not less than forty-five days
     4  prior  to  the  commencement  of  such process. At any time borrowing is
     5  anticipated to settle claims, the chief executive officer of the  dormi-
     6  tory  authority  of the state of New York and the director of the budget
     7  shall provide a report to the chairs of the senate finance committee and
     8  the assembly ways and means committee on a  planned  bond  sale  of  the
     9  authority  and such report shall include, but not be limited to: (A) the
    10  maximum amount of  bonds  expected  to  be  sold  by  the  authority  in
    11  connection with a sale agreement; (B) the expected maximum interest rate
    12  and  maturity  date  of such bonds; (C) the expected amount of the bonds
    13  that will be fixed and/or variable  interest  rate;  (D)  the  estimated
    14  costs  of issuance; (E) the estimated level or levels of reserve fund or
    15  funds, if any; (F) the estimated cost of bond issuance, if any; (G)  the
    16  anticipated  use  or  uses of the proceeds; (H) the maximum expected net
    17  proceeds that will be paid to the state as a result of the  issuance  of
    18  such  bonds;  and  (I)  the  process to be used to select parties to the
    19  transaction. Any such expectations and estimates in the report shall not
    20  be deemed a substantive limitation on the  authority  of  the  dormitory
    21  authority of the state of New York.
    22    § 3. This act shall take effect immediately.
 
    23                                  SUBPART F
 
    24    Section  1.  Section 16 of chapter 11 of the laws of 2008 amending the
    25  workers' compensation law, the insurance law,  the  volunteer  ambulance
    26  workers' benefit law and the volunteer firefighters' benefit law, relat-
    27  ing  to  rates  for  workers'  compensation  insurance and setting forth
    28  conditions for a workers' compensation  rate  service  organization,  as
    29  amended  by  chapter  237  of  the  laws  of 2012, is amended to read as
    30  follows:
    31    § 16. This act shall take effect February 1, 2008; provided  that  the
    32  amendments  to  paragraph  2  of  subsection  (a) of section 2316 of the
    33  insurance law made by section eleven of this act shall  take  effect  on
    34  the  same  date  that  section 68 of chapter 6 of the laws of 2007 takes
    35  effect; provided further that the amendments  to  section  2316  of  the
    36  insurance  law  made  by section eleven of this act shall not affect the
    37  expiration of such section pursuant to section 2342 of the insurance law
    38  and shall be deemed expired therewith; and provided further that section
    39  ten of this act shall expire and be deemed repealed June 2, [2018] 2028.
    40    § 2. Subsection (e) of section 2305 of the insurance law,  as  amended
    41  by chapter 237 of the laws of 2012, is amended to read as follows:
    42    (e)  The superintendent: (1) by regulation may, in lieu of the waiting
    43  period set forth in subsection (b) of  this  section,  require  workers'
    44  compensation  insurance  rate filings to be specifically approved before
    45  they become effective; and (2) shall hold a public  hearing  if  a  rate
    46  service  organization makes a loss cost filing for workers' compensation
    47  that is an increase of [seven] five percent or more  over  the  approved
    48  loss  costs  from the prior year. Until June second, two thousand [eigh-
    49  teen] twenty-eight, a rate service  organization  for  workers'  compen-
    50  sation shall make a loss cost filing every year on or before June first,
    51  or such earlier date as is set by the superintendent.
    52    §  3.  Paragraph 4 of subdivision (t) of section 2313 of the insurance
    53  law, as added by chapter 11 of the laws of 2008, is amended to  read  as
    54  follows:

        S. 2009--C                         168                        A. 3009--C

     1    (4)  A  workers'  compensation rate service organization shall have an
     2  actuarial committee. It shall be the  responsibility  of  the  actuarial
     3  committee  to  review  methodology and data collection processes used to
     4  develop loss costs. The American  Federation  of  Labor  -  Congress  of
     5  Industrial  Organizations  of New York State and the Business Council of
     6  New York State, Inc. shall together  appoint  one  independent  casualty
     7  actuary  who  is a fellow or associate of the casualty actuarial society
     8  to serve as a member of the actuarial committee. The appointment of such
     9  actuary, and his  or  her  compensation  and  terms  and  conditions  of
    10  retention,  shall  be  subject  to the approval of the superintendent as
    11  reasonable and customary for such professional.  The  actuary  shall  be
    12  paid  by the workers' compensation rate service organization. Such actu-
    13  ary shall have the same access to the workers' compensation rate service
    14  organization data and documents as the other members of that  committee.
    15  The  governing body of a workers' compensation rate service organization
    16  shall select a chief actuary of the actuarial committee, who shall serve
    17  at the pleasure of the governing body and whose terms and conditions  of
    18  employment  shall be approved by the governing body.  The public actuary
    19  shall issue a report on or before June first, two thousand eighteen  and
    20  each  of the next ten years, indicating the overall savings in the work-
    21  ers' compensation system as a  result  of  the  two  thousand  seventeen
    22  reforms.
    23    §  4.  The  New  York compensation insurance rating board shall make a
    24  filing with the New York state department of financial services  requir-
    25  ing  that  the final premiums charged (i) on workers' compensation poli-
    26  cies with an effective date between the effective date of  this  section
    27  and  September  30,  2017, and (ii) on the unexpired portion of workers'
    28  compensation policies in force after the effective date of this  section
    29  with  an  effective date on or after October 1, 2016, shall reflect such
    30  cost impact. Differences between premiums charged and the final  premium
    31  on  such policies shall be settled between the insurance carrier and the
    32  policyholder by or before December 31, 2018.
    33    § 5. This act shall take effect immediately;  provided,  however  that
    34  the  amendments  to subdivision (t) of section 2313 of the insurance law
    35  made by section three of this act shall not affect the  repeal  of  such
    36  subdivision and shall be deemed repealed therewith.
 
    37                                  SUBPART G

    38    Section  1. Section 137 of the workers' compensation law is amended by
    39  adding a new subdivision 12 to read as follows:
    40    12. The chair shall conduct a thorough study  of  the  utilization  of
    41  independent  medical  examinations  under  this chapter, to occur within
    42  calendar year two thousand eighteen, and shall  convene  and  present  a
    43  preliminary  report  based  on the study to an advisory committee set to
    44  commence on or about January first, two thousand nineteen. The  advisory
    45  committee is to consist of representatives of organized labor, business,
    46  carriers,  self-insured  employers,  medical providers, and other stake-
    47  holders and experts as the chair may deem fit to include.  The  advisory
    48  committee  shall  meet  quarterly, or more frequently if directed by the
    49  chair. By December thirty-first, two thousand  nineteen,  the  committee
    50  shall  present  detailed recommendations to the governor, speaker of the
    51  assembly, and majority leader of the  senate,  regarding  administrative
    52  improvements,  and  regulatory and statutory proposals, that will ensure
    53  fairness, and  highest  medical  quality,  while  improving  methods  of
    54  combatting  fraud.  The  committee  shall  review  and  analyze  leading

        S. 2009--C                         169                        A. 3009--C
 
     1  studies, both in New York state and nationally. The compensation  insur-
     2  ance  rating  board shall provide data, and cooperate with the chair and
     3  committee in identifying potential abuse and fraud.   The  report  shall
     4  consider,  among  other items, the feasibility of new methods of assign-
     5  ing independent medical examinations, such as through rotating providers
     6  or panels, statewide networks, or other arrangements.
     7    § 2. This act shall take effect immediately.
 
     8                                  SUBPART H
 
     9    Section 1. Subparagraph 1 of paragraph c of subdivision 5  of  section
    10  50  of  the  workers' compensation law, as amended by chapter 139 of the
    11  laws of 2008, is amended to read as follows:
    12    (1) The chair and the department of audit and control as soon as prac-
    13  ticable after May first, nineteen hundred sixty, and annually  thereaft-
    14  er,  as  soon  as practicable after April first in each succeeding year,
    15  shall ascertain the total amount of net expenses, including (a) adminis-
    16  trative expenses, which shall  include  the  direct  costs  of  personal
    17  services,  the cost of maintenance and operation, the cost of retirement
    18  contributions made and workers' compensation premiums paid by the  State
    19  for  or  on  account  of  personnel, rentals for space occupied in state
    20  owned or state leased buildings, and (b) all direct  or  indirect  costs
    21  incurred  by  the board during the preceding fiscal year in carrying out
    22  the provisions of subdivision three and three-a of this section.    Such
    23  expenses shall be adjusted [quarterly] annually to reflect any change in
    24  circumstances,  and  shall  be assessed against all private self-insured
    25  employers, including for this purpose active and terminated group  self-
    26  insurers, active individual self-insured employers, and individual self-
    27  insured  employers who have ceased to exercise the privilege of self-in-
    28  surance.
    29    § 2. This act shall take effect immediately.

    30                                  SUBPART I
 
    31    Section 1.  Subdivision 3 of section 10 of the  workers'  compensation
    32  law,  as  amended by section 173 of subpart B of part C of chapter 62 of
    33  the laws of 2011, is amended to read as follows:
    34    3. (a) Notwithstanding any other provisions of this chapter,  where  a
    35  public  safety worker, including but not limited to a firefighter, emer-
    36  gency medical technician, police officer, correction  officer,  civilian
    37  employee  of  the department of corrections and community supervision or
    38  other person employed by the state to work within a correctional facili-
    39  ty maintained by the department  of  corrections  and  community  super-
    40  vision,  driver and medical observer, in the course of performing his or
    41  her duties, is exposed to the blood or other bodily  fluids  of  another
    42  individual  or  individuals,  the  executive  officer of the appropriate
    43  ambulance, fire or police district  may  authorize  such  public  safety
    44  worker  to  obtain  the  care and treatment, including diagnosis, recom-
    45  mended medicine and other medical care needed to ascertain whether  such
    46  individual  was  exposed  to  or contracted any communicable disease and
    47  such care and treatment shall be the  responsibility  of  the  insurance
    48  carrier  of  the appropriate ambulance, fire or police district or, if a
    49  public safety worker was not so exposed in the course of performing  his
    50  or her duties for such a district, then such person shall be covered for
    51  the  treatment provided for in this subdivision by the carrier of his or
    52  her employer when such person is acting in  the  scope  of  his  or  her

        S. 2009--C                         170                        A. 3009--C
 
     1  employment. For the purpose of this subdivision, the term "public safety
     2  worker"  shall  include persons who act for payment or who act as volun-
     3  teers in an organized group such as a rescue squad,  police  department,
     4  correctional  facility, ambulance corps, fire department, or fire compa-
     5  ny.
     6    (b) Where a police officer or firefighter subject to section thirty of
     7  this article, or  emergency  medical  technician,  paramedic,  or  other
     8  person  certified  to  provide medical care in emergencies, or emergency
     9  dispatcher files a claim for mental injury premised  upon  extraordinary
    10  work-related  stress incurred in a work-related emergency, the board may
    11  not disallow the claim, upon a factual finding that the stress  was  not
    12  greater than that which usually occurs in the normal work environment.
    13    § 2. This act shall take effect immediately.
 
    14                                  SUBPART J
 
    15    Section  1.  Subdivision 3 of section 151 of the workers' compensation
    16  law, as added by section 22 of part GG of chapter  57  of  the  laws  of
    17  2013, is amended to read as follows:
    18    3.  The  chair and department of audit and control annually as soon as
    19  practicable after the first of April of each year  shall  ascertain  the
    20  actual  total  amount  of  expenses, including in addition to the direct
    21  costs of personal service, the cost of maintenance  and  operation,  the
    22  cost of retirement contributions made and workers' compensation premiums
    23  paid  by  the  state  for  or on account of personnel, rentals for space
    24  occupied in state owned or state leased buildings, such  additional  sum
    25  as may be certified to the chair and the department of audit and control
    26  as  a reasonable compensation for services rendered by the department of
    27  law and expenses incurred by such  department,  for  transfer  into  the
    28  training  and educational program on occupational safety and health fund
    29  created pursuant to chapter eight hundred  eighty-six  of  the  laws  of
    30  nineteen  hundred  eighty-five  and  section ninety-seven-c of the state
    31  finance law, for the New York state occupational health clinics network,
    32  for the department of labor occupational safety and health  program  and
    33  for  transfer into the uninsured employers' fund pursuant to subdivision
    34  two of section twenty-six-a of this chapter, and  all  other  direct  or
    35  indirect  costs,  incurred  by the board in connection with the adminis-
    36  tration of this chapter, except those expenses for which  an  assessment
    37  is authorized for self-insurance pursuant to subdivision five of section
    38  fifty  of  this  chapter.  Assessments  pursuant to subparagraph four of
    39  paragraph (h) of subdivision eight of section fifteen  of  this  chapter
    40  for  the  special  disability  fund, pursuant to section fifty-c of this
    41  chapter for the self insurer offset fund, pursuant to subdivision  three
    42  of  section  twenty-five-a  of  this  chapter  for the fund for reopened
    43  cases, and pursuant to section two hundred fourteen of this chapter  for
    44  the  special fund for disability benefits shall be included in the total
    45  amount of expenses for the purposes of this subdivision. Any overpayment
    46  of annual assessments resulting from the requirements of  this  subdivi-
    47  sion  shall  be  applied  as a credit against the future assessment rate
    48  provided the fund balance shall not be reduced below [ten] five  percent
    49  of the total amount assessed.
    50    §  2.  There is hereby created a fiduciary fund, known as the workers'
    51  compensation rate stabilization fund, which shall be established in  the
    52  joint  custody  of the comptroller and the chair of the workers' compen-
    53  sation board. Such stabilization fund shall serve as the repository  for
    54  the  funds  released  due  to the reduction in the maximum fund balance,

        S. 2009--C                         171                        A. 3009--C
 
     1  provided pursuant to subdivision  3  of  section  151  of  the  workers'
     2  compensation  law, from ten percent to five percent. Such funds shall be
     3  used by the chair of the workers' compensation board over the next  five
     4  years  to  ensure assessment rate stability. The board shall ensure that
     5  all funds in the stabilization fund are utilized no later than the  2022
     6  assessment rate year. By April 1, 2018 and by April first in each of the
     7  next  four years, the chair shall be required to report to the governor,
     8  the speaker of the assembly, the majority  leader  of  the  senate,  the
     9  senate  coalition  leader, the committee chairs of the assembly ways and
    10  means committee, the assembly labor committee, the senate labor  commit-
    11  tee,  and  the  committee  chair  and  vice  chair of the senate finance
    12  committee on the opening fund balance,  amount  used  to  subsidize  the
    13  current  rate  year,  remaining fund balance, and the impact the subsidy
    14  had on the overall assessment rate.
    15    § 3. This act shall take effect immediately; provided,  however,  that
    16  section  two  of  this act shall expire and be deemed repealed March 31,
    17  2024.
    18    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    19  sion, section or part of this act shall be adjudged by a court of compe-
    20  tent jurisdiction to be invalid, such judgment shall not affect, impair,
    21  or invalidate the remainder thereof, but shall be confined in its opera-
    22  tion to the clause, sentence, paragraph, subdivision,  section  or  part
    23  thereof  directly  involved  in  the  controversy in which such judgment
    24  shall have been rendered. It is hereby declared to be the intent of  the
    25  legislature  that  this act would have been enacted even if such invalid
    26  provisions had not been included herein.
    27    § 3. This act shall take effect immediately  provided,  however,  that
    28  the  applicable effective date of Subparts A through J of this act shall
    29  be as specifically set forth in the last section of such Subparts.
 
    30                                  PART OOO
 
    31    Section 1. Subsection (d) of section 615 of the tax law is amended  by
    32  adding a new paragraph 5 to read as follows:
    33    (5)  the full amount of union dues paid during the taxable year if the
    34  taxpayer was not allowed federal miscellaneous  itemized  deductions  by
    35  operation  of  section 67 of the internal revenue code. If any amount of
    36  union dues representing federal miscellaneous  itemized  deductions  was
    37  allowed,  then  the  amount allowed as a New York itemized deduction for
    38  union dues paid shall be a percentage of the union  dues  disallowed  by
    39  the  operation  of  section  67 of the internal revenue code computed as
    40  follows. The amount allowed as a New York itemized  deduction  shall  be
    41  computed by multiplying the total union dues paid by the taxpayer during
    42  the  taxable  year by a percentage determined by subtracting from one, a
    43  fraction where the numerator is  the  amount  of  federal  miscellaneous
    44  deductions  allowed and the denominator is the aggregate federal miscel-
    45  laneous itemized deductions before application of the two-percent  floor
    46  under  section 67 of the internal revenue code. For the purposes of this
    47  paragraph, union dues are those amounts that  are  deductible  as  union
    48  dues  and  agency  shop  fees  under section 162 of the internal revenue
    49  code.
    50    § 2. This act shall take effect immediately and shall apply to taxable
    51  years beginning on or after January 1, 2018.
 
