Bill Text: NY S07509 | 2017-2018 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; establishes the dedicated highway and bridge trust fund, in relation 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; increases 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; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; 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 reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of 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 the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations 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 the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Passed) 2018-04-12 - SIGNED CHAP.59 [S07509 Detail]
Download: New_York-2017-S07509-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; establishes the dedicated highway and bridge trust fund, in relation 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; increases 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; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; 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 reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of 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 the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations 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 the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Passed) 2018-04-12 - SIGNED CHAP.59 [S07509 Detail]
Download: New_York-2017-S07509-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7509--B IN SENATE January 18, 2018 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT intentionally omitted (Part A); intentionally omitted (Part B); intentionally omitted (Part C); intentionally omitted (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); intentionally omitted (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real prop- erty tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assess- ing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); intentionally omitted (Part L); intentionally omitted (Part M); intentionally omitted (Part N); intentionally omit- ted (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); intentionally omitted (Part S); intentionally omitted (Part T); intentionally omitted (Part U); inten- tionally omitted (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medi- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-06-8S. 7509--B 2 cines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); intentionally omitted (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relat- ing to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); intentionally omitted (Part HH); to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administra- tive code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law and the administrative code of the city of New York, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code (Part KK); intentionally omitted (Part LL); intentionally omitted (Part MM); to amend the real property tax law, in relation to establishing the senior capped real property school tax rate; and to amend the tax law, in relation to increasing the property tax relief credit (Part NN); to amend chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local govern- ment tax levies, in relation to eliminating the expiration of and making permanent certain provisions thereof (Part OO); to amend the tax law, in relation to tax on the furnishing of utility services (Part PP); to amend the public service law, in relation to certain costs and expenses (Part QQ); to amend the tax law, in relation to increasing the exemption for pensions and annuities for certain persons (Part RR); to amend the legislative law, in relation to requiring assent of two-thirds of the members for any bill that enacts or increases tax revenues (Part SS); to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund (Part TT); to amend the tax law, in relation to establishing a credit for customers of certain privateS. 7509--B 3 water utilities, in relation to requiring a feasibility study relating to the Jericho Water District; and providing for the repeal of such provisions upon the expiration thereof (Part UU); to amend the tax law and the administrative code of the city of New York, in relation to business income base and certain small business taxpayers (Part VV); to amend the real property tax law, in relation to the STAR exemption for property owned by small businesses (Part WW); to amend the tax law, in relation to minimum wage reimbursement credit (Part XX); to amend the tax law, in relation to extending the minimum wage reimbursement credit to seasonal employees (Part YY); to amend the tax law, in relation to tax credits for qualified pass-through manufactur- ers (Part ZZ); to amend the real property tax law, in relation to providing an exemption for security cameras installed on real property owned by a public utility (Part AAA); to amend the tax law, in relation to providing an exemption for tangible personal property and services sold by a cemetery; in relation to establishing an amnesty program for cemetery corporations (Part BBB); to amend the tax law and the parks, recreation and historic preservation law, in relation to the tax credit for rehabilitation of historic properties (Part CCC); to amend the tax law, in relation to establishing a personal income tax credit to preceptor clinicians who provide preceptor instruction (Part DDD); to amend the tax law, in relation to a television writers' and directors' fees and salaries credit (Part EEE); to amend the tax law and the administrative code of the city of New York, in relation to making technical corrections thereto; to repeal subsection (i) of section 612 of the tax law relating to the elimination of the personal income tax deduction for percentage depletion; and to repeal certain provisions of the tax law relating thereto (Part FFF); to amend the tax law, in relation to the donation of a human organ (Part GGG); to amend the tax law, in relation to the musical and theatrical production credit; and to amend part HH of chapter 59 of the laws of 2014 amending the tax law relating to a musical and theatrical production credit, in relation to extending the effectiveness of such provisions (Part HHH); to amend the education law and the tax law, in relation to establishing the college debt freedom account pilot program (Part III); to amend the tax law, in relation to establishing a reduction of certain taxpayer's federal adjusted gross income, for state personal income tax purposes, for student loan interest payments made by the taxpayer (Part JJJ); to amend the tax law, in relation to establishing a residential fuel oil storage tank credit and to direct the office of temporary and disability assistance to establish a program to assist eligible households in the replacement of residen- tial fuel oil storage tanks (Part KKK); to amend the tax law and the insurance law, in relation to credits for premiums paid for long-term care insurance policies (Part LLL); to amend the tax law, in relation to providing insurance corporations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund (Part MMM); to amend the tax law, in relation to exempting school buses and certain equipment from sales and compensating use tax; and to amend the education law, in relation to the extension of certain transportation contracts (Part NNN); to amend the tax law and the education law, in relation to enacting the "education affordabili- ty act" (Part OOO); to amend the racing, pari-mutuel wagering and breeding law, in relation to the definition and licensing fees for dealer-controlled electronic table games (Part PPP); to amend the taxS. 7509--B 4 law, in relation to the percentage of free play allowance credits (Part QQQ); to amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games (Part RRR); to amend the general municipal law, in relation to participation in games of bingo by minors (Part SSS); to amend the tax law, in relation to the disposition of vender fees for the operation of video lottery gaming at certain race tracks (Part TTT); to amend the racing, pari-mutuel wagering and breeding law, in relation to the disposition of net revenues of regional off-track betting corporations to participating counties (Part UUU); to amend the racing, pari-mutuel wagering and breeding law, in relation to creating the racing fan advisory council (Part VVV); to amend the racing, pari-mutuel wagering and breeding law, in relation to establishing the advisory council on retired race horses, within the New York state gaming commission, and providing for its powers and duties (Part WWW); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports betting (Part XXX); to amend the racing, pari-mutuel wagering and breeding law, in relation to funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage (Part YYY); to amend the tax law, in relation to exempting coin-operated tire inflation equipment from sales and use taxes (Part ZZZ); to amend the real property tax law, in relation to extending certain provisions exempting lands devoted to agricultural or horticultural use from taxation (Part AAAA); to amend the education law and the tax law, in relation to expanding the New York state college choice tuition savings program to include costs of elementary and secondary education (Part BBBB); to amend the tax law, in relation to the imposition of tax on combative sport matches or exhibitions (Part CCCC); to amend the tax law, in relation to gifts for the New York state general fund (Part DDDD); to amend the tax law and the economic development law, in relation to the creation of the empire state digital gaming media production credit; and providing for the repeal of such provisions upon expiration thereof (Part EEEE); to amend the civil practice law and rules, in relation to enacting the "local government jobs and revenue protection act of 2018" (Part FFFF); and to amend the tax law, in relation to the disposition of a portion of sales taxes collected for hotel occupancy in cities having a population of one million or more (Part GGGG) 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 2018-2019 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through GGGG. 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 AS. 7509--B 5 1 Intentionally Omitted 2 PART B 3 Intentionally Omitted 4 PART C 5 Intentionally Omitted 6 PART D 7 Intentionally Omitted 8 PART E 9 Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. 10 § 1-a. Section 3-d of the general municipal law is REPEALED. 11 § 1-b. Section 2023-b of the education law is REPEALED. 12 § 2. The general municipal law is amended by adding a new section 3-d 13 to read as follows: 14 § 3-d. Certification of compliance with tax levy limit. 1. Upon the 15 adoption of the budget of a local government unit, the chief executive 16 officer or budget officer of such local government unit shall certify to 17 the state comptroller and the commissioner of taxation and finance that 18 the budget so adopted does not exceed the tax levy limit prescribed in 19 section three-c of this article and, if the governing body of the local 20 government unit did enact a local law or approve a resolution to over- 21 ride the tax levy limit, that such local law or resolution was subse- 22 quently repealed. Such certification shall be made in a form and manner 23 prescribed by the state comptroller in consultation with the commission- 24 er of taxation and finance. 25 2. Notwithstanding any other law to the contrary, if such a certif- 26 ication has been made and the actual tax levy of the local government 27 unit exceeds the applicable tax levy limit, the excess amount shall be 28 placed in reserve and used in the manner prescribed by subdivision six 29 of section three-c of this article, even if a tax levy in excess of the 30 tax levy limit had been authorized for the applicable fiscal year by a 31 duly adopted local law or resolution. 32 3. Notwithstanding any provision of law to the contrary, every local 33 government unit shall report both its proposed budget and its adopted 34 budget to the office of the state comptroller at the time and in the 35 manner as he or she may prescribe, whether or not such budget has been 36 or will be certified as provided by this subdivision. 37 § 3. The education law is amended by adding a new section 2023-b to 38 read as follows: 39 § 2023-b. Certification of compliance with tax levy limit. 1. Upon 40 the adoption of the budget of an eligible school district, the chief 41 executive officer of such school district shall certify to the state 42 comptroller, the commissioner of taxation and finance and the commis- 43 sioner that the budget so adopted does not exceed the tax levy limit 44 prescribed by section two thousand twenty-three-a of this part. Such 45 certification shall be made in a form and manner prescribed by the state 46 comptroller in consultation with the commissioner of taxation and 47 finance and the commissioner.S. 7509--B 6 1 2. If such a certification has been made and the actual tax levy of 2 the school district exceeds the applicable tax levy limit, the excess 3 amount shall be placed in reserve and used in the manner prescribed by 4 subdivision five of section two thousand twenty-three-a of this part, 5 even if a tax levy in excess of the tax levy limit had been duly author- 6 ized for the applicable fiscal year by the school district voters. 7 3. Notwithstanding any provision of law to the contrary, every school 8 district that is subject to the provisions of section two thousand twen- 9 ty-three-a of this part shall report both its proposed budget and its 10 adopted budget to the office of the state comptroller and the commis- 11 sioner at the time and in the manner as they may prescribe, whether or 12 not such budget has been or will be certified as provided by this subdi- 13 vision. 14 § 4. Subdivision 3 of section 97-rrr of the state finance law, as 15 amended by section 1 of part F of chapter 59 of the laws of 2015, is 16 amended to read as follows: 17 3. The monies in such fund shall be appropriated for school property 18 tax exemptions granted pursuant to the real property tax law and payable 19 pursuant to section thirty-six hundred nine-e of the education law[, and20for payments to the city of New York pursuant to section fifty-four-f of21this chapter]. 22 § 5. Section 925-b of the real property tax law, as amended by chapter 23 161 of the laws of 2006, is amended to read as follows: 24 § 925-b. Extension; certain persons sixty-five years of age or over. 25 Notwithstanding any contrary provision of this chapter, or any general, 26 special or local law, code or charter, the governing body of a municipal 27 corporation other than a county may, by resolution adopted prior to the 28 levy of any taxes on real property located within such municipal corpo- 29 ration, authorize an extension of no more than five business days for 30 the payment of taxes without interest or penalty to any resident of such 31 municipal corporation who has received an exemption pursuant to subdivi- 32 sion four of section four hundred twenty-five or four hundred sixty-sev- 33 en of this chapter, or a credit pursuant to subsection (eee) of section 34 six hundred six of the tax law, related to a principal residence located 35 within such municipal corporation. If such an extension is granted, and 36 any taxes are not paid by the final date so provided, those taxes shall 37 be subject to the same interest and penalties that would have applied if 38 no extension had been granted. 39 § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- 40 erty tax law is relettered paragraph (f) and two new paragraphs (d) and 41 (e) are added to read as follows: 42 (d) If the taxes of a city, town, village or school district are 43 collected by a county official, the county shall have the sole authority 44 to establish a partial payment program pursuant to this section with 45 respect to the taxes so collected. 46 (e) If the taxes of a city, town, village or school district are not 47 collected by a county official, but its tax bills are prepared by the 48 county, or its tax collection accounting software is provided by the 49 county, then before the city, town, village or school district may 50 implement a partial payment program pursuant to this section, it must 51 obtain written approval of the chief executive officer of the county or 52 the county director of real property tax services. 53 § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 54 606 of the tax law, as amended by section 1 of part G of chapter 59 of 55 the laws of 2017, is amended to read as follows:S. 7509--B 7 1 (B) Notwithstanding any provision of law to the contrary, the names 2 and addresses of individuals who have applied for or are receiving the 3 credit authorized by this subsection may be disclosed to assessors 4 [and], county directors of real property tax services, and municipal tax 5 collecting officers. In addition, where an agreement is in place between 6 the commissioner and the head of the tax department of another state, 7 such information may be disclosed to such official or his or her desig- 8 nees. Such information shall be considered confidential and shall not be 9 subject to further disclosure pursuant to the freedom of information law 10 or otherwise. 11 § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- 12 erty tax law, as added by section 1 of part B of chapter 389 of the laws 13 of 1997 and as further amended by subdivision (b) of section 1 of part W 14 of chapter 56 of the laws of 2010, is amended to read as follows: 15 (g) Computation and certification by commissioner. It shall be the 16 responsibility of the commissioner to compute the exempt amount for each 17 assessing unit in each county in the manner provided herein, and to 18 certify the same to the assessor of each assessing unit and to the coun- 19 ty director of real property tax services of each county. Such certif- 20 ication shall be made at least twenty days before the last date 21 prescribed by law for the filing of the tentative assessment roll. 22 Provided, however, that where school taxes are levied on a prior year 23 assessment roll, or on a final assessment roll that was filed more than 24 one year after the tentative roll was filed, such certification shall be 25 made no later than fifteen days after the publication of the data needed 26 to compute the base figure for the enhanced STAR exemption pursuant to 27 clause (A) of subparagraph (vi) of paragraph (b) of this subdivision, 28 and provided further, that upon receipt of such certification, the 29 assessor shall thereupon be authorized and directed to correct the 30 assessment roll to reflect the exempt amount so certified, or, if anoth- 31 er person has custody or control of the assessment roll, to direct that 32 person to make the appropriate corrections. 33 § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is 34 amended by adding a new subparagraph (A) to read as follows: 35 (A) A married couple may not receive a credit pursuant to this 36 subsection on more than one residence during any given taxable year, 37 unless living apart due to legal separation. Nor may a married couple 38 receive a credit pursuant to this subsection on one residence while 39 receiving an exemption pursuant to section four hundred twenty-five of 40 the real property tax law on another residence, unless living apart due 41 to legal separation. 42 § 9. This act shall take effect immediately; provided, however, that 43 section 3-d of the general municipal law, as added by section two of 44 this act, shall expire and be deemed repealed on the same date and in 45 the same manner as section 1 of part A of chapter 97 of the laws of 46 2011, expires and is deemed repealed, and provided that section 2023-b 47 of the education law, as added by section three of this act, shall 48 expire and be deemed repealed on the same date and in the same manner as 49 section 2 of part A of chapter 97 of the laws of 2011, expires and is 50 deemed repealed, and provided further that the amendments to paragraph 6 51 of subsection (eee) of section 606 of the tax law made by section eight 52 of this act shall take effect immediately and shall apply to taxable 53 years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze creditS. 7509--B 8 program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. 1 PART F 2 Intentionally Omitted 3 PART G 4 Section 1. Section 4 of chapter 475 of the laws of 2013, amending the 5 real property tax law relating to assessment ceilings for local public 6 utility mass real property, is amended to read as follows: 7 § 4. This act shall take effect on the first of January of the second 8 calendar year commencing after this act shall have become a law and 9 shall apply to assessment rolls with taxable status dates on or after 10 such date; provided, however, that this act shall expire and be deemed 11 repealed [four] eight years after such effective date; and provided, 12 further, that no assessment of local public utility mass real property 13 appearing on the municipal assessment roll with a taxable status date 14 occurring in the first calendar year after this act shall have become a 15 law shall be less than ninety percent or more than one hundred ten 16 percent of the assessment of the same property on the date this act 17 shall have become a law. 18 § 2. Subdivision 3 of section 499-kkkk of the real property tax law, 19 as added by chapter 475 of the laws of 2013, is amended to read as 20 follows: 21 3. (a) For assessment rolls with taxable status dates in each of the 22 three calendar years including and following the year in which this 23 section shall take effect, the commissioner shall establish no assess- 24 ment ceiling that is less than ninety percent or more than one hundred 25 ten percent of the assessment of such local public utility mass real 26 property appearing on the municipal assessment roll with a taxable 27 status date occurring in the second preceding calendar year from when 28 this section shall take effect, except that the commissioner may estab- 29 lish assessment ceilings below the ninety percent level or above the one 30 hundred ten percent level to take into account any change in level of 31 assessment and/or to take into account any additions or retirements to 32 public utility mass real property or litigation affecting the value or 33 taxable status of the local public utility mass real property initiated 34 prior to the effective date of this section. 35 (b) For assessment rolls with taxable status dates in the years two 36 thousand eighteen, two thousand nineteen and two thousand twenty, the 37 commissioner shall establish no assessment ceiling that is below the 38 lower limit or above the upper limit specified in this paragraph, except 39 that the commissioner may establish assessment ceilings below such lower 40 limit or above such upper limit to take into account any change in level 41 of assessment and/or to take into account any additions or retirements 42 to public utility mass real property or litigation affecting the value 43 or taxable status of the local public utility mass real property initi- 44 ated prior to the effective date of this section. 45 (i) For assessment rolls with taxable status dates in two thousand 46 eighteen, the assessment ceiling shall not be less than seventy-fiveS. 7509--B 9 1 percent or more than one hundred twenty-five percent of the assessment 2 of such local public utility mass real property appearing on the munici- 3 pal assessment roll with a taxable status date occurring in the year two 4 thousand thirteen. 5 (ii) For assessment rolls with taxable status dates in two thousand 6 nineteen, the assessment ceiling shall not be less than fifty percent or 7 more than one hundred fifty percent of the assessment of such local 8 public utility mass real property appearing on the municipal assessment 9 roll with a taxable status date occurring in the year two thousand thir- 10 teen. 11 (iii) For assessment rolls with taxable status dates in two thousand 12 twenty, the assessment ceiling shall not be less than twenty-five 13 percent or more than one hundred seventy-five percent of the assessment 14 of such local public utility mass real property appearing on the munici- 15 pal assessment roll with a taxable status date occurring in the year two 16 thousand thirteen. 17 § 3. This act shall take effect immediately, provided, however, that 18 the amendments to subdivision three of section 499-kkkk of the real 19 property tax law made by section two of this act shall not affect the 20 repeal of such section and shall be deemed to be repealed therewith. 21 PART H 22 Section 1. Subsection (c) of section 683 of the tax law is amended by 23 adding a new paragraph 12 to read as follows: 24 (12) Amended returns. Except as otherwise provided in paragraph three 25 of this subsection, or as otherwise provided in this section where a 26 longer period of time may apply, if a taxpayer files an amended return, 27 an assessment of tax (if not deemed to have been made upon the filing of 28 the amended return), including recovery of a previously paid refund, 29 attributable to a change or correction on the amended return from a 30 prior return may be made at any time within one year after such amended 31 return is filed. 32 § 2. Subsection (c) of section 1083 of the tax law is amended by 33 adding a new paragraph 12 to read as follows: 34 (12) Amended returns. Except as otherwise provided in paragraph three 35 of this subsection, or as otherwise provided in this section where a 36 longer period of time may apply, if a taxpayer files an amended return, 37 an assessment of tax (if not deemed to have been made upon the filing of 38 the amended return), including recovery of a previously paid refund, 39 attributable to a change or correction on the amended return from a 40 prior return may be made at any time within one year after such amended 41 return is filed. 42 § 3. Subdivision (c) of section 11-1783 of the administrative code of 43 the city of New York is amended by adding a new paragraph 9 to read as 44 follows: 45 (9) Amended returns. Except as otherwise provided in paragraph three 46 of this subdivision, or as otherwise provided in this section where a 47 longer period of time may apply, if a taxpayer files an amended return, 48 an assessment of tax (if not deemed to have been made upon the filing of 49 the amended return), including recovery of a previously paid refund, 50 attributable to a change or correction on the amended return from a 51 prior return may be made at any time within one year after such amended 52 return is filed. 53 § 4. This act shall take effect immediately and shall apply to amended 54 returns filed on or after the effective date of this act.S. 7509--B 10 1 PART I 2 Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax 3 law, as amended by chapter 166 of the laws of 1991, is amended to read 4 as follows: 5 (1) The commissioner of taxation and finance may prescribe regulations 6 and instructions requiring returns of information to be made and filed 7 on or before February twenty-eighth of each year as to the payment or 8 crediting in any calendar year of amounts of six hundred dollars or more 9 to any taxpayer under this article. Such returns may be required of any 10 person, including lessees or mortgagors of real or personal property, 11 fiduciaries, employers, and all officers and employees of this state, or 12 of any municipal corporation or political subdivision of this state, 13 having the control, receipt, custody, disposal or payment of interest, 14 rents, salaries, wages, premiums, annuities, compensations, remunera- 15 tions, emoluments or other fixed or determinable gains, profits or 16 income, except interest coupons payable to bearer. Information required 17 to be furnished pursuant to paragraph four of subsection (a) of section 18 six hundred seventy-four on a quarterly combined withholding and wage 19 reporting return covering [the last] each calendar quarter of each year 20 and relating to tax withheld on wages paid by an employer to an employee 21 for [the full] each calendar [year] quarter, shall constitute the return 22 of information required to be made under this section with respect to 23 such wages. 24 § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 25 of the tax law, as amended by section 1 of subpart E of part VI of chap- 26 ter 57 of the laws of 2009, is amended to read as follows: 27 (A) All employers described in paragraph one of subsection (a) of 28 section six hundred seventy-one of this part, including those whose 29 wages paid are not sufficient to require the withholding of tax from the 30 wages of any of their employees, all employers required to provide the 31 wage reporting information for the employees described in subdivision 32 one of section one hundred seventy-one-a of this chapter, and all 33 employers liable for unemployment insurance contributions or for 34 payments in lieu of such contributions pursuant to article eighteen of 35 the labor law, shall file a quarterly combined withholding, wage report- 36 ing and unemployment insurance return detailing the preceding calendar 37 quarter's withholding tax transactions, such quarter's wage reporting 38 information, such quarter's withholding reconciliation information, such 39 quarter's unemployment insurance contributions, and such other related 40 information as the commissioner of taxation and finance or the commis- 41 sioner of labor, as applicable, may prescribe. [In addition, the return42covering the last calendar quarter of each year shall also include with-43holding reconciliation information for such calendar year.] Such returns 44 shall be filed no later than the last day of the month following the 45 last day of each calendar quarter. 46 § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as 47 amended by chapter 477 of the laws of 1998, is amended to read as 48 follows: 49 (3) Failure to provide complete and correct employee withholding 50 reconciliation information. In the case of a failure by an employer to 51 provide complete and correct [annual] quarterly withholding information 52 relating to individual employees on a quarterly combined withholding, 53 wage reporting and unemployment insurance return covering [the last] 54 each calendar quarter of a year, such employer shall, unless it is shown 55 that such failure is due to reasonable cause and not due to willfulS. 7509--B 11 1 neglect, pay a penalty equal to the product of fifty dollars multiplied 2 by the number of employees for whom such information is incomplete or 3 incorrect; provided, however, that if the number of such employees 4 cannot be determined from the quarterly combined withholding, wage 5 reporting and unemployment insurance return, the commissioner may 6 utilize any information in the commissioner's possession in making such 7 determination. The total amount of the penalty imposed pursuant to this 8 paragraph on an employer for any such failure for [the last] each calen- 9 dar quarter of a year shall not exceed ten thousand dollars. 10 § 4. This act shall take effect immediately and shall apply to calen- 11 dar quarters beginning on or after January 1, 2019. 12 PART J 13 Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax 14 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as 15 amended by section 1 of part DD of chapter 407 of the laws of 1999, is 16 amended to read as follows: 17 (i) The receipts from every sale, other than sales for resale, of 18 beer, wine or other alcoholic beverages or any other drink of any 19 nature, or from every sale, other than sales for resale, of food and 20 drink of any nature or of food alone, when sold in or by restaurants, 21 taverns or other establishments in this state, or by caterers, including 22 in the amount of such receipts any cover, minimum, entertainment or 23 other charge made to patrons or customers (except those receipts taxed 24 pursuant to subdivision (f) of this section): 25 (1) in all instances where the sale is for consumption on the premises 26 where sold; 27 (2) in those instances where the vendor or any person whose services 28 are arranged for by the vendor, after the delivery of the food or drink 29 by or on behalf of the vendor for consumption off the premises of the 30 vendor, serves or assists in serving, cooks, heats or provides other 31 services with respect to the food or drink; and 32 (3) in those instances where the sale is made through a vending 33 machine that is activated by use of coin, currency, credit card or debit 34 card (except the sale of drinks in a heated state made through such a 35 vending machine) or is for consumption off the premises of the vendor, 36 except where food (other than sandwiches) or drink or both are (A) sold 37 in an unheated state and, (B) are of a type commonly sold for consump- 38 tion off the premises and in the same form and condition, quantities and 39 packaging, in establishments which are food stores other than those 40 principally engaged in selling foods prepared and ready to be eaten. 41 § 2. This act shall take effect June 1, 2018 and shall apply to sales 42 made on and after such date. 43 PART K 44 Section 1. The tax law is amended by adding a new section 171-z to 45 read as follows: 46 § 171-z. Information sharing with the comptroller regarding unclaimed 47 funds. 1. Notwithstanding any other law, the commissioner is authorized 48 to release to the comptroller information regarding fixed and final 49 unwarranted debts of taxpayers for purposes of collecting unclaimed 50 funds from the comptroller to satisfy fixed and final unwarranted debts 51 owed by taxpayers. For purposes of this section, the term "unwarranted 52 debt" shall mean past-due tax liabilities, including unpaid tax, inter-S. 7509--B 12 1 est and penalty, that the commissioner is required by law to collect and 2 that have become fixed and final such that the taxpayer no longer has 3 any right to administrative or judicial review and a warrant has not 4 been filed; and the term "taxpayer" shall mean any individual, corpo- 5 ration, partnership, limited liability partnership or company, partner, 6 member, manager, sole proprietorship, estate, trust, fiduciary or enti- 7 ty, who or which has been identified as owing taxes to the state. This 8 section shall not be deemed to abrogate or limit in any way the powers 9 and authority of the comptroller to set off debts owed the state from 10 unclaimed funds, under the constitution of the state or any other law. 11 2. The comptroller shall keep all information he or she obtains from 12 the commissioner confidential, and any employee, agent or representative 13 of the comptroller is prohibited from disclosing any taxpayer informa- 14 tion received under this section to anyone other than the commissioner 15 or staff of the department or staff of the department of audit and 16 control for the purposes described in this section. 17 § 2. This act shall take effect immediately. 18 PART L 19 Intentionally Omitted 20 PART M 21 Intentionally Omitted 22 PART N 23 Intentionally Omitted 24 PART O 25 Intentionally Omitted 26 PART P 27 Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax 28 law, as amended by section 1 of part L1 of chapter 109 of the laws of 29 2006, is amended to read as follows: 30 (1) A resident taxpayer shall be allowed a credit as provided herein 31 equal to the greater of one hundred dollars times the number of qualify- 32 ing children of the taxpayer or the applicable percentage of the child 33 tax credit allowed the taxpayer under section twenty-four of the inter- 34 nal revenue code for the same taxable year for each qualifying child. 35 Provided, however, in the case of a taxpayer whose federal adjusted 36 gross income exceeds the applicable threshold amount set forth by 37 section 24(b)(2) of the Internal Revenue Code, the credit shall only be 38 equal to the applicable percentage of the child tax credit allowed the 39 taxpayer under section 24 of the Internal Revenue Code for each qualify- 40 ing child. For the purposes of this subsection, a qualifying child shall 41 be a child who meets the definition of qualified child under section 42 24(c) of the internal revenue code and is at least four years of age. 43 The applicable percentage shall be thirty-three percent. For purposes 44 of this subsection, any reference to section 24 of the Internal Revenue 45 Code shall be a reference to such section as it existed immediately 46 prior to the enactment of Public Law 115-97.S. 7509--B 13 1 § 2. This act shall take effect immediately and shall apply to taxable 2 years commencing on or after January 1, 2018. 3 PART Q 4 Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B 5 of the tax law, as amended by section 1 of part I of chapter 60 of the 6 laws of 2016, are amended to read as follows: 7 (a) Allowance of credit. For taxable years beginning on or after Janu- 8 ary first, two thousand fifteen and before January first, two thousand 9 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 10 computed as provided in this subdivision, against the tax imposed by 11 this article, for hiring and employing, for not less than one year and 12 for not less than thirty-five hours each week, a qualified veteran with- 13 in the state. The taxpayer may claim the credit in the year in which 14 the qualified veteran completes one year of employment by the taxpayer. 15 If the taxpayer claims the credit allowed under this subdivision, the 16 taxpayer may not use the hiring of a qualified veteran that is the basis 17 for this credit in the basis of any other credit allowed under this 18 article. 19 (b) Qualified veteran. A qualified veteran is an individual: 20 (1) who served on active duty in the United States army, navy, air 21 force, marine corps, coast guard or the reserves thereof, or who served 22 in active military service of the United States as a member of the army 23 national guard, air national guard, New York guard or New York naval 24 militia; who was released from active duty by general or honorable 25 discharge after September eleventh, two thousand one; 26 (2) who commences employment by the qualified taxpayer on or after 27 January first, two thousand fourteen, and before January first, two 28 thousand [eighteen] twenty; and 29 (3) who certifies by signed affidavit, under penalty of perjury, that 30 he or she has not been employed for thirty-five or more hours during any 31 week in the one hundred eighty day period immediately prior to his or 32 her employment by the taxpayer. 33 § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax 34 law, as amended by section 2 of part I of chapter 60 of the laws of 35 2016, are amended to read as follows: 36 (1) Allowance of credit. For taxable years beginning on or after Janu- 37 ary first, two thousand fifteen and before January first, two thousand 38 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 39 computed as provided in this subsection, against the tax imposed by this 40 article, for hiring and employing, for not less than one year and for 41 not less than thirty-five hours each week, a qualified veteran within 42 the state. The taxpayer may claim the credit in the year in which the 43 qualified veteran completes one year of employment by the taxpayer. If 44 the taxpayer claims the credit allowed under this subsection, the 45 taxpayer may not use the hiring of a qualified veteran that is the basis 46 for this credit in the basis of any other credit allowed under this 47 article. 