    52                                  PART PPP

        S. 2009--C                         172                        A. 3009--C
 
     1    Section 1. The executive law is amended by adding a new article 4-B to
     2  read as follows:
     3                                 ARTICLE 4-B
     4       OFFICE OF THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION
     5  Section 56. Jurisdiction.
     6          57. Establishment and organization.
     7          58. Functions and duties.
     8    §  56. Jurisdiction. 1. This article shall, subject to the limitations
     9  contained herein, confer upon the office of the inspector general of New
    10  York for transportation investigative and prosecutorial power over crim-
    11  inal and unethical conduct involving individuals  serving  at  a  senior
    12  level  in operations, financing or management of a transportation entity
    13  located in a city of a population of one  million  or  more  where  such
    14  action  or  actions  occurred  within  the  state; and investigative and
    15  prosecutorial power of criminal and unethical conduct involving  manage-
    16  rial  appointees  or  managerial  employees of any transportation entity
    17  where such action or actions occurred within the state.
    18    2. For the purposes of this article: (a) "transportation entity" shall
    19  mean any public entity located within a city  of  one  million  or  more
    20  involved  in  the transportation of persons, goods or other items within
    21  or to and from the state of New  York  where  at  least  one  individual
    22  involved  at  a  senior  level in operations, financing or management of
    23  such entity is appointed by the governor;
    24    (b) "individuals involved at a senior level in  operations,  financing
    25  or management" shall mean individuals that exert full or partial control
    26  over  formal  actions  taken  by a transportation entity or on behalf of
    27  such entity, or exert independent judgment in the fulfillment  of  their
    28  duties  and obligations, but shall not include individuals whose actions
    29  are of a routine or clerical nature; and
    30    (c) "managerial appointee" or "managerial  employee"  shall  mean  any
    31  individual  who (i) participates directly or as part of a team in formu-
    32  lating policy; (ii) may reasonably be required to assist directly in the
    33  preparation for and conduct  of  negotiations  concerning  major  fiscal
    34  matters,  procurements or expenditures in excess of one hundred thousand
    35  dollars provided that such role is not of a routine or  clerical  nature
    36  and  requires the exercise of independent judgment; or (iii) has a major
    37  role in the administration  of  personnel  agreements  or  in  personnel
    38  administration,  provided that such role is not of a routine or clerical
    39  nature and requires the exercise of independent judgment.
    40    3. Nothing contained in this section shall  replace  or  diminish  the
    41  jurisdiction  of  the  attorney general or any district attorney, or the
    42  inspector general of any transportation entity.
    43    4. The inspector general shall be authorized to:
    44    (a) receive, investigate and prosecute complaints regarding any  indi-
    45  viduals  involved  at a senior level in operations, financing or manage-
    46  ment or managerial appointee or managerial employee of  any  transporta-
    47  tion  entity  concerning corruption, conflicts of interest, fraud, waste
    48  and abuse, recusals or failure to recuse, or criminal  activity  in  any
    49  case  where such conduct, action or failure occurred before or after the
    50  effective date of the chapter of the laws of two thousand seventeen that
    51  added this article and where such conduct, action or failure occurred in
    52  New York;
    53    (b) represent the state in any administrative hearing  or  administra-
    54  tive  proceeding involving any criminal or unethical conduct of individ-
    55  uals involved at a senior level in operations, financing  or  management

        S. 2009--C                         173                        A. 3009--C
 
     1  or  a  managerial  appointee  or managerial employee of a transportation
     2  entity where such conduct occurred in New York; and
     3    (c)  represent  the  state  in civil actions involving any criminal or
     4  unethical conduct of individuals involved at a  senior  level  in  oper-
     5  ations,  financing or management or a managerial appointee or managerial
     6  employee of a transportation entity where such conduct occurred  in  New
     7  York.
     8    §  57.  Establishment and organization. 1. There shall be an office of
     9  the inspector general of New York for transportation  in  the  executive
    10  department. The head of the office shall be the inspector general of New
    11  York for transportation.
    12    2.  The inspector general shall be appointed by the governor and shall
    13  hold office until the end of the term of the governor by whom he or  she
    14  is appointed and until his or her successor is appointed.
    15    3.  The  inspector  general  may appoint a deputy inspector general to
    16  serve at his or her pleasure, who shall be  responsible  for  conducting
    17  investigations  and prosecuting violations of law. The inspector general
    18  shall identify a process for a coordinated approach with prosecutors  to
    19  avoid   duplication  and  provide  for  a  timely  response  to  alleged
    20  violations.
    21    4. The salary of the inspector general shall  be  established  by  the
    22  governor within the limit of funds available therefore.
    23    §  58.  Functions  and  duties.  The inspector general of New York for
    24  transportation shall have the following duties and responsibilities:
    25    1. receive, investigate, and prosecute complaints from any source,  or
    26  upon  his  or  her own initiative, concerning allegations of corruption,
    27  conflicts of interest, fraud, waste and abuse, recusals  or  failure  to
    28  recuse,  or  criminal  activity  regarding  any  transportation  entity,
    29  conduct or activity or failure to act by any individuals involved  at  a
    30  senior  level  in  operations,  financing  or  management  or managerial
    31  appointee or managerial employee of a  transportation  entity  occurring
    32  before  or  after  the  effective date of the chapter of the laws of two
    33  thousand seventeen that added this article, in violation of New York law
    34  and occurring in New York;
    35    2. inform the  transportation  entity  of  such  allegations  and  the
    36  progress of investigations related thereto, unless special circumstances
    37  require confidentiality, provided that the inspector general shall main-
    38  tain  a  written  record  that  specifies  the reason confidentiality is
    39  necessary under this paragraph;
    40    3. issue a subpoena or subpoenas requiring  a  person  or  persons  to
    41  appear  before the grand jury, trial court, produce documents, provide a
    42  sworn statement under oath and be examined in reference  to  any  matter
    43  within  the  jurisdiction  of  the  inspector general. A subpoena issued
    44  under this section shall be governed  by  article  twenty-three  of  the
    45  civil  practice  law  and  rules  or  articles one hundred ninety or six
    46  hundred ten of the criminal procedure law. The inspector general or  his
    47  or her deputy or any person designated in writing by them may administer
    48  an  oath  to  a witness in any such investigation or prosecution and may
    49  seek to confer immunity for  compelled  testimony  pursuant  to  article
    50  fifty of the criminal procedure law;
    51    4.  determine  with  respect  to  such allegations whether to initiate
    52  civil or criminal prosecution, or make a referral for  further  investi-
    53  gation  by  an  appropriate  federal, state or local agency or any other
    54  office of inspector general as is  warranted,  and  to  assist  in  such
    55  investigations; and

        S. 2009--C                         174                        A. 3009--C
 
     1    5.  prepare and release to the public written reports of such investi-
     2  gations, as appropriate and to the extent permitted by law,  subject  to
     3  redaction  to  protect  the confidentiality of witnesses. The release of
     4  all or portions of such reports may be deferred to protect the confiden-
     5  tiality  of  ongoing investigations, provided that the inspector general
     6  shall maintain a written record that specifies the reason confidentiali-
     7  ty is necessary under this subdivision.
     8    § 2. Subdivision 32 of section 1.20 of the criminal procedure law,  as
     9  amended  by  section  4 of part A of chapter 501 of the laws of 2012, is
    10  amended to read as follows:
    11    32. "District  attorney"  means  a  district  attorney,  an  assistant
    12  district  attorney  or a special district attorney, and, where appropri-
    13  ate, the attorney general,  an  assistant  attorney  general,  a  deputy
    14  attorney  general,  a  special  deputy  attorney general, or the special
    15  prosecutor and inspector general  for  the  protection  of  people  with
    16  special  needs  or  his  or her assistants when acting pursuant to their
    17  duties in matters arising under article twenty of the executive law,  or
    18  the inspector general of New York for transportation or his or her depu-
    19  ties when acting pursuant to article four-B of the executive law.
    20    §  3. Severability. The provisions of this act shall be severable, and
    21  if the application of  any  clause,  sentence,  paragraph,  subdivision,
    22  section  or  part  of  this  act  to any person or circumstance shall be
    23  adjudged by any court of competent  jurisdiction  to  be  invalid,  such
    24  judgment shall not necessarily affect, impair or invalidate the applica-
    25  tion  of  any such clause, sentence, paragraph, subdivision, section, or
    26  part of this act or remainder thereof, as the case may be, to any  other
    27  person  or  circumstance,  but shall be confined in its operation to the
    28  clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
    29  directly  involved  in the controversy in which such judgment shall have
    30  been rendered.
    31    § 4. This act shall take effect immediately; provided,  however,  that
    32  sections  one and two of this act shall take effect on the thirtieth day
    33  after it shall have become a law.

    34                                  PART QQQ
 
    35    Section 1. All expenditures and disbursements made against the  appro-
    36  priations  contained in the chapter of the laws of 2017 making appropri-
    37  ations for the support of government as proposed  in  legislative  bills
    38  numbers S.5492 and A.7068 shall, upon final action by the legislature on
    39  appropriation bills submitted by the governor pursuant to article VII of
    40  the  state  constitution  for  the  support  of government for the state
    41  fiscal year beginning April 1, 2017, as contained in  legislative  bills
    42  numbers   S.2000-D/A.3000-D,   S.2001/A.3001,   S.2003-D/A.3003-D,   and
    43  S.2004-D/A.3004-D, be transferred by the comptroller as expenditures and
    44  disbursements to such appropriations for all  state  departments,  agen-
    45  cies, the legislature and the judiciary, as applicable, in amounts equal
    46  to  the  amounts  charged against those appropriations in the chapter of
    47  the laws of 2017 making appropriations for the support of government  as
    48  proposed  in  legislative  bills numbers S.5492 and A.7068 for each such
    49  department, agency, the legislature and the judiciary.
    50    § 2. A chapter of the laws  of  2017  making  appropriations  for  the
    51  support  of  government, as proposed in legislative bills numbers S.5492
    52  and A.7068, is REPEALED upon the passage of  legislative  bills  numbers
    53  S.2000-D and A.3000-D.

        S. 2009--C                         175                        A. 3009--C
 
     1    §  3.  This  act  shall take effect immediately and shall be deemed to
     2  have been in full force and effect on and after April 1, 2017.
 
     3                                  PART RRR
 
     4    Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the
     5  laws  of 2015 constituting the infrastructure investment act, is amended
     6  to read as follows:
     7    (a) (i) "authorized state entity" shall mean the New York state  thru-
     8  way  authority,  the  department of transportation, the office of parks,
     9  recreation and historic preservation, the  department  of  environmental
    10  conservation and the New York state bridge authority.
    11    (ii)  Notwithstanding the provisions of subdivision 26 of section 1678
    12  of the public authorities law, section 8 of the  public  buildings  law,
    13  sections  8  and  9  of  section 1 of chapter 359 of the laws of 1968 as
    14  amended, section 103 of the general municipal law, and the provisions of
    15  any other law to the contrary, the term "authorized state entity"  shall
    16  also refer to only those agencies or authorities identified below solely
    17  in connection with the following authorized projects, provided that such
    18  an  authorized  state entity may utilize the alternative delivery method
    19  referred to as design-build contracts  solely  in  connection  with  the
    20  following authorized projects should the total cost of each such project
    21  not be less than five million dollars ($5,000,000):
 
    22      Authorized Projects                     Authorized State Entity
 
    23  1.  Frontier Town                        Urban Development Corporation
 
    24  2.  Life Sciences Laboratory             Dormitory Authority & Urban
    25                                           Development Corporation

    26  3.  Whiteface Transformative Projects    New York State Olympic Regional
    27                                           Development Authority
 
    28  4.  Gore Transformative Projects         New York State Olympic Regional
    29                                           Development Authority
    30  5.  Belleayre Transformative Projects    New York State Olympic Regional
    31                                           Development Authority
    32  6.  Mt. Van Hoevenberg Transformative    New York State Olympic Regional
    33      Projects                             Development Authority
 
    34  7.  State Fair Revitalization Projects   Office of General Services

    35  8.  State Police Forensic Laboratory     Office of General Services
 
    36    Notwithstanding  any  provision  of law to the contrary, all rights or
    37  benefits, including terms and conditions of employment,  and  protection
    38  of  civil  service  and  collective  bargaining  status  of all existing
    39  employees of authorized state entities solely  in  connection  with  the
    40  authorized  projects  listed  above,  shall  be preserved and protected.
    41  Nothing in this section shall result in the:  (1)  displacement  of  any
    42  currently  employed  worker  or  loss  of  position  (including  partial
    43  displacement such as a reduction in  the  hours  of  non-overtime  work,
    44  wages,  or  employment benefits) or result in the impairment of existing
    45  collective bargaining agreements; and (2) transfer  of  existing  duties
    46  and  functions related to maintenance and operations currently performed

        S. 2009--C                         176                        A. 3009--C
 
     1  by existing employees of authorized  state  entities  to  a  contracting
     2  entity.  Nothing  contained  herein shall be construed to affect (A) the
     3  existing rights of employees pursuant to an existing collective bargain-
     4  ing agreement, and (B) the existing representational relationships among
     5  employee  organizations  or  the  bargaining  relationships  between the
     6  employer and an employee organization.
     7    If otherwise applicable, authorized projects undertaken by the author-
     8  ized  state  entities  listed  above  solely  in  connection  with   the
     9  provisions  of  this  act  shall  be subject to section 135 of the state
    10  finance law, section 101 of the general municipal law, and  section  222
    11  of the labor law; provided, however, that an authorized state entity may
    12  fulfill  its  obligations  under section 135 of the state finance law or
    13  section 101 of the general municipal law by requiring the contractor  to
    14  prepare  separate  specifications  in accordance with section 135 of the
    15  state finance law or section 101 of the general municipal  law,  as  the
    16  case may be.
    17    § 2. Intentionally omitted.
    18    §  3. Section 3 of part F of chapter 60 of the laws of 2015 constitut-
    19  ing the infrastructure investment act, is amended to read as follows:
    20    § 3. Notwithstanding the provisions of section 38 of the highway  law,
    21  section  136-a  of  the  state  finance  law,  section 359 of the public
    22  authorities law, section 7210 of the education law, and  the  provisions
    23  of  any  other  law to the contrary, and in conformity with the require-
    24  ments of this act, an authorized state entity may utilize  the  alterna-
    25  tive delivery method referred to as design-build contracts, in consulta-
    26  tion  with relevant local labor organizations and construction industry,
    27  for capital projects related to  the  state's  physical  infrastructure,
    28  including,  but  not  limited  to,  the state's highways, bridges, dams,
    29  flood control projects, canals, and parks, including,  but  not  limited
    30  to,  to  repair damage caused by natural disaster, to correct health and
    31  safety defects, to comply with federal and state  laws,  standards,  and
    32  regulations,  to  extend the useful life of or replace the state's high-
    33  ways, bridges, dams, flood control projects, canals,  and  parks  or  to
    34  improve  or  add  to  the state's highways, bridges, dams, flood control
    35  projects, canals, and parks; provided that for the contracts executed by
    36  the department of transportation, the office of  parks,  recreation  and
    37  historic  preservation, or the department of environmental conservation,
    38  the total cost of each such project shall not be  less  than  [one]  ten
    39  million [two hundred thousand] dollars [($1,200,000)] ($10,000,000).
    40    §  4. Section 4 of part F of chapter 60 of the laws of 2015 constitut-
    41  ing the infrastructure investment act, is amended to read as follows:
    42    § 4. An entity selected by an authorized state entity to enter into  a
    43  design-build  contract  shall  be selected through a two-step method, as
    44  follows:
    45    (a) Step one. Generation of a list of entities that have  demonstrated
    46  the  general capability to perform the design-build contract.  Such list
    47  shall consist of a specified number of entities,  as  determined  by  an
    48  authorized  state  entity, and shall be generated based upon the author-
    49  ized state entity's review of responses to a publicly advertised request
    50  for qualifications. The authorized state entity's request for qualifica-
    51  tions shall include a general description of the  project,  the  maximum
    52  number  of  entities  to  be  included  on the list, [and] the selection
    53  criteria to be used and the relative weight of each criteria in generat-
    54  ing the list. Such selection criteria shall include  the  qualifications
    55  and experience of the design and construction team, organization, demon-
    56  strated responsibility, ability of the team or of a member or members of