48 (2) Qualified veteran. A qualified veteran is an individual: 49 (A) who served on active duty in the United States army, navy, air 50 force, marine corps, coast guard or the reserves thereof, or who served 51 in active military service of the United States as a member of the army 52 national guard, air national guard, New York guard or New York naval 53 militia; who was released from active duty by general or honorable 54 discharge after September eleventh, two thousand one;S. 7509--B 14 1 (B) who commences employment by the qualified taxpayer on or after 2 January first, two thousand fourteen, and before January first, two 3 thousand [eighteen] twenty; and 4 (C) who certifies by signed affidavit, under penalty of perjury, that 5 he or she has not been employed for thirty-five or more hours during any 6 week in the one hundred eighty day period immediately prior to his or 7 her employment by the taxpayer. 8 § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the 9 tax law, as amended by section 3 of part I of chapter 60 of the laws of 10 2016, are amended to read as follows: 11 (1) Allowance of credit. For taxable years beginning on or after Janu- 12 ary first, two thousand fifteen and before January first, two thousand 13 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 14 computed as provided in this subdivision, against the tax imposed by 15 this article, for hiring and employing, for not less than one year and 16 for not less than thirty-five hours each week, a qualified veteran with- 17 in the state. The taxpayer may claim the credit in the year in which 18 the qualified veteran completes one year of employment by the taxpayer. 19 If the taxpayer claims the credit allowed under this subdivision, the 20 taxpayer may not use the hiring of a qualified veteran that is the basis 21 for this credit in the basis of any other credit allowed under this 22 article. 23 (2) Qualified veteran. A qualified veteran is an individual: 24 (A) who served on active duty in the United States army, navy, air 25 force, marine corps, coast guard or the reserves thereof, or who served 26 in active military service of the United States as a member of the army 27 national guard, air national guard, New York guard or New York naval 28 militia; who was released from active duty by general or honorable 29 discharge after September eleventh, two thousand one; 30 (B) who commences employment by the qualified taxpayer on or after 31 January first, two thousand fourteen, and before January first, two 32 thousand [eighteen] twenty; and 33 (C) who certifies by signed affidavit, under penalty of perjury, that 34 he or she has not been employed for thirty-five or more hours during any 35 week in the one hundred eighty day period immediately prior to his or 36 her employment by the taxpayer. 37 § 4. This act shall take effect immediately. 38 PART R 39 Section 1. Subdivision (c) of section 25-a of the labor law, as 40 amended by section 1 of part AA of chapter 56 of the laws of 2015, is 41 amended to read as follows: 42 (c) A qualified employer shall be entitled to a tax credit equal to 43 (1) [five] seven hundred fifty dollars per month for up to six months 44 for each qualified employee the employer employs in a full-time job or 45 [two] three hundred [fifty] seventy-five dollars per month for up to six 46 months for each qualified employee the employer employs in a part-time 47 job of at least twenty hours per week or ten hours per week when the 48 qualified employee is enrolled in high school full-time, (2) [one thou-49sand] fifteen hundred dollars for each qualified employee who is 50 employed for at least an additional six consecutive months by the quali- 51 fied employer in a full-time job or [five] seven hundred fifty dollars 52 for each qualified employee who is employed for at least an additional 53 six consecutive months by the qualified employer in a part-time job of 54 at least twenty hours per week or ten hours per week when the qualifiedS. 7509--B 15 1 employee is enrolled in high school full-time, and (3) an additional 2 [one thousand] fifteen hundred dollars for each qualified employee who 3 is employed for at least an additional year after the [first year of the4employee's employment] completion of the time periods and satisfaction 5 of the conditions set forth in paragraphs one and two of this subdivi- 6 sion by the qualified employer in a full-time job or [five] seven 7 hundred fifty dollars for each qualified employee who is employed for at 8 least an additional year after the [first year of the employee's employ-9ment] completion of the time periods and satisfaction of the conditions 10 set forth in paragraphs one and two of this subdivision by the qualified 11 employer in a part-time job of at least twenty hours per week or ten 12 hours per week when the qualified employee is enrolled in high school 13 full time. The tax credits shall be claimed by the qualified employer as 14 specified in subdivision thirty-six of section two hundred ten-B and 15 subsection (tt) of section six hundred six of the tax law. 16 § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, 17 subdivisions (d) and (e) as amended by section 1 of subpart A of part N 18 of chapter 59 of the laws of 2017 and subdivision (f) as amended by 19 section 1 of part AA of chapter 56 of the laws of 2015, are amended to 20 read as follows: 21 (d) To participate in the program established under this section, an 22 employer must submit an application (in a form prescribed by the commis- 23 sioner) to the commissioner after January first, two thousand twelve but 24 no later than November thirtieth, two thousand twelve for program one, 25 after January first, two thousand fourteen but no later than November 26 thirtieth, two thousand fourteen for program two, after January first, 27 two thousand fifteen but no later than November thirtieth, two thousand 28 fifteen for program three, after January first, two thousand sixteen but 29 no later than November thirtieth, two thousand sixteen for program four, 30 after January first, two thousand seventeen but no later than November 31 thirtieth, two thousand seventeen for program five, after January first, 32 two thousand eighteen but no later than November thirtieth, two thousand 33 eighteen for program six, after January first, two thousand nineteen but 34 no later than November thirtieth, two thousand nineteen for program 35 seven, after January first, two thousand twenty but no later than Novem- 36 ber thirtieth, two thousand twenty for program eight, after January 37 first, two thousand twenty-one but no later than November thirtieth, two 38 thousand twenty-one for program nine, and after January first, two thou- 39 sand twenty-two but no later than November thirtieth, two thousand twen- 40 ty-two for program ten. The qualified employees must start their employ- 41 ment on or after January first, two thousand twelve but no later than 42 December thirty-first, two thousand twelve for program one, on or after 43 January first, two thousand fourteen but no later than December thirty- 44 first, two thousand fourteen for program two, on or after January first, 45 two thousand fifteen but no later than December thirty-first, two thou- 46 sand fifteen for program three, on or after January first, two thousand 47 sixteen but no later than December thirty-first, two thousand sixteen 48 for program four, on or after January first, two thousand seventeen but 49 no later than December thirty-first, two thousand seventeen for program 50 five, on or after January first, two thousand eighteen but no later than 51 December thirty-first, two thousand eighteen for program six, on or 52 after January first, two thousand nineteen but no later than December 53 thirty-first, two thousand nineteen for program seven, on or after Janu- 54 ary first, two thousand twenty but no later than December thirty-first, 55 two thousand twenty for program eight, on or after January first, two 56 thousand twenty-one but no later than December thirty-first, two thou-S. 7509--B 16 1 sand twenty-one for program nine, and on or after January first, two 2 thousand twenty-two but no later than December thirty-first, two thou- 3 sand twenty-two for program ten. [The commissioner shall establish4guidelines and criteria that specify requirements for employers to5participate in the program including criteria for certifying qualified6employees, ensuring that the process established will minimize any undue7delay in issuing the certificate of eligibility. Any regulations that8the commissioner determines are necessary may be adopted on an emergency9basis notwithstanding anything to the contrary in section two hundred10two of the state administrative procedure act. Such requirements may11include the types of industries that the employers are engaged in. The12commissioner may give preference to employers that are engaged in demand13occupations or industries, or in regional growth sectors, including but14not limited to those identified by the regional economic development15councils, such as clean energy, healthcare, advanced manufacturing and16conservation. In addition, the commissioner shall give preference to17employers who offer advancement and employee benefit packages to the18qualified individuals.] As part of such application, an employer must: 19 (1) agree to allow the department of taxation and finance to share its 20 tax information with the commissioner. However, any information shared 21 as a result of this agreement shall not be available for disclosure or 22 inspection under the state freedom of information law, and 23 (2) allow the commissioner and its agents and the department of taxa- 24 tion and finance and its agents access to any and all books and records 25 of employers the commissioner may require to monitor compliance. 26 (e) If, after reviewing the application submitted by an employer, the 27 commissioner determines that such employer is eligible to participate in 28 the program established under this section, the commissioner shall issue 29 the employer a preliminary certificate of eligibility that establishes 30 the employer as a qualified employer. The preliminary certificate of 31 eligibility shall specify the maximum amount of tax credit that the 32 employer [will] may be allowed to claim and the program year under which 33 it [can] may be claimed. The maximum amount of tax credit the employer 34 is allowed to claim shall be computed as prescribed in subdivision (c) 35 of this section. 36 (f) The commissioner shall annually publish a report. Such report must 37 contain the names and addresses of any employer issued a preliminary 38 certificate of eligibility under this section, [and] the [maximum] 39 amount of New York youth works tax credit allowed to the qualified 40 employer as specified on [such] an annual final certificate of [eligi-41bility] tax credit and any other information as determined by the 42 commissioner. 43 § 3. Section 25-a of the labor law is amended by adding three new 44 subdivisions (e-1), (e-2) and (e-3) to read as follows: 45 (e-1)(1) To receive an annual final certificate of tax credit, the 46 qualified employer must annually submit, on or before January thirty- 47 first of the calendar year subsequent to the payment of wages paid to an 48 eligible employee, a report to the commissioner, in a form prescribed by 49 the commissioner. The report must demonstrate that the employer has 50 satisfied all eligibility requirements and provided all the information 51 necessary for the commissioner to compute an actual amount of credit 52 allowed. 53 (2) After reviewing the report and finding it sufficient, the commis- 54 sioner shall issue an annual final certificate of tax credit. Such 55 certificate shall include, in addition to any other information the 56 commissioner determines is necessary, the following information:S. 7509--B 17 1 (i) The name and employer identification number of the qualified 2 employer; 3 (ii) The program year for the corresponding credit award; 4 (iii) The actual amount of credit to which the qualified employer is 5 entitled for that calendar year or the fiscal year in which the annual 6 final certificate is issued, which actual amount cannot exceed the 7 amount of credit listed on the preliminary certificate but may be less 8 than such amount; and 9 (iv) A unique certificate number identifying the annual final certif- 10 icate of tax credit. 11 (e-2) In determining the amount of credit for purposes of the annual 12 final certificate of tax credit, the portion of the credit described in 13 paragraph one of subdivision (c) of this section shall be allowed for 14 the calendar year in which the wages are paid to the qualified employee, 15 the portion of the credit described in paragraph two of subdivision (c) 16 of this section shall be allowed for the calendar year in which the 17 additional six consecutive month period ends, and the portion of the 18 credit described in paragraph three of subdivision (c) of this section 19 shall be allowed for the calendar year in which the additional year of 20 consecutive employment ends after the completion of the time periods and 21 satisfaction of the conditions set forth in paragraphs one and two of 22 subdivision (c) of this section. If the qualified employer's taxable 23 year is a calendar year, the employer shall be entitled to claim the 24 credit as calculated on the annual final certificate of tax credit on 25 the calendar year return for which the annual final certificate of tax 26 credit was issued. If the qualified employer's taxable year is a fiscal 27 year, the employer shall be entitled to claim the credit as calculated 28 on the annual final certificate of tax credit on the return for the 29 fiscal year that encompasses the date on which the annual final certif- 30 icate of tax credit is issued. 31 (e-3) The commissioner shall establish guidelines and criteria that 32 specify requirements for employers to participate in the program includ- 33 ing criteria for certifying qualified employees, and issuing the prelim- 34 inary certificate of eligibility and annual final certificate of tax 35 credit. Such requirements may include the types of industries that the 36 employers are engaged in. The commissioner may give preference to 37 employers that are engaged in demand occupations or industries, or in 38 regional growth sectors, including but not limited to those identified 39 by the regional economic development councils, such as clean energy, 40 healthcare, advanced manufacturing and conservation. In addition, the 41 commissioner shall give preference to employers who offer advancement 42 and employee benefit packages to the qualified individuals. 43 § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 44 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is 45 amended to read as follows: 46 (a) A taxpayer that has been certified by the commissioner of labor as 47 a qualified employer pursuant to section twenty-five-a of the labor law 48 shall be allowed a credit against the tax imposed by this article equal 49 to (i) [five] seven hundred fifty dollars per month for up to six months 50 for each qualified employee the employer employs in a full-time job or 51 [two] three hundred [fifty] seventy-five dollars per month for up to six 52 months for each qualified employee the employer employs in a part-time 53 job of at least twenty hours per week or ten hours per week when the 54 qualified employee is enrolled in high school full-time, (ii) [one thou-55sand] fifteen hundred dollars for each qualified employee who is 56 employed for at least an additional six consecutive months by the quali-S. 7509--B 18 1 fied employer in a full-time job or [five] seven hundred fifty dollars 2 for each qualified employee who is employed for at least an additional 3 six consecutive months by the qualified employer in a part-time job of 4 at least twenty hours per week or ten hours per week when the qualified 5 employee is enrolled in high school full-time, and (iii) an additional 6 [one thousand] fifteen hundred dollars for each qualified employee who 7 is employed for at least an additional year after the [first year of the8employee's employment] completion of the time periods and satisfaction 9 of the conditions set forth in subparagraphs (i) and (ii) of this para- 10 graph by the qualified employer in a full-time job or [five] seven 11 hundred fifty dollars for each qualified employee who is employed for at 12 least an additional year after the [first year of the employee's employ-13ment] completion of the time periods and satisfaction of the conditions 14 set forth in subparagraphs (i) and (ii) of this paragraph by the quali- 15 fied employer in a part-time job of at least twenty hours per week or 16 ten hours per week when the qualified employee is enrolled in high 17 school full-time. For purposes of this subdivision, the term "qualified 18 employee" shall have the same meaning as set forth in subdivision (b) of 19 section twenty-five-a of the labor law. The portion of the credit 20 described in subparagraph (i) of this paragraph shall be allowed for the 21 taxable year in which the wages are paid to the qualified employee, the 22 portion of the credit described in subparagraph (ii) of this paragraph 23 shall be allowed in the taxable year in which the additional six month 24 period ends, and the portion of the credit described in subparagraph 25 (iii) of this paragraph shall be allowed in the taxable year in which 26 the additional year after the first year of employment ends. 27 § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 28 as amended by section 4 of this act, is amended to read as follows: 29 (a) A taxpayer that has been certified by the commissioner of labor as 30 a qualified employer pursuant to section twenty-five-a of the labor law 31 and received an annual final certificate of tax credit from such commis- 32 sioner shall be allowed a credit against the tax imposed by this article 33 equal to [(i) seven hundred fifty dollars per month for up to six months34for each qualified employee the employer employs in a full-time job or35three hundred seventy-five dollars per month for up to six months for36each qualified employee the employer employs in a part-time job of at37least twenty hours per week or ten hours per week when the qualified38employee is enrolled in high school full-time, (ii) fifteen hundred39dollars for each qualified employee who is employed for at least an40additional six consecutive months by the qualified employer in a full-41time job or seven hundred fifty dollars for each qualified employee who42is employed for at least an additional six consecutive months by the43qualified employer in a part-time job of at least twenty hours per week44or ten hours per week when the qualified employee is enrolled in high45school full-time, and (iii) an additional fifteen hundred dollars for46each qualified employee who is employed for at least an additional year47after the completion of the time periods and satisfaction of the condi-48tions set forth in subparagraphs (i) and (ii) of this paragraph by the49qualified employer in a full-time job or seven hundred fifty dollars for50each qualified employee who is employed for at least an additional year51after the completion of the time periods and satisfaction of the condi-52tions set forth in subparagraphs (i) and (ii) of this paragraph by the53qualified employer in a part-time job of at least twenty hours per week54or ten hours per week when the qualified employee is enrolled in high55school full-time. For purposes of this subdivision, the term "qualified56employee" shall have the same meaning as set forth in subdivision (b) ofS. 7509--B 19 1section twenty-five-a of the labor law. The portion of the credit2described in subparagraph (i) of this paragraph shall be allowed for the3taxable year in which the wages are paid to the qualified employee, the4portion of the credit described in subparagraph (ii) of this paragraph5shall be allowed in the taxable year in which the additional six month6period ends, and the portion of the credit described in subparagraph7(iii) of this paragraph shall be allowed in the taxable year in which8the additional year after the first year of employment ends] the amount 9 listed on the annual final certificate of tax credit issued by the 10 commissioner of labor pursuant to section twenty-five-a of the labor 11 law. If the qualified employer's taxable year is a calendar year, the 12 employer shall be entitled to claim the credit as calculated on the 13 annual final certificate of tax credit on the calendar year return for 14 which the annual final certificate of tax credit was issued. If the 15 qualified employer's taxable year is a fiscal year, the employer shall 16 be entitled to claim the credit as calculated on the annual final 17 certificate of tax credit on the return for the fiscal year that encom- 18 passes the date on which the annual final certificate of tax credit is 19 issued. For the purposes of this subdivision, the term "qualified 20 employee" shall have the same meaning as set forth in subdivision (b) of 21 section twenty-five-a of the labor law. 22 § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, 23 as added by section 17 of part A of chapter 59 of the laws of 2014, is 24 amended to read as follows: 25 (c) The taxpayer [may] shall be required to attach to its tax return 26 its annual final certificate of [eligibility] tax credit issued by the 27 commissioner of labor pursuant to section twenty-five-a of the labor 28 law. In no event shall the taxpayer be allowed a credit greater than the 29 amount of the credit listed on the annual final certificate of [eligi-30bility] tax credit. Notwithstanding any provision of this chapter to 31 the contrary, the commissioner and the commissioner's designees may 32 release the names and addresses of any taxpayer claiming this credit and 33 the amount of the credit earned by the taxpayer. Provided, however, if 34 a taxpayer claims this credit because it is a member of a limited 35 liability company or a partner in a partnership, only the amount of 36 credit earned by the entity and not the amount of credit claimed by the 37 taxpayer may be released. 38 § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 39 amended by section 3 of part AA of chapter 56 of the laws of 2015, is 40 amended to read as follows: 41 (1) A taxpayer that has been certified by the commissioner of labor as 42 a qualified employer pursuant to section twenty-five-a of the labor law 43 shall be allowed a credit against the tax imposed by this article equal 44 to (A) [five] seven hundred fifty dollars per month for up to six months 45 for each qualified employee the employer employs in a full-time job or 46 [two] three hundred [fifty] seventy-five dollars per month for up to six 47 months for each qualified employee the employer employs in a part-time 48 job of at least twenty hours per week or ten hours per week when the 49 qualified employee is enrolled in high school full-time, and (B) [one50thousand] fifteen hundred dollars for each qualified employee who is 51 employed for at least an additional six consecutive months by the quali- 52 fied employer in a full-time job or [five] seven hundred fifty dollars 53 for each qualified employee who is employed for at least an additional 54 six consecutive months by the qualified employer in a part-time job of 55 at least twenty hours per week or ten hours per week when the qualified 56 employee is enrolled in high school full-time, and (C) an additionalS. 7509--B 20 1 [one thousand] fifteen hundred dollars for each qualified employee who 2 is employed for at least an additional year after the [first year of the3employee's employment] completion of the time periods and satisfaction 4 of the conditions set forth in subparagraphs A and B of this subsection 5 by the qualified employer in a full-time job or [five] seven hundred 6 fifty dollars for each qualified employee who is employed for at least 7 an additional year after the [first year of the employee's employment] 8 completion of the time periods and satisfaction of the conditions set 9 forth in subparagraphs A and B of this subsection by the qualified 10 employer in a part-time job of at least twenty hours per week or ten 11 hours per week when the qualified employee is enrolled in high school 12 full-time. A taxpayer that is a partner in a partnership, member of a 13 limited liability company or shareholder in an S corporation that has 14 been certified by the commissioner of labor as a qualified employer 15 pursuant to section twenty-five-a of the labor law shall be allowed its 16 pro rata share of the credit earned by the partnership, limited liabil- 17 ity company or S corporation. For purposes of this subsection, the term 18 "qualified employee" shall have the same meaning as set forth in subdi- 19 vision (b) of section twenty-five-a of the labor law. The portion of the 20 credit described in subparagraph (A) of this paragraph shall be allowed 21 for the taxable year in which the wages are paid to the qualified 22 employee, the portion of the credit described in subparagraph (B) of 23 this paragraph shall be allowed in the taxable year in which the addi- 24 tional six month period ends, and the portion of the credit described in 25 subparagraph (C) of this paragraph shall be allowed in the taxable year 26 in which the additional year after the first year of employment ends. 27 § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 28 amended by section 7 of this act, is amended to read as follows: 29 (1) A taxpayer that has been certified by the commissioner of labor as 30 a qualified employer pursuant to section twenty-five-a of the labor law 31 and received an annual final certificate of tax credit from such commis- 32 sioner shall be allowed a credit against the tax imposed by this article 33 equal to [(A) seven hundred fifty dollars per month for up to six months34for each qualified employee the employer employs in a full-time job or35three hundred seventy-five dollars per month for up to six months for36each qualified employee the employer employs in a part-time job of at37least twenty hours per week or ten hours per week when the qualified38employee is enrolled in high school full-time, and (B) fifteen hundred39dollars for each qualified employee who is employed for at least an40additional six consecutive months by the qualified employer in a full-41time job or seven hundred fifty dollars for each qualified employee who42is employed for at least an additional six consecutive months by the43qualified employer in a part-time job of at least twenty hours per week44or ten hours per week when the qualified employee is enrolled in high45school full-time, and (C) an additional fifteen hundred dollars for each46qualified employee who is employed for at least an additional year after47the completion of the time periods and satisfaction of the conditions48set forth in subparagraphs A and B of this subsection by the qualified49employer in a full-time job or seven hundred fifty dollars for each50qualified employee who is employed for at least an additional year after51the completion of the time periods and satisfaction of the conditions52set forth in subparagraphs A and B of this subsection by the qualified53employer in a part-time job of at least twenty hours per week or ten54hours per week when the qualified employee is enrolled in high school55full-time] the amount listed on the annual final certificate of tax 56 credit issued by the commissioner of labor pursuant to section twenty-S. 7509--B 21 1 five-a of the labor law. A taxpayer that is a partner in a partnership, 2 member of a limited liability company or shareholder in an S corporation 3 that has [been certified by] received its annual final certificate of 4 tax credit from the commissioner of labor as a qualified employer pursu- 5 ant to section twenty-five-a of the labor law shall be allowed its pro 6 rata share of the credit earned by the partnership, limited liability 7 company or S corporation. [For purposes of this subsection, the term8"qualified employee" shall have the same meaning as set forth in subdi-9vision (b) of section twenty-five-a of the labor law. The portion of the10credit described in subparagraph (A) of this paragraph shall be allowed11for the taxable year in which the wages are paid to the qualified12employee, the portion of the credit described in subparagraph (B) of13this paragraph shall be allowed in the taxable year in which the addi-14tional six month period ends, and the portion of the credit described in15subparagraph (C) of this paragraph shall be allowed in the taxable year16in which the additional year after the first year of employment ends.] 17 If the qualified employer's taxable year is a calendar year, the employ- 18 er shall be entitled to claim the credit as calculated on the annual 19 final certificate of tax credit on the calendar year return for which 20 the annual final certificate of tax credit was issued. If the qualified 21 employer's taxable year is a fiscal year, the employer shall be entitled 22 to claim the credit as calculated on the annual final certificate of tax 23 credit on the return for the fiscal year that encompasses the date on 24 which the annual final certificate of tax credit is issued. For the 25 purposes of this subsection, the term "qualified employee" shall have 26 the same meaning as set forth in subdivision (b) of section 27 twenty-five-a of the labor law. 28 § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as 29 added by section 3 of part D of chapter 56 of the laws of 2011, is 30 amended to read as follows: 31 (3) The taxpayer [may] shall be required to attach to its tax return 32 its annual final certificate of [eligibility] tax credit issued by the 33 commissioner of labor pursuant to section twenty-five-a of the labor 34 law. In no event shall the taxpayer be allowed a credit greater than the 35 amount of the credit listed on the annual final certificate of [eligi-36bility] tax credit. Notwithstanding any provision of this chapter to the 37 contrary, the commissioner and the commissioner's designees may release 38 the names and addresses of any taxpayer claiming this credit and the 39 amount of the credit earned by the taxpayer. Provided, however, if a 40 taxpayer claims this credit because it is a member of a limited liabil- 41 ity company, a partner in a partnership, or a shareholder in a subchap- 42 ter S corporation, only the amount of credit earned by the entity and 43 not the amount of credit claimed by the taxpayer may be released. 44 § 10. This act shall take effect immediately, provided however that 45 (i) section one of this act shall apply to tax years beginning on or 46 after January 1, 2018; (ii) sections four and seven of this act shall 47 apply to tax years beginning on or after January 1, 2018 and before 48 January 1, 2019; and (iii) sections two, three, five, six, eight, and 49 nine of this act shall take effect January 1, 2019 and shall apply to 50 tax years beginning on or after January 1, 2019. 51 PART S 52 Intentionally Omitted 53 PART TS. 7509--B 22 1 Intentionally Omitted 2 PART U 3 Intentionally Omitted 4 PART V 5 Intentionally Omitted 6 PART W 7 Section 1. Subdivision (f) of section 1115 of the tax law, as amended 8 by chapter 205 of the laws of 1968, is amended to read as follows: 9 (f) (1) Services rendered by a veterinarian licensed and registered as 10 required by the education law which constitute the practice of veteri- 11 nary medicine as defined in said law, including hospitalization for 12 which no separate boarding charge is made, shall not be subject to tax 13 under paragraph (3) of subdivision (c) of section eleven hundred five, 14 but the exemption allowed by this subdivision shall not apply to other 15 services provided by a veterinarian to pets and other animals, includ- 16 ing, but not limited to, boarding, grooming and clipping. Articles of 17 tangible personal property designed for use in some manner relating to 18 domestic animals or poultry, when sold by such a veterinarian, shall not 19 be subject to tax under subdivision (a) of section eleven hundred five 20 or under section eleven hundred ten. However, the sale of any such arti- 21 cles of tangible personal property to a veterinarian shall not be deemed 22 a sale for resale within the meaning of [pargraph] paragraph (4) of 23 subdivision (b) of section eleven hundred one and shall not be exempt 24 from retail sales tax. 25 (2) Drugs or medicine sold to or used by a veterinarian for use in 26 rendering services that are exempt pursuant to paragraph one of this 27 subdivision to livestock or poultry used in the production for sale of 28 tangible personal property by farming, or sold to a person qualifying 29 for the exemption provided for in paragraph six of subdivision (a) of 30 this section for use by such person on such livestock or poultry. 31 § 2. Subdivision (a) of section 1119 of the tax law, as amended by 32 chapter 686 of the laws of 1986 and as further amended by section 15 of 33 part GG of chapter 63 of the laws of 2000, is amended to read as 34 follows: 35 (a) Subject to the conditions and limitations provided for herein, a 36 refund or credit shall be allowed for a tax paid pursuant to subdivision 37 (a) of section eleven hundred five or section eleven hundred ten (1) on 38 the sale or use of tangible personal property if the purchaser or user, 39 in the performance of a contract, later incorporates that tangible 40 personal property into real property located outside this state, (2) on 41 the sale or use of tangible personal property purchased in bulk, or any 42 portion thereof, which is stored and not used by the purchaser or user 43 within this state if that property is subsequently reshipped by such 44 purchaser or user to a point outside this state for use outside this 45 state, (3) on the sale to or use by a contractor or subcontractor of 46 tangible personal property if that property is used by him solely in the 47 performance of a pre-existing lump sum or unit price construction 48 contract, (4) on the sale or use within this state of tangible personal 49 property, not purchased for resale, if the use of such property in this 50 state is restricted to fabricating such property (including incorporat-S. 7509--B 23 1 ing it into or assembling it with other tangible personal property), 2 processing, printing or imprinting such property and such property is 3 then shipped to a point outside this state for use outside this state, 4 [(5) on the sale to or use by a veterinarian of drugs or medicine if5such drugs or medicine are used by such veterinarian in rendering6services, which are exempt pursuant to subdivision (f) of section eleven7hundred fifteen of this chapter, to livestock or poultry used in the8production for sale of tangible personal property by farming or if such9drugs or medicine are sold to a person qualifying for the exemption10provided for in paragraph (6) of subdivision (a) of section eleven11hundred fifteen of this chapter for use by such person on such livestock12or poultry,] or (6) on the sale of tangible personal property purchased 13 for use in constructing, expanding or rehabilitating industrial or 14 commercial real property (other than property used or to be used exclu- 15 sively by one or more registered vendors primarily engaged in the retail 16 sale of tangible personal property) located in an area designated as an 17 empire zone pursuant to article eighteen-B of the general municipal law, 18 but only to the extent that such property becomes an integral component 19 part of the real property. (For the purpose of clause (3) of the preced- 20 ing sentence, the term "pre-existing lump sum or unit price construction 21 contract" shall mean a contract for the construction of improvements to 22 real property under which the amount payable to the contractor or 23 subcontractor is fixed without regard to the costs incurred by him in 24 the performance thereof, and which (i) was irrevocably entered into 25 prior to the date of the enactment of this article or the enactment of a 26 law increasing the rate of tax imposed under this article, or (ii) 27 resulted from the acceptance by a governmental agency of a bid accompa- 28 nied by a bond or other performance guaranty which was irrevocably 29 submitted prior to such date.) Where the tax on the sale or use of such 30 tangible personal property has been paid to the vendor, to qualify for 31 such refund or credit, such tangible personal property must be incorpo- 32 rated into real property as required in clause (1) above, reshipped as 33 required in clause (2) above, used in the manner described in clauses 34 (3), (4)[, (5)] and (6) above within three years after the date such tax 35 was payable to the tax commission by the vendor pursuant to section 36 eleven hundred thirty-seven. Where the tax on the sale or use of such 37 tangible personal property was paid by the applicant for the credit or 38 refund directly to the tax commission, to qualify for such refund or 39 credit, such tangible personal property must be incorporated into real 40 property as required in clause (1) above, reshipped as required in 41 clause (2) above, used in the manner described in clauses (3), (4)[,42(5)] and (6) above within three years after the date such tax was paya- 43 ble to the tax commission by such applicant pursuant to this article. An 44 application for a refund or credit pursuant to this section must be 45 filed with such commission within the time provided by subdivision (a) 46 of section eleven hundred thirty-nine. Such application shall be in such 47 form as the tax commission may prescribe. Where an application for cred- 48 it has been filed, the applicant may immediately take such credit on the 49 return which is due coincident with or immediately subsequent to the 50 time that he files his application for credit. However, the taking of 51 the credit on the return shall be deemed to be part of the application 52 for credit and shall be subject to the provisions in respect to applica- 53 tions for credit in section eleven hundred thirty-nine as provided in 54 subdivision (e) of such section. With respect to a sale or use described 55 in clause (3) above where a pre-existing lump sum or unit price 56 construction contract was irrevocably entered into prior to the date ofS. 7509--B 24 1 the enactment of this article or the bid accompanied by the performance 2 guaranty was irrevocably submitted to the governmental agency prior to 3 such date, the purchaser or user shall be entitled to a refund or credit 4 only of the amount by which the tax on such sale or use imposed under 5 this article plus any tax imposed under the authority of article twen- 6 ty-nine exceeds the amount computed by applying against such sale or use 7 the local rate of tax, if any, in effect at the time such contract was 8 entered into or such bid was submitted. 9 In the case of the enactment of a law increasing the rate of tax 10 imposed by this article, the purchaser or user shall be entitled only to 11 a refund or credit of the amount by which the increased tax on such sale 12 or use imposed under this article plus any tax imposed under the author- 13 ity of article twenty-nine exceeds the amount computed by applying 14 against such sale or use the state and local rates of tax in effect at 15 the time such contract was entered into or such bid was submitted. 16 § 3. This act shall take effect June 1, 2018, and shall apply to sales 17 made and uses occurring on and after such date. 18 PART X 19 Section 1. Subdivision 1 of section 1131 of the tax law, as amended by 20 chapter 576 of the laws of 1994, is amended to read as follows: 21 (1) "Persons required to collect tax" or "person required to collect 22 any tax imposed by this article" shall include: every vendor of tangible 23 personal property or services; every recipient of amusement charges; and 24 every operator of a hotel. Said terms shall also include any officer, 25 director or employee of a corporation or of a dissolved corporation, any 26 employee of a partnership, any employee or manager of a limited liabil- 27 ity company, or any employee of an individual proprietorship who as such 28 officer, director, employee or manager is under a duty to act for such 29 corporation, partnership, limited liability company or individual 30 proprietorship in complying with any requirement of this article, or has 31 so acted; and any member of a partnership or limited liability company. 32 Provided, however, that any person who is a vendor solely by reason of 33 clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision 34 (b) of section eleven hundred one of this article shall not be a "person 35 required to collect any tax imposed by this article" until twenty days 36 after the date by which such person is required to file a certificate of 37 registration pursuant to section eleven hundred thirty-four of this 38 part. 39 § 2. Subdivision (a) of section 1133 of the tax law, as amended by 40 chapter 621 of the laws of 1967, is amended to read as follows: 41 (a) (1) Except as otherwise provided in paragraph two of this subdivi- 42 sion and in section eleven hundred thirty-seven of this part, every 43 person required to collect any tax imposed by this article shall be 44 personally liable for the tax imposed, collected or required to be 45 collected under this article. Any such person shall have the same right 46 in respect to collecting the tax from his customer or in respect to 47 nonpayment of the tax by the customer as if the tax were a part of the 48 purchase price of the property or service, amusement charge or rent, as 49 the case may be, and payable at the same time; provided, however, that 50 the tax commission shall be joined as a party in any action or proceed- 51 ing brought to collect the tax. 52 (2) Notwithstanding any other provision of this article: (i) The 53 commissioner shall grant the relief described in subparagraph (iii) of 54 this paragraph to a limited partner of a limited partnership (but not aS. 7509--B 25 1 partner of a limited liability partnership) or a member of a limited 2 liability company if such limited partner or member demonstrates to the 3 satisfaction of the commissioner that such limited partner's or member's 4 ownership interest and the percentage of the distributive share of the 5 profits and losses of such limited partnership or limited liability 6 company are each less than fifty percent, and such limited partner or 7 member was not under a duty to act for such limited partnership or 8 limited liability company in complying with any requirement of this 9 article. Provided, however, the commissioner may deny an application for 10 relief to any such limited partner or member who the commissioner finds 11 has acted on behalf of such limited partnership or limited liability 12 company in complying with any requirement of this article or has been 13 convicted of a crime provided in this chapter or who has a past-due 14 liability, as such term is defined in section one hundred seventy-one-v 15 of this chapter. 16 (ii) Such limited partner or member must submit an application for 17 relief, on a form prescribed by the commissioner, and the information 18 provided in such application must be true and complete in all material 19 respects. Providing materially false or fraudulent information on such 20 application shall disqualify such limited partner or member for the 21 relief described in subparagraph (iii) of this paragraph, shall void any 22 agreement with the commissioner with respect to such relief, and shall 23 result in such limited partner or member bearing strict liability for 24 the total amount of tax, interest and penalty owed by their respective 25 limited partnership or limited liability company pursuant to this subdi- 26 vision. 27 (iii) A limited partner of a limited partnership or member of a limit- 28 ed liability company, who meets the requirements set forth in this para- 29 graph and whose application for relief is approved by the commissioner, 30 shall be liable for the percentage of the original sales and use tax 31 liability of their respective limited partnership or limited liability 32 company that reflects such limited partner's or member's ownership 33 interest of distributive share of the profits and losses of such limited 34 partnership or limited liability company, whichever is higher. Such 35 original liability shall include any interest accrued thereon up to and 36 including the date of payment by such limited partner or member at the 37 underpayment rate set by the commissioner pursuant to section eleven 38 hundred forty-two of this part, and shall be reduced by the sum of any 39 payments made by (A) the limited partnership or limited liability compa- 40 ny; (B) any person required to collect tax not eligible for relief; and 41 (C) any person required to collect tax who was eligible for relief but 42 had not been approved for relief by the commissioner at the time such 43 payment was made. Provided, however, such limited partner or member 44 shall not be liable for any penalty owed by such limited partnership or 45 limited liability company or any other partner or member of such limited 46 partnership or limited liability company. Any payment made by a limited 47 partner or member pursuant to the provisions of this paragraph shall not 48 be credited against the liability of other limited partners or members 49 of their respective limited partnership or limited liability company who 50 are eligible for the same relief; provided, however that the sum of the 51 amounts owed by all of the persons required to collect tax of a limited 52 partnership or limited liability company shall not exceed the total 53 liability of such limited partnership or limited liability company. 54 § 3. This act shall take effect immediately. 55 PART YS. 7509--B 26 1 Intentionally Omitted 2 PART Z 3 Section 1. Section 2 of subpart R of part A of chapter 61 of the laws 4 of 2017, amending the tax law relating to extending the expiration of 5 the authorization to the county of Genesee to impose an additional one 6 percent of sales and compensating use taxes, is amended to read as 7 follows: 8 § 2. Notwithstanding any other provision of law to the contrary, the 9 one percent increase in sales and compensating use taxes authorized for 10 the county of Genesee until November 30, [2019] 2020 pursuant to clause 11 (20) of subparagraph (i) of the opening paragraph of section 1210 of the 12 tax law, as amended by section one of this act, shall be divided in the 13 same manner and proportion as the existing three percent sales and 14 compensating use taxes in such county are divided. 15 § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 16 2017, amending the tax law relating to the imposition of sales and 17 compensating use taxes by the county of Monroe, is amended to read as 18 follows: 19 § 2. Notwithstanding the provisions of subdivisions (b) and (c) of 20 section 1262 and section 1262-g of the tax law, net collections, as such 21 term is defined in section 1262 of the tax law, derived from the imposi- 22 tion of sales and compensating use taxes by the county of Monroe at the 23 additional rate of one percent as authorized pursuant to clause (25) of 24 subparagraph (i) of the opening paragraph of section 1210 of the tax 25 law, as amended by section one of this act, which are in addition to the 26 current net collections derived from the imposition of such taxes at the 27 three percent rate authorized by the opening paragraph of section 1210 28 of the tax law, shall be distributed and allocated as follows: for the 29 period of December 1, 2017 through November 30, [2019] 2020 in cash, 30 five percent to the school districts in the area of the county outside 31 the city of Rochester, three percent to the towns located within the 32 county, one and one-quarter percent to the villages located within the 33 county, and ninety and three-quarters percent to the city of Rochester 34 and county of Monroe. The amount of the ninety and three-quarters 35 percent to be distributed and allocated to the city of Rochester and 36 county of Monroe shall be distributed and allocated to each so that the 37 combined total distribution and allocation to each from the sales tax 38 revenues pursuant to sections 1262 and 1262-g of the tax law and this 39 section shall result in the same total amount being distributed and 40 allocated to the city of Rochester and county of Monroe. The amount so 41 distributed and allocated to the county shall be used for county 42 purposes. The foregoing cash payments to the school districts shall be 43 allocated on the basis of the enrolled public school pupils, thereof, as 44 such term is used in subdivision (b) of section 1262 of the tax law, 45 residing in the county of Monroe. The cash payments to the towns located 46 within the county of Monroe shall be allocated on the basis of the ratio 47 which the population of each town, exclusive of the population of any 48 village or portion thereof located within a town, bears to the total 49 population of the towns, exclusive of the population of the villages 50 located within such towns. The cash payments to the villages located 51 within the county shall be allocated on the basis of the ratio which the 52 population of each village bears to the total population of the villages 53 located within the county. The term population as used in this sectionS. 7509--B 27 1 shall have the same meaning as used in subdivision (b) of section 1262 2 of the tax law. 3 § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 4 2017, amending the tax law relating to extending the authorization of 5 the county of Onondaga to impose an additional rate of sales and compen- 6 sating use taxes, is amended to read as follows: 7 § 3. Notwithstanding any contrary provision of law, net collections 8 from the additional one percent rate of sales and compensating use taxes 9 which may be imposed by the county of Onondaga during the period 10 commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- 11 ant to the authority of section 1210 of the tax law, shall not be 12 subject to any revenue distribution agreement entered into under subdi- 13 vision (c) of section 1262 of the tax law, but shall be allocated and 14 distributed or paid, at least quarterly, as follows: (i) 1.58% to the 15 county of Onondaga for any county purpose; (ii) 97.79% to the city of 16 Syracuse; and (iii) .63% to the school districts in accordance with 17 subdivision (a) of section 1262 of the tax law. 18 § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 19 2017, amending the tax law relating to extending the authority of the 20 county of Orange to impose an additional rate of sales and compensating 21 use taxes, is amended to read as follows: 22 § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, 23 net collections from any additional rate of sales and compensating use 24 taxes which may be imposed by the county of Orange during the period 25 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- 26 ant to the authority of section 1210 of the tax law, shall be paid to 27 the county of Orange and shall be used by such county solely for county 28 purposes and shall not be subject to any revenue distribution agreement 29 entered into pursuant to the authority of subdivision (c) of section 30 1262 of the tax law. 31 § 5. This act shall take effect immediately and shall be deemed to 32 have been in full force and effect on June 29, 2017. 33 PART AA 34 Intentionally Omitted 35 PART BB 36 Intentionally Omitted 37 PART CC 38 Intentionally Omitted 39 PART DD 40 Intentionally Omitted 41 PART EE 42 Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel 43 wagering and breeding law, as amended by chapter 140 of the laws of 44 2008, is amended to read as follows: 45 1. In consideration of the franchise and in accordance with its fran- 46 chise agreement, the franchised corporation shall remit to the state,S. 7509--B 28 1 each year, no later than April fifth, a franchise fee payment. The fran- 2 chise fee shall be calculated and equal to the lesser of paragraph (a) 3 or (b) of this subdivision as follows: (a) adjusted net income, includ- 4 ing all sources of audited generally accepted accounting principles net 5 income as of December thirty-first (i) plus the amount of depreciation 6 and amortization for such year as set forth on the statement of cash 7 flows (ii) less the amount received by the franchised corporation for 8 capital expenditures and (iii) less principal payments made for the 9 repayment of debt; or (b) operating cash which is defined as cash avail- 10 able on December thirty-first (i) which excludes all restricted cash 11 accounts, segregated accounts as per audited financial statements and 12 cash on hand needed to fund the on-track pari-mutuel operations through 13 the vault, (ii) less [forty-five] three hundred sixty-five days of oper- 14 ating expenses pursuant to generally accepted accounting principles 15 which shall be an average calculated by dividing the current year's 16 annual budget by the number of days in such year and multiplying that 17 number by [forty-five] three hundred sixty-five. 18 § 2. Section 203 of the racing, pari-mutuel wagering and breeding law, 19 as amended by chapter 18 of the laws of 2008, is amended to read as 20 follows: 21 § 203. Right to hold race meetings and races. 1. Any corporation 22 formed under the provisions of this article, if so claimed in its 23 certificate of organization, and if it shall comply with all the 24 provisions of this article, and any other corporation entitled to the 25 benefits and privileges of this article as hereinafter provided, shall 26 have the power and the right to hold one or more running race meetings 27 in each year, and to hold, maintain and conduct running races at such 28 meetings. At such running race meetings the corporation, or the owners 29 of horses engaged in such races, or others who are not participants in 30 the race, may contribute purses, prizes, premiums or stakes to be 31 contested for, but no person or persons other than the owner or owners 32 of a horse or horses contesting in a race shall have any pecuniary 33 interest in a purse, prize, premium or stake contested for in such race, 34 or be entitled to or receive any portion thereof after such race is 35 finished, and the whole of such purse, prize, premium or stake shall be 36 allotted in accordance with the terms and conditions of such race. Races 37 conducted by a franchised corporation shall be permitted only between 38 sunrise and sunset. 39 2. Notwithstanding any other provision of law to the contrary, a fran- 40 chised corporation shall be permitted to conduct races after sunset at 41 the Belmont Park racetrack, only on the main track in its current 42 configuration, only if such races conclude before half past ten o' clock 43 post meridian, and only if such races occur on Thursdays, Fridays or 44 Saturdays. The franchised corporation shall coordinate with a harness 45 racing association or corporation authorized to operate in Westchester 46 county to ensure that the starting times of all such races are stag- 47 gered. 48 3. A track first licensed after January first, nineteen hundred nine- 49 ty, shall not conduct the simulcasting of thoroughbred races within 50 district one, in accordance with article ten of this chapter on days 51 that a franchised corporation is not conducting a race meeting. In no 52 event shall thoroughbred races conducted by a track first licensed after 53 January first, nineteen hundred ninety be conducted after eight o'clock 54 post meridian. 55 § 3. An advisory committee shall be established by the governor 56 comprised of individuals with demonstrated interest in the performanceS. 7509--B 29 1 of thoroughbred and standardbred race horses to review the present 2 structure, operations and funding of equine drug testing and research 3 conducted pursuant to article nine of the racing, pari-mutuel wagering 4 and breeding law. At a minimum, the advisory committee established 5 pursuant to this section shall include among its membership: the presi- 6 dent or executive director of a horsemen's organization representing at 7 least fifty-one percent of the owners and trainers utilizing the facili- 8 ties of the franchised corporation; the president or executive director 9 of the statewide thoroughbred breeders association representing the 10 majority of breeders of registered thoroughbreds in New York state; the 11 president or executive director of a horsemen's organization represent- 12 ing at least fifty-one percent of the owners and trainers utilizing a 13 facility licensed to conduct racing pursuant to article three of the 14 racing, pari-mutuel wagering and breeding law; the president or execu- 15 tive director of the statewide Standardbred breeders association repres- 16 enting the majority of breeders of registered Standardbreds in New York 17 state; a representative of the franchised corporation established pursu- 18 ant to section two hundred six of the racing, pari-mutuel wagering and 19 breeding law; a representative of a corporation licensed to conduct 20 racing pursuant to article two of the racing, pari-mutuel wagering and 21 breeding law that is not a franchised corporation; two representatives 22 from separate corporations licensed to conduct racing pursuant to arti- 23 cle three of the racing, pari-mutuel wagering and breeding law; and a 24 representative from a state college within this state with an approved 25 equine science program. Recommendations shall be delivered to the 26 temporary president of the Senate, speaker of the Assembly and Governor 27 by December 1, 2018 regarding the future of such research, testing and 28 funding. Members of the board shall not be considered policymakers. 29 § 4. This act shall take effect immediately; provided, however, that 30 the amendments to section 203 of the racing, pari-mutuel wagering and 31 breeding law made by section two of this act shall expire and be deemed 32 repealed 4 years after the first night of racing conducted after sunset 33 pursuant to this act; provided that the New York Racing Association 34 shall notify the legislative bill drafting commission of the date of 35 such night of racing in order that the commission may maintain an accu- 36 rate and timely effective data base of the official text of the laws of 37 the state of New York in furtherance of effectuating the provisions of 38 section 44 of the legislative law and section 70-b of the public offi- 39 cers law. 40 PART FF 41 Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel 42 wagering and breeding law is amended by adding a new paragraph h to read 43 as follows: 44 h. An amount as shall be determined by the fund, but not in excess of 45 three percent, to support and promote the ongoing care of retired New 46 York-bred horses in a manner that is consistent with rules adopted by 47 the fund, provided, however, that the fund shall not be required to make 48 any allocation for such purposes. 49 § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering 50 and breeding law is amended by adding a new paragraph j to read as 51 follows: 52 j. An amount as shall be determined by the fund, but not in excess of 53 three percent, to support and promote the ongoing care of retired New 54 York-bred horses in a manner that is consistent with rules adopted byS. 7509--B 30 1 the fund, provided, however, that the fund shall not be required to make 2 any allocation for such purposes. 3 § 3. This act shall take effect immediately. 4 PART GG 5 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 6 racing, pari-mutuel wagering and breeding law, as amended by section 1 7 of part OO of chapter 59 of the laws of 2017, is amended to read as 8 follows: 9 (a) Any racing association or corporation or regional off-track 10 betting corporation, authorized to conduct pari-mutuel wagering under 11 this chapter, desiring to display the simulcast of horse races on which 12 pari-mutuel betting shall be permitted in the manner and subject to the 13 conditions provided for in this article may apply to the commission for 14 a license so to do. Applications for licenses shall be in such form as 15 may be prescribed by the commission and shall contain such information 16 or other material or evidence as the commission may require. No license 17 shall be issued by the commission authorizing the simulcast transmission 18 of thoroughbred races from a track located in Suffolk county. The fee 19 for such licenses shall be five hundred dollars per simulcast facility 20 and for account wagering licensees that do not operate either a simul- 21 cast facility that is open to the public within the state of New York or 22 a licensed racetrack within the state, twenty thousand dollars per year 23 payable by the licensee to the commission for deposit into the general 24 fund. Except as provided in this section, the commission shall not 25 approve any application to conduct simulcasting into individual or group 26 residences, homes or other areas for the purposes of or in connection 27 with pari-mutuel wagering. The commission may approve simulcasting into 28 residences, homes or other areas to be conducted jointly by one or more 29 regional off-track betting corporations and one or more of the follow- 30 ing: a franchised corporation, thoroughbred racing corporation or a 31 harness racing corporation or association; provided (i) the simulcasting 32 consists only of those races on which pari-mutuel betting is authorized 33 by this chapter at one or more simulcast facilities for each of the 34 contracting off-track betting corporations which shall include wagers 35 made in accordance with section one thousand fifteen, one thousand 36 sixteen and one thousand seventeen of this article; provided further 37 that the contract provisions or other simulcast arrangements for such 38 simulcast facility shall be no less favorable than those in effect on 39 January first, two thousand five; (ii) that each off-track betting 40 corporation having within its geographic boundaries such residences, 41 homes or other areas technically capable of receiving the simulcast 42 signal shall be a contracting party; (iii) the distribution of revenues 43 shall be subject to contractual agreement of the parties except that 44 statutory payments to non-contracting parties, if any, may not be 45 reduced; provided, however, that nothing herein to the contrary shall 46 prevent a track from televising its races on an irregular basis primari- 47 ly for promotional or marketing purposes as found by the commission. For 48 purposes of this paragraph, the provisions of section one thousand thir- 49 teen of this article shall not apply. Any agreement authorizing an 50 in-home simulcasting experiment commencing prior to May fifteenth, nine- 51 teen hundred ninety-five, may, and all its terms, be extended until June 52 thirtieth, two thousand [eighteen] nineteen; provided, however, that any 53 party to such agreement may elect to terminate such agreement upon 54 conveying written notice to all other parties of such agreement at leastS. 7509--B 31 1 forty-five days prior to the effective date of the termination, via 2 registered mail. Any party to an agreement receiving such notice of an 3 intent to terminate, may request the commission to mediate between the 4 parties new terms and conditions in a replacement agreement between the 5 parties as will permit continuation of an in-home experiment until June 6 thirtieth, two thousand [eighteen] nineteen; and (iv) no in-home simul- 7 casting in the thoroughbred special betting district shall occur without 8 the approval of the regional thoroughbred track. 9 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 10 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 11 section 2 of part OO of chapter 59 of the laws of 2017, is amended to 12 read as follows: 13 (iii) Of the sums retained by a receiving track located in Westchester 14 county on races received from a franchised corporation, for the period 15 commencing January first, two thousand eight and continuing through June 16 thirtieth, two thousand [eighteen] nineteen, the amount used exclusively 17 for purses to be awarded at races conducted by such receiving track 18 shall be computed as follows: of the sums so retained, two and one-half 19 percent of the total pools. Such amount shall be increased or decreased 20 in the amount of fifty percent of the difference in total commissions 21 determined by comparing the total commissions available after July twen- 22 ty-first, nineteen hundred ninety-five to the total commissions that 23 would have been available to such track prior to July twenty-first, 24 nineteen hundred ninety-five. 25 § 3. The opening paragraph of subdivision 1 of section 1014 of the 26 racing, pari-mutuel wagering and breeding law, as amended by section 3 27 of part OO of chapter 59 of the laws of 2017, is amended to read as 28 follows: 29 The provisions of this section shall govern the simulcasting of races 30 conducted at thoroughbred tracks located in another state or country on 31 any day during which a franchised corporation is conducting a race meet- 32 ing in Saratoga county at Saratoga thoroughbred racetrack until June 33 thirtieth, two thousand [eighteen] nineteen and on any day regardless of 34 whether or not a franchised corporation is conducting a race meeting in 35 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, 36 two thousand [eighteen] nineteen. On any day on which a franchised 37 corporation has not scheduled a racing program but a thoroughbred racing 38 corporation located within the state is conducting racing, every off- 39 track betting corporation branch office and every simulcasting facility 40 licensed in accordance with section one thousand seven (that have 41 entered into a written agreement with such facility's representative 42 horsemen's organization, as approved by the commission), one thousand 43 eight, or one thousand nine of this article shall be authorized to 44 accept wagers and display the live simulcast signal from thoroughbred 45 tracks located in another state or foreign country subject to the 46 following provisions: 47 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 48 and breeding law, as amended by section 4 of part OO of chapter 59 of 49 the laws of 2017, is amended to read as follows: 50 1. The provisions of this section shall govern the simulcasting of 51 races conducted at harness tracks located in another state or country 52 during the period July first, nineteen hundred ninety-four through June 53 thirtieth, two thousand [eighteen] nineteen. This section shall super- 54 sede all inconsistent provisions of this chapter. 55 § 5. The opening paragraph of subdivision 1 of section 1016 of the 56 racing, pari-mutuel wagering and breeding law, as amended by section 5S. 7509--B 32 1 of part OO of chapter 59 of the laws of 2017, is amended to read as 2 follows: 3 The provisions of this section shall govern the simulcasting of races 4 conducted at thoroughbred tracks located in another state or country on 5 any day during which a franchised corporation is not conducting a race 6 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 7 thirtieth, two thousand [eighteen] nineteen. Every off-track betting 8 corporation branch office and every simulcasting facility licensed in 9 accordance with section one thousand seven that have entered into a 10 written agreement with such facility's representative horsemen's organ- 11 ization as approved by the commission, one thousand eight or one thou- 12 sand nine of this article shall be authorized to accept wagers and 13 display the live full-card simulcast signal of thoroughbred tracks 14 (which may include quarter horse or mixed meetings provided that all 15 such wagering on such races shall be construed to be thoroughbred races) 16 located in another state or foreign country, subject to the following 17 provisions; provided, however, no such written agreement shall be 18 required of a franchised corporation licensed in accordance with section 19 one thousand seven of this article: 20 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 21 wagering and breeding law, as amended by section 6 of part OO of chapter 22 59 of the laws of 2017, is amended to read as follows: 23 Notwithstanding any other provision of this chapter, for the period 24 July twenty-fifth, two thousand one through September eighth, two thou- 25 sand [seventeen] eighteen, when a franchised corporation is conducting a 26 race meeting within the state at Saratoga Race Course, every off-track 27 betting corporation branch office and every simulcasting facility 28 licensed in accordance with section one thousand seven (that has entered 29 into a written agreement with such facility's representative horsemen's 30 organization as approved by the commission), one thousand eight or one 31 thousand nine of this article shall be authorized to accept wagers and 32 display the live simulcast signal from thoroughbred tracks located in 33 another state, provided that such facility shall accept wagers on races 34 run at all in-state thoroughbred tracks which are conducting racing 35 programs subject to the following provisions; provided, however, no such 36 written agreement shall be required of a franchised corporation licensed 37 in accordance with section one thousand seven of this article. 38 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 39 racing, pari-mutuel wagering and breeding law and other laws relating to 40 simulcasting, as amended by section 7 of part OO of chapter 59 of the 41 laws of 2017, is amended to read as follows: 42 § 32. This act shall take effect immediately and the pari-mutuel tax 43 reductions in section six of this act shall expire and be deemed 44 repealed on July 1, [2018] 2019; provided, however, that nothing 45 contained herein shall be deemed to affect the application, qualifica- 46 tion, expiration, or repeal of any provision of law amended by any 47 section of this act, and such provisions shall be applied or qualified 48 or shall expire or be deemed repealed in the same manner, to the same 49 extent and on the same date as the case may be as otherwise provided by 50 law; provided further, however, that sections twenty-three and twenty- 51 five of this act shall remain in full force and effect only until May 1, 52 1997 and at such time shall be deemed to be repealed. 53 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 54 racing, pari-mutuel wagering and breeding law and other laws relating to 55 simulcasting and the imposition of certain taxes, as amended by sectionS. 7509--B 33 1 8 of part OO of chapter 59 of the laws of 2017, is amended to read as 2 follows: 3 § 54. This act shall take effect immediately; provided, however, 4 sections three through twelve of this act shall take effect on January 5 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 6 ing law, as added by section thirty-eight of this act, shall expire and 7 be deemed repealed on July 1, [2018] 2019; and section eighteen of this 8 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 9 two of this act shall take effect as of the same date as chapter 772 of 10 the laws of 1989 took effect. 11 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 12 pari-mutuel wagering and breeding law, as amended by section 9 of part 13 OO of chapter 59 of the laws of 2017, is amended to read as follows: 14 (a) The franchised corporation authorized under this chapter to 15 conduct pari-mutuel betting at a race meeting or races run thereat shall 16 distribute all sums deposited in any pari-mutuel pool to the holders of 17 winning tickets therein, provided such tickets be presented for payment 18 before April first of the year following the year of their purchase, 19 less an amount which shall be established and retained by such fran- 20 chised corporation of between twelve to seventeen per centum of the 21 total deposits in pools resulting from on-track regular bets, and four- 22 teen to twenty-one per centum of the total deposits in pools resulting 23 from on-track multiple bets and fifteen to twenty-five per centum of the 24 total deposits in pools resulting from on-track exotic bets and fifteen 25 to thirty-six per centum of the total deposits in pools resulting from 26 on-track super exotic bets, plus the breaks. The retention rate to be 27 established is subject to the prior approval of the gaming commission. 28 Such rate may not be changed more than once per calendar quarter to be 29 effective on the first day of the calendar quarter. "Exotic bets" and 30 "multiple bets" shall have the meanings set forth in section five 31 hundred nineteen of this chapter. "Super exotic bets" shall have the 32 meaning set forth in section three hundred one of this chapter. For 33 purposes of this section, a "pick six bet" shall mean a single bet or 34 wager on the outcomes of six races. The breaks are hereby defined as the 35 odd cents over any multiple of five for payoffs greater than one dollar 36 five cents but less than five dollars, over any multiple of ten for 37 payoffs greater than five dollars but less than twenty-five dollars, 38 over any multiple of twenty-five for payoffs greater than twenty-five 39 dollars but less than two hundred fifty dollars, or over any multiple of 40 fifty for payoffs over two hundred fifty dollars. Out of the amount so 41 retained there shall be paid by such franchised corporation to the 42 commissioner of taxation and finance, as a reasonable tax by the state 43 for the privilege of conducting pari-mutuel betting on the races run at 44 the race meetings held by such franchised corporation, the following 45 percentages of the total pool for regular and multiple bets five per 46 centum of regular bets and four per centum of multiple bets plus twenty 47 per centum of the breaks; for exotic wagers seven and one-half per 48 centum plus twenty per centum of the breaks, and for super exotic bets 49 seven and one-half per centum plus fifty per centum of the breaks. For 50 the period June first, nineteen hundred ninety-five through September 51 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 52 three per centum and such tax on multiple wagers shall be two and one- 53 half per centum, plus twenty per centum of the breaks. For the period 54 September tenth, nineteen hundred ninety-nine through March thirty- 55 first, two thousand one, such tax on all wagers shall be two and six- 56 tenths per centum and for the period April first, two thousand oneS. 7509--B 34 1 through December thirty-first, two thousand [eighteen] nineteen, such 2 tax on all wagers shall be one and six-tenths per centum, plus, in each 3 such period, twenty per centum of the breaks. Payment to the New York 4 state thoroughbred breeding and development fund by such franchised 5 corporation shall be one-half of one per centum of total daily on-track 6 pari-mutuel pools resulting from regular, multiple and exotic bets and 7 three per centum of super exotic bets provided, however, that for the 8 period September tenth, nineteen hundred ninety-nine through March thir- 9 ty-first, two thousand one, such payment shall be six-tenths of one per 10 centum of regular, multiple and exotic pools and for the period April 11 first, two thousand one through December thirty-first, two thousand 12 [eighteen] nineteen, such payment shall be seven-tenths of one per 13 centum of such pools. 14 § 10. This act shall take effect immediately. 15 PART HH 16 Intentionally Omitted 17 PART II 18 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision 19 b of section 1612 of the tax law are REPEALED and a new subparagraph 20 (ii) is added to read as follows: 21 (ii) less a vendor's fee the amount of which is to be paid for serving 22 as a lottery agent to the track operator of a vendor track or the opera- 23 tor of any other video lottery gaming facility authorized pursuant to 24 section sixteen hundred seventeen-a of this article: 25 (A) when a vendor track is located within development zone one as 26 defined by section thirteen hundred ten of the racing, pari-mutuel 27 wagering and breeding law, at a rate of thirty-nine and one-half percent 28 of the total revenue wagered at the vendor track after payout for prizes 29 pursuant to this chapter; 30 (B) when a vendor track is located within development zone two as 31 defined by section thirteen hundred ten of the racing, pari-mutuel 32 wagering and breeding law, at a rate of forty-three and one-half percent 33 of the total revenue wagered at the vendor track after payout for prizes 34 pursuant to this chapter; provided, however, at a vendor track located 35 within fifteen miles of a destination resort gaming facility authorized 36 pursuant to article thirteen of the racing, pari-mutuel wagering and 37 breeding law shall receive a vendor fee at a rate of fifty-one percent 38 of the total revenue wagered at the vendor track after payout for prizes 39 pursuant to this chapter; and that at a vendor track located within 40 forty miles of a Native American class III gaming facility as defined in 41 25 U.S.C. § 2703 (8) shall receive a vendor fee at a rate of fifty-six 42 percent of the total revenue wagered at the vendor track after payout 43 for prizes pursuant to this chapter; 44 (C) when a video lottery facility is operated at Aqueduct racetrack, 45 at a rate of forty-seven percent of the total revenue wagered at the 46 video lottery gaming facility after payout for prizes pursuant to this 47 chapter; provided, however, upon the earlier of the designation of one 48 thousand video lottery devices as hosted pursuant to paragraph four of 49 subdivision a of section sixteen hundred seventeen-a of this article or 50 April first, two thousand nineteen, such rate shall be fifty percent of 51 the total revenue wagered at the video lottery gaming facility after 52 payout for prizes pursuant to this chapter;S. 7509--B 35 1 (D) when a video lottery gaming facility is located in either Nassau 2 or Suffolk counties and is operated by a corporation established pursu- 3 ant to section five hundred two of the racing, pari-mutuel wagering and 4 breeding law, at a rate of forty-five percent of the total revenue 5 wagered at the video lottery gaming facility after payout for prizes 6 pursuant to this chapter; 7 (E) notwithstanding any provision of law to the contrary, when a 8 vendor track is located within region one or two of development zone 9 two, as such zone is defined in section thirteen hundred ten of the 10 racing, pari-mutuel wagering and breeding law, or is located within 11 region six of such development zone two and is located within Ontario 12 county, such vendor track shall be entitled to receive an additional 13 commission. The additional commission received by the vendor track 14 shall be calculated pursuant to subclause (I) of this clause. 