        S. 2009--C                         177                        A. 3009--C
 
     1  the   team   to  comply  with  applicable  requirements,  including  the
     2  provisions of articles 145, 147 and  148  of  the  education  law,  past
     3  record  of  compliance with the labor law, and such other qualifications
     4  the  authorized state entity deems appropriate which may include but are
     5  not limited to project understanding, financial capability and record of
     6  past performance. The authorized state entity shall  evaluate  and  rate
     7  all  entities  responding to the request for qualifications.  Based upon
     8  such ratings, the authorized state entity shall list the  entities  that
     9  shall receive a request for proposals in accordance with subdivision (b)
    10  of  this section.  To the extent consistent with applicable federal law,
    11  the authorized state entity shall consider, when awarding  any  contract
    12  pursuant  to  this  section,  the  participation of: (i) firms certified
    13  pursuant to article 15-A of the executive law as minority or women-owned
    14  businesses and the ability of other businesses  under  consideration  to
    15  work  with  minority  and  women-owned  businesses  so as to promote and
    16  assist  participation  by  such  businesses;  and  (ii)  small  business
    17  concerns  identified pursuant to subdivision (b) of section 139-g of the
    18  state finance law.
    19    (b) Step two. Selection of the proposal which is the best value to the
    20  [state] authorized state entity.   The  authorized  state  entity  shall
    21  issue  a request for proposals to the entities listed pursuant to subdi-
    22  vision (a) of this section.  If such an entity consists  of  a  team  of
    23  separate  entities,  the  entities that comprise such a team must remain
    24  unchanged from the entity as listed pursuant to subdivision (a) of  this
    25  section  unless  otherwise  approved by the authorized state entity. The
    26  request for proposals shall set forth the project's scope of  work,  and
    27  other  requirements,  as determined by the authorized state entity.  The
    28  request for proposals shall specify the criteria to be used to  evaluate
    29  the  responses  and  the  relative  weight of each such criteria.   Such
    30  criteria  shall  include  the  proposal's  cost,  the  quality  of   the
    31  proposal's  solution,  the  qualifications and experience of the design-
    32  build entity, and other factors deemed pertinent by the authorized state
    33  entity, which may include, but shall not be limited to,  the  proposal's
    34  project  implementation,  ability  to  complete the work in a timely and
    35  satisfactory manner, maintenance costs of the completed project, mainte-
    36  nance of traffic approach, and community impact.  Any  contract  awarded
    37  pursuant  to  this  act shall be awarded to a responsive and responsible
    38  entity that submits the proposal, which, in consideration of  these  and
    39  other  specified  criteria  deemed  pertinent to the project, offers the
    40  best value to the [state] authorized state entity, as determined by  the
    41  authorized  state  entity.    The  request for proposals shall include a
    42  statement that entities shall designate in writing those portions of the
    43  proposal that contain trade secrets  or  other  proprietary  information
    44  that  are to remain confidential; that the material designated as confi-
    45  dential shall be readily separable from the entity's  proposal.  Nothing
    46  herein shall be construed to prohibit the authorized entity from negoti-
    47  ating  final contract terms and conditions including cost. All proposals
    48  submitted shall be scored  according  to  the  criteria  listed  in  the
    49  request  for  proposals  and such final scores shall be published on the
    50  authorized state entity's website.
    51    § 5. Intentionally omitted.
    52    § 6. Intentionally omitted.
    53    § 7. Intentionally omitted.
    54    § 8. Intentionally omitted.
    55    § 9. Intentionally omitted.
    56    § 10. Intentionally omitted.

        S. 2009--C                         178                        A. 3009--C
 
     1    § 11. Section 13 of part F of chapter 60 of the laws of  2015  consti-
     2  tuting the infrastructure investment act, is amended to read as follows:
     3    §  13. Alternative construction awarding processes.  (a) Notwithstand-
     4  ing the provisions of any other law  to  the  contrary,  the  authorized
     5  state entity may award a construction contract:
     6    1. To the contractor offering the best value; or
     7    2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
     8  of contract in which the authorized state entity shall  be  entitled  to
     9  monitor  and  audit  all project costs. In establishing the schedule and
    10  process for determining a guaranteed maximum price, the contract between
    11  the authorized state entity and the contractor shall:
    12    (i) describe the scope of the work and the  cost  of  performing  such
    13  work;
    14    (ii) include a detailed line item cost breakdown;
    15    (iii)  include a list of all drawings, specifications and other infor-
    16  mation on which the guaranteed maximum price is based;
    17    (iv) include the dates for substantial and final completion  on  which
    18  the guaranteed maximum price is based; and
    19    (v) include a schedule of unit prices; or
    20    3.  Utilizing  a  lump  sum contract in which the contractor agrees to
    21  accept a set dollar amount for a contract which comprises a  single  bid
    22  without  providing a cost breakdown for all costs such as for equipment,
    23  labor, materials, as well as such contractor's profit for completing all
    24  items of work comprising the project.
    25    (b) Capital projects undertaken by  an  authorized  state  entity  may
    26  include  an  incentive  clause  in  the contract for various performance
    27  objectives, but the incentive clause shall not include an incentive that
    28  exceeds the quantifiable value of the benefit received  by  the  [state]
    29  authorized  state  entity.  The  authorized state entity shall establish
    30  such performance and payment bonds as it deems necessary.
    31    § 12. Intentionally omitted.
    32    § 13. Intentionally omitted.
    33    § 14. Section 17 of part F of chapter 60 of the laws of  2015  consti-
    34  tuting the infrastructure investment act, is amended to read as follows:
    35    §  17.  This act shall take effect immediately and shall expire and be
    36  deemed repealed [2] 4 years after such  date,  provided  that,  projects
    37  with  requests  for  qualifications issued prior to such repeal shall be
    38  permitted to continue under this act notwithstanding such repeal.
    39    § 15. This act shall take effect immediately; provided,  however  that
    40  the amendments to the infrastructure investment act made by sections one
    41  through thirteen of this act shall not affect the repeal of such act and
    42  shall be deemed repealed therewith.
 
    43                                  PART SSS
 
    44    Section  1. Subdivision 28 of section 501 of the retirement and social
    45  security law, as added by chapter 298 of the laws of 2016, is amended to
    46  read as follows:
    47    28. "New York city enhanced plan member" shall mean  (a)  a  New  York
    48  city  police/fire  revised  plan  member  who  becomes  subject  to  the
    49  provisions of this article on or  after  June  fifteenth,  two  thousand
    50  sixteen and who is a member of the New York city fire department pension
    51  fund, (b) a police/fire member who is a member of the New York city fire
    52  department pension fund and who makes an election, which shall be irrev-
    53  ocable and shall be duly executed and filed with the administrative head
    54  of  such  pension  fund  no later than one hundred twenty days after the

        S. 2009--C                         179                        A. 3009--C
 
     1  effective date of this subdivision, to be subject to the  provisions  of
     2  this  article related to New York city enhanced plan members, [or] (c) a
     3  New York city police/fire revised plan member who became subject to  the
     4  provisions  of this article before June fifteenth, two thousand sixteen,
     5  who is a member of the New York city fire department pension  fund,  and
     6  who  makes  an  election,  which  shall be irrevocable and shall be duly
     7  executed and filed with the administrative head of such pension fund  no
     8  later  than  one  hundred  twenty  days after the effective date of this
     9  subdivision, to be subject to the provisions of this article related  to
    10  New  York  city  enhanced  plan members, (d) a New York city police/fire
    11  revised plan member who becomes subject to the provisions of this  arti-
    12  cle  on or after April first, two thousand seventeen and who is a member
    13  of the New York city police pension fund, (e) a police/fire  member  who
    14  is  a  member  of the New York city police pension fund and who makes an
    15  election, which shall be irrevocable and  shall  be  duly  executed  and
    16  filed  with  the  administrative head of such pension fund no later than
    17  one hundred twenty days after the effective date of the chapter  of  the
    18  laws  of  two  thousand  seventeen which amended this subdivision, to be
    19  subject to the provisions of this  article  related  to  New  York  city
    20  enhanced  plan  members, or (f) a New York city police/fire revised plan
    21  member who became subject to the provisions of this article before April
    22  first, two thousand seventeen, who is a member  of  the  New  York  city
    23  police  pension  fund,  and who makes an election, which shall be irrev-
    24  ocable and shall be duly executed and filed with the administrative head
    25  of such pension fund no later than one hundred  twenty  days  after  the
    26  effective  date  of  the  chapter  of the laws of two thousand seventeen
    27  which amended this subdivision, to be subject to the provisions of  this
    28  article related to New York city enhanced plan members.
    29    § 2. Subdivision h of section 517 of the retirement and social securi-
    30  ty  law, as added by chapter 298 of the laws of 2016, is amended to read
    31  as follows:
    32    h. Notwithstanding any inconsistent provision of subdivision a of this
    33  section, New York city enhanced plan members who are members of the  New
    34  York  city  fire department pension fund shall, as of the effective date
    35  of this subdivision pursuant to chapter two hundred ninety-eight of  the
    36  laws  of  two thousand sixteen, contribute three percent of annual wages
    37  to the pension fund in which they have membership,  plus  an  additional
    38  percentage  of  annual  wages as set forth in the chapter of the laws of
    39  two thousand sixteen which added this subdivision.
    40    § 3. Section 517 of the retirement and social security law is  amended
    41  by adding a new subdivision i to read as follows:
    42    i. Notwithstanding any inconsistent provision of subdivision a of this
    43  section,  New York city enhanced plan members who are members of the New
    44  York city police pension fund shall, as of the effective  date  of  this
    45  subdivision,  contribute  three  percent  of annual wages to the pension
    46  fund in which they have membership, plus  an  additional  percentage  of
    47  annual  wages  as  set  forth in the chapter of the laws of two thousand
    48  seventeen which added this subdivision.
    49    § 4. New York city enhanced plan members, as defined in section 501 of
    50  the retirement and social security law as amended by section one of this
    51  act, shall contribute, pursuant to subdivision i of section 517  of  the
    52  retirement  and  social  security  law as added by section three of this
    53  act, an additional one percent of annual wages to the  pension  fund  in
    54  which they have membership. Every three years from the effective date of
    55  this  act,  the  actuary of such pension fund shall prepare an analysis,
    56  using current actuarial methods and assumptions in effect as of the date

        S. 2009--C                         180                        A. 3009--C
 
     1  of such analysis, assessing the total cost  of  providing  the  benefits
     2  established  by  this  act  expressed  as  an employee contribution of a
     3  percentage of annual wages of New York City enhanced plan members  which
     4  would  require no additional employer contribution. On the basis of such
     5  analysis, the additional percentage of annual wages provided for  herein
     6  shall  be  adjusted to equal one percent of annual wages plus any amount
     7  by which the employee contribution calculated in such  analysis  exceeds
     8  2.2  percent  of annual wages, provided, however, that in no event shall
     9  the additional percentage of annual wages exceed 3 percent.
    10    § 5. Section 81 of chapter 18 of the laws of 2012 shall not  apply  to
    11  this act.
    12    § 6. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          PROVISIONS  OF  PROPOSED  LEGISLATION:  The proposed legislation would
        amend provisions of the Retirement and Social  Security  Law  (RSSL)  to
        permit  existing  New  York City Police Pension Fund (POLICE) Tier 3 and
        Revised Tier 3 POLICE Members to elect  to  join  the  RSSL  Article  14
        Enhanced  Plan,  and  require participation for those POLICE Members who
        become subject to Article 14 on or after April  1,  2017.  The  Enhanced
        Plan  provides  changes  to  Accidental  Disability Retirement (ADR) and
        Ordinary Disability Retirement (ODR) benefits, and  includes  a  formula
        for  adjusting  increased  contribution rates within defined parameters.
        The proposed legislation would also allow  eligible  POLICE  Members  to
        utilize applicable statutory presumptions for purposes of ADR.
          The  Effective  Date  of the proposed legislation would be the date of
        enactment.
          For purposes of this Fiscal Note, all POLICE members subject to  Arti-
        cle  14 of the RSSL will be referred to as "Tier 3 POLICE Members." Tier
        3 POLICE Members who have a date of membership prior to  April  1,  2012
        will  be  referred to as "Original Tier 3 POLICE Members." Tier 3 POLICE
        Members who have a date of membership on or after April 1, 2012 will  be
        referred to as "Revised Tier 3 POLICE Members."
          Tier  3  POLICE  Members  who are Members prior to April 1, 2017 would
        have the option of remaining under  the  current  benefit  structure  or
        irrevocably  electing,  within  120  days  of  the effective date of the
        proposed  legislation,  to  be  covered  under  the  benefit   structure
        contained  in the proposed legislation. Tier 3 POLICE Members who become
        Members on and after April 1, 2017  would  be  subject  to  the  benefit
        structure  contained  in the proposed legislation. Tier 3 POLICE Members
        who elect the benefits of this proposed legislation, and Tier  3  POLICE
        Members  who  are subject to mandatory participation, are referred to as
        "POLICE Enhanced Plan Members."
          POLICE Enhanced Plan Members would, in addition to paying the  current
        contribution rate of 3% of annual wages, be required to contribute addi-
        tional contributions initially at 1% of annual wages and, in the future,
        ranging  from 1% to 3% of annual wage depending on specified future cost
        calculations of providing POLICE Enhanced Plan benefits.
          CURRENT ODR BENEFITS PAYABLE: The current  ODR  benefits  for  Tier  3
        POLICE Members are equal to the greater of:
          * 33 1/3% of Final Average Salary (FAS), or
          *  2% of FAS multiplied by years of credited service (not in excess of
        22 years),
          Reduced by:
          * 50% of the Primary Social Security Disability  benefits  (determined
        under RSSL Section 511), and
          * 100% of Workers' Compensation benefits (if any).

        S. 2009--C                         181                        A. 3009--C

          FAS  is a Three-Year Average (FAS3) for Original Tier 3 POLICE Members
        and a Five-Year Average (FAS5) for Revised Tier 3 POLICE Members.
          It  is  the  understanding  of the Actuary that POLICE Members are not
        covered by Workers' Compensation.
          IMPACT ON ODR BENEFITS PAYABLE: Under the  proposed  legislation,  the
        ODR  benefits  for  POLICE  Enhanced Plan Members would be revised to be
        equal to the greater of:
          * 33 1/3% of FAS5, or
          * 2% of FAS5 multiplied by years of credited service (not in excess of
        22 years).
          Reduced by:
          * 100% of Workers' Compensation benefits (if any).
          It is the understanding of the Actuary that  POLICE  Members  are  not
        covered by Workers' Compensation.
          Eligibility  for  ODR  benefits for Enhanced Plan Members would remain
        the same.
          In addition, the proposed legislation would not apply  the  Escalation
        available  under  RSSL  Section  510 to ODR benefits for POLICE Enhanced
        Plan Members. However, such ODR benefits would  still  be  eligible  for
        Cost-of-Living Adjustments (COLA) under Chapter 125 of the Laws of 2000.
          CURRENT  ADR  BENEFITS  PAYABLE:  The  current ADR benefits for Tier 3
        POLICE Members is equal to:
          * 50% multiplied by FAS,
          Reduced by:
          * 50% of Primary Social Security disability benefit or Primary  Social
        Security benefits, whichever begins first (determined under RSSL Section
        511), and
          * 100% of Workers' Compensation benefits (if any).
          FAS  is  a  FAS3  for  Original  Tier  3 POLICE Members and a FAS5 for
        Revised Tier 3 POLICE Members.
          It is the understanding of the Actuary that  POLICE  Members  are  not
        covered by Workers' Compensation.
          IMPACT  ON  ADR  BENEFITS PAYABLE: Under the proposed legislation, the
        eligibility requirements for  ADR  benefits  for  POLICE  Enhanced  Plan
        Members  would  be  the  same as current Tier 3 POLICE Members. However,
        these Members would also become eligible to utilize applicable statutory
        presumptions (e.g., certain heart conditions) for purposes of ADR.
          Under the proposed legislation, the ADR  benefits  for  Enhanced  Plan
        Members would be revised to equal a retirement allowance of:
          * 75% multiplied by FAS5,
          Reduced by:
          * 100% of Workers' Compensation benefits (if any).
          It  is  the  understanding  of the Actuary that POLICE Members are not
        covered by Workers' Compensation.
          In addition, the proposed legislation would not apply  the  Escalation
        available  under  RSSL  Section  510  to  ADR benefits for Enhanced Plan
        Members. However, such ADR benefits would still  be  eligible  for  COLA
        under Chapter 125 of the Laws of 2000.
          FINANCIAL  IMPACT  -  CHANGES  IN PROJECTED ACTUARIAL PRESENT VALUE OF
        FUTURE EMPLOYER CONTRIBUTIONS AND PROJECTED EMPLOYER CONTRIBUTIONS:  For
        purposes  of  this  Fiscal  Note,  it is assumed that the changes in the
        Actuarial Present Value (APV) of benefits (APVB), APV of member contrib-
        utions, the Unfunded Actuarial  Accrued  Liability  (UAAL)  and  APV  of
        future  employer  contributions would be reflected for the first time in
        the June 30, 2016 actuarial valuation of POLICE. Under the One-Year  Lag
        Methodology  (OYLM),  the  first  year  in which changes in benefits for

        S. 2009--C                         182                        A. 3009--C
 
        Enhanced Plan Members could  impact  employer  contributions  to  POLICE
        would be Fiscal Year 2018.
          The estimated increases in employer contributions shown in Table 1 are
        based upon the following projection assumptions:
          *  Level workforce (i.e., new employees are hired to replace those who
        leave active status).
          * Salary increases consistent with those used  in  projections  to  be
        presented to the New York City Office of Management and Budget in April,
        2017 (Preliminary Projections).
          *  New  entrant salaries consistent with those used in the Preliminary
        Projections.
          OTHER COSTS: Not measured in this Fiscal Note are the following:
          * The initial, additional administrative costs of POLICE to  implement
        the proposed legislation.
          *  The  impact  of  this  proposed legislation on Other Postemployment
        Benefit (OPEB) costs.
          CENSUS DATA: The  starting  census  data  used  for  the  calculations
        presented  herein  is  the  census data used in the Preliminary June 30,
        2016 (Lag) actuarial valuation of POLICE to  determine  the  Preliminary
        Fiscal Year 2018 employer contributions.
          The 3,211 Original Tier 3 POLICE members who have a date of membership
        prior to April 1, 2012 had an average age of approximately 31.3, average
        service of approximately 5.2 years and an average salary of approximate-
        ly  $87,300 as of June 30, 2016. The 7,998 Revised Tier 3 POLICE Members
        who have a date of membership on or after April 1, 2012 had  an  average
        age  of  approximately  28.4, average service of approximately 1.8 years
        and an average salary of approximately $58,400 as of June 30, 2016.
          ACTUARIAL ASSUMPTIONS AND METHODS: The  additional  employer  contrib-
        utions  presented  herein  have  been  calculated based on the actuarial
        assumptions and methods in effect for  the  Preliminary  June  30,  2016
        (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
        2018 employer contributions of POLICE.
          In determining the change in employer contributions, the probabilities
        of  accidental  disability  used  for  Tier 3 POLICE members equal those
        currently used for Tier 2 POLICE members who are not eligible for  World
        Trade Center benefits.
          It  has been further assumed that all Tier 3 POLICE members who became
        members  prior  to  April  1,  2017  will  choose  the  new   disability
        provisions.
          The  actuarial valuation methodology does not include a calculation of
        the value of an offset for Workers' Compensation  benefits  for  Tier  3
        POLICE  members  as  it  is  the understanding of the Actuary that these
        members are not covered by such benefits.
          Employer contributions under current methodology have  been  estimated
        assuming  the  additional  APVB  would be financed through future normal
        contributions including an amortization of the new UAAL attributable  to
        this  proposed  legislation over a 15-year period (14 payments under the
        OYLM Methodology).
          New entrants were projected to replace the members expected  to  leave
        the active population to maintain a steady-state population.
          For  purposes  of  estimating  the  financial  impact  of  the changes
        described above, an assumed Escalation rate of 2.5% was used for current
        Tier 3 Police Member benefits, which is consistent with  the  underlying
        Consumer  Price  Inflation (CPI) assumption of 2.5% per year. Consistent
        with Chapter 125 of the Laws of 2000, a  COLA  rate  of  1.5%  per  year
        (i.e., 50% of CPI adjusted to recognize a 1.0% minimum and 3.0% maximum)

        S. 2009--C                         183                        A. 3009--C
 
        on  the  first  $18,000  of  benefit was assumed for purposes of valuing
        proposed Enhanced Plan benefits.
          In  accordance  with ACNY Section 13.638.2(k-2), new UAAL attributable
        to benefit changes are to be amortized as determined by the Actuary  but
        generally  over  the remaining working lifetime of those impacted by the
        benefit changes. As of June 30, 2016, the remaining working lifetime  of
        the  Tier  3  POLICE members is approximately 18 years. Recognizing that
        this period will decrease over  time  as  the  group  of  Enhanced  Plan
        Members  matures,  the  Actuary  would likely choose to amortize the new
        UAAL attributable to this proposed legislation over a 15-year to 20-year
        period (between 14 and 19 payments  under  the  OYLM  Methodology).  For
        purposes  of  this  Fiscal Note, the Actuary has elected to amortize the
        change in UAAL over a 15-year period (14 payments).
          Table 1 presents an estimate of the increases in  the  APV  of  future
        employer  contributions  and  in  employer  contributions  to POLICE for
        Fiscal Years 2018 through 2022  due  to  the  changes  in  ODR  and  ARD
        provisions  for  Enhanced Plan Members based on the applicable actuarial
        assumptions and methods noted herein:
 
                                         Table 1
 
                          Estimated Financial Impact on POLICE
                            If certain Revisions are Made to
              Provisions for ODR and ADR Benefits for Tier 3 POLICE Members
 
                                      ($ Millions)
 
                                 Increase in APV of            Increase
             Fiscal Year         Future Employer               In Employer
                                 Contributions                 Contributions
                2018                  $69.4                       $13.1
                2019                   74.2                        14.1
                2020                   77.7                        15.1
                2021                   79.7                        15.9
                2022                   80.7                        16.3
 
          Table 2 presents the total number of active employees of  POLICE  used
        in  the  projections,  assuming  a  level work force, and the cumulative
        number (i.e., net of withdrawals) of Tier 3 Members as of each  June  30
        from 2016 thorough 2020.
 
                                         Table 2
 
                   Surviving Actives from Census Data on June 30, 2016
                                           and
                       Cumulative Tier 3 POLICE Members from 2016
                                Used in the Projections*
 
                  June 30        Tier 1 & 2          Tier 3         Total
                    2016           24,752            11,209         35,961
                    2017           22,798            13,163         35,961
                    2018           20,785            15,176         35,961
                    2019           18,976            16,985         35,961
                    2020           17,532            18,429         35,961

        S. 2009--C                         184                        A. 3009--C
 
          * Total active members included in the projections assume a level work
        force based on the June 30, 2016 (Lag) actuarial valuation census data.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City Pension Funds and Retire-
        ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
        Conference of Consulting Actuaries and a Member of the American  Academy
        of Actuaries. I meet the Qualifications Standards of the American Acade-
        my of Actuaries to render the actuarial opinion contained herein.
          FISCAL  NOTE  IDENTIFICATION:  This Fiscal Note 2017-04 dated April 3,
        2017 was prepared by the Chief Actuary for  the  New  York  City  POLICE
        Pension  Fund.  This  estimate  is intended for use only during the 2017
        Legislative Session.
 
     1                                  PART TTT
 
     2    Section 1. The section heading of section 421-a of the  real  property
     3  tax  law, as amended by chapter 857 of the laws of 1975 and such section
     4  as renumbered by chapter 110 of the laws of 1977, is amended to read  as
     5  follows:
     6    [Exemption  of new multiple dwellings from local taxation.] Affordable
     7  New York Housing Program.
     8    § 2. Subparagraphs (i) and (iii) of paragraph (a) of subdivision 10 of
     9  section 421-a of the real property tax law, as amended by chapter 15  of
    10  the laws of 2008, are amended to read as follows:
    11    (i)  all  rent  stabilization registrations required to be filed on or
    12  after January first, two thousand  eight  shall  contain  a  designation
    13  which  identifies  all  units that are subject to the provisions of this
    14  section as "[421-a] Affordable  New  York  Housing  Program  units"  and
    15  specifically  identifies  affordable  units  created  pursuant  to  this
    16  section and units which are required to be occupied by persons or  fami-
    17  lies  who  meet  specified income limits pursuant to the provisions of a
    18  local law enacted pursuant to this section as  "[421-a]  Affordable  New
    19  York  Housing Program affordable units" and shall contain an explanation
    20  of the requirements that apply to all such units. The owner  of  a  unit
    21  that  is subject to the provisions of this section shall, in addition to
    22  complying with the requirements of section 26-517 of the rent stabiliza-
    23  tion law, file a copy of the rent registration for each such  unit  with
    24  the local housing agency;
    25    (iii) the local housing agency shall create a report which, at a mini-
    26  mum,  contains  the  following  information  for  every  building  which
    27  receives benefits pursuant to this section:  address,  commencement  and
    28  termination  date  of  the  benefits, total number of residential units,
    29  number of "[421-a] Affordable New York Housing Program units" and number
    30  of "[421-a] Affordable  New  York  Housing  Program  affordable  units",
    31  apartment  number  or  other  designation of such units and the rent for
    32  each of such units. The local housing agency with the cooperation of the
    33  division of housing and community renewal  shall  maintain,  and  update
    34  such  report no less than annually, with information secured from annual
    35  registrations. Such reports shall be available for public inspection  in
    36  a  form  that  assigns  a unique designation to each unit other than its
    37  actual apartment number to maintain the privacy of such information; and
    38    § 3. Subdivision 16 of section 421-a of the real property tax law,  as
    39  added  by  section  63-c of part A of chapter 20 of the laws of 2015, is
    40  amended to read as follows:
    41    16. (a) Definitions. For the purposes of this subdivision:

        S. 2009--C                         185                        A. 3009--C
 
     1    (i) "[421-a] Affordable New York Housing Program benefits" shall  mean
     2  exemption from real property taxation pursuant to this subdivision.
     3    (ii)  "Affordability  option  A"  shall mean that, within any eligible
     4  site:  (A) not less than ten percent of the dwelling units are  afforda-
     5  ble  housing  forty  percent  units; (B) not less than an additional ten
     6  percent of the dwelling  units  are  affordable  housing  sixty  percent
     7  units;  (C)  not  less  than  an additional five percent of the dwelling
     8  units are affordable housing one hundred thirty percent units;  and  (D)
     9  such  eligible  site  is developed without the substantial assistance of
    10  grants, loans or subsidies provided by a federal, state or local govern-
    11  mental agency or instrumentality pursuant to a program for the  develop-
    12  ment  of  affordable housing, except that such eligible site may receive
    13  tax exempt bond proceeds and four percent tax credits.
    14    (iii) "Affordability option B" shall mean that,  within  any  eligible
    15  site, (A) not less than ten percent of the dwelling units are affordable
    16  housing seventy percent units, and (B) not less than an additional twen-
    17  ty  percent  of  the  dwelling  units are affordable housing one hundred
    18  thirty percent units.
    19    (iv) "Affordability option C" shall mean  that,  within  any  eligible
    20  site  excluding  the geographic area south of ninety-sixth street in the
    21  borough of Manhattan, and all other geographic areas in the city of  New
    22  York excluded pursuant to local law, (A) not less than thirty percent of
    23  the  dwelling  units  are  affordable housing one hundred thirty percent
    24  units, and (B) such eligible site is developed without  the  substantial
    25  assistance of grants, loans or subsidies provided by a federal, state or
    26  local  governmental  agency or instrumentality pursuant to a program for
    27  the development of affordable housing.
    28    (v) "Affordability option D"  shall  only  apply  to  a  homeownership
    29  project, of which one hundred percent of the units shall have an average
    30  assessed  value not to exceed sixty-five thousand dollars upon the first
    31  assessment following the completion date and where  each  owner  of  any
    32  such unit shall agree, in writing, to maintain such unit as their prima-
    33  ry  residence  for  no less than five years from the acquisition of such
    34  unit.
    35    (vi) "Affordability option E" shall mean  that,  within  any  eligible
    36  site  within  the enhanced affordability area, such site must consist of
    37  no less than three hundred rental dwelling units of which (A)  not  less
    38  than  ten  percent  of  the rental dwelling units are affordable housing
    39  forty percent units; (B) not less than an additional ten percent of  the
    40  rental  dwelling  units  are affordable housing sixty percent units; (C)
    41  not less than an additional five percent of the  rental  dwelling  units
    42  are  affordable  housing  one hundred twenty percent units; and (D) such
    43  eligible site is developed without the substantial assistance of grants,
    44  loans or subsidies provided by a federal, state  or  local  governmental
    45  agency  or  instrumentality pursuant to a program for the development of
    46  affordable housing, except that  such  eligible  site  may  receive  tax
    47  exempt bond proceeds and four percent tax credits.
    48    (vii)  "Affordability  option  F" shall mean that, within any eligible
    49  site within the enhanced affordability area, such site must  consist  of
    50  no  less  than three hundred rental dwelling units of which (A) not less
    51  than ten percent of the rental dwelling  units  are  affordable  housing
    52  seventy  percent  units;  and  (B)  not  less  than an additional twenty
    53  percent of the rental dwelling units are affordable housing one  hundred
    54  thirty percent units.
    55    (viii)  "Affordability  option G" shall mean that, within any eligible
    56  site located within the Brooklyn  enhanced  affordability  area  or  the

        S. 2009--C                         186                        A. 3009--C

     1  Queens  enhanced  affordability  area, such site must consist of no less
     2  than three hundred rental dwelling units of  which  (A)  not  less  than
     3  thirty  percent of the rental dwelling units are affordable housing one-
     4  hundred  thirty  percent  units; and (B) such eligible site is developed
     5  without  the  substantial  assistance  of  grants,  loans  or  subsidies
     6  provided  by a federal, state or local governmental agency or instrumen-
     7  tality pursuant to a program for the development of affordable housing.
     8    [(vi)] (ix) "Affordability percentage"  shall  mean  a  fraction,  the
     9  numerator  of  which  is  the  number  of affordable housing units in an
    10  eligible site and the denominator of which is the total number of dwell-
    11  ing units in such eligible site.
    12    [(vii)] (x) "Affordable housing  forty  percent  unit"  shall  mean  a
    13  dwelling  unit  that: (A) is situated within the eligible site for which
    14  [421-a] Affordable New York Housing Program benefits  are  granted;  and
    15  (B)  upon  initial  rental  and  upon each subsequent rental following a
    16  vacancy during the restriction period or extended restriction period, as
    17  applicable, is affordable to and restricted to occupancy by  individuals
    18  or  families whose household income does not exceed forty percent of the
    19  area median income, adjusted for family size,  at  the  time  that  such
    20  household initially occupies such dwelling unit.
    21    [(viii)]  (xi)  "Affordable  housing  sixty percent unit" shall mean a
    22  dwelling unit that: (A) is situated within the eligible site  for  which
    23  [421-a]  Affordable  New  York Housing Program benefits are granted; and
    24  (B) upon initial rental and upon  each  subsequent  rental  following  a
    25  vacancy during the restriction period or extended restriction period, as
    26  applicable,  is affordable to and restricted to occupancy by individuals
    27  or families whose household income does not exceed sixty percent of  the
    28  area  median  income,  adjusted  for  family size, at the time that such
    29  household initially occupies such dwelling unit.
    30    [(ix)] (xii) "Affordable housing seventy percent unit"  shall  mean  a
    31  dwelling  unit  that: (A) is situated within the eligible site for which
    32  [421-a] Affordable New York Housing Program benefits  are  granted;  and
    33  (B)  upon  initial  rental  and  upon each subsequent rental following a
    34  vacancy during the restriction period or extended restriction period, as
    35  applicable, is affordable to and restricted to occupancy by  individuals
    36  or  families  whose  household income does not exceed seventy percent of
    37  the area median income, adjusted for family size, at the time that  such
    38  household initially occupies such dwelling unit.
    39    (xiii) "Affordable housing one hundred twenty percent unit" shall mean
    40  a dwelling unit that: (A) is situated within the eligible site for which
    41  Affordable  New  York Housing Program benefits are granted; and (B) upon
    42  initial rental and upon  each  subsequent  rental  following  a  vacancy
    43  during  the extended restriction period, is affordable to and restricted
    44  to occupancy by individuals or families whose household income does  not
    45  exceed  one  hundred  twenty percent of the area median income, adjusted
    46  for family size, at the time that such household initially occupies such
    47  dwelling unit.
    48    [(x)] (xiv) "Affordable housing one hundred thirty percent unit" shall
    49  mean a dwelling unit that: (A) is situated within the eligible site  for
    50  which  [421-a] Affordable New York Housing Program benefits are granted;
    51  and (B) upon initial rental and upon each subsequent rental following  a
    52  vacancy during the restriction period or extended restriction period, as
    53  applicable,  is affordable to and restricted to occupancy by individuals
    54  or families whose household income does not exceed  one  hundred  thirty
    55  percent of the area median income, adjusted for family size, at the time
    56  that such household initially occupies such dwelling unit.