15 (I) The additional commission is a percentage of the total revenue 16 wagered at the vendor track after payout for prizes pursuant to this 17 chapter. That percentage is calculated by subtracting the effective tax 18 rate on all gross gaming revenue paid by a gaming facility within the 19 same region as the vendor track from the education percentage. The 20 education percentage is ninety percent less the percentage of the vendor 21 track's vendor fee. For purposes of this clause, Seneca and Wayne coun- 22 ties shall be deemed to be located within region six of development zone 23 two. 24 (II) The additional commission paid pursuant to this subparagraph 25 shall be paid to a vendor track no later than sixty days after the close 26 of the fiscal year. The additional commission authorized by this clause 27 shall only be applied to revenue wagered at a vendor track while a 28 gaming facility in the same region as that vendor track is open and 29 operating pursuant to an operation certificate issued pursuant to 30 section thirteen hundred thirty-one of the racing, pari-mutuel wagering 31 and breeding law. 32 (F) notwithstanding any provision of law to the contrary, when a 33 vendor track is located within forty miles of a Native American class 34 III gaming facility as defined in 25 U.S.C. § 2703 (8), such vendor 35 track shall be entitled to receive an additional hold harmless commis- 36 sion. The additional hold harmless commission received by the vendor 37 track shall be calculated pursuant to subclause (I) of this clause. 38 (I) The additional hold harmless commission payable for any fiscal 39 year shall be an amount equal to the base vendor commission less the 40 current vendor fee. The base vendor commission is calculated by adding 41 together the vendor fee, marketing allowance, and vendor capital award, 42 that the facility received during the twelve-month period immediately 43 preceding June first, two thousand fifteen. For the purposes of this 44 calculation, a vendor fee shall exclude any distributions required by 45 paragraph two of this subdivision. 46 (II) The additional hold harmless commission paid pursuant to this 47 subparagraph shall be paid to a vendor track no later than sixty days 48 after the close of the fiscal year. The additional hold harmless commis- 49 sion authorized by this clause shall only be applied to revenue wagered 50 on and after April first, two thousand eighteen at a vendor track while 51 the Native American class III gaming facility as defined in 25 U.S.C. § 52 2703 (8) within forty miles of that vendor track is open and operating. 53 (G) notwithstanding any provision of law to the contrary, any opera- 54 tors of a vendor track or the operators of any other video lottery 55 gaming facility eligible to receive a capital award as of December thir- 56 ty-first, two thousand seventeen shall deposit from their vendor feeS. 7509--B 36 1 into a segregated account an amount equal to four percent of the first 2 sixty-two million five hundred thousand dollars of revenue wagered at 3 the vendor track after payout for prizes pursuant to this chapter to be 4 used exclusively for capital investments, except for Aqueduct, which 5 shall deposit into a segregated account an amount equal to one percent 6 of all revenue wagered at the video lottery gaming facility after payout 7 for prizes pursuant to this chapter until the earlier of the designation 8 of one thousand video lottery devices as hosted pursuant to paragraph 9 four of subdivision a of section sixteen hundred seventeen-a of this 10 article or April first, two thousand nineteen, when at such time four 11 percent of all revenue wagered at the video lottery gaming facility 12 after payout for prizes pursuant to this chapter shall be deposited into 13 a segregated account for capital investments. Vendor tracks and video 14 lottery gaming facilities shall be permitted to withdraw funds for 15 projects approved by the commission to improve the facilities of the 16 vendor track or video lottery gaming facility which enhance or maintain 17 the video lottery gaming facility including, but not limited to hotels, 18 other lodging facilities, entertainment facilities, retail facilities, 19 dining facilities, events arenas, parking garages and other improvements 20 and amenities customary to a gaming facility, provided, however, the 21 vendor tracks and video lottery gaming facilities shall be permitted to 22 withdraw funds for unreimbursed capital awards approved prior to the 23 effective date of this subparagraph. Any proceeds from the divestiture 24 of any assets acquired through these capital funds or any prior capital 25 award must be deposited into this segregated account, provided that if 26 the vendor track or video lottery gaming facility ceases use of such 27 asset for gaming purposes or transfers the asset to a related party, 28 such vendor track or video lottery gaming facility shall deposit an 29 amount equal to the fair market value of that asset into the account. In 30 the event a vendor track or video lottery gaming facility ceases gaming 31 operations, any balance in the account along with an amount equal to the 32 value of all remaining assets acquired through this fund or prior capi- 33 tal awards shall be returned to the state for deposit into the state 34 lottery fund for education aid, except for Aqueduct, which shall return 35 to the state for deposit into the state lottery fund for education aid 36 all amounts in excess of the amount needed to fund a project pursuant to 37 an agreement with the operator to construct an expansion of the facili- 38 ty, hotel, and convention and exhibition space requiring a minimum capi- 39 tal investment of three hundred million dollars and any subsequent 40 amendments to such agreement. The comptroller or his legally authorized 41 representative is authorized to audit any and all expenditures made out 42 of these segregated capital accounts. Notwithstanding the preceding, a 43 vendor track located in Ontario county may withdraw up to two million 44 dollars from this account for the purpose of constructing a turf course 45 at the vendor track. 46 (H) Notwithstanding any provision of law to the contrary, free play 47 allowance credits authorized by the division pursuant to subdivision f 48 of section sixteen hundred seventeen-a of this article shall not be 49 included in the calculation of the total amount wagered on video lottery 50 games, the total amount wagered after payout of prizes, the vendor fees 51 payable to the operators of video lottery gaming facilities, fees paya- 52 ble to the division's video lottery gaming equipment contractors, or 53 racing support payments. 54 (I) Notwithstanding any provision of law to the contrary, the operator 55 of a vendor track or the operator of any other video lottery gaming 56 facility shall fund a marketing and promotion program out of theS. 7509--B 37 1 vendor's fee. Each operator shall submit an annual marketing plan for 2 the review and approval of the commission and any other required docu- 3 ments detailing promotional activities as prescribed by the commission. 4 The commission shall have the right to reject any advertisement or 5 promotion that does not properly represent the mission or interests of 6 the lottery or its programs. 7 (J) Notwithstanding clause (G) of this subparagraph, the commission 8 shall be able to authorize a vendor track located within Oneida county, 9 within fifteen miles of a Native American class III gaming facility, and 10 who has maintained at least ninety percent of full-time equivalent 11 employees as they employed in the year two thousand sixteen, to withdraw 12 funds from the segregated account established in clause (G) of this 13 subparagraph up to an amount equal to four percent of the total revenue 14 wagered at the vendor track after payout for prizes pursuant to this 15 chapter each year, for operations. 16 § 2. This act shall take effect immediately; provided, however, clause 17 (J) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 18 of the tax law as added by section one of this act shall expire and be 19 deemed repealed June 29, 2019. 20 PART JJ 21 Section 1. Subsection (a) of section 614 of the tax law, as amended by 22 chapter 170 of the laws of 1994, is amended to read as follows: 23 (a) Unmarried individual. For taxable years beginning after nineteen 24 hundred ninety-six, the New York standard deduction of a resident indi- 25 vidual who is not married nor the head of a household nor a surviving 26 spouse nor an individual [whose federal exemption amount is zero] who is 27 claimed as a dependent by another New York state taxpayer shall be seven 28 thousand five hundred dollars; for taxable years beginning in nineteen 29 hundred ninety-six, such standard deduction shall be seven thousand four 30 hundred dollars; for taxable years beginning in nineteen hundred nine- 31 ty-five, such standard deduction shall be six thousand six hundred 32 dollars; and for taxable years beginning after nineteen hundred eighty- 33 nine and before nineteen hundred ninety-five, such standard deduction 34 shall be six thousand dollars. 35 § 2. Section 612 of the tax law is amended by adding two new 36 subsections (w) and (x) to read as follows: 37 (w) Alimony modifications. (1) In the case of applicable alimony or 38 separate maintenance payments, the following modifications shall apply: 39 (A) There shall be subtracted from federal adjusted gross income any 40 applicable alimony or separate maintenance payments made by the taxpayer 41 during the taxable year. 42 (B) There shall be added to federal adjusted gross income any applica- 43 ble alimony or separate maintenance payments received by the taxpayer 44 during the taxable year. 45 (2) (A) The term "alimony or separate maintenance payments" means 46 payments as defined under section seventy-one of the internal revenue 47 code in effect immediately prior to the enactment of Public Law 115-97. 48 (B) The term "applicable alimony or separate maintenance payments" 49 means payments made under an alimony or separation instrument (as 50 defined in section seventy-one of the internal revenue code in effect 51 immediately prior to the enactment of Public Law 115-97) that was 52 executed after December thirty-first, two thousand eighteen, and any 53 divorce or separation instrument executed on or before such date andS. 7509--B 38 1 modified after such date if the modification expressly provides that the 2 amendments made by this section apply to such modification. 3 (x) Qualified moving expense reimbursement and moving expenses. (1) In 4 the case of applicable qualified moving expense reimbursement and moving 5 expenses, the following modifications shall apply: 6 (A) There shall be subtracted from federal adjusted gross income any 7 applicable qualified moving expense reimbursement received by the 8 taxpayer during the taxable year. 9 (B) There shall be subtracted from federal adjusted gross income any 10 applicable moving expenses paid by the taxpayer during the taxable year. 11 (2) Applicable qualified moving expense reimbursement and moving 12 expenses are those deductions as allowed by paragraph (g) of sections 13 one hundred thirty-two and section two hundred seventeen, respectfully, 14 of the internal revenue code immediately prior to the enactment of 15 Public Law 115-97. 16 § 3. Subsection (a) of section 615 of the tax law, as amended by 17 section 1 of part HH of chapter 57 of the laws of 2010, is amended to 18 read as follows: 19 (a) General. If federal taxable income of a resident individual is 20 determined by itemizing deductions or claiming the federal standard 21 deduction from his or her federal adjusted gross income, he or she may 22 elect to deduct his or her New York itemized deduction [in lieu of] or 23 claim his or her New York standard deduction. The New York itemized 24 deduction of a resident individual means the total amount of his or her 25 deductions from federal adjusted gross income allowed, other than feder- 26 al deductions for personal exemptions, as provided in the laws of the 27 United States for the taxable year, as such deductions existed imme- 28 diately prior to the enactment of Public Law 115-97 with the modifica- 29 tions specified in this section, except as provided for under 30 subsections (f) and (g) of this section. 31 § 4. Subdivision (a) of section 11-1714 of the administrative code of 32 the city of New York, as amended by chapter 170 of the laws of 1994, is 33 amended to read as follows: 34 (a) Unmarried individual. For taxable years beginning after nineteen 35 hundred ninety-six, the city standard deduction of a city resident indi- 36 vidual who is not married nor the head of a household nor a surviving 37 spouse nor an individual [whose federal exemption amount is zero] who is 38 claimed as a dependent by another New York state taxpayer shall be seven 39 thousand five hundred dollars; for taxable years beginning in nineteen 40 hundred ninety-six, such standard deduction shall be seven thousand four 41 hundred dollars; for taxable years beginning in nineteen hundred nine- 42 ty-five, such standard deduction shall be six thousand six hundred 43 dollars; and for taxable years beginning after nineteen hundred eighty- 44 nine and before nineteen hundred ninety-five, such standard deduction 45 shall be six thousand dollars. 46 § 5. Section 11-1712 of the administrative code of the city of New 47 York is amended by adding two new subdivisions (u) and (v) to read as 48 follows: 49 (u) Alimony modifications. (1) In the case of applicable alimony or 50 separate maintenance payments, the following modifications shall apply: 51 (A) There shall be subtracted from federal adjusted gross income any 52 applicable alimony or separate maintenance payments made by the taxpayer 53 during the taxable year. 54 (B) There shall be added to federal adjusted gross income any applica- 55 ble alimony or separate maintenance payments received by the taxpayer 56 during the taxable year.S. 7509--B 39 1 (2) (A) The term "alimony or separate maintenance payments" means 2 payments as defined under section seventy-one of the internal revenue 3 code in effect immediately prior to the enactment of Public Law 115-97. 4 (B) The term "applicable alimony or separate maintenance payments" 5 means payments made under an alimony or separation instrument (as 6 defined in section seventy-one of the internal revenue code in effect 7 immediately prior to the enactment of Public Law 115-97) that was 8 executed after December thirty-first, two thousand eighteen, and any 9 divorce or separation instrument executed on or before such date and 10 modified after such date if the modification expressly provides that the 11 amendments made by this section apply to such modification. 12 (v) Qualified moving expense reimbursement and moving expenses. (1) In 13 the case of applicable qualified moving expense reimbursement and moving 14 expenses, the following modifications shall apply: 15 (A) There shall be subtracted from federal adjusted gross income any 16 applicable qualified moving expense reimbursement received by the 17 taxpayer during the taxable year. 18 (B) There shall be subtracted from federal adjusted gross income any 19 applicable moving expenses paid by the taxpayer during the taxable year. 20 (2) Applicable qualified moving expense reimbursement and moving 21 expenses are those deductions as allowed by paragraph (g) of section one 22 hundred thirty-two and section two hundred seventeen, respectfully, of 23 the internal revenue code immediately prior to the enactment of Public 24 Law 115-97. 25 § 6. Subdivision (a) of section 11-1715 of the administrative code of 26 the city of New York, as amended by section 5 of part HH of chapter 57 27 of the laws of 2010, is amended to read as follows: 28 (a) General. If federal taxable income of a city resident individual 29 is determined by itemizing deductions or claiming the federal standard 30 deduction from his or her federal adjusted gross income, such resident 31 individual may elect to deduct his or her city itemized deduction [in32lieu of] or claim his or her city standard deduction. The city itemized 33 deduction of a city resident individual means the total amount of his or 34 her deductions from federal adjusted gross income allowed, other than 35 federal deductions for personal exemptions, as provided in the laws of 36 the United States for the taxable year, as such deductions existed imme- 37 diately prior to the enactment of Public Law 115-97 with the modifica- 38 tions specified in this section, except as provided for under subdivi- 39 sions (f) and (g) of this section. 40 § 7. This act shall take effect immediately and shall apply to taxable 41 years beginning on or after January 1, 2018. 42 PART KK 43 Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax 44 law, as amended by section 5-a of part T of chapter 59 of the laws of 45 2015, is amended to read as follows: 46 (b) "Exempt CFC income" means (i) except with respect to any income 47 defined in subparagraphs (ii) and (iii) of this paragraph, the income 48 required to be included in the taxpayer's federal gross income pursuant 49 to subsection (a) of section 951 of the internal revenue code, received 50 from a corporation that is conducting a unitary business with the 51 taxpayer but is not included in a combined report with the taxpayer, and 52 (ii) notwithstanding the provisions of paragraph (a) of subdivision six 53 of this section, the income required to be included in the taxpayer's 54 federal gross income pursuant to subsection (a) of such section 951 ofS. 7509--B 40 1 the internal revenue code by reason of subsection (a) of section 965 of 2 the internal revenue code, as adjusted by subsection (b) of section 965 3 of the internal revenue code, and without regard to subsection (c) of 4 such section, received from a corporation that is not included in a 5 combined report with the taxpayer, less, and (iii) notwithstanding the 6 provisions of paragraph (a) of subdivision six of this section, the 7 income required to be included in the taxpayer's federal gross income 8 pursuant to subsection (a) of section 951 of the internal revenue code, 9 without regard to the deduction under section 250 of the internal reven- 10 ue code, generated by a corporation that is not included in a combined 11 report with the taxpayer, less, in the discretion of the commissioner, 12 any interest deductions directly or indirectly attributable to that 13 income. In lieu of subtracting from its exempt CFC income the amount of 14 those interest deductions, the taxpayer may make a revocable election to 15 reduce its total exempt CFC income by forty percent. If the taxpayer 16 makes this election, the taxpayer must also make the elections provided 17 for in paragraph (b) of subdivision six of this section and paragraph 18 (c) of this subdivision. If the taxpayer subsequently revokes this 19 election, the taxpayer must revoke the elections provided for in para- 20 graph (b) of subdivision six of this section and paragraph (c) of this 21 subdivision. A taxpayer which does not make this election because it has 22 no exempt CFC income will not be precluded from making those other 23 elections. 24 § 1-a. Paragraph (b) of subdivision 5-a of section 11-652 of the 25 administrative code of the city of New York, as added by section 1 of 26 part D of chapter 60 of the laws of 2015, is amended to read as follows: 27 (b) "Exempt CFC income" means (i) except with respect to any income 28 defined in subparagraphs (ii) and (iii) of this paragraph, the income 29 required to be included in the taxpayer's federal gross income pursuant 30 to subsection (a) of section nine hundred fifty-one of the internal 31 revenue code, received from a corporation that is conducting a unitary 32 business with the taxpayer but is not included in a combined report with 33 the taxpayer, (ii) notwithstanding the provisions of paragraph (a) of 34 subdivision six of section two hundred eight of the tax law, the income 35 required to be included in the taxpayer's federal gross income pursuant 36 to subsection (a) of section 951 of the internal revenue code by reason 37 of subsection (a) of section 965 of the internal revenue code, as 38 adjusted by subsection (b) of section 965 of the internal revenue code, 39 and without regard to subsection (c) of such section, received from a 40 corporation that is not included in a combined report with the taxpayer, 41 and (iii) notwithstanding the provisions of paragraph (a) of subdivision 42 six of section two hundred eight of the tax law, the income required to 43 be included in the taxpayer's federal gross income pursuant to 44 subsection (a) of section 951 of the internal revenue code, without 45 regard to the deduction under section 250 of the internal revenue code, 46 generated by a corporation that is not included in a combined report 47 with the taxpayer, less, (iv) in the discretion of the commissioner of 48 finance, any interest deductions directly or indirectly attributable to 49 that income. In lieu of subtracting from its exempt CFC income the 50 amount of those interest deductions, the taxpayer may make a revocable 51 election to reduce its total exempt CFC income by forty percent. If the 52 taxpayer makes this election, the taxpayer must also make the elections 53 provided for in paragraph (b) of subdivision five of this section and 54 paragraph (c) of this subdivision. If the taxpayer subsequently revokes 55 this election, the taxpayer must revoke the elections provided for in 56 paragraph (b) of subdivision five of this section and paragraph (c) ofS. 7509--B 41 1 this subdivision. A taxpayer which does not make this election because 2 it has no exempt CFC income will not be precluded from making those 3 other elections. 4 § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 5 of the tax law, as amended by section 4 of part A of chapter 59 of the 6 laws of 2014, is amended to read as follows: 7 (6) any amount treated as dividends pursuant to section seventy-eight 8 of the internal revenue code to the extent that such dividends are not 9 deducted under subparagraph (B)(ii) of paragraph (1) of subsection (a) 10 of section 250 of such code; 11 § 2-a. Subparagraph 2-a of paragraph (a) of subdivision 8 of section 12 11-652 of the administrative code of the city of New York, as added by 13 section 1 of part D of chapter 60 of the laws of 2015, is amended to 14 read as follows: 15 (2-a) any amounts treated as dividends pursuant to section seventy- 16 eight of the internal revenue code, to the extent that such dividends 17 are not deducted under subparagraph (B)(ii) of paragraph one of 18 subsection (a) of section 250 of such code; 19 § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is 20 amended by adding four new subparagraphs 23, 24, 25, and 26 to read as 21 follow: 22 (23) The amount of any federal deduction allowed pursuant to 23 subsection (c) of section 965 of the internal revenue code. 24 (24) The amount of the federal deduction allowed pursuant to subpara- 25 graph (B)(i) of paragraph one of subsection (a) of section 250 of the 26 internal revenue code. 27 (25) The amount disallowed as a deduction pursuant to paragraph one of 28 subsection (j) of section 163 of the internal revenue code. 29 (26) Any amount deducted by reason of a carry forward of disallowed 30 business interest pursuant to paragraph two of subsection (j) of section 31 163 of the internal revenue code. 32 § 3-a. Subparagraph 19 of paragraph (b) of subdivision 8 of section 33 11-652 of the administrative code of the city of New York, as added by 34 section 1 of part D of chapter 60 of the laws of 2015, is amended and 35 four new subparagraphs 20, 21, 22, and 23 are added to read as follows: 36 (19) the amount of any federal deduction for taxes imposed under arti- 37 cle twenty-three of the tax law[.]; 38 (20) The amount of any federal deduction allowed pursuant to 39 subsection (c) of section 965 of the internal revenue code; 40 (21) The amount of the federal deduction allowed pursuant to subpara- 41 graph (B)(i) of paragraph one of subsection (a) of section 250 of the 42 internal revenue code; 43 (22) The amount disallowed as a deduction pursuant to paragraph one of 44 subsection (j) of section 163 of the internal revenue code; 45 (23) Any amount deducted by reason of a carry forward of disallowed 46 business interest pursuant to paragraph two of subsection (j) of section 47 163 of the internal revenue code. 48 § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as 49 amended by section 13-a of part Q of chapter 60 of the laws of 2016, is 50 amended to read as follows: 51 (1) If any taxpayer fails to file a declaration of estimated tax under 52 article nine-A of this chapter, or fails to pay all or any part of an 53 amount which is applied as an installment against such estimated tax, it 54 shall be deemed to have made an underpayment of estimated tax. There 55 shall be added to the tax for the taxable year an amount at the under- 56 payment rate set by the commissioner pursuant to section one thousandS. 7509--B 42 1 ninety-six of this article, or if no rate is set, at the rate of seven 2 and one-half percent per annum upon the amount of the underpayment for 3 the period of the underpayment but not beyond the fifteenth day of the 4 [third] fourth month following the close of the taxable year. Provided, 5 however, that, for taxable years beginning on or after January first, 6 two thousand seventeen and before January first, two thousand eighteen, 7 no amount shall be added to the tax with respect to the portion of such 8 tax related to the amount of any interest deductions directly or indi- 9 rectly attributable to the amount included in exempt CFC income pursuant 10 to subparagraph (ii) of paragraph (b) of subdivision six-a of section 11 two hundred eight of this chapter or the forty percent reduction of such 12 exempt CFC income in lieu of interest attribution if the election 13 described in paragraph (b) of subdivision six-a of such section is made. 14 The amount of the underpayment shall be, with respect to any installment 15 of estimated tax computed on the basis of either the preceding year's 16 tax or the second preceding year's tax, the excess of the amount 17 required to be paid over the amount, if any, paid on or before the last 18 day prescribed for such payment or, with respect to any other install- 19 ment of estimated tax, the excess of the amount of the installment which 20 would be required to be paid if the estimated tax were equal to ninety- 21 one percent of the tax shown on the return for the taxable year (or if 22 no return was filed, ninety-one percent of the tax for such year) over 23 the amount, if any, of the installment paid on or before the last day 24 prescribed for such payment. In any case in which there would be no 25 underpayment if "eighty percent" were substituted for "ninety-one 26 percent" each place it appears in this subsection, the addition to the 27 tax shall be equal to seventy-five percent of the amount otherwise 28 determined. No underpayment shall be deemed to exist with respect to a 29 declaration or installment otherwise due on or after the termination of 30 existence of the taxpayer. 31 § 4-a. Subdivision 3 of section 11-676 of the administrative code of 32 the city of new York, as amended by section 12 of part D of chapter 60 33 of the laws of 2015, is amended to read as follows: 34 3. Failure to file declaration or underpayment of estimated tax. If 35 any taxpayer fails to file a declaration of estimated tax under subchap- 36 ter two, three or three-A of this chapter, or fails to pay all or any 37 part of an amount which is applied as an installment against such esti- 38 mated tax, it shall be deemed to have made an underpayment of estimated 39 tax. There shall be added to the tax for the taxable year an amount at 40 the underpayment rate set by the commissioner of finance pursuant to 41 section 11-687 of this subchapter, or, if no rate is set, at the rate of 42 seven and one-half percent per annum upon the amount of the underpayment 43 for the period of the underpayment but not beyond the fifteenth day of 44 the [third] fourth month following the close of the taxable year. 45 Provided, however, that, for taxable years beginning on or after January 46 first, two thousand seventeen and before January first, two thousand 47 eighteen, no amount shall be added to the tax with respect to the 48 portion of such tax related to the amount of any interest deductions 49 directly or indirectly attributable to the amount included in exempt CFC 50 income pursuant to subparagraph (ii) of paragraph (b) of subdivision 51 six-a of section two hundred eight of the tax law or the forty percent 52 reduction of such exempt CFC income in lieu of interest attribution if 53 the election described in paragraph (b) of subdivision six-a of section 54 two hundred eight of the tax law is made. The amount of the underpayment 55 shall be, with respect to any installment of estimated tax computed on 56 the basis of the preceding year's tax, the excess of the amount requiredS. 7509--B 43 1 to be paid over the amount, if any, paid on or before the last day 2 prescribed for such payment or, with respect to any other installment of 3 estimated tax, the excess of the amount of the installment which would 4 be required to be paid if the estimated tax were equal to ninety percent 5 of the tax shown on the return for the taxable year (or if no return was 6 filed, ninety percent of the tax for such year) over the amount, if any, 7 of the installment paid on or before the last day prescribed for such 8 payment. In any case in which there would be no underpayment if "eighty 9 percent" were substituted for "ninety percent" each place it appears in 10 this subdivision, the addition to the tax shall be equal to seventy-five 11 percent of the amount otherwise determined. No underpayment shall be 12 deemed to exist with respect to a declaration or installment otherwise 13 due on or after the termination of existence of the taxpayer. 14 § 4-b. Subparagraph 11 of paragraph (a) of subdivision 9 of section 15 208 of the tax law, as amended by section 4 of part A of chapter 59 of 16 the laws of 2014, is amended and a new paragraph (u) is added to read as 17 follows: 18 (11) the amount deductible pursuant to [paragraph] paragraphs (j) and 19 (u) of this subdivision; and 20 (u) A taxpayer shall be allowed a deduction in computing entire net 21 income for any FDIC premium paid or incurred by the taxpayer that is 22 disallowed as a deduction under subsection (r) of section 162 of the 23 internal revenue code. 24 § 4-c. Subparagraph 10 of paragraph (a) of subdivision 8 of section 25 11-652 of the administrative code of the city of New York, as amended by 26 section 1 of part D of chapter 60 of the laws of 2015, is amended and a 27 new paragraph (u) is added to read as follows: 28 (10) the amount deductible pursuant to [paragraph] paragraphs (j) and 29 (u) of this subdivision; 30 (u) A taxpayer shall be allowed a deduction in computing entire net 31 income for any FDIC premium paid or incurred by the taxpayer that is 32 disallowed as a deduction under subsection (r) of section 162 of the 33 internal revenue code. 34 § 5. This act shall take effect immediately and shall apply to taxable 35 years beginning on or after January 1, 2017. 36 PART LL 37 Intentionally omitted 38 PART MM 39 Intentionally omitted 40 PART NN 41 Section 1. The real property tax law is amended by adding a new 42 section 431 to read as follows: 43 § 431. Senior capped real property school tax rate. 1. (a) Residential 44 real property owned and occupied by one or more persons, each of whom is 45 seventy years of age or over on or before the taxable status date in 46 taxable year two thousand nineteen and meets each of the requirements 47 for the enhanced exemption for senior citizens set forth in section four 48 hundred twenty-five of this article, or residential real property owned 49 and occupied by husband and wife, one of whom is seventy years of age orS. 7509--B 44 1 over and meets each of the requirements for the enhanced exemption for 2 senior citizens set forth in section four hundred twenty-five of this 3 article, shall be eligible for the capped real property school tax rate 4 set forth in this section, provided the school district, after public 5 hearing, adopts a resolution providing therefor. For purposes of this 6 subdivision, the term "capped real property school tax rate" shall mean 7 the real property school tax rate established on any taxable status date 8 in calendar year two thousand eighteen. 9 (b) Residential real property owned and occupied by one or more 10 persons, each of whom is sixty-five years of age or over on or before 11 the taxable status date in tax year two thousand twenty and meets each 12 of the requirements for the enhanced exemption for senior citizens set 13 forth in section four hundred twenty-five of this article, or residen- 14 tial real property owned and occupied by husband and wife, one of whom 15 is sixty-five years of age or over and meets each of the requirements 16 for the enhanced exemption for senior citizens set forth in section four 17 hundred twenty-five of this article, shall be eligible for the capped 18 real property school tax rate set forth in this section, provided the 19 school district, after public hearing, adopts a resolution providing 20 therefor. For purposes of this subdivision, the term "capped real 21 property school tax rate" shall mean the real property school tax rate 22 established on the taxable status date subsequent to the taxable status 23 date on which an eligible person attains the age of sixty-five years. 24 2. Any person eligible for the capped real property school tax rate 25 shall apply annually for such capped rate. Such application shall be 26 made in a manner and form determined by the state board and shall 27 require proof of the applicant's age. Such application shall be filed 28 with the local assessor on or before the taxable status date for such 29 district. 30 3. Beginning in the second year of qualifying for the capped real 31 property school tax rate established in subdivision one of this section, 32 the rate of tax owed by a person owning real property in year one of 33 qualifying for the capped real property school tax rate would be reduced 34 by the following schedule: 35 Year two: ten percent 36 Year three: twenty percent 37 Year four: thirty percent 38 Year five: forty percent 39 Year six: fifty percent 40 Year seven: sixty percent 41 Year eight: seventy percent 42 Year nine: eighty percent 43 Year ten: ninety percent 44 Year eleven and thereafter: one hundred percent 45 4. Every school district shall notify, or cause to be notified, each 46 person owning residential real property in the school district of the 47 provisions of this section. The provisions of this subdivision may be 48 met by a notice sent to such persons in substantially the following 49 form: "Residential real property owned by persons sixty-five years of 50 age or older may be eligible for a capped real property school tax rate. 51 To receive such capped rate, eligible owners of qualifying property must 52 file an application with their local assessor on or before the applica- 53 ble taxable status date. For further information, please contact your 54 local assessor." 55 5. A school district which provides a capped real property school tax 56 rate for persons sixty-five years of age or over pursuant to thisS. 7509--B 45 1 section shall be eligible for reimbursement by the department of educa- 2 tion, as approved by the commissioner of education, in consultation with 3 the commissioner of taxation and finance, for one hundred percent of the 4 direct cost to such school district resulting from the implementation of 5 this section. Such direct cost shall be calculated pursuant to regu- 6 lations of the commissioner of education, in consultation with the 7 commissioner of taxation and finance. A claim for such reimbursement 8 shall be made by such school district in a manner and form prescribed by 9 the commissioner of education. 10 § 2. Paragraph 3 of subsection (n-1) of section 606 of the tax law, as 11 added by section 1 of subpart B of part C of chapter 20 of the laws of 12 2015, is amended as follows: 13 (3) Amount of credit. (a) For the two thousand sixteen taxable year 14 (i) for a taxpayer residing in real property located within the metro- 15 politan commuter transportation district (MCTD) and outside the city of 16 New York, the amount of the credit shall be $130; (ii) for a taxpayer 17 residing in real property located outside the MCTD, the amount of the 18 credit shall be $185. 