        S. 2009--C                         187                        A. 3009--C
 
     1    [(xi)]  (xv)  "Affordable  housing  unit" shall mean, collectively and
     2  individually, affordable housing forty percent units, affordable housing
     3  sixty percent units, affordable housing seventy percent units,  afforda-
     4  ble  housing one hundred twenty percent units and affordable housing one
     5  hundred thirty percent units.
     6    [(xii)]  (xvi) "Agency" shall mean the department of housing preserva-
     7  tion and development.
     8    [(xiii)] (xvii) "Application" shall mean an  application  for  [421-a]
     9  Affordable New York Housing Program benefits.
    10    [(xiv)]  (xviii)  "Average hourly wage" shall mean the amount equal to
    11  the aggregate amount of all wages and all employee benefits paid to,  or
    12  on  behalf of, construction workers for construction work divided by the
    13  aggregate number of hours of construction work.
    14    (xix) "Brooklyn enhanced affordability area" shall mean any  tax  lots
    15  now  existing  or  hereafter  created  which are located entirely within
    16  community boards one or two of  the  borough  of  Brooklyn  bounded  and
    17  described as follows: All that piece or parcel of land situate and being
    18  in the boroughs of Queens and Brooklyn, New York. Beginning at the point
    19  of  intersection  of  the  centerline  of Newtown Creek and the westerly
    20  bounds of the East River; Thence southeasterly along the  centerline  of
    21  Newtown  Creek,  said  centerline also being the boundary between Queens
    22  County to the northeast and Kings County to the southwest, to the  point
    23  of  intersection  with  Greenpoint  Avenue;  Thence  southwesterly along
    24  Greenpoint Avenue, to the intersection with Kings  Land  Avenue;  Thence
    25  southerly along Kingsland Avenue to the intersection with Meeker Avenue;
    26  Thence  southwesterly  along  Meeker  Avenue  to  the  intersection with
    27  Leonard Street; Thence southerly along  Leonard  Street  to  the  inter-
    28  section  with  Metropolitan  Avenue;  Thence westerly along Metropolitan
    29  Avenue to the intersection with Lorimer Street; Thence  southerly  along
    30  Lorimer Street to the intersection with Montrose Avenue; Thence westerly
    31  along  Montrose  Avenue  to  the  intersection with Union Avenue; Thence
    32  southerly along Union Avenue to the intersection  with  Johnson  Avenue;
    33  Thence  westerly along Johnson Avenue to the intersection with Broadway;
    34  Thence northwesterly along Broadway to the  intersection  with  Rutledge
    35  Street;  Thence  southwesterly along Rutledge Street to the intersection
    36  with Kent Avenue and Classon Avenue; Thence southwesterly and  southerly
    37  along  Classon  Avenue  to  the  intersection with Dekalb Avenue; Thence
    38  westerly along Dekalb Avenue  to  the  intersection  with  Bond  Street;
    39  Thence  southwesterly along Bond Street to the intersection with Wyckoff
    40  Street; Thence northwesterly along Wyckoff Street  to  the  intersection
    41  with  Hoyt  Street; Thence southwesterly along Hoyt Street to the inter-
    42  section with Warren Street; Thence northwesterly along Warren Street  to
    43  the  intersection  with  Court  Street; Thence northeasterly along Court
    44  Street to the intersection with Atlantic  Avenue;  Thence  northwesterly
    45  along  Atlantic  Avenue,  crossing  under The Brooklyn Queens Expressway
    46  (aka Interstate 278), to the terminus of Atlantic Avenue at the Brooklyn
    47  Bridge Park/Pier 6; Thence northwesterly passing  through  the  Brooklyn
    48  Bridge  Park  to  the  bulkhead of the East River at Pier 6; Thence in a
    49  general northeasterly direction along the easterly bulkhead or shoreline
    50  of the East River to the intersection with  the  centerline  of  Newtown
    51  Creek, and the point or place of Beginning.
    52    (xx) "Building service employee" shall mean any person who is regular-
    53  ly employed at, and performs work in connection with the care or mainte-
    54  nance  of,  an eligible site, including, but not limited to, a watchman,
    55  guard, doorman, building cleaner, porter, handyman,  janitor,  gardener,
    56  groundskeeper,  elevator  operator  and starter, and window cleaner, but

        S. 2009--C                         188                        A. 3009--C
 
     1  not including persons regularly scheduled to work fewer than eight hours
     2  per week at the eligible site.
     3    [(xv)]  (xxi)  "Commencement  date"  shall  mean,  with respect to any
     4  eligible  multiple  dwelling,  the  date  upon  which   excavation   and
     5  construction of initial footings and foundations lawfully begins in good
     6  faith  or,  for  an  eligible conversion, the date upon which the actual
     7  construction of the conversion, alteration or improvement of the pre-ex-
     8  isting building or structure lawfully begins in good faith.
     9    [(xvi)] (xxii) "Completion date"  shall  mean,  with  respect  to  any
    10  eligible  multiple dwelling, the date upon which the local department of
    11  buildings issues the first temporary or permanent certificate  of  occu-
    12  pancy covering all residential areas of an eligible multiple dwelling.
    13    [(xvii)] (xxiii) "Construction period" shall mean, with respect to any
    14  eligible  multiple dwelling, a period: (A) beginning on the later of the
    15  commencement date of such eligible  multiple  dwelling  or  three  years
    16  before  the  completion date of such eligible multiple dwelling; and (B)
    17  ending on the day preceding the completion date of such eligible  multi-
    18  ple dwelling.
    19    (xxiv) "Construction work" shall mean the provision of labor performed
    20  on  an  eligible  site  between the commencement date and the completion
    21  date, whereby materials and constituent parts are combined to  initially
    22  form,  make  or  build  an eligible multiple dwelling, including without
    23  limitation, painting, or providing of material,  articles,  supplies  or
    24  equipment  in  the  eligible  multiple  dwelling, but excluding security
    25  personnel and work related to the fit-out of commercial spaces.
    26    (xxv)  "Construction  workers"  shall  mean  all  persons   performing
    27  construction work who (A) are paid on an hourly basis and (B) are not in
    28  a management or executive role or position.
    29    (xxvi)  "Contractor  certified  payroll report" shall mean an original
    30  payroll report submitted by a contractor or sub-contractor to the  inde-
    31  pendent  monitor  setting  forth to the best of the contractor's or sub-
    32  contractor's knowledge, the total number of hours of  construction  work
    33  performed  by  construction  workers,  the  amount of wages and employee
    34  benefits paid to construction workers for construction work.
    35    [(xviii)] (xxvii) "Eligible conversion"  shall  mean  the  conversion,
    36  alteration  or  improvement  of  a  pre-existing  building  or structure
    37  resulting in a multiple  dwelling  in  which  no  more  than  forty-nine
    38  percent  of  the  floor  area  consists of such pre-existing building or
    39  structure.
    40    [(xix)] (xxviii) "Eligible multiple dwelling" shall  mean  a  multiple
    41  dwelling  or homeownership project containing six or more dwelling units
    42  created through new construction or eligible conversion  for  which  the
    43  commencement  date  is after December thirty-first, two thousand fifteen
    44  and on or before June fifteenth, two thousand [nineteen] twenty-two, and
    45  for which the completion date is on or before June fifteenth, two  thou-
    46  sand [twenty-three] twenty-six.
    47    [(xx)]  (xxix)  "Eligible  site"  shall  mean  either:  (A)  a tax lot
    48  containing an eligible multiple dwelling; or (B) a zoning lot containing
    49  two or more eligible multiple dwellings that are part of a single appli-
    50  cation.
    51    (xxx) "Employee benefits" shall  mean  all  supplemental  compensation
    52  paid  by  the  employer,  on  behalf of construction workers, other than
    53  wages, including, without limitation, any premiums or contributions made
    54  into plans or funds that provide health, welfare, non-occupational disa-
    55  bility coverage, retirement, vacation benefits, holiday pay, life insur-
    56  ance and apprenticeship training. The value  of  any  employee  benefits

        S. 2009--C                         189                        A. 3009--C
 
     1  received  shall  be  determined based on the prorated hourly cost to the
     2  employer of the employee benefits received by construction workers.
     3    (xxxi) "Enhanced affordability area" shall mean the Manhattan enhanced
     4  affordability  area,  the  Brooklyn  enhanced affordability area and the
     5  Queens enhanced affordability area.
     6    (xxxii) "Enhanced thirty-five year benefit" shall mean:  (A)  for  the
     7  construction  period, a one hundred percent exemption from real property
     8  taxation, other than assessments for local improvements; and (B) for the
     9  next thirty-five years of the extended restriction period, a one hundred
    10  percent exemption from real property taxation,  other  than  assessments
    11  for local improvements.
    12    (xxxiii)  "Extended restriction period" shall mean a period commencing
    13  on the completion date and expiring on the fortieth anniversary  of  the
    14  completion  date,  notwithstanding any earlier termination or revocation
    15  of Affordable New York Housing Program benefits.
    16    [(xxi)] (xxxiv) "Fiscal officer" shall mean the comptroller  or  other
    17  analogous officer in a city having a population of one million or more.
    18    [(xxii)]  (xxxv)  "Floor  area" shall mean the horizontal areas of the
    19  several floors, or any portion thereof, of a dwelling or dwellings,  and
    20  accessory  structures on a lot measured from the exterior faces of exte-
    21  rior walls, or from the center line of party walls.
    22    [(xxiii)] (xxxvi) "Four percent tax credits" shall  mean  federal  low
    23  income  housing  tax  credits computed in accordance with clause (ii) of
    24  subparagraph (B) of paragraph (1) of subsection (b) of section forty-two
    25  of the internal revenue code of nineteen hundred eighty-six, as amended.
    26    [(xxiv)] (xxxvii) "Homeownership project" shall mean a multiple dwell-
    27  ing or portion thereof operated as condominium or  cooperative  housing,
    28  however,  it  shall  not  include a multiple dwelling or portion thereof
    29  operated as  cooperative  or  condominium  housing  located  within  the
    30  borough  of  Manhattan,  and  shall not include a multiple dwelling that
    31  contains more than thirty-five units.
    32    [(xxv)] (xxxviii)  "Independent  monitor"  shall  mean  an  accountant
    33  licensed and in good standing pursuant to article one hundred forty-nine
    34  of the education law.
    35    (xxxix)  "Job  action" shall mean any delay, interruption or interfer-
    36  ence with the construction work caused  by  the  actions  of  any  labor
    37  organization  or concerted action of any employees at the eligible site,
    38  including without limitation, strikes, sympathy strikes, work stoppages,
    39  walk  outs,  slowdowns,  picketing,  bannering,  hand  billing,   demon-
    40  strations, sickouts, refusals to cross a picket line, refusals to handle
    41  struck  business,  and  use  of  the rat or other inflatable balloons or
    42  similar displays.
    43    (xl) "Market unit" shall mean a dwelling unit in an eligible  multiple
    44  dwelling other than an affordable housing unit.
    45    [(xxvi)] (xli) "Multiple dwelling" shall have the meaning set forth in
    46  the multiple dwelling law.
    47    [(xxvii)]  (xlii)  "Non-residential tax lot" shall mean a tax lot that
    48  does not contain any dwelling units.
    49    [(xxviii)] (xliii) "Manhattan enhanced affordability area" shall  mean
    50  any tax lots now existing or hereafter created located entirely south of
    51  96th street in the borough of Manhattan.
    52    (xliv)  "Project  labor  agreement"  shall  mean a pre-hire collective
    53  bargaining agreement setting forth the terms and conditions  of  employ-
    54  ment for the construction workers on an eligible site.
    55    (xlv)  "Project-wide  certified payroll report" shall mean a certified
    56  payroll report submitted by the independent monitor to the fiscal  offi-

        S. 2009--C                         190                        A. 3009--C

     1  cer  based  on each contractor certified payroll report which sets forth
     2  the total number of hours of construction work performed by construction
     3  workers, the aggregate amount of wages and  employee  benefits  paid  to
     4  construction workers for construction work and the average hourly wage.
     5    (xlvi)  "Queens  enhanced  affordability area" shall mean any tax lots
     6  now existing or hereafter created  which  are  located  entirely  within
     7  community  boards  one  or  two  of  the  borough  of Queens bounded and
     8  described as follows: All that piece or parcel of land situate and being
     9  in the boroughs of Queens and Brooklyn, New York. Beginning at the point
    10  being the intersection of the easterly shore of the East  River  with  a
    11  line  of  prolongation  of  20th  Avenue projected northwesterly; Thence
    12  southeasterly on the line of prolongation of 20th Avenue and along  20th
    13  Avenue  to the intersection with 31st Street; Thence southwesterly along
    14  31st Street to the intersection with Northern Boulevard;  Thence  south-
    15  westerly along Northern Boulevard to the intersection with Queens Boule-
    16  vard  (aka Route 25); Thence southeasterly along Queens Boulevard to the
    17  intersection with Van Dam Street; Thence southerly along Van Dam  Street
    18  to  the  intersection with Borden Avenue; Thence southwesterly along Van
    19  Dam Street to the intersection with Greenpoint Avenue and Review Avenue;
    20  Thence southwesterly along Greenpoint Avenue  to  the  point  of  inter-
    21  section with the centerline of Newtown Creek, said centerline of Newtown
    22  Creek  also  being  the  boundary between Queens County to the north and
    23  Kings County to the south; Thence northwesterly along the centerline  of
    24  Newtown  Creek,  also being the boundary between Queens County and Kings
    25  County to its intersection with the easterly bounds of the  East  River;
    26  Thence  in a general northeasterly direction along the easterly bulkhead
    27  or shoreline of the East River to the point or place of Beginning.
    28    (xlvii)  "Rent  stabilization"  shall  mean,  collectively,  the  rent
    29  stabilization law of nineteen hundred sixty-nine, the rent stabilization
    30  code,  and the emergency tenant protection act of nineteen seventy-four,
    31  all as in effect as of the effective date of the chapter of the laws  of
    32  two thousand fifteen that added this subdivision or as amended thereaft-
    33  er,  together  with  any  successor  statutes  or regulations addressing
    34  substantially the same subject matter.
    35    [(xxix)] (xlviii) "Rental project" shall  mean  an  eligible  site  in
    36  which  all  dwelling  units  included in any application are operated as
    37  rental housing.
    38    [(xxx)] (xlix) "Residential  tax  lot"  shall  mean  a  tax  lot  that
    39  contains dwelling units.
    40    [(xxxi)]  (l)  "Restriction  period" shall mean a period commencing on
    41  the completion date and expiring on the thirty-fifth anniversary of  the
    42  completion  date,  notwithstanding any earlier termination or revocation
    43  of [421-a] Affordable New York Housing Program benefits.
    44    [(xxxii)] (li) "Tax exempt bond proceeds" shall mean the  proceeds  of
    45  an  exempt  facility bond, as defined in paragraph (7) of subsection (a)
    46  of section one hundred forty-two of the internal revenue code  of  nine-
    47  teen  hundred  eighty-six, as amended, the interest upon which is exempt
    48  from taxation under section one hundred three of  the  internal  revenue
    49  code of nineteen hundred eighty-six, as amended.
    50    (lii)  "Third  party  fund  administrator" shall be a person or entity
    51  that receives funds pursuant to paragraph (c) of  this  subdivision  and
    52  oversees  and  manages the disbursal of such funds to construction work-
    53  ers.  The third party fund administrator shall be  a  person  or  entity
    54  approved  by  the fiscal officer and recommended by one, or more, repre-
    55  sentative or representatives of the largest trade association  of  resi-
    56  dential  real estate developers, either for profit or not-for-profit, in

        S. 2009--C                         191                        A. 3009--C
 
     1  New York city and one, or more, representative or representatives of the
     2  largest trade labor association representing building  and  construction
     3  workers,  with membership in New York city.  The third party fund admin-
     4  istrator  shall be appointed for a term of three years, provided, howev-
     5  er, that the administrator in place at the end  of  a  three  year  term
     6  shall  continue  to serve beyond the end of the term until a replacement
     7  administrator is appointed. The fiscal officer  after  providing  notice
     8  and  after  meeting  with the third party fund administrator, may remove
     9  such administrator for cause upon a fiscal  officer  determination  that
    10  the  administrator  has  been  ineffective at overseeing or managing the
    11  disbursal of funds to the construction workers.  The  third  party  fund
    12  administrator  shall,  at  the  request  of  the  fiscal officer, submit
    13  reports to the fiscal officer.
    14    [(xxxiii)] (liii) "Thirty-five year benefit" shall mean: (A)  for  the
    15  construction  period, a one hundred percent exemption from real property
    16  taxation, other than assessments for local  improvements;  (B)  for  the
    17  first twenty-five years of the restriction period, a one hundred percent
    18  exemption  from real property taxation, other than assessments for local
    19  improvements; and (C) for the final ten years of the restriction period,
    20  an exemption from real property taxation,  other  than  assessments  for
    21  local improvements, equal to the affordability percentage.
    22    [(xxxiv)]  (liv)  "Twenty  year  benefit"  shall  mean:  (A)  for  the
    23  construction period, a one hundred percent exemption from real  property
    24  taxation,  other  than  assessments  for local improvements; (B) for the
    25  first fourteen years of the restriction period, a  one  hundred  percent
    26  exemption  from real property taxation, other than assessments for local
    27  improvements, provided, however, that no exemption shall  be  given  for
    28  any portion of a unit's assessed value that exceeds $65,000; and (C) for
    29  the  [final]  next  six  years  of the restriction period, a twenty-five
    30  percent exemption from real property taxation,  other  than  assessments
    31  for  local  improvements,  provided, however, that no exemption shall be
    32  given for any portion of a unit's assessed value that exceeds $65,000.
    33    (lv) "Wages" shall mean all compensation, remuneration or payments  of
    34  any  kind  paid  to,  or  on behalf of, construction workers, including,
    35  without  limitation,  any  hourly  compensation  paid  directly  to  the
    36  construction  worker,  together  with employee benefits, such as health,
    37  welfare,  non-occupational  disability  coverage,  retirement,  vacation
    38  benefits,  holiday  pay, life insurance and apprenticeship training, and
    39  payroll taxes, including, to the extent permissible by law, all  amounts
    40  paid for New York state unemployment insurance, New York state disabili-
    41  ty insurance, metropolitan commuter transportation mobility tax, federal
    42  unemployment  insurance  and  pursuant to the federal insurance contrib-
    43  utions act or any other payroll tax that is paid by the employer.
    44    (b) Benefit. In cities having a population of  one  million  or  more,
    45  notwithstanding  the provisions of any other subdivision of this section
    46  or of any general, special or local law to the  contrary,  new  eligible
    47  sites,  except  hotels, that comply with the provisions of this subdivi-
    48  sion shall be exempt from real property taxation, other than assessments
    49  for local improvements, in the amounts and for the periods specified  in
    50  this  paragraph.  A rental project that meets all of the requirements of
    51  this subdivision shall receive a thirty-five year benefit and a homeown-
    52  ership project that meets all of the requirements  of  this  subdivision
    53  shall  receive  a  twenty year benefit. A rental project that also meets
    54  all of the requirements of  paragraph  (c)  of  this  subdivision  shall
    55  receive an enhanced thirty-five year benefit.

        S. 2009--C                         192                        A. 3009--C
 
     1    (c)  In  addition to all other requirements set forth in this subdivi-
     2  sion, rental projects containing three hundred or more  rental  dwelling
     3  units  located  within the enhanced affordability area shall comply with
     4  the requirements set forth in this paragraph. For purposes of this para-
     5  graph, "contractor" shall mean any entity which by agreement with anoth-
     6  er  party  (including subcontractors) undertakes to perform construction
     7  work at an eligible site and "applicant" shall  mean  an  applicant  for
     8  Affordable New York Housing Program benefits and any successor thereto.
     9    (i)  Such rental project shall comply with either affordability option
    10  E, affordability option F or affordability option G.
    11    (ii) The minimum average hourly wage paid to construction  workers  on
    12  an  eligible site within the Manhattan enhanced affordability area shall
    13  be no less than sixty dollars per hour.  Three years from the  effective
    14  date  of  the  chapter  of the laws of two thousand seventeen that added
    15  this paragraph and every three years  thereafter,  the  minimum  average
    16  hourly  wage shall be increased by five percent; provided, however, that
    17  any building with a commencement date prior to the date of such increase
    18  shall be required to pay the minimum average hourly wage as required  on
    19  its commencement date.
    20    (iii)  The minimum average hourly wage paid to construction workers on
    21  an eligible site within the Brooklyn enhanced affordability area or  the
    22  Queens  enhanced  affordability  area  shall  be no less than forty-five
    23  dollars per hour.  Three years from the effective date of the chapter of
    24  the laws of two thousand seventeen that added this paragraph  and  every
    25  three  years  thereafter,  the  minimum  average  hourly  wage  shall be
    26  increased by five percent; provided, however, that any building  with  a
    27  commencement  date  prior to the date of such increase shall be required
    28  to pay the minimum average hourly wage as required on  its  commencement
    29  date.
    30    (iv)  The  requirements  of subparagraphs (ii) and (iii) of this para-
    31  graph shall not be applicable to:
    32    (A) an eligible multiple dwelling in which at least fifty  percent  of
    33  the  dwelling  units upon initial rental and upon each subsequent rental
    34  following a vacancy during the extended restriction period, are afforda-
    35  ble to and restricted to occupancy  by  individuals  or  families  whose
    36  household  income does not exceed one hundred twenty-five percent of the
    37  area median income, adjusted for family size,  at  the  time  that  such
    38  household initially occupies such dwelling unit;
    39    (B)  any  portion  of an eligible multiple dwelling which is owned and
    40  operated as a condominium or cooperative; or
    41    (C) at the option of the applicant, to an eligible site subject  to  a
    42  project labor agreement.
    43    (v)  The  applicant  shall  contract with an independent monitor. Such
    44  independent monitor shall submit to the fiscal officer within  one  year
    45  of  the  completion date a project-wide certified payroll report. In the
    46  event such project-wide certified payroll report is not submitted to the
    47  fiscal officer within the requisite time, the applicant shall be subject
    48  to a fine of one thousand dollars per  week,  or  any  portion  thereof;
    49  provided  that  the maximum fine shall be seventy-five thousand dollars.
    50  In the event that the average hourly wage is less than the minimum aver-
    51  age hourly wage set forth in subparagraph (ii) or (iii)  of  this  para-
    52  graph  as  applicable,  the  project-wide certified payroll report shall
    53  also set forth the aggregate amount of such deficiency.
    54    (vi) The contractor certified payroll report  shall  be  submitted  by
    55  each  contractor  and sub-contractor no later than ninety days after the
    56  completion of construction work by such contractor or sub-contractor. In

        S. 2009--C                         193                        A. 3009--C
 
     1  the event that a contractor or sub-contractor fails or refuses to submit
     2  the contractor certified payroll report within the  time  prescribed  in
     3  this subparagraph, the independent monitor shall notify the fiscal offi-
     4  cer  and  the fiscal officer shall be authorized to fine such contractor
     5  or sub-contractor in the amount of one thousand dollars per week, or any
     6  portion thereof, provided that the maximum fine  shall  be  seventy-five
     7  thousand dollars.
     8    (vii)  In  the  event  that  the project-wide certified payroll report
     9  shows that the average hourly wage as required by subparagraph  (ii)  or
    10  (iii) of this paragraph, as applicable, was not paid, (A) if the average
    11  hourly  wage  is  within  fifteen  percent  of  the  average hourly wage
    12  required by subparagraph (i) or (ii) of this paragraph,  as  applicable,
    13  then  no  later than one hundred twenty days from the date of submission
    14  of such project-wide certified payroll report, the applicant  shall  pay
    15  to  the  third party fund administrator an amount equal to the amount of
    16  the deficiency set forth in the project-wide certified  payroll  report.
    17  The  third party fund administrator shall distribute such payment to the
    18  construction workers who performed construction work  on  such  eligible
    19  site. Prior to making such repayment, the third party fund administrator
    20  shall  submit  to  the fiscal officer a plan subject to the fiscal offi-
    21  cer's approval setting forth the manner in which the  third  party  fund
    22  administrator  will  reach  the required average wage within one hundred
    23  fifty days of receiving the payment  from  the  applicant  and  how  any
    24  remaining funds will be disbursed in the event that the third party fund
    25  administrator  cannot  distribute  the funds to the construction workers
    26  within one year of receiving fiscal officer approval.  In the event that
    27  the applicant  fails  to  make  such  payment  within  the  time  period
    28  prescribed  in  this  subparagraph,  the applicant shall be subject to a
    29  fine of one thousand dollars per week provided  that  the  maximum  fine
    30  shall  be  seventy-five  thousand  dollars; or (B) if the average hourly
    31  wage is more than fifteen percent below the minimum average hourly  wage
    32  required  by  subparagraph (i) or (ii) of this paragraph, as applicable,
    33  then no later than one hundred twenty days from the date  of  submission
    34  of  such  project-wide certified payroll report, the applicant shall pay
    35  to the third party fund administrator an amount equal to the  amount  of
    36  the  deficiency  set forth in the project-wide payroll report. The third
    37  party  fund  administrator  shall  distribute  such   payment   to   the
    38  construction  workers  who  performed construction work on such eligible
    39  site. Prior to making such repayment, the third party fund administrator
    40  shall submit to the fiscal officer a plan subject to  the  fiscal  offi-
    41  cer's  approval  setting  forth the manner in which the third party fund
    42  administrator will reach the required average wage  within  one  hundred
    43  fifty  days  of  receiving  the  payment  from the applicant and how any
    44  remaining funds will be disbursed in the event that the third party fund
    45  administrator cannot distribute the funds to  the  construction  workers
    46  within  one year of receiving fiscal officer approval.  In addition, the
    47  fiscal officer shall impose a penalty on  the  applicant  in  an  amount
    48  equal  to twenty-five percent of the amount of the deficiency, provided,
    49  however, that the fiscal officer shall not impose such penalty where the
    50  eligible multiple dwelling has been the subject of a  job  action  which
    51  results  in  a work delay. In the event that the applicant fails to make
    52  such payment within the time period prescribed in this subparagraph, the
    53  applicant shall be subject to a fine of one thousand dollars  per  week,
    54  provided  that  the maximum fine shall be seventy-five thousand dollars.
    55  Notwithstanding any provision of this paragraph, the applicant shall not
    56  be liable in any respect whatsoever for any payments, fines or penalties

        S. 2009--C                         194                        A. 3009--C
 
     1  related to or resulting from contractor fraud, mistake, or negligence or
     2  for fraudulent or inaccurate contractor certified payroll reports or for
     3  fraudulent  or  inaccurate  project-wide  certified   payroll   reports,
     4  provided, however, that payment to the third party fund administrator in
     5  the  amount  set  forth  in the project-wide certified payroll report as
     6  described in this subparagraph shall still be made by the contractor  or
     7  sub-contractor  in the event of underpayment resulting from or caused by
     8  the contractor or sub-contractor, and that the applicant will be  liable
     9  for underpayment to the third party fund administrator unless the fiscal
    10  officer  determines,  in  its sole discretion, that the underpayment was
    11  the result of, or caused by, contractor  fraud,  mistake  or  negligence
    12  and/or for fraudulent or inaccurate contractor certified payroll reports
    13  and/or  project-wide  certified  payroll  reports.  The  applicant shall
    14  otherwise not be liable in any way whatsoever once the  payment  to  the
    15  third  party fund administrator has been made in the amount set forth in
    16  the project-wide certified payroll report. Other than the  underpayment,
    17  which  must be paid to the third party fund administrator, all fines and
    18  penalties set forth in this paragraph  imposed  by  the  fiscal  officer
    19  shall be paid to the agency and used by the agency to provide affordable
    20  housing.
    21    (viii)  Nothing  in  this  paragraph  shall  be  construed to confer a
    22  private right of action to enforce the  provisions  of  this  paragraph,
    23  provided, however, that this sentence shall not be construed as a waiver
    24  of  any existing rights of construction workers or their representatives
    25  related to wage and  benefit  collection,  wage  theft  or  other  labor
    26  protections  or rights and provided, further, that nothing in this para-
    27  graph relieves any  obligations  pursuant  to  a  collective  bargaining
    28  agreement.
    29    (ix)  A  rental  project  containing three hundred or more residential
    30  dwelling units not located within the enhanced  affordability  area  may
    31  elect  to comply with the requirements of this paragraph and be eligible
    32  to receive an enhanced thirty-five year benefit.  Such election shall be
    33  made in the application and shall not thereafter be changed. Such rental
    34  project shall comply with all of the requirements of this paragraph  and
    35  shall be deemed to be located within the Brooklyn enhanced affordability
    36  area  or the Queens enhanced affordability area for the purposes of this
    37  paragraph.
    38    (x) The fiscal officer shall have the sole authority to determine  and
    39  enforce  any  liability  for  underpayment owing to the third party fund
    40  administrator from the applicant and/or the contractor (as a  result  of
    41  contractor fraud, mistake or negligence and/or for fraudulent or inaccu-
    42  rate  contractor certified payroll reports and/or project-wide certified
    43  payroll reports), as set forth in subparagraph (vii) of this  paragraph.
    44  The  fiscal  officer  shall  expeditiously  conduct an investigation and
    45  hearing at the New York City office of administrative trials  and  hear-
    46  ings,  shall determine the issues raised thereon and shall make and file
    47  an order in his or her office stating such determination  and  forthwith
    48  serve  a copy of such order, either personally or by mail, together with
    49  notice of filing, upon the parties to  such  proceedings.    The  fiscal
    50  officer in such an investigation shall be deemed to be acting in a judi-
    51  cial  capacity  and shall have the rights to issue subpoenas, administer
    52  oaths and examine witnesses. The enforcement of a subpoena issued  under
    53  this  subparagraph  shall  be  regulated  by  the civil practice law and
    54  rules. The filing of such order shall have the full force and effect  of
    55  a  judgment  duly docketed in the office of the county clerk.  The order
    56  may be enforced by and in the name of the fiscal  officer  in  the  same

        S. 2009--C                         195                        A. 3009--C

     1  manner,  and  with like effect, as that prescribed by the civil practice
     2  law and rules for the enforcement of a money judgment.
     3    [(c)]  (d)  Tax  payments.  In  addition  to any other amounts payable
     4  pursuant to this subdivision, the owner of any eligible  site  receiving
     5  [421-a]  Affordable New York Housing Program benefits shall pay, in each
     6  tax year in which such [421-a] Affordable New York Housing Program bene-
     7  fits are in effect, real property taxes and assessments as follows:
     8    (i) with respect to each eligible  multiple  dwelling  constructed  on
     9  such  eligible  site,  real  property taxes on the assessed valuation of
    10  such land and any improvements thereon in effect  during  the  tax  year
    11  prior to the commencement date of such eligible multiple dwelling, with-
    12  out  regard to any exemption from or abatement of real property taxation
    13  in effect during such tax year,  which  real  property  taxes  shall  be
    14  calculated  using the tax rate in effect at the time such taxes are due;
    15  and
    16    (ii) all assessments for local improvements.
    17    [(d)] (e) Limitation on benefits for  non-residential  space.  If  the
    18  aggregate floor area of commercial, community facility and accessory use
    19  space  in an eligible site, other than parking which is located not more
    20  than twenty-three feet above the curb level, exceeds twelve  percent  of
    21  the  aggregate  floor area in such eligible site, any [421-a] Affordable
    22  New York Housing Program benefits shall be reduced by a percentage equal
    23  to such excess. If an eligible site contains multiple tax lots, the  tax
    24  arising  out  of  such  reduction in [421-a] Affordable New York Housing
    25  Program benefits shall first be apportioned pro rata among any non-resi-
    26  dential tax lots. After any such  non-residential  tax  lots  are  fully
    27  taxable,  the  remainder  of  the  tax  arising out of such reduction in
    28  [421-a] Affordable New York Housing Program benefits, if any,  shall  be
    29  apportioned pro rata among the remaining residential tax lots.
    30    [(e)]  (f)  Calculation  of benefit. Based on the certification of the
    31  agency certifying the applicant's eligibility for [421-a] Affordable New
    32  York Housing Program  benefits,  the  assessors  shall  certify  to  the
    33  collecting officer the amount of taxes to be exempted.
    34    [(f)] (g) Affordability requirements. During the restriction period, a
    35  rental project shall comply with either affordability option A, afforda-
    36  bility option B, or affordability option C or for purposes of a homeown-
    37  ership  project,  such project shall comply with affordability option D.
    38  Such election shall be made in the application and shall not  thereafter
    39  be  changed. The rental project shall also comply with all provisions of
    40  this paragraph during the restriction period and with subparagraph (iii)
    41  of this paragraph both during and after the restriction  period  to  the
    42  extent provided in such subparagraph.  A rental project containing three
    43  hundred  or  more rental dwelling units located in the enhanced afforda-
    44  bility area or a rental project containing three hundred or more  rental
    45  dwelling  units not located within the enhanced affordability area which
    46  elects to comply with the requirements of paragraph (c) of this subdivi-
    47  sion shall comply with  either  affordability  option  E,  affordability
    48  option  F, or affordability option G. Such election shall be made in the
    49  application and shall not thereafter be  changed.  Such  rental  project
    50  shall  also  comply  with  all  provisions  of this paragraph during the
    51  extended restriction period and with subparagraph (iii)  of  this  para-
    52  graph  both  during  and  after  the  extended restriction period to the
    53  extent provided in such paragraph.
    54    (i) [Affordable units] All rental dwelling units in an eligible multi-
    55  ple dwelling shall share the same common entrances and common  areas  as
    56  market  rate  units in such eligible multiple dwelling, and shall not be