19 (b) For the two thousand seventeen, two thousand eighteen and two 20 thousand nineteen taxable years (i) For a taxpayer who owned and prima- 21 rily resided in real property receiving the basic STAR exemption, the 22 amount of the credit shall equal the STAR tax savings associated with 23 such basic STAR exemption, multiplied by the following percentage: 24 (A) for the two thousand seventeen taxable year: 25 Qualified Gross Income Percentage 26 Not over $75,000 28% 27 Over $75,000 but not over $150,000 20.5% 28 Over $150,000 but not over $200,000 13% 29 Over $200,000 but not over $275,000 5.5% 30 Over $275,000 No credit 31 (B) for the two thousand eighteen taxable year: 32 Qualified Gross Income Percentage 33 Not over $75,000 60% 34 Over $75,000 but not over $150,000 42.5% 35 Over $150,000 but not over $200,000 25% 36 Over $200,000 but not over $275,000 7.5% 37 Over $275,000 No credit 38 (C) for the two thousand nineteen taxable year and thereafter: 39 Qualified Gross Income Percentage 40 Not over $75,000 [85%] 100% 41 Over $75,000 but not over $150,000 [60%] 75% 42 Over $150,000 but not over $200,000 [35%] 43.75% 43 Over $200,000 but not over $275,000 [10%] 12.5% 44 Over $275,000 No credit 45 (c) For a taxpayer who owned and primarily resided in real property 46 receiving the enhanced STAR exemption, the amount of the credit shall 47 equal the STAR tax savings associated with such enhanced STAR exemption, 48 multiplied by the following percentage: 49 Taxable Year Percentage 50 two thousand seventeen 12% 51 two thousand eighteen 26% 52 two thousand nineteen and thereafter [34%] 42.5% 53 (d) In no case may the amount of the credit allowed under this 54 subsection exceed the school district taxes due with respect to the 55 residence for that school year.S. 7509--B 46 1 § 3. This act shall take effect on the first of January next succeed- 2 ing the date on which it shall have become a law and shall apply to 3 assessment rolls prepared on the basis of taxable status dates occurring 4 on or after such date. 5 PART OO 6 Section 1. Section 13 of part A of chapter 97 of the laws of 2011, 7 amending the general municipal law and the education law relating to 8 establishing limits upon school district and local government tax 9 levies, as amended by section 18 of part A of chapter 20 of the laws of 10 2015, is amended to read as follows: 11 § 13. This act shall take effect immediately; provided, however, that 12 sections two through eleven of this act shall take effect July 1, 2011 13 and shall first apply to school district budgets and the budget adoption 14 process for the 2012-13 school year; and shall continue to apply to 15 school district budgets and the budget adoption process for any school 16 year beginning in any calendar year during which this act is in effect; 17 provided further, that if section 26 of part A of chapter 58 of the laws 18 of 2011 shall not have taken effect on or before such date then section 19 ten of this act shall take effect on the same date and in the same 20 manner as such chapter of the laws of 2011, takes effect; provided 21 further, that section one of this act shall first apply to the levy of 22 taxes by local governments for the fiscal year that begins in 2012 and 23 shall continue to apply to the levy of taxes by local governments for 24 any fiscal year beginning in any calendar year during which this act is 25 in effect[; provided, further, that this act shall remain in full force26and effect at a minimum until and including June 15, 2020 and shall27remain in effect thereafter only so long as the public emergency requir-28ing the regulation and control of residential rents and evictions and29all such laws providing for such regulation and control continue as30provided in subdivision 3 of section 1 of the local emergency rent31control act, sections 26-501, 26-502 and 26-520 of the administrative32code of the city of New York, section 17 of chapter 576 of the laws of331974 and subdivision 2 of section 1 of chapter 274 of the laws of 194634constituting the emergency housing rent control law, and section 10 of35chapter 555 of the laws of 1982, amending the general business law and36the administrative code of the city of New York relating to conversions37of residential property to cooperative or condominium ownership in the38city of New York as such laws are continued by chapter 93 of the laws of392011 and as such sections are amended from time to time]. 40 § 2. This act shall take effect immediately. 41 PART PP 42 Section 1. Paragraph (b) of subdivision 1 of section 186-a of the tax 43 law, as amended by section 4 of part Y of chapter 63 of the laws of 44 2000, is amended to read as follows: 45 (b) a tax equal to (1) two and five-tenths percent on and after Janu- 46 ary first, two thousand through December thirty-first, two thousand, two 47 and forty-five one hundredths percent from January first, two thousand 48 one through December thirty-first, two thousand one, two and four-tenths 49 percent from January first, two thousand two through December thirty- 50 first, two thousand two, two and twenty-five one hundredths percent from 51 January first, two thousand three through December thirty-first, two 52 thousand three, two and one hundred twenty-five one thousandths percentS. 7509--B 47 1 from January first, two thousand four through December thirty-first, two 2 thousand four and two percent [commencing] from January first, two thou- 3 sand five, through December thirty-first two thousand eighteen, one and 4 five-tenths percent from January first, two thousand nineteen through 5 December thirty-first, two thousand nineteen, one percent from January 6 first, two thousand twenty through December thirty-first, two thousand 7 twenty, five-tenths of a percent from January first, two thousand twen- 8 ty-one to December thirty-first, two thousand twenty-one, and zero 9 percent commencing January first, two thousand twenty-two and thereafter 10 of that portion of its gross income derived from the transportation, 11 transmission or distribution of gas or electricity by means of conduits, 12 mains, pipes, wires, lines or the like and (2) two and one-tenth percent 13 from January first, two thousand through December thirty-first, two 14 thousand, two percent from January first, two thousand one through 15 December thirty-first, two thousand one, one and nine-tenths percent 16 from January first, two thousand two through December thirty-first, two 17 thousand two, eighty-five one hundredths of one percent from January 18 first, two thousand three through December thirty-first, two thousand 19 three, four-tenths of one percent from January first, two thousand four 20 through December thirty-first, two thousand four and zero percent 21 commencing January first, two thousand five of all of its other gross 22 income, is hereby imposed upon every utility not taxed under paragraph 23 (a) of this subdivision doing business in this state which is subject to 24 the supervision of the state department of public service which has a 25 gross income for the year ending December thirty-first in excess of five 26 hundred dollars, except motor carriers or brokers subject to such super- 27 vision under the public service law; and 28 § 2. This act shall take effect immediately. 29 PART QQ 30 Section 1. Subdivisions 1 and 1-a of section 18-a of the public 31 service law, subdivision 1 as amended by section 2 of part NN of chapter 32 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part 33 A of chapter 173 of the laws of 2013, are amended to read as follows: 34 1. All costs and expenses of the department and commission shall be 35 paid pursuant to appropriation on the certification of the chairman of 36 the department and upon the audit and warrant of the comptroller. The 37 state treasury shall be reimbursed therefore by payments to be made 38 thereto from all moneys collected pursuant to this chapter. [The] For 39 state fiscal years beginning prior to April 1, 2019, the total of such 40 costs and expenses shall be borne by the public utility companies 41 (including for the purposes of this section municipalities other than 42 municipalities as defined in section eighty-nine-l of this chapter), 43 corporations (including the power authority of the state of New York), 44 and persons subject to the commission's regulation, to be assessed in 45 the manner provided in subdivisions two, three and four of this section 46 and section two hundred seventeen of this chapter. Provided however for 47 the state fiscal year that begins on April first, two thousand nineteen, 48 such assessment shall be in an amount that is fifty percent of the 49 amount calculated in subdivisions two, three and four of this section 50 and section two hundred seventeen of this chapter. Provided further for 51 state fiscal years that begin on and after April first, two thousand 52 twenty, the amount of such assessment calculated in subdivisions two, 53 three and four of this section and section two hundred seventeen of thisS. 7509--B 48 1 chapter shall be zero and all costs of the department and commission 2 shall be paid by the state treasury. 3 1-a. All costs and expenses of the department related to the depart- 4 ment's responsibilities under section three-b of this chapter shall be 5 paid pursuant to appropriation on the certification of the chairman of 6 the department and upon the audit and warrant of the comptroller. For 7 the state fiscal [year] years beginning on April first, two thousand 8 fourteen and [each state fiscal year thereafter] beginning prior to 9 April first, two thousand twenty, payments are to be made from all 10 moneys collected from the Long Island power authority pursuant to this 11 section. The total of such costs and expenses shall be assessed on such 12 authority in the manner provided in subdivisions two, three and four of 13 this section. Provided however for the state fiscal year that begins on 14 April first, two thousand nineteen, such assessment shall be in an 15 amount that is fifty percent of the amount calculated in subdivisions 16 two, three and four of this section. Provided further for state fiscal 17 years that begin on and after April first, two thousand twenty, the 18 amount of such assessment calculated in subdivisions two, three and four 19 of this section shall be zero and all costs of the department and 20 commission shall be paid by the state treasury. 21 § 2. This act shall take effect immediately. 22 PART RR 23 Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax 24 law, as amended by section 3 of part I of chapter 59 of the laws of 25 2015, is amended to read as follows: 26 (3-a) Pensions and annuities received by an individual who has 27 attained the age of fifty-nine and one-half, not otherwise excluded 28 pursuant to paragraph three of this subsection, to the extent includible 29 in gross income for federal income tax purposes, but not in excess of 30 [twenty] twenty-five thousand dollars for any taxable year beginning on 31 or after January first, two thousand nineteen, thirty thousand dollars 32 for any taxable year beginning on or after January first, two thousand 33 twenty, thirty-five thousand dollars for any taxable year beginning on 34 or after January first, two thousand twenty-one, and forty thousand 35 dollars in each subsequent year, which are periodic payments attribut- 36 able to personal services performed by such individual prior to his 37 retirement from employment, which arise (i) from an employer-employee 38 relationship or (ii) from contributions to a retirement plan which are 39 deductible for federal income tax purposes. However, the term "pensions 40 and annuities" shall also include distributions received by an individ- 41 ual who has attained the age of fifty-nine and one-half from an individ- 42 ual retirement account or an individual retirement annuity, as defined 43 in section four hundred eight of the internal revenue code, and distrib- 44 utions received by an individual who has attained the age of fifty-nine 45 and one-half from self-employed individual and owner-employee retirement 46 plans which qualify under section four hundred one of the internal 47 revenue code, whether or not the payments are periodic in nature. Never- 48 theless, the term "pensions and annuities" shall not include any lump 49 sum distribution, as defined in subparagraph (D) of paragraph four of 50 subsection (e) of section four hundred two of the internal revenue code 51 and taxed under section six hundred three of this article. Where a 52 husband and wife file a joint state personal income tax return, the 53 modification provided for in this paragraph shall be computed as if they 54 were filing separate state personal income tax returns. Where a paymentS. 7509--B 49 1 would otherwise come within the meaning of the term "pensions and annui- 2 ties" as set forth in this paragraph, except that such individual is 3 deceased, such payment shall, nevertheless, be treated as a pension or 4 annuity for purposes of this paragraph if such payment is received by 5 such individual's beneficiary. 6 § 2. This act shall take effect immediately. 7 PART SS 8 Section 1. Section 52 of the legislative law is amended by adding a 9 new subdivision 5 to read as follows: 10 5. Assent of two-thirds. For any bill that enacts or increases a tax 11 revenue, the assent of two-thirds of the members elected to each branch 12 of the legislature shall be required for passage of such bill. 13 § 2. This act shall take effect immediately. 14 PART TT 15 Section 1. The state finance law is amended by adding a new article 17 16 to read as follows: 17 ARTICLE 17 18 ANNUAL SPENDING GROWTH CAP ACT 19 Section 244. Definitions. 20 245. Establishment of annual spending growth cap. 21 246. Provisions regarding declaration of emergency. 22 § 244. Definitions. As used in this article, the following terms shall 23 have the following meanings, unless otherwise specified: 24 1. "Annual spending growth cap" shall mean a percentage determined by 25 adding the inflation rates from each of the three calendar years imme- 26 diately prior to the commencement of a given fiscal year and then divid- 27 ing that sum by three. 28 2. "State operating funds spending" shall mean annual disbursements of 29 all governmental fund types included in the cash-basis financial plan of 30 the state, excluding disbursements from federal funds and capital 31 project funds. 32 3. "Inflation rate" shall mean the percentage change in the twelve- 33 month average of the consumer price index for all urban consumers as 34 published by the United States department of labor, bureau of labor 35 statistics or any successor agency for a given calendar year compared to 36 the prior calendar year. 37 4. "Executive budget" shall mean the budget submitted annually by the 38 governor pursuant to section one of article VII of the state constitu- 39 tion. 40 5. "State budget as enacted" shall mean the budget acted upon by the 41 legislature in a given fiscal year, as subject to section four of arti- 42 cle VII of the state constitution and section seven of article IV of the 43 state constitution. 44 6. "Emergency" shall mean an extraordinary, unforeseen, or unexpected 45 occurrence, or combination of circumstances, including but not limited 46 to a natural disaster, invasion, terrorist attack, or economic calamity. 47 § 245. Establishment of annual spending growth cap. 1. There is here- 48 by established an annual spending growth cap. 49 2. The governor shall not submit, and the legislature shall not act 50 upon, a budget that contains a percentage increase over the prior fiscal 51 year in state operating funds spending which exceeds the annual spending 52 growth cap.S. 7509--B 50 1 3. The governor shall certify in writing that state operating funds 2 spending in the executive budget does not exceed the annual spending 3 growth cap. If final inflation rate data for the prior calendar year is 4 not yet available at the time the governor submits his or her executive 5 budget, he or she shall furnish a reasonable estimate of such prior 6 calendar year inflation rate. 7 4. The comptroller shall provide, within five days of action by the 8 legislature upon the budget, a determination as to whether the state 9 operating funds spending as set forth in the state budget as enacted 10 exceeds the annual spending growth cap. 11 5. If the comptroller finds that state operating funds spending as set 12 forth in the state budget as enacted exceeds the annual spending growth 13 cap, the governor shall take corrective action to ensure that funding is 14 limited to the amount of the annual spending cap. 15 § 246. Provisions regarding declaration of emergency. 1. Upon a find- 16 ing of an emergency by the governor, he or she may declare an emergency 17 by an executive order which shall set forth the reasons for such decla- 18 ration. 19 2. Based upon such declaration, the governor may submit, and the 20 legislature may authorize, by a two-thirds supermajority, a budget 21 containing a percentage increase over the prior fiscal year in state 22 operating funds spending that exceeds the annual spending growth cap. 23 § 2. Subdivision 2 of section 92-cc of the state finance law, as 24 amended by section 12-a of part I of chapter 60 of the laws of 2015, is 25 amended to read as follows: 26 2. Such fund shall have a maximum balance not to exceed [five] ten per 27 centum of the aggregate amount projected to be disbursed from the gener- 28 al fund during the fiscal year immediately following the then-current 29 fiscal year. At the request of the director of the budget, the state 30 comptroller shall transfer monies to the rainy day reserve fund up to 31 and including an amount equivalent to seventy-five one-hundredths of one 32 per centum of the aggregate amount projected to be disbursed from the 33 general fund during the then-current fiscal year, unless such transfer 34 would increase the rainy day reserve fund to an amount in excess of five 35 per centum of the aggregate amount projected to be disbursed from the 36 general fund during the fiscal year immediately following the then-cur- 37 rent fiscal year, in which event such transfer shall be limited to such 38 amount as will increase the rainy day reserve fund to such five per 39 centum limitation. 40 § 3. This act shall take effect on the thirtieth day after it shall 41 have become a law. 42 PART UU 43 Section 1. Section 606 of the tax law is amended by adding a new 44 subsection (ccc) to read as follows: 45 (ccc) Private water utility bill relief credit. (1) General. An indi- 46 vidual taxpayer who is serviced by a private water utility, serving the 47 towns of Hempstead and Oyster Bay located in the county of Nassau, shall 48 be allowed a credit against the tax imposed by this article equal to the 49 amount of any annual increase of such taxpayer's annual water bill 50 directly ascribable to an increase in property taxes paid by such 51 private water utility. 52 (2) Certification for credit allowance. The commissioner shall deter- 53 mine the procedure for certification for the credit authorized pursuant 54 to this subsection.S. 7509--B 51 1 § 2. The public service commission, in conjunction with affected 2 municipal corporations located in the county of Nassau, shall conduct a 3 feasibility study of the practicality of Jericho Water District, located 4 in the town of Oyster Bay, supplying water to any current customers of 5 American Water services. Such study shall examine the potential costs to 6 the Jericho Water District of serving these customers, the potential 7 costs to Jericho Water District of acquiring the rights to serve these 8 customers, the potential new water rates as a result of such transfer, 9 and any other information deemed relevant by the affected municipal 10 corporations. On or before December 31, 2018, the public service commis- 11 sion shall submit such feasibility study to the governor, temporary 12 president of the senate, and speaker of the assembly. For purposes of 13 this section, "municipal corporations" shall have the same meaning as 14 such term is defined by section two of the general municipal law. 15 § 3. This act shall take effect immediately; provided, however section 16 one of this act shall apply to taxable years beginning on and after the 17 first of January next succeeding the date on which it shall have become 18 a law; provided, further, that this act shall expire and be deemed 19 repealed December 31, 2021. 20 PART VV 21 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 22 section 210 of the tax law, as amended by section 12 of part A of chap- 23 ter 59 of the laws of 2014, is amended to read as follows: 24 (iv) (A) for taxable years beginning before January first, two thou- 25 sand sixteen, if the business income base is not more than two hundred 26 ninety thousand dollars the amount shall be six and one-half percent of 27 the business income base; if the business income base is more than two 28 hundred ninety thousand dollars but not over three hundred ninety thou- 29 sand dollars the amount shall be the sum of (1) eighteen thousand eight 30 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 31 the business income base over two hundred ninety thousand dollars but 32 not over three hundred ninety thousand dollars and (3) four and thirty- 33 five hundredths percent of the excess of the business income base over 34 three hundred fifty thousand dollars but not over three hundred ninety 35 thousand dollars; 36 (B) for taxable years beginning on or after January first, two thou- 37 sand nineteen, if the business income base is not more than four hundred 38 thousand dollars the amount shall be four percent of the business income 39 base; if the business income base is more than four hundred thousand 40 dollars but not over five hundred thousand dollars the amount shall be 41 the sum of (1) sixteen thousand dollars, (2) six and one-half percent of 42 the excess of the business income base over four hundred thousand 43 dollars but not over five hundred thousand dollars and (3) twenty 44 percent of the excess of the business income base over four hundred 45 fifty thousand dollars but not over five hundred thousand dollars; 46 (C) for taxable years beginning on or after January first, two thou- 47 sand twenty, if the business income base is not more than four hundred 48 thousand dollars the amount shall be two and one-half percent of the 49 business income base; if the business income base is more than four 50 hundred thousand dollars but not over five hundred thousand dollars the 51 amount shall be the sum of (1) ten thousand dollars, (2) six and one- 52 half percent of the excess of the business income base over four hundred 53 thousand dollars but not over five hundred thousand dollars and (3) 54 thirty-two percent of the excess of the business income base over fourS. 7509--B 52 1 hundred fifty thousand dollars but not over five hundred thousand 2 dollars. 3 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 4 added by section 1 of part Y of chapter 59 of the laws of 2013, is 5 amended to read as follows: 6 (39) (A) In the case of a taxpayer who is a small business or a 7 taxpayer who is a member, partner, or shareholder of a limited liability 8 company, partnership, or New York S corporation, respectively, that is a 9 small business, who or which has business income [and/or farm income] as 10 defined in the laws of the United States, an amount equal to [three] 11 five percent of the net items of income, gain, loss and deduction 12 attributable to such business [or farm] entering into federal adjusted 13 gross income, but not less than zero, for taxable years beginning after 14 two thousand [thirteen] eighteen, an amount equal to [three and three-15quarters] ten percent of the net items of income, gain, loss and 16 deduction attributable to such business [or farm] entering into federal 17 adjusted gross income, but not less than zero, for taxable years begin- 18 ning after two thousand [fourteen] nineteen, and an amount equal to 19 [five] fifteen percent of the net items of income, gain, loss and 20 deduction attributable to such business [or farm] entering into federal 21 adjusted gross income, but not less than zero[, for taxable years begin-22ning after two thousand fifteen]. 23 (B) In the case of a taxpayer who is a farm business or a taxpayer who 24 is a member, partner, or shareholder of a limited liability company, 25 partnership, or New York S corporation, respectively, that is a farm 26 business, who or which has farm income as defined by the laws of the 27 United States, an amount equal to twenty percent of the net items of 28 income, gain, loss and deduction attributable to such farm. The term 29 farm business shall mean a farm business that has net farm income of 30 less than five hundred thousand dollars. 31 (C) (i) For the purposes of this paragraph, the term small business 32 shall mean: (I) a sole proprietor [or a farm business who employs one or33more persons during the taxable year and] who has net business income 34 [or net farm income] of less than [two hundred fifty] five hundred thou- 35 sand dollars; or (II) a limited liability company, partnership or New 36 York S corporation that during the taxable year has New York gross busi- 37 ness income attributable to a non-farm business that is greater than 38 zero but less than one million five hundred thousand dollars or net farm 39 income attributable to a farm business that is greater than zero but 40 less than five hundred thousand dollars. (ii) For purposes of this para- 41 graph, the term New York gross business income shall mean: (I) in the 42 case of a limited liability company or a partnership, New York source 43 gross income as defined in subparagraph (B) of paragraph three of 44 subsection (c) of section six hundred fifty-eight of this article, and, 45 (II) in the case of a New York S corporation, New York receipts included 46 in the numerator of the apportionment factor determined under section 47 two hundred ten-A of this chapter for the taxable year. 48 (D) To qualify for this modification in relation to a non-farm small 49 business that is a limited liability company, partnership or New York S 50 corporation, the taxpayer's income attributable to the net business 51 income from its ownership interests in non-farm limited liability compa- 52 nies, partnerships or New York S corporations must be less than five 53 hundred thousand dollars. 54 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 55 istrative code of the city of New York, as added by section 2 of part Y 56 of chapter 59 of the laws of 2013, is amended to read as follows:S. 7509--B 53 1 (35) (A) In the case of a taxpayer who is a small business or a 2 taxpayer who is a member, partner, or shareholder of a limited liability 3 company, partnership, or New York S corporation, respectively, that is a 4 small business, who or which has business income [and/or farm income] as 5 defined in the laws of the United States, an amount equal to [three] 6 fifteen percent of the net items of income, gain, loss and deduction 7 attributable to such business [or farm] entering into federal adjusted 8 gross income, but not less than zero[, for taxable years beginning after9two thousand thirteen, an amount equal to three and three-quarters10percent of the net items of income, gain, loss and deduction attribut-11able to such business or farm entering into federal adjusted gross12income, but not less than zero, for taxable years beginning after two13thousand fourteen, and an amount equal to five percent of the net items14of income, gain, loss and deduction attributable to such business or15farm entering into federal adjusted gross income, but not less than16zero, for taxable years beginning after two thousand fifteen]. 17 (B) In the case of a taxpayer who is a farm business or a taxpayer who 18 is a member, partner, or shareholder of a limited liability company, 19 partnership, or New York S corporation, respectively, that is a farm 20 business, who or which has farm income as defined by the laws of the 21 United States, an amount equal to twenty percent of the net items of 22 income, gain, loss and deduction attributable to such farm. The term 23 farm business shall mean a farm business that has net farm income of 24 less than five hundred thousand dollars. 25 (C) (i) For the purposes of this paragraph, the term small business 26 shall mean: (I) a sole proprietor [or a farm business who employs one or27more persons during the taxable year and] who has net business income 28 [or net farm income] of less than [two hundred fifty] five hundred thou- 29 sand dollars; or (II) a limited liability company, partnership or New 30 York S corporation that during the taxable year has New York gross busi- 31 ness income attributable to a non-farm business that is greater than 32 zero but less than one million five hundred thousand dollars or net farm 33 income attributable to a farm business that is greater than zero but 34 less than five hundred thousand dollars. (ii) For purposes of this para- 35 graph, the term New York gross business income shall mean: (I) in the 36 case of a limited liability company or a partnership, New York source 37 gross income as defined in subparagraph (B) of paragraph three of 38 subsection (c) of section six hundred fifty-eight of the tax law, and, 39 (II) in the case of a New York S corporation, New York receipts included 40 in the numerator of the apportionment factor determined under section 41 two hundred ten-A of the tax law for the taxable year. 42 (D) To qualify for this modification in relation to a non-farm small 43 business that is a limited liability company, partnership or New York S 44 corporation, the taxpayer's income attributable to the net business 45 income from its ownership interests in non-farm limited liability compa- 46 nies, partnerships or New York S corporations must be less than five 47 hundred thousand dollars. 48 § 4. This act shall take effect immediately and shall apply to taxable 49 years beginning on or after January 1, 2019. 50 PART WW 51 Section 1. Subdivision 3 of section 425 of the real property tax law, 52 as added by section 1 of part B of chapter 389 of the laws of 1997, 53 paragraph (a) as amended by chapter 264 of the laws of 2000, paragraph 54 (b-1) as added by section 1 of part FF of chapter 57 of the laws ofS. 7509--B 54 1 2010, paragraph (d) as amended by chapter 564 of the laws of 2015, para- 2 graph (e) as added by section 2 of part W of chapter 57 of the laws of 3 2008, and paragraph (f) as added by section 1 of part B of chapter 59 of 4 the laws of 2012, is amended to read as follows: 5 3. Eligibility requirements. (a) Property use. To qualify for 6 exemption pursuant to this section, the property must be a one, two or 7 three family residence, a farm dwelling, small business or residential 8 property held in condominium or cooperative form of ownership. If the 9 property is not an eligible type of property, but a portion of the prop- 10 erty is partially used by the owner as a primary residence, that portion 11 which is so used shall be entitled to the exemption provided by this 12 section; provided that in no event shall the exemption exceed the 13 assessed value attributable to that portion. 14 (b) Primary residence. The property must serve as the primary resi- 15 dence of one or more of the owners thereof, unless such property is 16 owned by a small business as defined in paragraph (g) of this subdivi- 17 sion. 18 (b-1) Income. For final assessment rolls to be used for the levy of 19 taxes for the two thousand eleven-two thousand twelve school year and 20 thereafter, the parcel's affiliated income may be no greater than five 21 hundred thousand dollars, as determined by the commissioner of taxation 22 and finance pursuant to section one hundred seventy-one-u of the tax 23 law, in order to be eligible for the basic exemption authorized by this 24 section. As used herein, the term "affiliated income" shall mean the 25 combined income of all of the owners of the parcel who resided primarily 26 thereon on the applicable taxable status date, and of any owners' spous- 27 es residing primarily thereon. For exemptions on final assessment rolls 28 to be used for the levy of taxes for the two thousand eleven-two thou- 29 sand twelve school year, affiliated income shall be determined based 30 upon the parties' incomes for the income tax year ending in two thousand 31 nine. In each subsequent school year, the applicable income tax year 32 shall be advanced by one year. The term "income" as used herein shall 33 have the same meaning as in subdivision four of this section. 34 (c) Trusts. If legal title to the property is held by one or more 35 trustees, the beneficial owner or owners shall be deemed to own the 36 property for purposes of this subdivision. 37 (d) Farm dwellings not owned by the resident. (i) If legal title to 38 the farm dwelling is held by an S-corporation or by a C-corporation, the 39 exemption shall be granted if the property serves as the primary resi- 40 dence of a shareholder of such corporation. 41 (ii) If the legal title to the farm dwelling is held by a partnership, 42 the exemption shall be granted if the property serves as the primary 43 residence of one or more of the partners. 44 (iii) If the legal title to the farm dwelling is held by a limited 45 liability company, the exemption shall be granted if the property serves 46 as the primary residence of one or more of the owners. 47 (iv) Any information deemed necessary to establish shareholder, part- 48 ner or owner status for eligibility purposes shall be considered confi- 49 dential and exempt from the freedom of information law. 50 (e) Dwellings owned by limited partnerships. (i) If legal title to a 51 dwelling is held by a limited partnership, the exemption shall be grant- 52 ed if the property serves as the primary residence of one or more of the 53 partners, provided that the limited partnership which holds title to the 54 property does not engage in any commercial activity, that the limited 55 partnership was lawfully created to hold title solely for estate plan- 56 ning and asset protection purposes, and that the partner or partners whoS. 7509--B 55 1 primarily reside thereon personally pay all of the real property taxes 2 and other costs associated with the property's ownership. 3 (ii) Any information deemed necessary to establish partner status for 4 eligibility purposes shall be considered confidential and exempt from 5 the freedom of information law. 6 (f) Compliance with state tax obligations. The property's eligibility 7 for the STAR exemption must not be suspended pursuant to section one 8 hundred seventy-one-y of the tax law due to the past-due state tax 9 liabilities of one or more of its owners. Notwithstanding any provision 10 of law to the contrary, where a property's eligibility for a STAR 11 exemption has been suspended pursuant to such section, the following 12 provisions shall be applicable: 13 (i) The property shall be ineligible for a basic or enhanced STAR 14 exemption effective with the next school year commencing after the issu- 15 ance of notice by the department of the suspension of its eligibility 16 for the STAR exemption, even if the notice was issued after the applica- 17 ble taxable status date. If a STAR exemption has been granted to such a 18 property on a tentative or final assessment roll, the assessor or other 19 person having custody of that roll is hereby authorized and directed to 20 immediately remove that STAR exemption from the roll. 21 (ii) Any challenge to the factual or legal basis behind the suspension 22 of a property's eligibility for a STAR exemption pursuant to section one 23 hundred seventy-one-y of the tax law must be presented to the department 24 in the manner prescribed by such section. Neither an assessor nor a 25 board of assessment review has the authority to consider such a chal- 26 lenge. 27 (iii) The property shall remain ineligible for the STAR exemption 28 until the department notifies the assessor that the suspension of its 29 eligibility has been lifted. Once the assessor has been so notified, the 30 exemption may be resumed on a prospective basis only, provided that the 31 eligibility requirements of this section are otherwise satisfied. 32 (iv) In the case of a cooperative apartment or mobile home receiving a 33 STAR exemption pursuant to paragraph (k) or (l) of subdivision two of 34 this section, a suspension of a STAR exemption due to a taxpayer's past- 35 due state tax liabilities shall only apply to the STAR exemption on the 36 cooperative apartment or mobile home owned, or deemed to be owned, by 37 that taxpayer. 38 (g) Small businesses. (i) For the purposes of this subdivision, the 39 term "small business" shall mean a sole proprietor, a limited liability 40 company, partnership, or New York S-corporation, that during the taxable 41 year employs twenty persons or less and has a gross business income 42 and/or farm income of less than three hundred fifty thousand dollars 43 attributable to the business or a New York corporation that during the 44 taxable year employs twenty persons or less and has a business income 45 base of five hundred thousand dollars or less. 46 (ii) For purposes of this paragraph, the term New York gross business 47 income shall mean: (A) in the case of a limited liability company or a 48 partnership, New York source gross income as defined in subparagraph (B) 49 of paragraph three of subsection (c) of section six hundred fifty-eight 50 of the tax law; and (B) in the case of a New York S-corporation, New 51 York receipts included in the apportionment determined under section two 52 hundred ten-A of this chapter for the taxable year. 53 (iii) For purposes of this paragraph, the term business income base 54 shall mean in the case of a New York corporation, business income as 55 defined in subdivision eight of section two hundred eight of the tax 56 law.S. 7509--B 56 1 § 2. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2 2 of section 425 of the real property tax law, as added by section 1 of 3 part D-1 of chapter 57 of the laws of 2007, is amended to read as 4 follows: 5 (B) The base figure for the basic STAR exemption shall be thirty thou- 6 sand dollars. In the case of a small business as defined in paragraph 7 (g) of subdivision three of this section, the base figure for the basic 8 STAR exemption shall be: (I) ten thousand dollars in the two thousand 9 nineteen--two thousand twenty school year; (II) twenty thousand dollars 10 in the two thousand twenty--two thousand twenty-one school year; and 11 (III) thirty thousand dollars in the two thousand twenty-one--two thou- 12 sand twenty-two school year and thereafter. 13 § 3. This act shall take effect immediately and shall apply to all 14 taxable years beginning on and after January 1, 2019. 15 PART XX 16 Section 1. Section 38 of the tax law, as added by section 1 of part EE 17 of chapter 59 of the laws of 2013, is renumbered section 44 and subdivi- 18 sions (b) and (c) are amended to read as follows: 19 (b) An eligible employer is a corporation (including a New York S 20 corporation), a sole proprietorship, a limited liability company or a 21 partnership. [An] For taxable years beginning on and after January 22 first, two thousand fourteen and before January first, two thousand 23 nineteen, an eligible employee is an individual who is (i) employed by 24 an eligible employer in New York state, (ii) paid at the minimum wage 25 rate as defined in article nineteen of the labor law during the taxable 26 year by the eligible employer, (iii) between the ages of sixteen and 27 nineteen during the period in which he or she is paid at such minimum 28 wage rate by the eligible employer, and (iv) a student during the period 29 in which he or she is paid at such minimum wage rate by the taxpayer. 30 For taxable years beginning on and after January first, two thousand 31 nineteen, an eligible employee is an individual who is (i) employed by 32 an eligible employer in New York state, (ii) paid at a rate that does 33 not exceed the minimum wage rate as defined in article nineteen of the 34 labor law plus fifty cents during the taxable year by the eligible 35 employer, (iii) between the ages of sixteen and nineteen during the 36 period in which he or she is paid at such rate that does not exceed such 37 minimum wage rate plus fifty cents by the eligible employer, and (iv) a 38 student during the period in which he or she is paid at such rate that 39 does not exceed such minimum wage rate plus fifty cents by the taxpayer. 