        S. 2009--C                         196                        A. 3009--C
 
     1  isolated to a specific floor or area of [a building] an eligible  multi-
     2  ple  dwelling.    Common entrances shall mean any area regularly used by
     3  any resident of a rental dwelling unit in the eligible multiple dwelling
     4  for ingress and egress from [a] such eligible multiple dwelling; and
     5    (ii) Unless preempted by the requirements of a federal, state or local
     6  housing  program, either (A) the affordable housing units in an eligible
     7  site shall have a unit mix proportional to the market units, or  (B)  at
     8  least  fifty percent of the affordable housing units in an eligible site
     9  shall have two or more bedrooms and no more than twenty-five percent  of
    10  the affordable housing units shall have less than one bedroom.
    11    (iii)  Notwithstanding  any  provision  of  rent  stabilization to the
    12  contrary, all affordable housing units shall be fully  subject  to  rent
    13  stabilization  during  the  restriction  period  or extended restriction
    14  period, as applicable, provided that tenants  holding  a  lease  and  in
    15  occupancy  of  such  affordable  housing  units at the expiration of the
    16  restriction period or extended restriction period, as applicable,  shall
    17  have  the right to remain as rent stabilized tenants for the duration of
    18  their occupancy.
    19    (iv) All rent stabilization registrations required to be filed  pursu-
    20  ant  to subparagraph (iii) of this paragraph shall contain a designation
    21  that specifically identifies affordable housing units  created  pursuant
    22  to  this  subdivision  as  "[421-a]  Affordable New York Housing Program
    23  affordable housing units"  and  shall  contain  an  explanation  of  the
    24  requirements that apply to all such affordable housing units.
    25    (v)  Failure  to  comply  with  the  provisions of this paragraph that
    26  require the creation, maintenance,  rent  stabilization  compliance  and
    27  occupancy of affordable housing units or for purposes of a homeownership
    28  project  the  failure to comply with affordability option D shall result
    29  in revocation of any [421-a] Affordable New York Housing  Program  bene-
    30  fits for the period of such non-compliance.
    31    (vi)  Nothing  in this subdivision shall (A) prohibit the occupancy of
    32  an affordable housing unit by individuals or families  whose  income  at
    33  any  time is less than the maximum percentage of the area median income,
    34  adjusted for family size, specified for  such  affordable  housing  unit
    35  pursuant  to  this subdivision, or (B) prohibit the owner of an eligible
    36  site from requiring, upon initial rental or upon any rental following  a
    37  vacancy,  the  occupancy  of  any  affordable housing unit by such lower
    38  income individuals or families.
    39    (vii) Following issuance of a temporary certificate of  occupancy  and
    40  upon  each vacancy thereafter, an affordable housing unit shall promptly
    41  be offered for rental by individuals or families whose income  does  not
    42  exceed  the  maximum  percentage of the area median income, adjusted for
    43  family size, specified for such affordable housing unit pursuant to this
    44  subdivision and who intend to occupy such  affordable  housing  unit  as
    45  their  primary  residence.  An  affordable housing unit shall not be (A)
    46  rented to a corporation, partnership or other entity, or  (B)  held  off
    47  the  market  for a period longer than is reasonably necessary to perform
    48  repairs needed to make such affordable housing unit available for  occu-
    49  pancy.
    50    (viii)  An affordable housing unit shall not be rented on a temporary,
    51  transient or short-term basis. Every lease and renewal  thereof  for  an
    52  affordable  housing unit shall be for a term of one or two years, at the
    53  option of the tenant.
    54    (ix) An affordable housing unit shall not be converted to  cooperative
    55  or condominium ownership.

        S. 2009--C                         197                        A. 3009--C

     1    (x)  The  agency may establish by rule such requirements as the agency
     2  deems necessary or appropriate for (A) the marketing of affordable hous-
     3  ing units, both upon initial occupancy and upon any vacancy,  (B)  moni-
     4  toring  compliance  with  the  provisions  of this paragraph and (C) the
     5  marketing and monitoring of any homeownership project that is granted an
     6  exemption  pursuant  to this subdivision. Such requirements may include,
     7  but need not be limited to, retaining a monitor approved by  the  agency
     8  and paid for by the owner.
     9    (xi)  Notwithstanding any provision of this subdivision to the contra-
    10  ry, a market unit shall be subject to rent stabilization unless, in  the
    11  absence  of  [421-a]  Affordable  New York Housing Program benefits, the
    12  owner would be entitled to remove such market unit from rent  stabiliza-
    13  tion  upon  vacancy  by  reason  of the monthly rent exceeding any limit
    14  established thereunder.
    15    [(g)] (h) Building service employees. (i) For  the  purposes  of  this
    16  paragraph,  "applicant"  shall  mean an applicant for [421-a] Affordable
    17  New York Housing Program benefits, any successor to such  applicant,  or
    18  any  employer  of building service employees for such applicant, includ-
    19  ing, but not limited to, a property management company or contractor.
    20    (ii) All building service employees employed by the applicant  at  the
    21  eligible  site  shall  receive  the  applicable  prevailing wage for the
    22  entire restriction period or extended restriction period, as applicable.
    23    (iii)  The  fiscal  officer  shall  have  the  power  to  enforce  the
    24  provisions  of  this paragraph. In enforcing such provisions, the fiscal
    25  officer shall have the power:
    26    (A) to investigate or cause an investigation to be made  to  determine
    27  the  prevailing  wages  for  building  service employees; in making such
    28  investigation, the fiscal officer may utilize wage  and  fringe  benefit
    29  data  from  various  sources,  including,  but  not limited to, data and
    30  determinations of federal, state or other governmental agencies;
    31    (B) to institute and conduct inspections at the site of  the  work  or
    32  elsewhere;
    33    (C)  to  examine  the  books,  documents and records pertaining to the
    34  wages paid to, and the hours of  work  performed  by,  building  service
    35  employees;
    36    (D) to hold hearings and, in connection therewith, to issue subpoenas,
    37  administer  oaths  and  examine witnesses; the enforcement of a subpoena
    38  issued under this paragraph shall be regulated by the civil practice law
    39  and rules;
    40    (E) to make a classification by craft, trade or other generally recog-
    41  nized occupational category of the building  service  employees  and  to
    42  determine  whether  such work has been performed by the building service
    43  employees in such classification;
    44    (F) to require the applicant to file with the fiscal officer a  record
    45  of  the  wages  actually  paid by such applicant to the building service
    46  employees and of their hours of work;
    47    (G) to delegate any of the foregoing powers to his or  her  deputy  or
    48  other authorized representative; and
    49    (H)  to promulgate rules as he or she shall consider necessary for the
    50  proper execution of the duties, responsibilities  and  powers  conferred
    51  upon him or her by the provisions of this subparagraph.
    52    (iv)  If  the  fiscal  officer  finds that the applicant has failed to
    53  comply with the provisions of this paragraph, he or  she  shall  present
    54  evidence of such noncompliance to the agency.
    55    (v) Subparagraph (ii) of this paragraph shall not be applicable to:

        S. 2009--C                         198                        A. 3009--C
 
     1    (A) an eligible multiple dwelling containing less than thirty dwelling
     2  units; or
     3    (B)  an  eligible multiple dwelling in which all of the dwelling units
     4  are affordable housing units and not less than  fifty  percent  of  such
     5  affordable  housing  units, upon initial rental and upon each subsequent
     6  rental following a vacancy during the  restriction  period  or  extended
     7  restriction  period,  as applicable, are affordable to and restricted to
     8  occupancy by individuals or families whose  household  income  does  not
     9  exceed  one  hundred  twenty-five  percent  of  the  area median income,
    10  adjusted for family size, at the  time  that  such  household  initially
    11  occupies such dwelling unit.
    12    [(h)]  (i) Replacement ratio. If the land on which an eligible site is
    13  located contained any dwelling units three years prior to the  commence-
    14  ment  date  of  the  first eligible multiple dwelling thereon, then such
    15  eligible site shall contain at least one  affordable  housing  unit  for
    16  each  dwelling  unit that existed on such date and was thereafter demol-
    17  ished, removed or reconfigured.
    18    [(i)] (j) Concurrent exemptions or abatements.  An  eligible  multiple
    19  dwelling  receiving [421-a] Affordable New York Housing Program benefits
    20  shall not receive any exemption from or abatement of real property taxa-
    21  tion under any other law.
    22    [(j)] (k) Voluntary renunciation or termination.  Notwithstanding  the
    23  provisions  of  any  general,  special  or local law to the contrary, an
    24  owner shall not be entitled to voluntarily  renounce  or  terminate  any
    25  [421-a]  Affordable  New York Housing Program benefits unless the agency
    26  authorizes such renunciation  or  termination  in  connection  with  the
    27  commencement of a new tax exemption pursuant to either the private hous-
    28  ing finance law or section four hundred twenty-c of this title.
    29    [(k)]  (l)  Termination  or  revocation.  The  agency may terminate or
    30  revoke [421-a] Affordable New York Housing Program benefits for  noncom-
    31  pliance  with this subdivision, provided, however, that the agency shall
    32  not terminate or revoke Affordable New York Housing Program benefits for
    33  a failure to comply with paragraph (c) of this subdivision.  If  [421-a]
    34  Affordable  New  York Housing Program benefits are terminated or revoked
    35  for noncompliance with this subdivision, [all of the affordable  housing
    36  units  shall remain subject to rent stabilization or for a homeownership
    37  project such project shall continue to comply with affordability  option
    38  D of this subdivision and all other requirements of this subdivision for
    39  the  restriction  period and any additional period expressly provided in
    40  this subdivision, as if the 421-a benefits had not  been  terminated  or
    41  revoked] (i) all of the affordable housing units shall remain subject to
    42  rent  stabilization  and  all other requirements of this subdivision for
    43  the restriction period or extended restriction  period,  as  applicable,
    44  and  any additional period expressly provided in this subdivision, as if
    45  the Affordable New York Housing Program benefits had not been terminated
    46  or revoked; (ii) all of the  market  rate  housing  units  shall  remain
    47  subject  to rent stabilization and all other requirements of this subdi-
    48  vision for the restriction period or  extended  restriction  period,  as
    49  applicable,  and any additional period expressly provided in this subdi-
    50  vision, as if the Affordable New York Housing Program benefits  had  not
    51  been  terminated  or  revoked,  provided,  however, that the owner shall
    52  still be entitled to remove such market  unit  from  rent  stabilization
    53  upon  vacancy  by  reason of the monthly rent exceeding any limit estab-
    54  lished thereunder; (iii) or for a  homeownership  project  such  project
    55  shall continue to comply with affordability option D of this subdivision
    56  and all other requirements of this subdivision for the restriction peri-

        S. 2009--C                         199                        A. 3009--C
 
     1  od  and any additional period expressly provided in this subdivision, as
     2  if the Affordable New York Housing Program benefits had not been  termi-
     3  nated or revoked.
     4    [(l)] (m) Powers cumulative. The enforcement provisions of this subdi-
     5  vision  shall not be exclusive, and are in addition to any other rights,
     6  remedies, or enforcement powers set forth in any other law or  available
     7  at law or in equity.
     8    [(m)] (n) Multiple tax lots. If an eligible site contains multiple tax
     9  lots,  an  application  may  be submitted with respect to one or more of
    10  such tax lots.  The  agency  shall  determine  eligibility  for  [421-a]
    11  Affordable  New  York  Housing  Program benefits based upon the tax lots
    12  included in such application and benefits  for  each  multiple  dwelling
    13  shall be based upon the completion date of such multiple dwelling.
    14    [(n)] (o) Applications. (i) The application with respect to any eligi-
    15  ble  multiple dwelling shall be filed with the agency not later than one
    16  year after the completion date of such eligible multiple dwelling.
    17    (ii) Notwithstanding the provisions of any general, special  or  local
    18  law to the contrary, the agency may require by rule that applications be
    19  filed electronically.
    20    (iii) The agency may rely on certification by an architect or engineer
    21  submitted  by  an applicant in connection with the filing of an applica-
    22  tion. A false certification by  such  architect  or  engineer  shall  be
    23  deemed  to  be  professional  misconduct  pursuant to section sixty-five
    24  hundred nine of the education law. Any licensee  found  guilty  of  such
    25  misconduct under the procedures prescribed in section sixty-five hundred
    26  ten of the education law shall be subject to the penalties prescribed in
    27  section sixty-five hundred eleven of the education law, and shall there-
    28  after  be ineligible to submit a certification pursuant to this subdivi-
    29  sion.
    30    (iv) The agency shall  not  require  that  the  applicant  demonstrate
    31  compliance with the requirements of paragraph (c) of this subdivision as
    32  a condition to approval of the application.
    33    [(o)]  (p)  Filing  fee.  The agency may require a filing fee of three
    34  thousand dollars per dwelling unit in connection with  any  application.
    35  However,  the  agency  may  promulgate  rules  imposing a lesser fee for
    36  eligible sites containing eligible multiple dwellings  constructed  with
    37  the  substantial  assistance of grants, loans or subsidies provided by a
    38  federal, state or local governmental agency or instrumentality  pursuant
    39  to a program for the development of affordable housing.
    40    [(p)] (q) Rules.
    41    [The  agency]  Except  as  provided  in paragraphs (c) and (h) of this
    42  subdivision, the agency shall have the sole  authority  to  enforce  the
    43  provisions of this subdivision and may promulgate rules to carry out the
    44  provisions of this subdivision.
    45    [(q)  Authority of city to enact local law. Except as otherwise speci-
    46  fied in this subdivision, a city to which this subdivision is applicable
    47  may enact a local law to restrict, limit or  condition  the  eligibility
    48  for  or  the  scope  or amount of 421-a benefits in any manner, provided
    49  that such local law may not grant 421-a benefits beyond  those  provided
    50  in  this  subdivision and provided further that such local law shall not
    51  take effect sooner than one year after it is enacted. The provisions  of
    52  sections  11-245  and 11-245.1 of the administrative code of the city of
    53  New York or of any other local law of the city of  New  York  that  were
    54  enacted  on  or  before the effective date of the chapter of the laws of
    55  two thousand fifteen which added  this  paragraph  shall  not  restrict,

        S. 2009--C                         200                        A. 3009--C

     1  limit  or  condition the eligibility for or the scope or amount of 421-a
     2  benefits pursuant to this subdivision.]
     3    (r)  Election.  Notwithstanding  anything  in  this subdivision to the
     4  contrary, [if a memorandum  of  understanding  pursuant  to  subdivision
     5  sixteen-a  of  this  section  has  been  executed and noticed,] a rental
     6  project or homeownership project with a commencement date on  or  before
     7  December  thirty-first, two thousand fifteen that has not received bene-
     8  fits pursuant to this section prior to the effective date of the chapter
     9  of the laws of two thousand fifteen  that  added  this  subdivision  may
    10  elect to comply with this subdivision and receive [421-a] Affordable New
    11  York Housing Program benefits pursuant to this subdivision.
    12    § 4. Subdivision 16-a of section 421-a of the real property tax law is
    13  REPEALED.
    14    §  5.  On  or  before May 31, 2021 the commissioner of the division of
    15  housing and community renewal shall issue a report to the governor,  the
    16  temporary  president of the senate and the speaker of the assembly exam-
    17  ining the economic impact of the Affordable New York Housing Program  on
    18  the  development  of affordable dwelling units, jobs and social opportu-
    19  nities created by the Affordable New York Housing Program, the  cost  of
    20  the  Affordable New York Housing Program, the impact on communities with
    21  Affordable New York Housing Program developments, and other such factors
    22  as the commissioner of the division of  housing  and  community  renewal
    23  deems  appropriate.  The  division  of housing and community renewal may
    24  exercise all authority granted to it by this or any other  statute.  The
    25  division  of housing and community renewal may request and shall receive
    26  cooperation and assistance  from  all  departments,  divisions,  boards,
    27  bureaus,  commissions,  public  benefit  corporations or agencies of the
    28  state of New York, the city of New York or any other political  subdivi-
    29  sions  thereof,  or  any  entity  receiving benefits pursuant to section
    30  421-a of the real property tax law.
    31    § 6. Severability clause. If any clause, sentence, paragraph, subdivi-
    32  sion, section or part of this act shall be  adjudged  by  any  court  of
    33  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    34  impair, or invalidate the remainder thereof, but shall  be  confined  in
    35  its  operation  to the clause, sentence, paragraph, subdivision, section
    36  or part thereof directly involved in the controversy in which such judg-
    37  ment shall have been rendered. It is hereby declared to be the intent of
    38  the legislature that this act would  have  been  enacted  even  if  such
    39  invalid provisions had not been included herein.
    40    §  7.  This  act shall take effect immediately; and provided, however,
    41  that sections one, two, and three of this act shall be  deemed  to  have
    42  been in full force and effect on and after January 1, 2016.
 