40 (c) For taxable years beginning on or after January first, two thou- 41 sand fourteen and before January first, two thousand fifteen, the amount 42 of the credit allowed under this section shall be equal to the product 43 of the total number of hours worked during the taxable year by eligible 44 employees for which they were paid at the minimum wage rate as defined 45 in article nineteen of the labor law and [seventy five] seventy-five 46 cents. For taxable years beginning on or after January first, two thou- 47 sand fifteen and before January first, two thousand sixteen, the amount 48 of the credit allowed under this section shall be equal to the product 49 of the total number of hours during the taxable year worked by eligible 50 employees for which they were paid at such minimum wage rate and one 51 dollar and thirty-one cents. For taxable years beginning on or after 52 January first, two thousand sixteen and before January first, two thou- 53 sand [nineteen] eighteen, the amount of the credit allowed under this 54 section shall be equal to the product of the total number of hoursS. 7509--B 57 1 during the taxable year worked by eligible employees for which they were 2 paid at such minimum wage rate and one dollar and thirty-five cents. For 3 taxable years beginning on or after January first, two thousand nineteen 4 and before January first, two thousand twenty-two, the amount of the 5 credit allowed under this section shall be equal to the product of the 6 total number of hours during the taxable year worked by eligible employ- 7 ees for which they were paid at a rate that does not exceed such minimum 8 wage rate plus fifty cents and one dollar and thirty-five cents. 9 Provided, however, if the federal minimum wage established by federal 10 law pursuant to 29 U.S.C. section 206 or its successors is increased 11 above eighty-five percent of the minimum wage in article nineteen of the 12 labor law, the dollar amounts in this subdivision shall be reduced to 13 the difference between the minimum wage in article nineteen of the labor 14 law and the federal minimum wage. Such reduction would take effect on 15 the date that employers are required to pay such federal minimum wage. 16 § 2. This act shall take effect immediately and shall apply to taxable 17 years beginning on and after January 1, 2019. 18 PART YY 19 Section 1. Subdivision (b) of section 38 of the tax law, as added by 20 section 1 of part EE of chapter 59 of the laws of 2013, is amended to 21 read as follows: 22 (b) An eligible employer is a corporation (including a New York S 23 corporation), a sole proprietorship, a limited liability company or a 24 partnership. An eligible employee is an individual who is (i) employed 25 by an eligible employer in New York state, (ii) paid at the minimum wage 26 rate as defined in article nineteen of the labor law during the taxable 27 year by the eligible employer, (iii) between the ages of sixteen and 28 nineteen during the period in which he or she is paid at such minimum 29 wage rate by the eligible employer, [and] (iv) a student during the 30 period in which he or she is paid at such minimum wage rate by the 31 taxpayer, and (v) notwithstanding the provisions of paragraphs (iii) and 32 (iv) of this subdivision, an eligible employee shall also mean any 33 employee who meets the criteria set forth in paragraphs (i) and (ii) of 34 this subdivision who is temporarily employed for a period of ninety days 35 or less in a calendar year; provided, however, that the provisions of 36 this paragraph shall be applicable to taxable years beginning on and 37 after January first, two thousand nineteen. 38 § 2. This act shall take effect immediately and shall apply to taxable 39 years beginning on and after January 1, 2019. 40 PART ZZ 41 Section 1. Subsection (b) of section 612 of the tax law is amended by 42 adding a new paragraph 43 to read as follows: 43 (43) Any income, gain, loss and deduction, to the extent it is 44 included in federal adjusted gross income and is, combined, less than 45 zero, of an individual or trust from a qualified pass-through manufac- 46 turer, as defined in paragraph forty-four of subsection (c) of this 47 section. 48 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 49 added by section 1 of part Y of chapter 59 of the laws of 2013, is 50 amended and a new paragraph 44 is added to read as follows: 51 (39) In the case of a taxpayer who is a small business who has busi- 52 ness income and/or farm income as defined in the laws of the UnitedS. 7509--B 58 1 States, an amount equal to three percent of the net items of income, 2 gain, loss and deduction attributable to such business or farm entering 3 into federal adjusted gross income, but not less than zero, for taxable 4 years beginning after two thousand thirteen, an amount equal to three 5 and three-quarters percent of the net items of income, gain, loss and 6 deduction attributable to such business or farm entering into federal 7 adjusted gross income, but not less than zero, for taxable years begin- 8 ning after two thousand fourteen, and an amount equal to five percent of 9 the net items of income, gain, loss and deduction attributable to such 10 business or farm entering into federal adjusted gross income, but not 11 less than zero, for taxable years beginning after two thousand fifteen. 12 For the purposes of this paragraph, the term small business shall mean a 13 sole proprietor or a farm business who employs one or more persons 14 during the taxable year and who has net business income or net farm 15 income of less than two hundred fifty thousand dollars. For the purposes 16 of this paragraph, the term small business shall exclude any business 17 that is a qualified pass-through manufacturer, as defined in paragraph 18 forty-four of this subsection for the current tax year. 19 (44) (A) Any income, gain, loss and deduction, to the extent included 20 federal adjusted gross income and is, combined, greater than zero, of an 21 individual or trust from a qualified pass-through manufacturer. Income 22 from a qualified pass-through manufacturer shall not include an amount 23 representing reasonable compensation for an individual controlling ten 24 percent or more of the qualified business or entity. 25 (B) The qualified pass-through manufacturer may be organized as a sole 26 proprietorship, a partnership, a limited liability company electing to 27 be treated as a partnership or sole proprietorship, or an S corporation. 28 (C) For the purposes of this subsection, the term qualified pass- 29 through manufacturer shall mean a business that is a qualified New York 30 manufacturer, as defined by subparagraph (vi) of paragraph (a) of subdi- 31 vision one of section two hundred ten of this chapter, except that the 32 term "gross receipts" shall be replaced by "business receipts" in deter- 33 mining whether the business is "principally engaged" in manufacturing. A 34 qualified pass-through manufacturer shall not include a business that is 35 currently participating in the START-UP NY program. 36 § 3. Paragraph 2 of subsection (a) of section 606 of the tax law is 37 amended by adding a new subparagraph (B-1) to read as follows: 38 (B-1) Property placed in service during the tax year that is otherwise 39 eligible for the investment tax credit described in subparagraph (A) of 40 this paragraph, will not be eligible for the investment tax credit if 41 the use of the property is by a qualified pass-through manufacturer, as 42 defined in paragraph forty-four of subsection (c) of section six hundred 43 twelve of this article for the current tax year. 44 § 4. This act shall take effect immediately and shall apply to taxable 45 years beginning on and after January 1, 2019. 46 PART AAA 47 Section 1. The real property tax law is amended by adding a new 48 section 431 to read as follows: 49 § 431. Public utility security camera or device; exemption. 1. For 50 purposes of this section, the term "public utility" shall mean a public 51 service corporation, other electric service provider, fiber optics, 52 television cable, or any other telecommunication company subject to the 53 jurisdiction of the department of public service.S. 7509--B 59 1 2. Any camera or interrelated devices or appurtenances installed on or 2 otherwise utilizing property that a public utility assessed an ad valo- 3 rem tax, or that such utility contributes to a payment in lieu of taxes 4 agreement, whether or not such camera, interrelated devices or appurte- 5 nances are owned by the public utility, and installed for the purposes 6 of providing any police force or public security office access to real 7 time or recorded information, shall be exempt from real property or 8 other ad valorem taxes, levies and assessments or payments in lieu of 9 taxes contributions. 10 3. The office of real property tax services is hereby authorized and 11 directed to promulgate rules and regulations necessary for the implemen- 12 tation of this section. 13 § 2. This act shall take effect immediately and shall apply to assess- 14 ment rolls prepared on the basis of taxable status dates occurring on or 15 after such date; provided, however, that the office of real property tax 16 services shall promulgate rules and regulations necessary to effectuate 17 this act prior to such effective date. 18 PART BBB 19 Section 1. Declaration of policy. The people of this state have a 20 vital interest in the maintenance and preservation of cemetery corpo- 21 rations to prevent them from becoming a burden upon local governments 22 and the community. The preservation of cemetery funds is vital to the 23 long-term maintenance and preservation of these burial grounds to 24 prevent abandonment and dilapidation. In order to preserve this order, 25 and the uniqueness of cemetery corporations, clarifications of cemetery 26 sales tax collections are necessary. 27 § 2. Subdivision (a) of section 1115 of the tax law is amended by 28 adding a new paragraph 7-a to read as follows: 29 (7-a) Tangible personal property and services sold by a cemetery for 30 the exclusive use on the grounds and in the buildings of the cemetery 31 corporation including but not limited to the additional services 32 provided by a cemetery as defined in paragraph (b) of section fifteen 33 hundred nine of the not-for-profit corporation law and for the mainte- 34 nance and preservation of lots, plots and parts thereof. 35 § 3. Subdivision (a) of section 1116 of the tax law is amended by 36 adding a new paragraph 10 to read as follows: 37 (10) A cemetery corporation, as defined in paragraph (a) of section 38 fifteen hundred two of the not-for-profit corporation law, including but 39 not limited to those cemeteries regulated by the religious corporations 40 law where it is the purchaser, user, or consumer, or where it is the 41 vendor of services or property exclusively to be used on the grounds or 42 buildings of the corporation. 43 § 4. The tax law is amended by adding a new section 1149 to read as 44 follows: 45 § 1149. Amnesty program. (a) Notwithstanding the provisions of any 46 other law to the contrary, there is hereby established an amnesty 47 program as described herein, to be administered by the commissioner, to 48 be effective for the period as prescribed by such commissioner, for all 49 eligible taxpayers as described herein, owing any tax or surcharge 50 imposed or formerly imposed by sections eleven hundred five and eleven 51 hundred ten of this article, and administered by such commissioner. 52 (b) Such amnesty program shall apply to tax liabilities for the taxes 53 set forth in sections eleven hundred five and eleven hundred ten of thisS. 7509--B 60 1 article for taxable periods ending or transactions or uses occurring on 2 or before December thirty first, two thousand eighteen. 3 (c) For purposes of the amnesty program established under this 4 section, an eligible taxpayer is a cemetery corporation as defined by 5 paragraph (a) of section fifteen hundred two of the not-for-profit 6 corporation law who or which has a tax liability with regard to one or 7 more of the designated taxes for the period of time described in subdi- 8 vision (b) of this section. 9 (d) The amnesty program established herein shall provide, that upon 10 application, including applicable returns, which application and returns 11 shall be in such form and submitted in such manner as prescribed by the 12 commissioner, by an eligible taxpayer, and upon payment in such form and 13 in such manner as prescribed by such commissioner, which payment shall 14 either accompany such application or be made within the time stated on a 15 bill issued by such commissioner to such taxpayer, of the amount of a 16 tax liability under one or more of the designated taxes with respect to 17 which amnesty is sought, such commissioner shall waive any applicable 18 penalties and interest (including the additional rate of interest 19 prescribed under section eleven hundred forty-five of this part). In 20 addition, no civil, administrative or criminal action or proceeding 21 shall be brought against such an eligible taxpayer relating to the tax 22 liability covered by such waiver. Failure to pay all such taxes by the 23 later of March fifteenth, two thousand nineteen, or the date prescribed 24 therefor on a bill issued by such commissioner, shall invalidate any 25 amnesty granted pursuant to the amnesty program established under this 26 section. 27 (e) Amnesty tax return forms shall be in a form, contain such informa- 28 tion and be submitted as prescribed by the commissioner and shall 29 provide for specifications by the applicant of the tax liability with 30 respect to which amnesty is sought. The applicant must also provide such 31 additional information as is required by such commissioner. Amnesty 32 shall be granted only with respect to the tax liabilities specified by 33 the taxpayer on such forms. Any return or report filed under the amnesty 34 program established herein is subject to verification and assessment as 35 provided by statute. If the applicant files a false or fraudulent tax 36 return or report, or attempts in any manner to defeat or evade a tax 37 under the amnesty program, amnesty shall be denied or rescinded. 38 (f) With respect to any existing installment payment agreement of an 39 eligible taxpayer, where such agreement applies to a tax liability with 40 respect to which amnesty is sought by such taxpayer, notwithstanding any 41 terms of such agreement to the contrary, such taxpayer, as a condition 42 of receiving amnesty, must pay any such liability in full by the later 43 of the last day of the prescribed amnesty period, or the date prescribed 44 therefor on a bill issued by the commissioner. 45 (g) The commissioner may promulgate regulations, issue forms and 46 instructions and take any and all other actions necessary to implement 47 the provisions of the amnesty program established under this section. 48 Such commissioner shall publicize the amnesty program provided for in 49 this section so as to maximize public awareness of and participation in 50 such program. 51 § 5. On or before February 28, 2021, the commissioner of taxation and 52 finance shall submit a report to the chairperson of the assembly ways 53 and means committee, the ranking minority member of the assembly ways 54 and means committee, the chairperson of the senate finance committee, 55 the ranking minority member of the senate finance committee and the 56 director of the budget regarding the amnesty program established pursu-S. 7509--B 61 1 ant to this act. The report shall contain the following information as 2 of the report cutoff date: (i) the gross revenue collected under each 3 tax and the year or other applicable period for or during which the 4 liability was incurred; (ii) the amount of money spent on advertising, 5 notification, and outreach activities, by each activity, and a 6 description of the form and content of such activities, by each activ- 7 ity; (iii) the amount paid by the department of taxation and finance for 8 services and expenses related to the establishment of the amnesty 9 program; and (iv) an estimate of the net revenue generated from the 10 amnesty program. 11 § 6. This act shall take effect immediately and shall apply to taxable 12 years beginning on or after January 1, 2019. 13 PART CCC 14 Section 1. Subsection (oo) of section 606 of the tax law, as amended 15 by chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 16 472 of the laws of 2010, subparagraph (A) of paragraph 1 and paragraphs 17 4 and 5 as amended by section 1 of part F of chapter 59 of the laws of 18 2013, is amended to read as follows: 19 (oo) Credit for rehabilitation of historic properties. (1) (A) For 20 taxable years beginning on or after January first, two thousand ten and 21 before January first, two thousand [twenty] twenty-five, a taxpayer 22 shall be allowed a credit as hereinafter provided, against the tax 23 imposed by this article, in an amount equal to [one hundred percent of24the amount of credit allowed the taxpayer with respect to a certified25historic structure under subsection (a) (2) of section 47 of the federal26internal revenue code] twenty percent of the qualified rehabilitation 27 expenditures with respect to a certified historic structure located 28 within the state. Provided, however, the credit shall not exceed five 29 million dollars. For taxable years beginning on or after January first, 30 two thousand [twenty] twenty-five, a taxpayer shall be allowed a credit 31 as hereinafter provided, against the tax imposed by this article, in an 32 amount equal to thirty percent of the [amount of credit allowed the33taxpayer with respect to a certified historic structure under subsection34(a)(2) of section 47 of the federal internal revenue code] qualified 35 rehabilitation expenditures with respect to a certified historic struc- 36 ture located within the state; provided, however, the credit shall not 37 exceed one hundred thousand dollars. For purposes of this subsection the 38 term "qualified rehabilitation expenditure" means any amount properly 39 chargeable to capital account in connection with the certified rehabili- 40 tation of a qualified historic structure, and for property for which 41 depreciation would be allowable under section 168 of the internal reven- 42 ue code and which is (i) nonresidential real property, (ii) residential 43 rental property, or (iii) an addition or improvement to nonresidential 44 real property or residential rental property. 45 (B) If the taxpayer is a partner in a partnership or a shareholder of 46 a New York S corporation, then the credit cap imposed in subparagraph 47 (A) of this paragraph shall be applied at the entity level, so that the 48 aggregate credit allowed to all the partners or shareholders of each 49 such entity in the taxable year does not exceed the credit cap that is 50 applicable in that taxable year. 51 (2) (A) Tax credits allowed pursuant to this subsection shall be 52 allowed in the taxable year [that the qualified rehabilitation is placed53in service under section 167 of the federal internal revenue code] inS. 7509--B 62 1 which the final certification step of the certified rehabilitation is 2 completed as provided in subparagraph (C) of this paragraph. 3 (B) For purposes of this subsection the term "certified rehabili- 4 tation" means any rehabilitation of a certified historic structure which 5 has been approved and certified as being consistent with the standards 6 established by the commissioner of parks, recreation and historic pres- 7 ervation for rehabilitation by the office of parks, recreation and 8 historic preservation, a local government certified pursuant to section 9 101(c)(1) of the national historic preservation act or a local landmark 10 commission established pursuant to section ninety-six-a or one hundred 11 nineteen-dd of the general municipal law. 12 (C) A certified rehabilitation shall require: 13 (i) an initial certification that the structure meets the definition 14 of the term "certified historic structure"; 15 (ii) a second certification, to be issued prior to construction, 16 certifying that the proposed rehabilitation work is consistent with 17 standards established by the commissioner of parks, recreation and 18 historic preservation for rehabilitation; and 19 (iii) a final certification issued when construction is completed, 20 certifying that the work was completed as proposed and that the costs 21 are consistent with the work completed. Such final certification shall 22 be acceptable as proof that the expenditures related to such 23 construction qualify as qualified rehabilitation expenditures for 24 purposes of the credit allowed under either subparagraph (A) or (B) of 25 paragraph one of this subsection. 26 (D) For purposes of this subsection the term "qualified historic 27 structure" means a certified historic structure located within New York 28 state which has been substantially rehabilitated. A certified historic 29 structure shall be considered substantially rehabilitated if the quali- 30 fied rehabilitation expenditures in relation to such structure total 31 five thousand dollars or more. 32 (E) For purposes of this subsection the term "certified historic 33 structure" means any building and its structural components which: 34 (i) is listed in the state or national register of historic places, or 35 (ii) is located in a state or national registered historic district 36 and is certified as being of historic significance in the district. 37 (3) [If the credit allowed the taxpayer pursuant to section 47 of the38internal revenue code with respect to a qualified rehabilitation is39recaptured pursuant to subsection (a) of section 50 of the internal40revenue code, a portion of the credit allowed under this subsection must41be added back in the same taxable year and in the same proportion as the42federal recapture] (A) If, before the end of the two-year period begin- 43 ning on the date of the final certification referred to in subparagraph 44 (C) of paragraph two of this subsection, the taxpayer disposes of such 45 taxpayer's interest in a certified historic structure, or such certified 46 historic structure otherwise ceases to be eligible for the credit 47 allowed under this subsection, the taxpayer's tax imposed by this arti- 48 cle for the taxable year in which such disposition occurs shall be 49 increased by the recapture portion of the credit allowed under this 50 subsection for all prior taxable years with respect to such rehabili- 51 tation. 52 (B) For purposes of subparagraph (A) of this paragraph, the recapture 53 portion shall be the product of the amount of credit claimed by the 54 taxpayer multiplied by a fraction, the numerator of which is equal to 55 twenty-four less the number of months before the disposition or cessa- 56 tion of the structure occurred.S. 7509--B 63 1 (4) If the amount of the credit allowed under this subsection for any 2 taxable year shall exceed the taxpayer's tax for such year, the excess 3 shall be treated as an overpayment of tax to be credited or refunded in 4 accordance with the provisions of section six hundred eighty-six of this 5 article, provided, however, that no interest shall be paid thereon. 6 (5) To be eligible for the credit allowable under this subsection the 7 rehabilitation project shall be in whole or in part located within a 8 census tract which is identified as being at or below one hundred 9 percent of the state median family income as calculated as of [January] 10 April first of each year using the most recent five year estimate from 11 the American community survey published by the United States Census 12 bureau. If there is a change in the most recent five year estimate, a 13 census tract that qualified for eligibility under this subsection before 14 information about the change was released shall remain eligible for a 15 credit under this subsection for an additional eighteen months. 16 (6) Nothing contained in this subsection shall be construed to impose 17 a duty on a local landmark commission established pursuant to section 18 ninety-six-a or one hundred nineteen-dd of the general municipal law or 19 a local government certified pursuant to section 101(c)(1) of the 20 national historic preservation act to undertake any review or approval 21 of an application for the certification of the rehabilitation of histor- 22 ic structures and of rehabilitation expenditures provided for in this 23 subsection. 24 § 2. Paragraph 2 of subsection (pp) of section 606 of the tax law, as 25 added by chapter 547 of the laws of 2006, subparagraphs (A) and (B) as 26 amended by section 1 of part V of chapter 59 of the laws of 2013, is 27 amended to read as follows: 28 (2) (A) With respect to any particular residence of a taxpayer, the 29 credit allowed under paragraph one of this subsection shall not exceed 30 fifty thousand dollars for taxable years beginning on or after January 31 first, two thousand ten and before January first, two thousand [twenty] 32 twenty-five and twenty-five thousand dollars for taxable years beginning 33 on or after January first, two thousand [twenty] twenty-five. In the 34 case of a husband and wife, the amount of the credit shall be divided 35 between them equally or in such other manner as they may both elect. If 36 a taxpayer incurs qualified rehabilitation expenditures in relation to 37 more than one residence in the same year, the total amount of credit 38 allowed under paragraph one of this subsection for all such expenditures 39 shall not exceed fifty thousand dollars for taxable years beginning on 40 or after January first, two thousand ten and before January first, two 41 thousand [twenty] twenty-five and twenty-five thousand dollars for taxa- 42 ble years beginning on or after January first, two thousand [twenty] 43 twenty-five. 44 (B) For taxable years beginning on or after January first, two thou- 45 sand ten and before January first, two thousand [twenty] twenty-five, if 46 the amount of credit allowable under this subsection shall exceed the 47 taxpayer's tax for such year, and the taxpayer's New York adjusted gross 48 income for such year does not exceed sixty thousand dollars, the excess 49 shall be treated as an overpayment of tax to be credited or refunded in 50 accordance with the provisions of section six hundred eighty-six of this 51 article, provided, however, that no interest shall be paid thereon. If 52 the taxpayer's New York adjusted gross income for such year exceeds 53 sixty thousand dollars, the excess credit that may be carried over to 54 the following year or years and may be deducted from the taxpayer's tax 55 for such year or years. For taxable years beginning on or after January 56 first, two thousand [twenty] twenty-five, if the amount of credit allow-S. 7509--B 64 1 able under this subsection shall exceed the taxpayer's tax for such 2 year, the excess may be carried over to the following year or years and 3 may be deducted from the taxpayer's tax for such year or years. 4 § 3. Subdivision 26 of section 210-B of the tax law, as added by 5 section 17 of part A of chapter 59 of the laws of 2014, is amended to 6 read as follows: 7 26. Credit for rehabilitation of historic properties. (a) Application 8 of credit. (i) For taxable years beginning on or after January first, 9 two thousand ten, and before January first, two thousand [twenty] twen- 10 ty-five, a taxpayer shall be allowed a credit as hereinafter provided, 11 against the tax imposed by this article, in an amount equal to [one12hundred percent of the amount of credit allowed the taxpayer for the13same taxable year with respect to a certified historic structure under14subsection (c)(2) of section 47 of the internal revenue code] twenty 15 percent of the qualified rehabilitation expenditures with respect to a 16 certified historic structure located within the state. Provided, howev- 17 er, the credit shall not exceed five million dollars. 18 (ii) For taxable years beginning on or after January first, two thou- 19 sand [twenty] twenty-five, a taxpayer shall be allowed a credit as here- 20 inafter provided, against the tax imposed by this article, in an amount 21 equal to thirty percent of the [amount of credit allowed the taxpayer22for the same taxable year with respect to a certified historic structure23under subsection (c)(3) of section 47 of the internal revenue code] 24 qualified rehabilitation expenditures with respect to a certified 25 historic structure located within the state. Provided, however, the 26 credit shall not exceed one hundred thousand dollars. 27 [(B)] (b) If the taxpayer is a partner in a partnership or a share- 28 holder in a New York S corporation, then the credit caps imposed in 29 [subparagraph (A)] paragraph (a) of this [paragraph] subdivision shall 30 be applied at the entity level, so that the aggregate credit allowed to 31 all the partners or shareholders of each such entity in the taxable year 32 does not exceed the credit cap that is applicable in that taxable year. 33 [(b)] (c) Tax credits allowed pursuant to this subdivision shall be 34 allowed in the taxable year [that the qualified rehabilitation is placed35in service under section 167 of the federal internal revenue code] in 36 which the final certification step of the certified rehabilitation is 37 completed pursuant to subparagraph (C) of paragraph two of subsection 38 (oo) of section six hundred six of this chapter. 39 [(c) If the credit allowed the taxpayer pursuant to section 47 of the40internal revenue code with respect to a qualified rehabilitation is41recaptured pursuant to subsection (a) of section 50 of the internal42revenue code, a portion of the credit allowed under this subsection must43be added back in the same taxable year and in the same proportion as the44federal credit] (d)(i) If, before the end of the two-year period begin- 45 ning on the date of the final certification referred to in paragraph (b) 46 of this subdivision, the taxpayer disposes of such taxpayer's interest 47 in a certified structure, or such certified historic structure otherwise 48 ceases to be eligible for the credit allowed under this subdivision, the 49 taxpayer's tax imposed by this article for the taxable year in which 50 such disposition occurs shall be increased by the recapture portion of 51 the credit allowed under this paragraph for all prior taxable years with 52 respect to such rehabilitation. 53 (ii) For purposes of subparagraph (i) of this paragraph, the recapture 54 portion shall be the product of the amount of credit claimed by the 55 taxpayer multiplied by a fraction, the numerator of which is equal toS. 7509--B 65 1 twenty-four less the number of months before the disposition or cessa- 2 tion of the structure occurred. 3 [(d)] (e) The credit allowed under this subdivision for any taxable 4 year shall not reduce the tax due for such year to less than the amount 5 prescribed in paragraph (d) of subdivision one of section two hundred 6 ten of this article. However, if the amount of the credit allowed under 7 this subdivision for any taxable year reduces the tax to such amount or 8 if the taxpayer otherwise pays tax based on the fixed dollar minimum 9 amount, any amount of credit thus not deductible in such taxable year 10 shall be treated as an overpayment of tax to be recredited or refunded 11 in accordance with the provisions of section one thousand eighty-six of 12 this chapter. Provided, however, the provisions of subsection (c) of 13 section one thousand eighty-eight of this chapter notwithstanding, no 14 interest shall be paid thereon. 15 [(e)] (f) To be eligible for the credit allowable under this subdivi- 16 sion, the rehabilitation project shall be in whole or in part located 17 within a census tract which is identified as being at or below one 18 hundred percent of the state median family income as calculated as of 19 January first of each year using the most recent five year estimate from 20 the American community survey published by the United States Census 21 bureau. 22 § 4. Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the 23 tax law, as added by chapter 472 of the laws of 2010, subparagraph (A) 24 of paragraph 1 as amended by section 4 of part F of chapter 59 of the 25 laws of 2013, are amended to read as follows: 26 (1) (A) For taxable years beginning on or after January first, two 27 thousand ten and before January first, two thousand [twenty] 28 twenty-five, a taxpayer shall be allowed a credit as hereinafter 29 provided, against the tax imposed by this article, in an amount equal to 30 [one hundred percent of the amount of credit allowed the taxpayer with31respect to a certified historic structure under subsection (a)(2) of32section 47 of the federal internal revenue code] twenty percent of the 33 qualified rehabilitation expenditures with respect to a certified 34 historic structure located within the state. Provided, however, the 35 credit shall not exceed five million dollars. For taxable years begin- 36 ning on or after January first, two thousand [twenty] twenty-five, a 37 taxpayer shall be allowed a credit as hereinafter provided, against the 38 tax imposed by this article, in an amount equal to thirty percent of the 39 [amount of credit allowed the taxpayer with respect to a certified40historic structure under subsection (a)(2) of section 47 of the federal41internal revenue code] qualified rehabilitation expenditure with respect 42 to a certified historic structure located within the state. Provided, 43 however, the credit shall not exceed one hundred thousand dollars. 44 (B) If the taxpayer is a partner in a partnership, then the cap 45 imposed in subparagraph (A) of this paragraph shall be applied at the 46 entity level, so that the aggregate credit allowed to all the partners 47 of such partnership in the taxable year does not exceed the credit cap 48 that is applicable in that taxable year. 49 (2) Tax credits allowed pursuant to this subsection shall be allowed 50 in the taxable year [that the qualified rehabilitation is placed in51service under section 167 of the federal internal revenue code] in which 52 the final certification step of the certified rehabilitation is 53 completed pursuant to subparagraph (C) of paragraph two of subsection 54 (oo) of section six hundred six of this chapter. 55 (3) [If the credit allowed the taxpayer pursuant to section 47 of the56internal revenue code with respect to a qualified rehabilitation isS. 7509--B 66 1recaptured pursuant to subsection (a) of section 50 of the internal2revenue code, a portion of the credit allowed under this subsection in3the taxable year the credit was claimed must be added back in the same4taxable year and in the same proportion as the federal recapture] (A) 5 If, before the end of the two-year period beginning on the date of the 6 final certification referred to in paragraph two of this subdivision, 7 the taxpayer disposes of such taxpayer's interest in a certified struc- 8 ture, or such certified historic structure otherwise ceases to be eligi- 9 ble for the credit allowed under this subdivision, the taxpayer's tax 10 imposed by this article for the taxable year in which such disposition 11 occurs shall be increased by the recapture portion of the credit allowed 12 under this paragraph for all prior taxable years with respect to such 13 rehabilitation. 14 (B) For purposes of subparagraph (A) of this paragraph, the recapture 15 portion shall be the product of the amount of credit claimed by the 16 taxpayer multiplied by a fraction, the numerator of which is equal to 17 twenty-four less the number of months before the disposition or cessa- 18 tion of the structure occurred. 19 § 5. Subdivision 6 of section 13.15 of the parks, recreation and 20 historic preservation law, as added by chapter 547 of the laws of 2006, 21 is amended to read as follows: 22 6. The office may establish a fee or fees for its processing and 23 review of applications for the certification of the rehabilitation of 24 historic buildings and the approval of rehabilitation expenditures and 25 related work pursuant to [subsection] subsections (oo) and (pp) of 26 section six hundred six of the tax law. All revenues from these fees 27 shall be deposited by the comptroller in the miscellaneous special 28 revenue fund to be credited to the agency's patron services account and 29 shall be used to support the office's historic preservation program. 30 Nothing in this subdivision shall be construed to limit the ability of a 31 local landmark commission established pursuant to section ninety-six-a 32 or one hundred nineteen-dd of the general municipal law or a local 33 government certified pursuant to section 101(c)(1) of the national 34 historic preservation act to establish and charge fees for its process- 35 ing and review of applications for the certification of the rehabili- 36 tation of historic buildings and the approval of rehabilitation expendi- 37 tures. 38 § 6. This act shall take effect immediately and shall apply to taxable 39 years beginning on and after January 1, 2018. 40 PART DDD 41 Section 1. Section 606 of the tax law is amended by adding a new 42 subsection (iii) to read as follows: 43 (iii) Clinical preceptorship credit. (1) General. A taxpayer who is a 44 preceptor clinician who provides preceptor instruction as part of a 45 clinical preceptorship shall be allowed a credit of one thousand dollars 46 for each one hundred hours of such preceptor instruction; provided that 47 the credit allowed pursuant to this subsection shall not exceed three 48 thousand dollars during any taxable year. 49 (2) Definitions. As used in this subsection: 50 (A) The term "preceptor clinician" means a (i) physician licensed 51 pursuant to article one hundred thirty-one of the education law, (ii) 52 physician assistant licensed pursuant to article one hundred 53 thirty-one-B of the education law, (iii) specialist assistant registered 54 pursuant to article one hundred thirty-one-C of the education law, (iv)S. 7509--B 67 1 certified registered nurse anesthetist certified by the education 2 department, (v) registered professional nurse licensed pursuant to 3 section sixty-nine hundred five of the education law, (vi) nurse practi- 4 tioner certified pursuant to section sixty-nine hundred ten of the 5 education law, (vii) clinical nurse specialist certified pursuant to 6 section sixty-nine hundred eleven of the education law, or (viii) 7 midwife licensed pursuant to article one hundred forty of the education 8 law, who, without the provision of any form of compensation therefor, 9 provides a clinical preceptorship or preceptorships including, but not 10 limited to, both community and in-patient facilities, during the taxable 11 year. 12 (B) The term "clinical preceptorship" means a preceptorship for a 13 student enrolled in a New York state based educational program approved 14 pursuant to title eight of the education law to become a physician, 15 physician assistant, specialist assistant, certified registered nurse 16 anesthetist, registered professional nurse, nurse practitioner, clinical 17 nurse specialist or midwife, and which preceptorship provides preceptor 18 instruction in family medicine, internal medicine, pediatrics, obstet- 19 rics and gynecology, emergency medicine, psychiatry or general surgery 20 under the supervision of a preceptor clinician. 