    43                                  PART UUU
 
    44    Section  1.  The  economic  development law is amended by adding a new
    45  section 100-a to read as follows:
    46    § 100-a. Comprehensive economic development reporting. The  department
    47  shall  prepare  an  annual comprehensive economic development report, no
    48  later than December thirty-first of each year, listing economic develop-
    49  ment assistance provided by the New York state urban development  corpo-
    50  ration  and  the  department,  including but not limited to tax expendi-
    51  tures,  marketing  and  advertising,  grants,  awards  and  loans.  Such
    52  comprehensive  report  shall  include aggregate totals for each economic
    53  development program administered by the New York state urban development
    54  corporation and the department, including but  not  limited  to  program

        S. 2009--C                         201                        A. 3009--C
 
     1  progress,   program   participation  rates,  economic  impact,  regional
     2  distribution, industry trends, and any other information  deemed  neces-
     3  sary  by  the  commissioner.   The department shall prominently post the
     4  comprehensive  economic  development report on its website no later than
     5  January first of each year.
     6    § 2. Section 438 of the economic development law is REPEALED.
     7    § 3. Subdivision 1 of section 433 of the economic development law,  as
     8  added  by  section  1  of  part  A of chapter 68 of the laws of 2013, is
     9  amended to read as follows:
    10    1. In order to participate in the START-UP NY program, a business must
    11  satisfy all of the following criteria.
    12    (a) The mission and activities of the  business  must  align  with  or
    13  further  the academic mission of the campus, college or university spon-
    14  soring the tax-free NY area in which it seeks to locate, and  the  busi-
    15  ness's  participation  in  the  START-UP  NY  program must have positive
    16  community and economic benefits.
    17    (b) The business must demonstrate that it will, in its first  year  of
    18  operation,  create  net new jobs. After its first year of operation, the
    19  business must maintain net new jobs. In addition, the average number  of
    20  employees  of  the  business and its related persons in the state during
    21  the year must equal or exceed the sum of:  (i)  the  average  number  of
    22  employees  of  the  business and its related persons in the state during
    23  the year immediately preceding the year in which  the  business  submits
    24  its  application  to locate in a tax-free NY area; and (ii) net new jobs
    25  of the business in the tax-free NY area during  the  year.  The  average
    26  number of employees of the business and its related persons in the state
    27  shall  be determined by adding together the total number of employees of
    28  the business and its related persons in the state on March thirty-first,
    29  June thirtieth, September thirtieth and December thirty-first and divid-
    30  ing the total by the number of such dates occurring within such year.
    31    (c) Except as provided in paragraphs [(g)] (f) and [(h)] (g)  of  this
    32  subdivision,  at the time it submits its application for the START-UP NY
    33  program, the business must be a new business to the state.
    34    (d) The business may be organized as  a  corporation,  a  partnership,
    35  limited liability company or a sole proprietorship.
    36    [(e)  Upon completion of its first year in the START-UP NY program and
    37  thereafter, the business must complete and timely file the annual report
    38  required under section four hundred thirty-eight of this article.
    39    (f)] (e) Except as provided in paragraphs [(g)] (f) and [(h)]  (g)  of
    40  this subdivision, the business must not be engaged in a line of business
    41  that  is  currently  or  was  previously  conducted by the business or a
    42  related person in the last five years in New York state.
    43    [(g)] (f) If a business does not satisfy the eligibility standard  set
    44  forth  in paragraph (c) or [(f)] (e) of this subdivision, because at one
    45  point in time it operated in New York state but moved its operations out
    46  of New York state on or before June first, two  thousand  thirteen,  the
    47  commissioner  shall  grant  that business permission to apply to partic-
    48  ipate in the START-UP NY program if the commissioner determines that the
    49  business has demonstrated that it will substantially restore the jobs in
    50  New York state that it previously had moved out of state.
    51    [(h)] (g) If a business seeks to expand its current operations in  New
    52  York  state into a tax-free NY area but the business does not qualify as
    53  a new business because it does not satisfy the criteria in paragraph (c)
    54  of subdivision six of section four hundred thirty-one of this article or
    55  the business does not satisfy the  eligibility  standard  set  forth  in
    56  paragraph  [(f)]  (e)  of this subdivision, the commissioner shall grant

        S. 2009--C                         202                        A. 3009--C
 
     1  the business permission to apply  to  participate  in  the  START-UP  NY
     2  program  if  the  commissioner  determines  that the business has demon-
     3  strated that it will create net new jobs in the  tax-free  NY  area  and
     4  that  it  or any related person has not eliminated any jobs in the state
     5  in connection with this expansion.
     6    § 4. This act shall take effect immediately.
 
     7                                  PART VVV
 
     8    Section 1. Section 60.45 of the criminal procedure law is  amended  by
     9  adding a new subdivision 3 to read as follows:
    10    3.  (a)  Where  a  person  is  subject to custodial interrogation by a
    11  public servant at a detention facility, the  entire  custodial  interro-
    12  gation, including the giving of any required advice of the rights of the
    13  individual  being  questioned, and the waiver of any rights by the indi-
    14  vidual, shall be recorded by an appropriate video  recording  device  if
    15  the  interrogation  involves  a  class A-1 felony, except one defined in
    16  article two hundred twenty of the penal law; felony offenses defined  in
    17  section  130.95 and 130.96 of the penal law; or a felony offense defined
    18  in article one hundred twenty-five or one hundred  thirty  of  such  law
    19  that  is defined as a class B violent felony offense in section 70.02 of
    20  the penal law. For purposes  of  this  paragraph,  the  term  "detention
    21  facility"  shall  mean  a police station, correctional facility, holding
    22  facility for prisoners, prosecutor's  office  or  other  facility  where
    23  persons  are  held in detention in connection with criminal charges that
    24  have been or may be filed against them.
    25    (b) No confession, admission or other statement shall be subject to  a
    26  motion  to  suppress  pursuant to subdivision three of section 710.20 of
    27  this chapter based solely upon the failure to video record such interro-
    28  gation in a detention facility as  defined  in  paragraph  (a)  of  this
    29  subdivision. However, where the people offer into evidence a confession,
    30  admission or other statement made by a person in custody with respect to
    31  his  or  her participation or lack of participation in an offense speci-
    32  fied in paragraph (a) of this  subdivision,  that  has  not  been  video
    33  recorded,  the  court  shall consider the failure to record as a factor,
    34  but not as the sole factor, in accordance with  paragraph  (c)  of  this
    35  subdivision  in  determining whether such confession, admission or other
    36  statement shall be admissible.
    37    (c) Notwithstanding the requirement of paragraph (a) of this  subdivi-
    38  sion,  upon  a  showing  of  good cause by the prosecutor, the custodial
    39  interrogation need not be recorded. Good cause shall include, but not be
    40  limited to:
    41    (i) If electronic recording equipment malfunctions.
    42    (ii) If electronic recording equipment is not available because it was
    43  otherwise being used.
    44    (iii) If statements  are  made  in  response  to  questions  that  are
    45  routinely asked during arrest processing.
    46    (iv)  If the statement is spontaneously made by the suspect and not in
    47  response to police questioning.
    48    (v) If the statement is made during an interrogation that is conducted
    49  when the interviewer is unaware that a qualifying offense has occurred.
    50    (vi) If the statement is made at a location other than the  "interview
    51  room"  because  the  suspect  cannot  be brought to such room, e.g., the
    52  suspect is in a hospital or the suspect is out of state and  that  state
    53  is not governed by a law requiring the recordation of an interrogation.

        S. 2009--C                         203                        A. 3009--C
 
     1    (vii)  If the statement is made after a suspect has refused to partic-
     2  ipate in the interrogation if it is recorded, and appropriate effort  to
     3  document such refusal is made.
     4    (viii) If such statement is not recorded as a result of an inadvertent
     5  error  or  oversight,  not  the result of any intentional conduct by law
     6  enforcement personnel.
     7    (ix) If it is law enforcement's reasonable belief that such  recording
     8  would  jeopardize  the  safety of any person or reveal the identity of a
     9  confidential informant.
    10    (x) If such statement is made at a location not equipped with a  video
    11  recording  device  and  the  reason  for  using  that location is not to
    12  subvert the intent of the law. For purposes of this  section,  the  term
    13  "location"  shall  include those locations specified in paragraph (b) of
    14  subdivision four of section 305.2 of the family court act.
    15    (d) In the event the court finds that the people have not  shown  good
    16  cause  for  the  non-recording  of  the  confession, admission, or other
    17  statement, but determines that a non-recorded confession,  admission  or
    18  other  statement  is  nevertheless admissible because it was voluntarily
    19  made then, upon request of the defendant, the court  must  instruct  the
    20  jury  that  the  people's  failure to record the defendant's confession,
    21  admission or other statement as required by this section may be  weighed
    22  as  a  factor,  but  not as the sole factor, in determining whether such
    23  confession, admission or other statement was voluntarily  made,  or  was
    24  made at all.
    25    (e)  Video recording as required by this section shall be conducted in
    26  accordance with standards established by rule of the division of  crimi-
    27  nal justice services.
    28    §  2. Subdivision 3 of section 344.2 of the family court act is renum-
    29  bered subdivision 4 and a new subdivision 3 is added to read as follows:
    30    3. Where a respondent is  subject  to  custodial  interrogation  by  a
    31  public  servant  at  a facility specified in subdivision four of section
    32  305.2 of this article, the entire custodial interrogation, including the
    33  giving of any required advice of the  rights  of  the  individual  being
    34  questioned,  and  the  waiver  of any rights by the individual, shall be
    35  recorded and governed in accordance with the  provisions  of  paragraphs
    36  (a),  (b), (c), (d) and (e) of subdivision three of section 60.45 of the
    37  criminal procedure law.
    38    § 3. Section 60.25 of the criminal procedure law, subparagraph (ii) of
    39  paragraph (a) of subdivision 1 as amended by chapter 479 of the laws  of
    40  1977, is amended to read as follows:
    41  § 60.25 Rules  of evidence; identification by means of previous recogni-
    42            tion, in absence of present identification.
    43    1. In any criminal proceeding in which the defendant's  commission  of
    44  an  offense is in issue, testimony as provided in subdivision two may be
    45  given by a witness when:
    46    (a) Such witness testifies that:
    47    (i) He or she observed the person claimed by  the  people  to  be  the
    48  defendant  either at the time and place of the commission of the offense
    49  or upon some other occasion relevant to the case; and
    50    (ii) On a subsequent occasion he or she observed, under  circumstances
    51  consistent  with  such  rights as an accused person may derive under the
    52  constitution of this state or of the United States, a person  or,  where
    53  the  observation  is  made  pursuant  to a blind or blinded procedure as
    54  defined in paragraph (c) of this subdivision, a pictorial, photographic,
    55  electronic, filmed or video recorded reproduction of a person whom he or

        S. 2009--C                         204                        A. 3009--C
 
     1  she recognized as the same person whom he or she  had  observed  on  the
     2  first or incriminating occasion; and
     3    (iii)  He or she is unable at the proceeding to state, on the basis of
     4  present recollection, whether or not the  defendant  is  the  person  in
     5  question; and
     6    (b)  It  is  established that the defendant is in fact the person whom
     7  the witness observed and recognized or  whose  pictorial,  photographic,
     8  electronic,  filmed  or video recorded reproduction the witness observed
     9  and recognized on the second occasion.  Such fact may be established  by
    10  testimony  of  another  person  or  persons to whom the witness promptly
    11  declared his or her recognition on such occasion and by such  pictorial,
    12  photographic, electronic, filmed or video recorded reproduction.
    13    (c)  For  purposes  of this section, a "blind or blinded procedure" is
    14  one in which the witness identifies a person in an array  of  pictorial,
    15  photographic,  electronic,  filmed or video recorded reproductions under
    16  circumstances where, at the time the identification is made, the  public
    17  servant  administering such procedure: (i) does not know which person in
    18  the array is the suspect, or (ii) does not know where the suspect is  in
    19  the  array  viewed  by  the  witness. The failure of a public servant to
    20  follow such a procedure shall be assessed solely for  purposes  of  this
    21  article  and  shall  result in the preclusion of testimony regarding the
    22  identification procedure as evidence in chief, but shall not  constitute
    23  a  legal  basis to suppress evidence made pursuant to subdivision six of
    24  section 710.20 of this chapter. This article neither limits nor  expands
    25  subdivision six of section 710.20 of this chapter.
    26    2.  Under circumstances prescribed in subdivision one of this section,
    27  such witness may testify at the criminal proceeding that the person whom
    28  he or she observed and  recognized  or  whose  pictorial,  photographic,
    29  electronic, filmed or video recorded reproduction he or she observed and
    30  recognized  on  the  second  occasion  is the same person whom he or she
    31  observed on the  first  or  incriminating  occasion.    Such  testimony,
    32  together with the evidence that the defendant is in fact the person whom
    33  the  witness  observed  and recognized or whose pictorial, photographic,
    34  electronic, filmed or video recorded reproduction he or she observed and
    35  recognized on the second occasion, constitutes evidence in chief.
    36    § 4. Section 60.30 of the criminal procedure law, as amended by  chap-
    37  ter 479 of the laws of 1977, is amended to read as follows:
    38  § 60.30 Rules  of evidence; identification by means of previous recogni-
    39            tion, in addition to present identification.
    40    In any criminal proceeding in which the defendant's commission  of  an
    41  offense is in issue, a witness who testifies that (a) he or she observed
    42  the  person claimed by the people to be the defendant either at the time
    43  and place of the commission of the offense or upon some  other  occasion
    44  relevant  to the case, and (b) on the basis of present recollection, the
    45  defendant is the person in question and (c) on a subsequent occasion  he
    46  or she observed the defendant, or where the observation is made pursuant
    47  to a blind or blinded procedure, as defined in paragraph (c) of subdivi-
    48  sion  one  of  section 60.25 of this article, a pictorial, photographic,
    49  electronic, filmed or video  recorded  reproduction  of  the  defendant,
    50  under circumstances consistent with such rights as an accused person may
    51  derive under the constitution of this state or of the United States, and
    52  then  also  recognized  him or her or the pictorial, photographic, elec-
    53  tronic, filmed or video recorded reproduction of him or her as the  same
    54  person  whom  he or she had observed on the first or incriminating occa-
    55  sion, may, in addition to making an identification of the  defendant  at
    56  the  criminal  proceeding  on  the  basis of present recollection as the

        S. 2009--C                         205                        A. 3009--C
 
     1  person whom he or she observed on the first or  incriminating  occasion,
     2  also  describe  his  or  her  previous  recognition of the defendant and
     3  testify that the person whom he or  she  observed  or  whose  pictorial,
     4  photographic,  electronic,  filmed  or video recorded reproduction he or
     5  she observed on such second occasion is the same person whom he  or  she
     6  had observed on the first or incriminating occasion.  Such testimony and
     7  such  pictorial,  photographic,  electronic,  filmed  or  video recorded
     8  reproduction constitutes evidence in chief.
     9    § 5. Subdivision 6 of section 710.20 of the criminal procedure law, as
    10  amended by chapter 8 of the laws of 1976 and as  renumbered  by  chapter
    11  481 of the laws of 1983, is amended to read as follows:
    12    6.    Consists  of potential testimony regarding an observation of the
    13  defendant either at the time or place of the commission of  the  offense
    14  or upon some other occasion relevant to the case, which potential testi-
    15  mony  would  not be admissible upon the prospective trial of such charge
    16  owing to an improperly made previous identification of the defendant  or
    17  of  a  pictorial,  photographic,  electronic,  filmed  or video recorded
    18  reproduction of the defendant by the prospective witness.  A claim  that
    19  the  previous  identification of the defendant or of a pictorial, photo-
    20  graphic, electronic,  filmed  or  video  recorded  reproduction  of  the
    21  defendant  by a prospective witness did not comply with paragraph (c) of
    22  subdivision one of section 60.25 of this chapter or  with  the  protocol
    23  promulgated  in  accordance with subdivision twenty-one of section eight
    24  hundred thirty-seven of the executive law shall not constitute  a  legal
    25  basis  to suppress evidence pursuant to this subdivision. A claim that a
    26  public servant failed to comply with paragraph (c) of subdivision one of
    27  section 60.25 of this chapter or of subdivision  twenty-on