21 (3) Application of credit. If the amount of the credit allowed under 22 this subsection for any taxable year exceeds the taxpayer's tax for such 23 year, the excess will be treated as an overpayment of tax to be credited 24 or refunded in accordance with the provisions of section six hundred 25 eighty-six of this article; provided, however, that no interest shall be 26 paid thereon. 27 § 2. This act shall take effect on the first of January next succeed- 28 ing the date on which it shall have become a law. 29 PART EEE 30 Section 1. The tax law is amended by adding a new section 24-b to read 31 as follows: 32 § 24-b. Television writers' and directors' fees and salaries credit. 33 (a)(1) A taxpayer which is a qualified film production company, or a 34 qualified independent film production company, or which is a sole 35 proprietor of or a member of a partnership which is a qualified film 36 production company or a qualified independent film production company, 37 and which is subject to tax under articles nine-A or twenty-two of this 38 chapter, shall be allowed a credit against such tax, pursuant to the 39 provisions referenced in subdivision (c) of this section, to be computed 40 as hereinafter provided. 41 (2) The amount of the credit shall be the product (or pro rata share 42 of the product, in the case of a member of a partnership) of thirty 43 percent and the qualified television writers' and directors' fees and 44 salaries costs paid or incurred in the production of a qualified film, 45 provided that: (i) the credit amount shall not exceed fifty thousand 46 dollars for qualified television writers' and directors' fees and sala- 47 ries claimed for such expenses incurred for the employment of any one 48 specific writer or director for the production of a single television 49 pilot or a single episode of a television series, and (ii) the credit 50 amount shall not exceed one hundred fifty thousand dollars for qualified 51 television writers' and directors' fees and salaries claimed for such 52 expenses incurred for the employment of any one specific writer or 53 director. The credit shall be allowed for the taxable year in which the 54 production of such qualified film is completed.S. 7509--B 68 1 (3) No qualified television writers' and directors' fees and salaries 2 used by a taxpayer either as the basis for the allowance of the credit 3 provided for pursuant to this section or used in the calculation of the 4 credit provided pursuant to this section shall be used by such taxpayer 5 to claim any other credit allowed pursuant to this chapter. 6 (b) Definitions. As used in this section, the following terms shall 7 have the following meanings: 8 (1) "Qualified film production company" is a corporation, partnership, 9 limited partnership, or other entity or individual which or who is prin- 10 cipally engaged in the production of a qualified film and controls the 11 qualified film during production. 12 (2) "Qualified independent film production company" is a corporation, 13 partnership, limited partnership, or other entity or individual, that or 14 who (i) is principally engaged in the production of a qualified film 15 with a maximum budget of fifteen million dollars, (ii) controls the 16 qualified film during production, and (iii) either is not a publicly 17 traded entity, or no more than five percent of the beneficial ownership 18 of which is owned, directly or indirectly, by a publicly traded entity. 19 (3) "Qualified film" means a television film, television pilot and/or 20 each episode of a television series, regardless of the medium by means 21 of which the film, pilot or episode is created or conveyed. 22 (4) "Qualified television writers' and directors' fees and salaries" 23 means: (i) salaries or fees paid to a writer or director who receives an 24 on-air credit; (ii) for a non-credited writer, up to seventy-five thou- 25 sand dollars in salaries or fees per series of episodes. Provided that 26 in each case, such writer or director is a minority group member, as 27 defined in subdivision eight of section three hundred ten of the execu- 28 tive law, or a woman, and provided, further, that salaries or fees paid 29 to any writer or director who is a profit participant in the qualified 30 film shall not be eligible. 31 (5) "Writer" means a person who is: (i) engaged by a qualified film 32 production company or a qualified independent film production company to 33 write literary material (including making changes or revisions in liter- 34 ary material), when the company has the right by contract to direct the 35 performance of personal services in writing or preparing such material 36 or in making revisions, modifications or changes therein; or (ii) 37 engaged by the company and who performs services (at the company's 38 direction or with its consent) in writing or preparing such literary 39 material or making revisions, modifications, or changes in such materi- 40 al; and (iii) who reports to work regularly in a writers room located in 41 the state. 42 (6) "Literary material" shall be deemed to include stories, adapta- 43 tions, treatments, original treatments, scenarios, continuities, tele- 44 plays, screenplays, dialogue, scripts, sketches, plots, outlines, narra- 45 tive synopses, routines, narrations, and formats. 46 (7) "Writers room" means a room or physical location where writers 47 employed by a qualified film production company or qualified independent 48 film production company write or revise literary materials utilized in a 49 qualified film. 50 (8) "Director" means an individual employed or retained to direct the 51 production, as the word "direct" is commonly used in the motion picture 52 industry, and who would be classified as a director under the basic 53 agreement in place between the Association of Motion Picture and Tele- 54 vision Producers and the Director's Guild of America and who is a resi- 55 dent of New York.S. 7509--B 69 1 (9) "Profit participant" is an individual who has negotiated for a 2 percentage of profits generated by a qualified film. Profit partic- 3 ipation does not include monies contractually required by collectively 4 bargained agreements for reuse of a qualified film on different plat- 5 forms over time. 6 (c) Cross-references. For application of the credit provided for in 7 this section, see the following provisions of this chapter: 8 (1) article 9-A: section 210-B: subdivision 53. 9 (2) article 22: section 606: subsection (v). 10 (d) Notwithstanding any provision of this chapter, (1) employees and 11 officers of the department of economic development and the department 12 shall be allowed and are directed to share and exchange information 13 regarding the credits applied for, allowed, or claimed pursuant to this 14 section and taxpayers who are applying for credits or who are claiming 15 credits, including information contained in or derived from credit claim 16 forms submitted to the department and applications for certification 17 submitted to the department of economic development, and (2) the commis- 18 sioner and the commissioner of the department of economic development 19 may release the names and addresses of any taxpayer claiming this credit 20 and the amount of the credit earned by the taxpayer. Provided, however, 21 if a taxpayer claims this credit because it is a member of a limited 22 liability company or a partner in a partnership, only the amount of 23 credit earned by the entity and not the amount of credit claimed by the 24 taxpayer may be released. 25 (e) Maximum amount of credits. (1) The aggregate amount of tax credits 26 allowed under this section, subdivision fifty-three of section two 27 hundred ten-B and subsection (v) of section six hundred six of this 28 chapter in any calendar year shall be five million dollars. Such aggre- 29 gate amount of credits shall be allocated by the department of economic 30 development among taxpayers in order of priority based upon the date of 31 filing an application for allocation of television writers' and direc- 32 tors' fees and salaries credit with such department. If the total amount 33 of allocated credits applied for in any particular year exceeds the 34 aggregate amount of tax credits allowed for such year under this 35 section, such excess shall be treated as having been applied for on the 36 first day of the subsequent year. 37 (2) The commissioner of economic development, after consulting with 38 the commissioner, shall promulgate regulations by October thirty-first, 39 two thousand eighteen to establish procedures for the allocation of tax 40 credits as required by subdivision (a) of this section. Such rules and 41 regulations shall include provisions describing the application process, 42 the due dates for such applications, the standards which shall be used 43 to evaluate the applications, the documentation that will be provided to 44 taxpayers to substantiate to the department the amount of tax credits 45 allocated to such taxpayers, and such other provisions as deemed neces- 46 sary and appropriate. Notwithstanding any other provisions to the 47 contrary in the state administrative procedure act, such rules and regu- 48 lations may be adopted on an emergency basis if necessary to meet such 49 October thirty-first, two thousand eighteen deadline. 50 (f) The department of economic development shall submit to the gover- 51 nor, the temporary president of the senate, and the speaker of the 52 assembly, an annual report to be submitted on February first of each 53 year evaluating the effectiveness of the television writers' and direc- 54 tors' fees and salaries tax credit provided by this section in stimulat- 55 ing the growth of diversity in the film industry in the state. Such 56 report shall include, but need not be limited to, the number of quali-S. 7509--B 70 1 fied film production companies and/or qualified independent film 2 production companies which received a television writers' and directors' 3 fees and salaries credit, the credit amounts claimed by each qualified 4 film production company and/or qualified independent film production 5 company, as well as the impact on employment and the economy of the 6 state. Such report shall be based on data available from the application 7 filed with the department of economic development for allocation of 8 television writers' and directors' fees and salaries credits. Notwith- 9 standing any provision of law to the contrary, the information contained 10 in the report shall be public information. The report may also include 11 any recommendations of changes in the calculation or administration of 12 the credit, and any other recommendation of the commissioner of the 13 department of economic development regarding continuing modification, 14 repeal of such act, and such other information regarding the act as the 15 commissioner of the department of economic development may feel useful 16 and appropriate. 17 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 18 sion 53 to read as follows: 19 53. Television writers' and directors' fees and salaries credit. (a) 20 Allowance of credit. A taxpayer who is eligible pursuant to section 21 twenty-four-b of this chapter shall be allowed a credit to be computed 22 as provided in such section against the tax imposed by this article. 23 (b) Application of credit. The credit allowed under this subdivision 24 for any taxable year shall not reduce the tax due for such year to less 25 than the amount prescribed in paragraph (d) of subdivision one of 26 section two hundred ten of this article. Provided, however, that if the 27 amount of the credit allowable under this subdivision for any taxable 28 year reduces the tax to such amount or if the taxpayer otherwise pays 29 tax based on the fixed dollar minimum amount, the excess shall be treat- 30 ed as an overpayment of tax to be credited or refunded in accordance 31 with the provisions of section one thousand eighty-six of this chapter. 32 Provided, further, the provisions of subsection (c) of section one thou- 33 sand eighty-eight of this chapter notwithstanding, no interest shall be 34 paid thereon. 35 § 3. Section 606 of the tax law is amended by adding a new subsection 36 (v) to read as follows: 37 (v) Television writers' and directors' fees and salaries credit. (1) 38 Allowance of credit. A taxpayer who is eligible pursuant to section 39 twenty-four-b of this chapter shall be allowed a credit to be computed 40 as provided in such section against the tax imposed by this article. 41 (2) Application of credit. If the amount of the credit allowable under 42 this subsection for any taxable year exceeds the taxpayer's tax for such 43 year, the excess shall be treated as an overpayment of tax to be credit- 44 ed or refunded as provided in section six hundred eighty-six of this 45 article, provided, however, that no interest shall be paid thereon. 46 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 47 of the tax law is amended by adding a new clause (xlix) to read as 48 follows: 49 (xlix) Television writers' Amount of credit for the sum of 50 and directors' fees and salaries qualified television writers' and 51 credit under subsection (v) directors' salaries credit 52 under subdivision fifty-three of 53 section two hundred ten-BS. 7509--B 71 1 § 5. This act shall take effect immediately, and shall apply to taxa- 2 ble years beginning on or after January 1, 2019. 3 PART FFF 4 Section 1. Subsection (i) of section 612 of the tax law is REPEALED. 5 § 2. Subdivision (i) of section 11-1712 of the administrative code of 6 the city of New York, as amended by chapter 333 of the laws of 1987, is 7 amended to read as follows: 8 (i) In the case of mines, oil and gas wells and other natural depos- 9 its, any allowance for percentage depletion pursuant to section six 10 hundred thirteen or section six hundred thirteen A of the internal 11 revenue code shall be added to federal adjusted gross income. However, 12 with respect to the property as to which such addition to federal 13 adjusted gross income is required, an allowance for depletion shall be 14 subtracted from federal adjusted gross income in the amount that would 15 be deductible under section six hundred eleven of such code if the 16 deduction for an allowance for depletion were computed without reference 17 to such section six hundred thirteen or section six hundred thirteen A. 18 [With respect to the computation of depletion pursuant to this subdivi-19sion, the basis for such computation shall be the basis for state income20tax purposes provided for in subsection (i) of section six hundred21twelve of the tax law.] The portion of any gain from the sale or other 22 disposition of such property having a higher adjusted basis for city 23 income tax purposes than for federal income tax purposes, that does not 24 exceed such difference in basis, shall be subtracted from federal 25 adjusted gross income. 26 § 3. Paragraph 10 of subsection (b) of section 612 of the tax law is 27 REPEALED. 28 § 4. Paragraph 13 of subsection (c) of section 612 of the tax law is 29 REPEALED. 30 § 5. Subsection 4 of section 618 of the tax law, as amended by section 31 9 of part C of chapter 25 of the laws of 2009, is amended to read as 32 follows: 33 (4) There shall be added or subtracted (as the case may be) the 34 modifications described in paragraphs (6)[, (10)], (17), (18), (19), 35 (20), (21), (22), (23), (24), (25), (26), (27), (29), (38) and (39) of 36 subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21), 37 (22), (23), (24), (25), (26) and (28) of subsection (c) of section six 38 hundred twelve of this part. 39 § 6. Subsection 4 of section 618 of the tax law, as separately amended 40 by section 5 of part HH-1 of chapter 57 of the laws of 2008 and section 41 9 of part C of chapter 25 of the laws of 2009, is amended to read as 42 follows: 43 (4) There shall be added or subtracted (as the case may be) the 44 modifications described in paragraphs (6)[, (10)], (17), (18), (19), 45 (20), (21), (22), (23), (24), (25), (26), (27), [(28),] (29), (38) and 46 (39) of subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] 47 (20), (21), (22), (23), (24), (25), (26) and (28) of subsection (c) of 48 section six hundred twelve of this part. 49 § 7. This act shall take effect immediately and shall apply to all 50 taxable years beginning on or after January 1, 2019; provided that the 51 amendments to subsection 4 of section 618 of the tax law made by section 52 five of this act shall be subject to the expiration and reversion of 53 such subdivision pursuant to section 8 of chapter 782 of the laws ofS. 7509--B 72 1 1988, as amended, when upon such date the provisions of section six of 2 this act shall take effect. 3 PART GGG 4 Section 1. Paragraph 38 of subsection (c) of section 612 of the tax 5 law, as added by chapter 565 of the laws of 2006, is amended to read as 6 follows: 7 (38) An amount of up to ten thousand dollars if a taxpayer, while 8 living, donates one or more of his or her human organs to another human 9 being for human organ transplantation. For purposes of this paragraph, 10 "human organ" means all or part of a liver, pancreas, kidney, intestine, 11 lung, or bone marrow. A subtract modification allowed under this para- 12 graph shall be claimed in the taxable year in which the human organ 13 transplantation occurs. 14 (A) A taxpayer shall claim the subtract modification allowed under 15 this paragraph only once and such subtract modification shall be claimed 16 for only the following unreimbursed expenses which are incurred by the 17 taxpayer or spouse of the taxpayer, and related to the taxpayer's organ 18 donation: 19 (i) travel expenses; 20 (ii) lodging expenses; [and] 21 (iii) lost wages[.]; and 22 (iv) child care costs; 23 (B) The subtract modification allowed under this paragraph shall not 24 be claimed by a part-year resident or a non-resident of this state. 25 § 2. This act shall take effect on the sixtieth day after it shall 26 have become a law. 27 PART HHH 28 Section 1. Subdivision (e) of section 24-a of the tax law, as added by 29 section 1 of part HH of chapter 59 of the laws of 2014, is amended to 30 read as follows: 31 (e) Maximum amount of credits. (1) The aggregate amount of tax credits 32 allowed under this section, subdivision forty-seven of section two 33 hundred ten-B and subsection (u) of section six hundred six of this 34 chapter in any calendar year shall be [four] six million dollars. Such 35 aggregate amount of credits shall be allocated by the department of 36 economic development among taxpayers in order of priority based upon the 37 date of filing an application for allocation of musical and theatrical 38 production credit with such department. If the total amount of allocated 39 credits applied for in any particular year exceeds the aggregate amount 40 of tax credits allowed for such year under this section, such excess 41 shall be treated as having been applied for on the first day of the 42 subsequent year. 43 (2) The commissioner of economic development, after consulting with 44 the commissioner, shall promulgate regulations by October thirty-first, 45 two thousand fourteen to establish procedures for the allocation of tax 46 credits as required by subdivision (a) of this section. Such rules and 47 regulations shall include provisions describing the application process, 48 the due dates for such applications, the standards which shall be used 49 to evaluate the applications, the documentation that will be provided to 50 taxpayers to substantiate to the department the amount of tax credits 51 allocated to such taxpayers, and such other provisions as deemed neces- 52 sary and appropriate. Such rules and regulations shall permit an appli-S. 7509--B 73 1 cant for credits under this section to provide the required certif- 2 ications by providing information and other documentation provided by a 3 licensed auditor on behalf of the applicant. Notwithstanding any other 4 provisions to the contrary in the state administrative procedure act, 5 such rules and regulations may be adopted on an emergency basis if 6 necessary to meet such October thirty-first, two thousand fourteen dead- 7 line. 8 § 2. Section 5 of part HH of chapter 59 of the laws of 2014 amending 9 the tax law relating to a musical and theatrical production credit, is 10 amended to read as follows: 11 § 5. This act shall take effect immediately, provided that section two 12 of this act shall take effect on January 1, 2015, and shall apply to 13 taxable years beginning on or after January 1, 2015, with respect to 14 "qualified production expenditures" and "transportation expenditures" 15 paid or incurred on or after such effective date, regardless of whether 16 the production of the qualified musical or theatrical production 17 commenced before such date, provided further that this act shall expire 18 and be deemed repealed [4 years after such date] March 31, 2023. 19 § 3. This act shall take effect immediately, provided, however, that 20 the amendments to section 24-a of the tax law made by section one of 21 this act shall not affect the repeal of such section and shall expire 22 and be deemed to repeal therewith. 23 PART III 24 Section 1. The education law is amended by adding a new section 682 to 25 read as follows: 26 § 682. College debt freedom account pilot program. 1. There is hereby 27 established the college debt freedom account pilot program. Such program 28 shall permit employees of any employer jointly certified by the commis- 29 sioner and the commissioner of taxation and finance pursuant to this 30 section to deposit a portion of their pre-tax income pursuant to para- 31 graph forty-four of subsection (c) of section six hundred twelve of the 32 tax law, into an account solely intended for undergraduate student loan 33 repayments. Certified employers shall receive a tax credit by contrib- 34 uting matching funds to an employee's student loan repayment account 35 established pursuant to this section. Such contribution shall be mini- 36 mally fifty percent of the employee's deposit and a maximum one hundred 37 percent of the employee's deposit, up to twenty-five hundred dollars 38 annually, per employee account. The annual maximum aggregate amount to 39 be deposited per account by the employee and employer shall be five 40 thousand dollars. 41 2. For the purposes of this section, "student loan" shall mean the 42 cumulative total of the annual student loans covering the cost of 43 attendance at an undergraduate college or university, and any interest 44 thereon or as defined in subparagraph (i) of paragraph forty-four of 45 subsection (c) of section six hundred twelve of the tax law. 46 3. Any employer which is a middle-sized business in this state, having 47 between twenty and five hundred full-time employees, may submit an 48 application to the commissioner for certification to participate in the 49 program established pursuant to this section. The commissioner and the 50 commissioner of taxation and finance shall jointly consider each appli- 51 cation for certification submitted pursuant to this subdivision. 52 Provided that not more than fifty employers shall be certified to 53 participate in the program.S. 7509--B 74 1 4. Employee student loan repayment accounts shall be established by an 2 employee for deposit of funds to be used solely for repayment of student 3 loans. Such accounts shall be managed by the higher education services 4 corporation. All enrollees and certified participating employers shall 5 provide the corporation with all necessary information in order to 6 implement the provisions of this section. 7 5. Moneys in a student loan repayment account shall be available only 8 for repayments of student loans. Any withdrawal or distribution from a 9 student loan repayment account which violated the provisions of this 10 subdivision shall be subject to a penalty of ten percent on any such 11 withdrawal or distribution. 12 6. The commissioner and the commissioner of taxation and finance shall 13 jointly promulgate rules and regulations necessary to implement the 14 provisions of this section. 15 § 2. Subsection (c) of section 612 of the tax law is amended by adding 16 a new paragraph 44 to read as follows: 17 (44) Payment not in excess of twenty-five hundred dollars actually 18 paid by an eligible borrower employed by an employer certified pursuant 19 to section six hundred eighty-two of the education law for student loan 20 repayment, to the extent not deductible in determining federal adjusted 21 gross income and not reimbursed. For the purposes of this paragraph, the 22 following terms shall have the following meanings: 23 (i) "Student loans" shall mean any indebtedness incurred by the 24 taxpayer for an undergraduate education loan in accordance with section 25 221 of the internal revenue code or as defined in subdivision two of 26 section six hundred eighty-two of the education law. 27 (ii) "Eligible borrower" shall mean a taxpayer who has incurred 28 indebtedness on student loans as defined in subparagraph (i) of this 29 paragraph. 30 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 31 sion 53 to read as follows: 32 53. College debt freedom account program tax credit. (a) General. An 33 employer certified pursuant to section six hundred eighty-two of the 34 education law, who contributes matching funds towards an employee's 35 undergraduate student loan repayments, shall be allowed a credit, to be 36 computed as provided in this subdivision, against the tax imposed by 37 this article, for contributions the employer deposits annually, up to 38 twenty-five hundred dollars per employee per year. 39 (b) Amount of credit. The credit authorized by this subdivision shall 40 be equal to the amount of the employer's contribution; provided that 41 such contribution shall be a minimum of fifty percent and a maximum of 42 one hundred percent of the employee's deposit to a student loan repay- 43 ment account subject to the limits set forth in this subdivision. 44 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 45 of the tax law is amended by adding a new clause (xliv) to read as 46 follows: 47 (xliv) College debt Amount of credit 48 freedom account under subdivision fifty-three 49 program tax credit under of section two hundred ten-B 50 subsection (ccc) 51 § 5. Section 606 of the tax law is amended by adding a new subsection 52 (ccc) to read as follows: 53 (ccc) College debt freedom account program tax credit. (a) General. An 54 employer, certified pursuant to section six hundred eighty-two of the 55 education law, who contributes matching funds towards an employee's 56 undergraduate student loan repayments, shall be allowed a credit, to beS. 7509--B 75 1 computed as provided in this subsection, against the tax imposed by this 2 article, for contributions the employer deposits annually, up to twen- 3 ty-five hundred dollars per employee per year. 4 (b) Amount of credit. The credit authorized by this subsection shall 5 be equal to the amount of the employer contribution; provided that such 6 contribution shall be a minimum of fifty percent and a maximum of one 7 hundred percent of the employee's deposit to a student loan repayment 8 account subject to the limits set forth in this subsection. 9 § 6. Section 1511 of the tax law is amended by adding a new subdivi- 10 sion (dd) to read as follows: 11 (dd) College debt freedom account program tax credit. (1) General. An 12 employer, certified pursuant to section six hundred eighty-two of the 13 education law, who contributes matching funds towards an employee's 14 undergraduate student loan repayments, shall be allowed a credit, to be 15 computed as provided in this subdivision, against the tax imposed by 16 this article, for contributions the employer deposits annually, up to 17 twenty-five hundred dollars per employee per year. 18 (2) Amount of credit. The credit authorized by this subdivision shall 19 be equal to the amount of the employer's contribution; provided that 20 such contribution shall be a minimum of fifty percent and a maximum of 21 one hundred percent of the employee's deposit to a student loan repay- 22 ment account subject to the limits set forth in this subdivision. 23 § 7. Notwithstanding any provision of the tax law to the contrary, the 24 aggregate of tax expenditure and taxes forgone pursuant to sections two, 25 three, four, five and six of this act shall not exceed $70,000,000. The 26 commissioner of taxation and finance shall immediately suspend all 27 deductions and credits established pursuant to such sections upon reach- 28 ing the $70,000,000 threshold. 29 § 8. This act shall take effect on the sixtieth day after it shall 30 have become a law and shall apply to taxable years commencing on or 31 after January 1, 2019. 32 PART JJJ 33 Section 1. Subsection (c) of section 612 of the tax law is amended by 34 adding a new paragraph 44 to read as follows: 35 (44)(A) (i) For a taxpayer who files singly or as the head of a house- 36 hold with a federal adjusted income, without the deduction of any inter- 37 est paid on student loans, of not less than sixty-five thousand dollars 38 nor more than eighty thousand dollars, the difference between the inter- 39 est paid on student loans by the taxpayer, is an amount not to exceed 40 two thousand five hundred dollars, and the amount of such interest 41 deducted by such taxpayer to calculate his or her federal adjusted gross 42 income; and 43 (ii) For a taxpayer who files singly or as the head of a household 44 with a federal adjusted gross income of not less than eighty thousand 45 dollars, nor more than one hundred twenty-five thousand dollars, inter- 46 est, in an amount not to exceed two thousand five hundred dollars, paid 47 on indebtedness incurred from a student loan; and 48 (iii) For married taxpayers filing jointly with a federal adjusted 49 gross income, without the deduction of any interest paid on student 50 loans, of not less than one hundred thirty thousand dollars, nor more 51 than one hundred sixty thousand dollars, the difference between the 52 interest paid on student loans by the taxpayers, in an amount not to 53 exceed two thousand five hundred dollars, and the amount of such inter-S. 7509--B 76 1 est deducted by such taxpayers to calculate their federal adjusted gross 2 income; and 3 (iv) For married taxpayers filing jointly with a federal adjusted 4 gross income of not less than one hundred sixty thousand dollars, nor 5 more than two hundred fifty thousand dollars, interest, in an amount not 6 to exceed two thousand five hundred dollars, paid on indebtedness 7 incurred from a student loan. 8 (B) For the purposes of this paragraph, "student loan" shall have the 9 same meaning as ascribed to such term by subparagraph (B) of paragraph 10 forty-two of this subsection, as added by chapter four hundred fifty-six 11 of the laws of two thousand seventeen. 12 § 2. This act shall take effect immediately, and shall apply to taxa- 13 ble years commencing on or after January 1, 2019. 14 PART KKK 15 Section 1. Section 606 of the tax law is amended by adding a new 16 subsection (p-1) to read as follows: 17 (p-1) Residential fuel oil storage tank credit. (1) Allowance of cred- 18 it. A taxpayer shall be allowed a credit, to be computed as hereinafter 19 provided, against the tax imposed by this article for the removal or 20 permanent closure and installation of a below-ground or above-ground 21 residential fuel oil storage tank used to provide heating fuel for 22 single family, two family, three family and four family residences 23 located in this state. 24 (2) Amount of credit. The amount of the credit shall be equal to the 25 costs of removal or permanent closure of an existing below-ground or 26 above-ground residential fuel oil tank and the purchase and installation 27 costs of a new below-ground or above-ground residential fuel oil storage 28 tank which is installed during the taxable year where such new tank is 29 used in place of such formerly used below-ground or above-ground resi- 30 dential fuel oil tank which was removed or permanently closed during the 31 taxable year, not to exceed five hundred dollars. 32 (3) Limitation. A credit allowed under this subsection may be allowed 33 only once with respect to a particular residence. 34 (4) Carryover. If the amount of the credit allowable under this 35 subsection exceeds the taxpayer's tax for any taxable year, the excess 36 may be carried over to the following year or years and may be deducted 37 from the taxpayer's tax for such year or years. 38 (5) To qualify for the credit established by this subsection, a 39 replacement fuel oil storage tank must be installed and shall be of a 40 design approved by Underwriters Laboratories (U.L.), as follows: 41 (A) U.L. 80: A steel tank with a polyurethane exterior coating; 42 (B) U.L. 80: A steel tank with a double-bottom leak protection system, 43 with or without a polyurethane exterior coating; 44 (C) U.L. 80 steel tank, without a polyurethane exterior coating, 45 provided that such tank is located inside a sealed, leak-proof secondary 46 containment structure listed to U.L. 2258 (non-metallic tub for oil 47 tanks), wherein such structure has a volumetric capacity of 110% of the 48 inside tank; 49 (D) U.L. 2558: A double wall tank consisting of an interior polyethy- 50 lene tank placed inside a secondary liquid-tight metallic tank; 51 (E) U.L. 2558: A single wall or double wall fiberglass tank; or 52 (F) U.L. 58 and U.L. 1746-Part 1: A Steel Tank Institute P-3 tank with 53 cathodic protection.S. 7509--B 77 1 A standard unprotected single wall oil storage tank listed to U.L. 80 is 2 not permitted as a replacement tank and will not be eligible for the tax 3 credit provided herein. 4 § 2. The office of temporary and disability assistance shall develop a 5 program utilizing the heating energy assistance program (HEAP) to assist 6 eligible households to remove/permanently close and replace existing 7 fuel oil storage tanks and to promulgate such regulations and apply for 8 such permissions and waivers from the United States government as may be 9 necessary to do so. To qualify for assistance, a replacement fuel oil 10 storage tank must be installed and shall be of a design as specified in 11 paragraph (5) of subsection (p-1) of section 606 of the tax law. 12 § 3. This act shall take effect immediately and shall apply to taxable 13 years beginning on or after January 1, 2019. 14 PART LLL 15 Section 1. Subdivision 1 of section 190 of the tax law, as amended by 16 section 102 of part A of chapter 59 of the laws of 2014, is amended to 17 read as follows: 18 1. General. A taxpayer shall be allowed a credit against the tax 19 imposed by this article equal to [twenty percent] the following percent- 20 ages of the premium paid during the taxable year for long-term care 21 insurance or for a policy rider to a life insurance policy issued pursu- 22 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection 23 (a) of section one thousand one hundred thirteen of the insurance law: 24 (a) forty percent if the insured is less than forty years of age at 25 the end of the tax year for the first four policy years; 26 (b) thirty percent if the insured is less than fifty years of age, but 27 forty or more years of age, at the end of the tax year for the first 28 four policy years; 29 (c) twenty-five percent if the insured is less than fifty-five years 30 of age, but fifty or more years of age, at the end of the tax year for 31 the first four policy years; or 32 (d) twenty percent if the insured is fifty-five or more years of age 33 at the end of the tax year, and for all other insureds who have had a 34 policy for five years or more. 35 In order to qualify for such credit, the taxpayer's premium payment 36 must be for the purchase of or for continuing coverage under a long-term 37 care insurance policy that qualifies for such credit pursuant to section 38 one thousand one hundred seventeen of the insurance law. 39 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, 40 as added by section 17 of part A of chapter 59 of the laws of 2014, is 41 amended to read as follows: 42 (a) General. A taxpayer shall be allowed a credit against the tax 43 imposed by this article equal to [twenty percent] the following percent- 44 ages of the premium paid during the taxable year for long-term care 45 insurance or for a policy rider to a life insurance policy issued pursu- 46 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection 47 (a) of section one thousand one hundred thirteen of the insurance law: 48 (i) forty percent if the insured is less than forty years of age at 49 the end of the tax year for the first four policy years; 50 (ii) thirty percent if the insured is less than fifty years of age, 51 but forty or more years of age, at the end of the tax year for the first 52 four policy years;S. 7509--B 78 1 (iii) twenty-five percent if the insured is less than fifty-five years 2 of age, but fifty or more years of age, at the end of the tax year for 3 the first four policy years; or 4 (iv) twenty percent if the insured is fifty-five or more years of age 5 at the end of the tax year, and for all other insureds who have had a 6 policy for five years or more. 7 In order to qualify for such credit, the taxpayer's premium payment 8 must be for the purchase of or for continuing coverage under a long-term 9 care insurance policy that qualifies for such credit pursuant to section 10 one thousand one hundred seventeen of the insurance law. 11 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as 12 amended by section 1 of part P of chapter 61 of the laws of 2005, is 13 amended to read as follows: 14 (1) Residents. A taxpayer shall be allowed a credit against the tax 15 imposed by this article equal to [twenty percent] the following percent- 16 ages of the premium paid during the taxable year for long-term care 17 insurance or for a policy rider to a life insurance policy issued pursu- 18 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection 19 (a) of section one thousand one hundred thirteen of the insurance law: 20 (A) forty percent if the insured is less than forty years of age at 21 the end of the tax year for the first four policy years; 22 (B) thirty percent if the insured is less than fifty years of age, but 23 forty or more years of age, at the end of the tax year for the first 24 four policy years; 25 (C) twenty-five percent if the insured is less than fifty-five years 26 of age, but fifty or more years of age, at the end of the tax year for 27 the first four policy years; or 28 (D) twenty percent if the insured is fifty-five or more years of age 29 at the end of the tax year, and for all other insureds who have had a 30 policy for five years or more. 31 In order to qualify for such credit, the taxpayer's premium payment 32 must be for the purchase of or for continuing coverage under a long-term 33 care insurance policy that qualifies for such credit pursuant to section 34 one thousand one hundred seventeen of the insurance law. If the amount 35 of the credit allowable under this subsection for any taxable year shall 36 exceed the taxpayer's tax for such year, the excess may be carried over 37 to the following year or years and may be deducted from the taxpayer's 38 tax for such year or years. 39 § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as 40 amended by section 21 of part B of chapter 58 of the laws of 2004, is 41 amended to read as follows: 42 (1) A taxpayer shall be allowed a credit against the tax imposed by 43 this article equal to [twenty percent] the following percentages of the 44 premium paid during the taxable year for long-term care insurance or for 45 a policy rider to a life insurance policy issued pursuant to subpara- 46 graph (C), (D), (E) or (F) of paragraph one of subsection (a) of section 47 one thousand one hundred thirteen of the insurance law: 48 (A) forty percent if the insured is less than fifty years of age at 49 the end of the tax year for the first four policy years; 50 (B) thirty percent if the insured is less than fifty years of age, but 51 forty or more years of age, at the end of the tax year for the first 52 four policy years; 53 (C) twenty-five percent if the insured is less than fifty-five years 54 of age, but fifty or more years of age, at the end of the tax year for 55 the first four policy years; orS. 7509--B 79 1 (D) twenty percent if the insured is fifty-five or more years of age 2 at the end of the tax year, and for all other insureds who have had a 3 policy for five years or more. 4 In order to qualify for such credit, the taxpayer's premium payment 5 must be for the purchase of or for continuing coverage under a long-term 6 care insurance policy that qualifies for such credit pursuant to section 7 one thousand one hundred seventeen of the insurance law. 8 § 5. Paragraphs 1 and 2 of subsection (g) of section 1117 of the 9 insurance law, paragraph 1 as amended by chapter 417 of the laws of 10 2001, paragraph 2 as amended by section 12 of part E of chapter 63 of 11 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended 12 by chapter 311 of the laws of 2002, are amended to read as follows: 13 (1) Except for certain group contracts described in paragraph four of 14 this subsection, in order for premium payments for long-term care insur- 15 ance, or for a policy rider to a life insurance policy issued pursuant 16 to subparagraph (C), (D), (E) or (F) of paragraph one of subsection (a) 17 of section one thousand one hundred thirteen of this article, to qualify 18 for purposes of section one hundred ninety, subdivision [twenty-five-a] 19 fourteen of section two hundred [ten] ten-B, subsection (aa) of section 20 six hundred six[, subsection (k) of section one thousand four hundred21fifty-six] and subsection (m) of section one thousand five hundred elev- 22 en of the tax law, the long-term care insurance or such policy rider 23 must be approved by the superintendent pursuant to this subsection. 24 Prior to approving any such insurance or policy rider, the superinten- 25 dent shall conclude that it meets minimum standards, including minimum 26 loss ratio standards under this section or section three thousand two 27 hundred twenty-nine of this chapter and is a qualified long-term care 28 insurance contract as defined in section 7702B of the internal revenue 29 code. 30 (2) (A) No insurer, agent, broker, person, business or corporation 31 doing business in or into this state shall in any manner state, adver- 32 tise or claim that a long-term care insurance policy, or a policy rider 33 to a life insurance policy issued pursuant to subparagraph (C), (D), 34 (E), or (F) of paragraph one of subsection (a) of section one thousand 35 one hundred thirteen of this article, qualifies for purposes of the 36 above-referenced provisions of the tax law unless either: (i) the super- 37 intendent has issued a letter or other written instrument to the insurer 38 stating that the policy or policy rider has been determined to qualify 39 under this subsection, or (ii) the policy or policy rider qualifies 40 under paragraph four of this subsection without the need for approval by 41 the superintendent. 42 (B) Any policy or policy rider which is held out or purported to be a 43 long-term care insurance policy by any insurer, agent, broker, person, 44 business or corporation doing business in or into this state which has 45 not been determined by the superintendent to qualify and which does not 46 qualify under paragraph four of this subsection for purposes of the 47 above referenced provisions of the tax law shall so state clearly, legi- 48 bly and in close physical proximity to any description of the policy or 49 policy rider as a long-term care insurance policy that it does not so 50 qualify. This subsection shall also be deemed to cover any statement, 51 advertisement or claim concerning such policy by any insurer, agent, 52 broker, person, business or corporation doing business in or into this 53 state. 54 (C) Violation of this paragraph shall be considered a misrepresen- 55 tation under section [twenty-one] two thousand one hundred twenty-three 56 of this chapter.S. 7509--B 80 1 § 6. This act shall take effect immediately and shall apply to tax 2 years beginning on or after January 1, 2019. 3 PART MMM 4 Section 1. The tax law is amended by adding a new section 44 to read 5 as follows: 6 § 44. New York agriculture and rural jobs credit. (a) Definitions. For 7 the purpose of this section the following terms shall have the following 8 meanings: 9 (1) "Affiliate" means a person that directly, or indirectly through 10 one or more intermediaries, controls, is controlled by, or is under 11 common control with another person. For the purposes of this division, a 12 person is "controlled by" another person if the controlling person 13 holds, directly or indirectly, the majority voting or ownership interest 14 in the controlled person or has control over the day-to-day operations 15 of the controlled person by contract or by law. 16 (2) "Closing date" means the date on which a rural business growth 17 fund has collected all of the amounts specified by subparagraphs (A) and 18 (B) of paragraph seven of subdivision (b) of this section. 19 (3) "Credit-eligible capital contribution" means an investment of cash 20 by a person in a rural business growth fund that equals the amount spec- 21 ified on a tax credit certificate issued by the department under subpar- 22 agraph (B) of paragraph six of subdivision (b) of this section. The 23 investment shall purchase an equity interest in the rural business 24 growth fund or purchase, at par value or premium, a debt instrument 25 issued by the rural growth fund that meets all of the following crite- 26 ria: 27 (A) The debt instrument has an original maturity date of at least five 28 years after the date of issuance. 29 (B) The debt instrument has a repayment schedule that is not faster 30 than a level principal amortization over five years. 31 (C) The debt instrument has no interest, distribution, or payment 32 features dependent on the rural business growth fund's profitability or 33 the success of the rural growth investments. 34 (4) "Eligible investment authority" means the amount stated on the 35 notice issued under subparagraph (A) of paragraph six of subdivision (b) 36 of this section certifying the rural business growth fund. At least 37 sixty-five percent of a rural business growth fund's eligible investment 38 authority shall be comprised of credit-eligible capital contributions. 39 (5) A business's "principal business operations" are in this state if 40 at least eighty percent of the business's employees reside in this 41 state, the individuals who receive eighty percent of the business's 42 payroll reside in this state, or the business has agreed to use the 43 proceeds of a rural growth investment to relocate at least eighty 44 percent of its employees to this state or pay at least eighty percent of 45 its payroll to individuals residing in this state. 46 (6) "Rural area" means either of the following: 47 (A) An area of the state not in a city or town that has a population 48 of more than fifty thousand inhabitants according to the latest decenni- 49 al census of the United States or in the urbanized area contiguous and 50 adjacent to a city or town that has a population of more than fifty 51 thousand inhabitants; or 52 (B) Any area determined to be "rural in character" by the under-secre- 53 tary of agriculture for rural development within the United States 54 department of agriculture.S. 7509--B 81 1 (7) "Rural business concern" means an operating company that, at the 2 time if the initial investment in the company by a rural business growth 3 fund, has its principal business operations in this state, has fewer 4 than two hundred fifty employees or not more than fifteen million 5 dollars in net income for the preceding taxable year, and meets either 6 of the following criteria: 7 (A) The business's principal business operations are located in a 8 rural area; or 9 (B) The business produces or provides any goods or services normally 10 used by farmers, ranchers, or producers and harvesters of aquatic 11 products in their business operations, or to improve the welfare or 12 livelihood of such persons, or is involved in the processing and market- 13 ing of agricultural products, farm supply, and input suppliers. For the 14 purposes of this section, "net income" means federal adjusted gross 15 income as required to be reported under the Internal Revenue Code less 16 federal and state taxes imposed on or measured by income. Any business 17 which is classified as a rural business concern at the time of the 18 initial investment in said business by a rural business growth fund 19 shall remain classified as a rural business concern and may receive 20 follow-on investments from any rural business growth fund, and such 21 follow-on investments shall be rural growth investments even though such 22 business may not meet the definition of a rural business concern at the 23 time of such follow-on investments. 24 (8) "Rural business growth fund" means an entity certified by the 25 department under this section. 26 (9) "Rural growth investment" means any capital or equity investment 27 in a rural business concern or any loan to a rural business concern with 28 a term of at least one year. 29 (10) "Taxable year" when used in reference to an insurance company 30 means the calendar year ending on the thirty-first day of December next 31 preceding the day the annual report is required to be returned under 32 subdivision (d) of this section. 33 (b) Certification. (1) On and after August first, two thousand eigh- 34 teen, an applicant that has developed a business plan to invest in rural 35 business concerns in this state and has successfully solicited private 36 investors to make capital contributions in support of the plan may apply 37 to the department for certification as a rural business growth fund. The 38 application shall include all of the following: 39 (A) The total eligible investment authority sought by the applicant 40 under the business plan; 41 (B) Documents and other evidence sufficient to prove, to the satisfac- 42 tion of the department, that the applicant meets all of the following 43 criteria: (i) The applicant or an affiliate of the applicant is licensed 44 as a rural business investment company under 7 U.S.C. 2009cc, or as a 45 small business investment company under 15 U.S.C. 681. 46 (ii) As of the date the application is submitted, the applicant has 47 invested more than one hundred million dollars in operating companies, 48 including at least fifty million dollars in operating companies located 49 in rural areas. In computing investments under this division, the appli- 50 cant may include investments made by affiliates of the applicant. 51 (C) An estimate of the number of jobs that will be created or retained 52 in this state as a result of the applicant's rural growth investments; 53 (D) A revenue impact assessment for the applicant's proposed rural 54 growth investments prepared by a nationally recognized third-party inde- 55 pendent economic forecasting firm using a dynamic economic forecasting 56 model. The revenue impact assessment shall analyze the applicant'sS. 7509--B 82 1 business plan over the ten years following the date the application is 2 submitted to the department. 3 (E) A signed affidavit from each investor successfully solicited by 4 the applicant to make a credit eligible capital contribution in support 5 of the business plan. Each affidavit shall include information suffi- 6 cient for the tax commissioner to identify the investor and shall state 7 the amount of the investor's credit-eligible capital contribution. 8 (F) A nonrefundable application fee of five thousand dollars. 9 (2) The department shall review and make a determination with respect 10 to each application submitted under paragraph one of this subdivision 11 within thirty days of receipt. The department shall review and make 12 determinations on the applications in the order in which the applica- 13 tions are received by the department. Applications received by the 14 department on the same day shall be deemed to have been received simul- 15 taneously. Except as provided in paragraph four of subdivision (c) of 16 this section, the department shall not approve more than one hundred 17 million dollars in eligible investment authority or more than sixty-five 18 million dollars in credit-eligible capital contributions. 19 (3) The department shall deny an application submitted under this 20 section if any of the following are true: (A) The application is incom- 21 plete. 22 (B) The application fee is not paid in full. 23 (C) The applicant does not satisfy all the criteria described in 24 subparagraph (B) of paragraph one of this subdivision. 25 (D) The revenue impact assessment submitted under subparagraph (D) of 26 paragraph one of this subdivision does not demonstrate that the appli- 27 cant's business plan will result in a positive economic impact on this 28 state over a ten-year period that exceeds the eligible investment 29 authority sought by the applicant. 30 (E) The credit-eligible capital contributions described in affidavits 31 submitted under subparagraph (E) of paragraph one of this subdivision do 32 not equal sixty-five percent of the total amount of eligible investment 33 authority sought under the applicant's business plan. 34 (F) The department has already approved the maximum amount of eligible 35 investment authority and credit-eligible capital contributions allowed 36 under paragraph two of this subdivision. 37 (4) If the department denies an application under paragraph three of 38 this subdivision, the department shall send notice of its determination 39 of the applicant. The notice shall include the reasons that the applica- 40 tion was denied. If the application was denied for any reason other than 41 the reason specified in subparagraph (F) of paragraph three of this 42 subdivision, the applicant may provide additional information to the 43 department to complete, clarify, or cure defects in the application. 44 The additional information must be submitted within thirty days after 45 the date the notice of denial was sent by the department. If the person 46 or entity submits additional information within thirty days, the depart- 47 ment shall reconsider the application within thirty days after receiving 48 such additional information. If after submission of additional informa- 49 tion, the department approves the application, then the submission date 50 shall be the date of the original submission of the application. If the 51 person or entity does not submit additional information within thirty 52 days after the notice of denial was sent, the applicant may submit a new 53 application with a new submission date at any time. 54 (5) Of approving multiple simultaneously submitted applications would 55 result in exceeding the overall eligible investment limit prescribed by 56 paragraph two of this subdivision, the department shall proportionallyS. 7509--B 83 1 reduce the eligible investment authority and the credit-eligible capital 2 contributions for each approved application as necessary to avoid 3 exceeding the limit. 4 (6) The department shall not deny a rural business growth fund appli- 5 cation or reduce the requested eligible investment authority for reasons 6 other than those described in paragraphs three and five of this subdivi- 7 sion. If the department approves such application, the department shall 8 issue all of the following notices: (A) To the applicant, a written 9 notice certifying that the applicant qualifies as a rural business 10 growth fund and specifying the amount of the applicant's eligible 11 investment authority; (B) To each investor whose affidavit was included 12 in the application, a tax credit certificate specifying the amount of 13 the investor's credit-eligible capital contribution; (C) To the commis- 14 sioner, a copy of each tax credit certificate issued under subparagraph 15 (B) of this paragraph. 16 (7) A rural business growth fund shall complete all of the following 17 within sixty days of receiving the certification issued under subpara- 18 graph (A) of paragraph six of this subdivision: 19 (A) Collect the credit-eligible capital contributions from each inves- 20 tor issued a tax credit certificate under subparagraph (B) of paragraph 21 six of this subdivision; 22 (B) Collect one or more investments of cash, which shall purchase an 23 equity interest in the rural growth fund or a debt instrument issued by 24 the rural growth fund at par value or premium, with a maturity date of 25 at least five years from the closing date that, when added to the 26 contributions collected under subparagraph (A) of this paragraph, equal 27 the fund's eligible investment authority. At least ten percent of the 28 fund's eligible investment authority shall be comprised of equity 29 investments contributed by affiliates of the rural business growth fund, 30 including employees, officers, and directors of such affiliates. 31 (C) Send to the department documentation sufficient to prove that the 32 amounts described in subparagraphs (A) and (B) of this paragraph have 33 been collected. If the rural business growth fund fails to fully comply 34 with this paragraph, the fund's certification shall lapse. 35 (8) Eligible investment authority and corresponding credit-eligible 36 capital contributions that lapse under paragraph seven of this subdivi- 37 sion do not count toward limits on total eligible investment authority 38 and credit-eligible capital contributions prescribed in paragraph two of 39 this subdivision. Once eligible investment authority has lapsed, the 40 department shall first award lapsed authority pro rata to each rural 41 business growth fund that was awarded less than the requested eligible 42 investment authority under paragraph five of this subdivision. Any 43 remaining eligible investment authority may be awarded by the department 44 to new applicants. 45 (9) Application fees submitted to the department pursuant to subpara- 46 graph (F) of paragraph one of this subdivision shall be credited to the 47 New York agriculture and rural jobs fund, created in section ninety- 48 nine-bb of the state finance law. 49 (c) Revocation of certification. (1) The department shall revoke a tax 50 credit certificate issued under subdivision (b) of this section if any 51 of the following occur with respect to a rural business growth fund 52 before the fund exits the program under paragraph five of this subdivi- 53 sion. 54 (A) The rural business growth fund in which the credit-eligible capi- 55 tal contribution was made does not invest sixty percent of its eligible 56 investment authority in rural growth investments in this state withinS. 7509--B 84 1 two years of the closing date and one hundred percent of its eligible 2 investment authority in rural growth investments in this state within 3 three years of the closing date. 4 (B) After investing one hundred percent of its eligible investment 5 authority in rural growth investments in this state, the rural business 6 growth fund fails to maintain that investment until the fifth anniver- 7 sary of the closing date, including the reinvestment of such investment. 8 For the purposes of this section, an investment is "maintained" even if 9 the investment is sold or repaid so long as the rural business growth 10 fund reinvests an amount equal to the capital returned or recovered by 11 the fund from the original investment, exclusive of any profits real- 12 ized, in other rural growth investments in this state within twelve 13 months of the receipt of such capital. Amounts received periodically by 14 a rural business growth fund shall be treated as continually invested in 15 rural growth investments if the amounts are reinvested in one or more 16 rural growth investments by the end of the following calendar year. A 17 rural business growth fund is not required to reinvest capital returned 18 from rural growth investments in the six months immediately preceding 19 the fifth anniversary of the closing date, and such rural growth invest- 20 ments shall be considered held continuously by the rural growth fund 21 through the fifth anniversary of the closing date. 22 (C) The rural business growth fund invests more than the greater of 23 seven million five hundred thousand dollars or twenty percent of its 24 eligible investment authority in the same rural business concern, 25 including amounts invested in affiliates of the rural business concern 26 but excluding amounts reinvested in the rural business growth fund with 27 repaid or redeemed rural business growth investments, provided such 28 reinvestments shall not count towards the requirement of subparagraph 29 (A) of this paragraph. 30 (D) The rural business growth fund makes a rural growth investment in 31 a rural business concern that directly or indirectly through an affil- 32 iate owns, has the right to acquire an ownership interest, make a loan 33 to, or make an investment in the rural business growth fund, an affil- 34 iate of the rural business growth fund, or an investor in the rural 35 business growth fund. This paragraph does not apply to investments in 36 publicly traded securities by a rural business concern or an owner or 37 affiliate of such concern. 38 (2) Before taking action under paragraph one of this subdivision, the 39 department shall notify the rural business growth fund of the reasons 40 for the pending action. If the rural business growth fund corrects the 41 violations, other than violations of subparagraph (D) of paragraph one 42 of this subdivision, outlined in the notice to the satisfaction of the 43 department within one hundred eighty days of the date of the notice was 44 sent, the department shall not revoke the tax credit certificates or 45 levy a fine. 46 (3) If the department revokes a tax credit certificate under paragraph 47 one of this subdivision, the commissioner shall make an assessment for 48 the amount of the credit claimed by the certificate holder before the 49 certificate was revoked. The commissioner shall make the assessment 50 within one year after the certificate has been revoked. 51 (4) If tax credit certificates are revoked under paragraph one of this 52 subdivision, the associated eligible investment authority and credit-el- 53 igible capital contributions do not count toward the limit on total 54 eligible investment authority and credit-eligible capital contributions 55 described by paragraph two of subdivision (b) of this section. The 56 department shall first award reverted authority pro rata to each ruralS. 7509--B 85 1 business growth fund that was awarded less than the requested eligible 2 investment authority under paragraph five of subdivision (b) of this 3 section. Any remaining eligible investment authority may be awarded by 4 the department to new applicants. 5 (5) (A) On or after the fifth anniversary of the closing date, a rural 6 business growth fund that has not committed any of the acts described in 7 paragraph one of this subdivision may apply to the department to exit 8 the program as a rural business growth fund and no longer be subject to 9 regulation under this section. The department shall respond to the 10 application within thirty days after receiving such application. In 11 evaluating such request the fact that no tax credit certificates have 12 been revoked with respect to the rural business growth fund shall be 13 sufficient evidence to prove that the fund is eligible to exit the 14 program. The department shall not unreasonably deny an application 15 submitted under this subdivision. 16 (B) The department shall send notice of its determination with respect 17 to an application submitted under subparagraph (A) of this paragraph to 18 the rural business growth fund. If the application is denied, the notice 19 shall include the reasons for the determination. 20 (C) The department shall not revoke a tax credit certificate due to 21 any actions of a rural business growth fund that occur after the date 22 the fund's application for exiting the program is approved under subpar- 23 agraph (A) of this paragraph. 24 (6) If the number of jobs created or retained by the rural business 25 concern that received rural growth investments from the rural business 26 growth fund is: 27 (A) Less than sixty percent of the number projected in the approved 28 rural business growth fund's business plan filed as part of its applica- 29 tion for certification under subdivision (b) of this section, then the 30 state shall receive twenty percent of any distribution or payment to an 31 equity holder in an approved rural business growth fund in excess of the 32 sum of the amount of equity capital invested in the fund by such equity 33 holder and an amount equal to any projected increase in the equity hold- 34 er's federal or state tax liability, including penalties and interest, 35 related to the equity holder's ownership, management, or operation of 36 the fund; or 37 (B) Greater than sixty percent but less than eighty percent of the 38 number projected in the approved rural business growth fund's business 39 plan filed as part of its application for certification under subdivi- 40 sion (b) of this section, then the state shall receive ten percent of 41 any distribution or payment to an equity holder in an approved rural 42 business growth fund in excess of the sum of the amount of equity capi- 43 tal invested in the fund by such equity holder and an amount equal to 44 any projected increase in the equity holder's federal or state tax 45 liability, including penalties and interest, related to the equity hold- 46 er's ownership, management, or operation of the fund. 47 (7) A rural business growth fund may, prior to making a rural growth 48 investment, request from the department a written determination as to 49 whether the business entity in which it proposes to invest qualifies as 50 a rural business concern. 51 (d) Reports. (1) Each rural business growth fund shall submit a report 52 to the department on or before the fifth business day after the second 53 and third anniversaries of the closing date. The report shall provide 54 documentation as to the rural growth investments made by the rural busi- 55 ness growth fund. Such documentation shall include the following:S. 7509--B 86 1 (A) A bank statement of the rural business growth fund displaying each 2 rural growth investment; 3 (B) The name and location of each rural business concern in which the 4 rural business growth fund has made a rural growth investment, including 5 evidence that the business concern was qualified at the time the invest- 6 ment was made. 7 (2) On or before the last day of February of each year following the 8 year in which the report required under paragraph one of this subdivi- 9 sion is due, the rural business growth fund shall submit an annual 10 report to the department including the following: 11 (A) The number of employment positions created or retained as a result 12 of the fund's rural growth investments as of the last day of the preced- 13 ing calendar year; 14 (B) The average annual salary of the positions described in subpara- 15 graph (A) of this paragraph; 16 (C) Any other information required by the department. 17 (3) The department shall adopt rules necessary to implement this 18 subdivision. 19 § 2. Section 1511 of the tax law is amended by adding a new subdivi- 20 sion (dd) to read as follows: 21 (dd) Credit for certain investments to a rural business growth fund. 22 (1) There is hereby allowed a nonrefundable tax credit for taxpayers 23 that made a credit-eligible capital contribution to a rural business 24 growth fund and were issued a tax credit certificate under subparagraph 25 (B) of paragraph six of subdivision (b) of section forty-four of this 26 chapter. The credit may be claimed against the tax imposed by this arti- 27 cle and section one thousand one hundred twelve of the insurance law. 28 The credit may not be sold, transferred, or allocated to any entity 29 other than an affiliate of the taxpayer. 30 (2) On the closing date, the taxpayer shall earn a vested credit equal 31 to the amount of the taxpayer's credit-eligible capital contribution to 32 the rural business growth fund, as specified on the tax credit certif- 33 icate. The taxpayer may claim up to twenty-five percent of the eligible 34 investment authority for the taxable year containing the third anniver- 35 sary date of the closing date, exclusive of amounts carried forward 36 pursuant to paragraph three of this subdivision. The taxpayer may claim 37 up to twenty percent of the eligible investment authority for the taxa- 38 ble years that include the fourth and fifth anniversary dates of the 39 closing date, exclusive of amounts carried forward pursuant to paragraph 40 three of this subdivision. 41 (3) If the amount of the credit for a taxable year exceeds the tax 42 otherwise due for that year, the excess shall be carried forward to 43 ensuing taxable years until fully used. A taxpayer claiming a credit 44 under this section shall submit a copy of the tax credit certificate 45 with the taxpayer's return for each taxable year for which the credit is 46 claimed. 47 § 3. The tax law is amended by adding a new section 187-q to read as 48 follows: 49 § 187-q. Credit for certain investments to a rural business growth 50 fund. 1. There is hereby allowed a nonrefundable tax credit for taxpay- 51 ers that made a credit-eligible capital contribution to a rural business 52 growth fund and were issued a tax credit certificate under subparagraph 53 (B) of paragraph six of subdivision (b) of section forty-four of this 54 chapter. The credit may be claimed against the tax imposed by this arti- 55 cle. The credit may not be sold, transferred, or allocated to any entity 56 other than an affiliate of the taxpayer.S. 7509--B 87 1 2. On the closing date, the taxpayer shall earn a vested credit equal 2 to the amount of the taxpayer's credit-eligible capital contribution to 3 the rural business growth fund, as specified on the tax credit certif- 4 icate. The taxpayer may claim up to twenty-five percent of the eligible 5 investment authority for the taxable year containing the third anniver- 6 sary date of the closing date, exclusive of amounts carried forward 7 pursuant to subdivision three of this section. The taxpayer may claim up 8 to twenty percent of the eligible investment authority for the taxable 9 years that include the fourth and fifth anniversary dates of the closing 10 date, exclusive of amounts carried forward pursuant to subdivision three 11 of this section. 12 3. If the amount of the credit for a taxable year exceeds the tax 13 otherwise due for that year, the excess shall be carried forward to 14 ensuing taxable years until fully used. A taxpayer claiming a credit 15 under this section shall submit a copy of the tax credit certificate 16 with the taxpayer's return for each taxable year for which the credit is 17 claimed. 18 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 19 sion 53 to read as follows: 20 53. Credit for certain investments to a rural business growth fund. 21 (1) There is hereby allowed a nonrefundable tax credit for taxpayers 22 that made a credit-eligible capital contribution to a rural business 23 growth fund and were issued a tax credit certificate under subparagraph 24 (B) of paragraph six of subdivision (b) of section forty-four of this 25 chapter. The credit may be claimed against the tax imposed by this arti- 26 cle. The credit may not be sold, transferred, or allocated to any entity 27 other than an affiliate of the taxpayer. 28 (2) On the closing date, the taxpayer shall earn a vested credit equal 29 to the amount of the taxpayer's credit-eligible capital contribution to 30 the rural business growth fund, as specified on the tax credit certif- 31 icate. The taxpayer may claim up to twenty-five percent of the eligible 32 investment authority for the taxable year containing the third anniver- 33 sary date of the closing date, exclusive of amounts carried forward 34 pursuant to paragraph three of this subdivision. The taxpayer may claim 35 up to twenty percent of the eligible investment authority for the taxa- 36 ble years that include the fourth and fifth anniversary dates of the 37 closing date, exclusive of amounts carried forward pursuant to paragraph 38 three of this subdivision. 39 (3) If the amount of the credit for a taxable year exceeds the tax 40 otherwise due for that year, the excess shall be carried forward to 41 ensuing taxable years until fully used. A taxpayer claiming a credit 42 under this section shall submit a copy of the tax credit certificate 43 with the taxpayer's return for each taxable year for which the credit is 44 claimed. 45 § 5. The state finance law is amended by adding a new section 99-bb to 46 read as follows: 47 § 99-bb. New York agriculture and rural jobs fund. 1. There is hereby 48 established in the joint custody of the state comptroller and the 49 commissioner of taxation and finance a special fund to be known as the 50 "New York agriculture and rural jobs fund". 51 2. Such fund shall consist of all application fees submitted pursuant 52 to subparagraph (F) of paragraph one of subdivision (b) of section 53 forty-four of the tax law, and all other moneys appropriated, credited, 54 or transferred thereto from any other fund or source pursuant to law. 55 3. Moneys of the fund, following appropriation by the legislature 56 shall be expended only for the purposes of providing funding for the NewS. 7509--B 88 1 York agriculture and rural jobs credit set forth in section forty-four 2 of the tax law. Moneys shall be paid out of the fund on the audit and 3 warrant of the state comptroller on vouchers approved and certified by 4 the commissioner of taxation and finance. Any interest received by the 5 comptroller on moneys on deposit in the New York agriculture and rural 6 jobs fund shall be retained in and become part of such fund. 7 § 6. This act shall take effect April 1, 2019. 8 PART NNN 9 Section 1. Subdivision (a) of section 1115 of the tax law is amended 10 by adding a new paragraph 45 to read as follows: 11 (45) School buses as such term is defined in section one hundred 12 forty-two of the vehicle and traffic law, and parts, equipment, lubri- 13 cants and fuel purchased and used in their operation. 14 § 2. Paragraph a of subdivision 14 of section 305 of the education 15 law, as amended by chapter 273 of the laws of 1999, is amended to read 16 as follows: 17 a. All contracts for the transportation of school children, all 18 contracts to maintain school buses owned or leased by a school district 19 that are used for the transportation of school children, all contracts 20 for mobile instructional units, and all contracts to provide, maintain 21 and operate cafeteria or restaurant service by a private food service 22 management company shall be subject to the approval of the commissioner, 23 who may disapprove a proposed contract if, in his or her opinion, the 24 best interests of the district will be promoted thereby. Except as 25 provided in paragraph e of this subdivision, all such contracts involv- 26 ing an annual expenditure in excess of the amount specified for purchase 27 contracts in the bidding requirements of the general municipal law shall 28 be awarded to the lowest responsible bidder, which responsibility shall 29 be determined by the board of education or the trustee of a district, 30 with power hereby vested in the commissioner to reject any or all bids 31 if, in his or her opinion, the best interests of the district will be 32 promoted thereby and, upon such rejection of all bids, the commissioner 33 shall order the board of education or trustee of the district to seek, 34 obtain and consider new proposals. All proposals for such transporta- 35 tion, maintenance, mobile instructional units, or cafeteria and restau- 36 rant service shall be in such form as the commissioner may prescribe. 37 Advertisement for bids shall be published in a newspaper or newspapers 38 designated by the board of education or trustee of the district having 39 general circulation within the district for such purpose. Such adver- 40 tisement shall contain a statement of the time when and place where all 41 bids received pursuant to such advertisement will be publicly opened and 42 read either by the school authorities or by a person or persons desig- 43 nated by them. All bids received shall be publicly opened and read at 44 the time and place so specified. At least five days shall elapse between 45 the first publication of such advertisement and the date so specified 46 for the opening and reading of bids. The requirement for competitive 47 bidding shall not apply to an award of a contract for the transportation 48 of pupils or a contract for mobile instructional units, if such award is 49 based on an evaluation of proposals in response to a request for 50 proposals pursuant to paragraph e of this subdivision. The requirement 51 for competitive bidding shall not apply to annual, biennial, or trienni- 52 al extensions of a contract nor shall the requirement for competitive 53 bidding apply to quadrennial or quinquennial year extensions of a 54 contract involving transportation of pupils, maintenance of school busesS. 7509--B 89 1 or mobile instructional units secured either through competitive bidding 2 or through evaluation of proposals in response to a request for 3 proposals pursuant to paragraph e of this subdivision, when such exten- 4 sions (1) are made by the board of education or the trustee of a 5 district, under rules and regulations prescribed by the commissioner, 6 and, (2) do not extend the original contract period beyond five years 7 from the date cafeteria and restaurant service commenced thereunder and 8 in the case of contracts for the transportation of pupils, for the main- 9 tenance of school buses or for mobile instructional units, that such 10 contracts may be extended, except that power is hereby vested in the 11 commissioner, in addition to his or her existing statutory authority to 12 approve or disapprove transportation or maintenance contracts, (i) to 13 reject any extension of a contract beyond the initial term thereof if he 14 or she finds that amount to be paid by the district to the contractor in 15 any year of such proposed extension fails to reflect any decrease in the 16 regional consumer price index for the N.Y., N.Y.-Northeastern, N.J. 17 area, based upon the index for all urban consumers (CPI-U) during the 18 preceding twelve month period; and (ii) to reject any extension of a 19 contract after ten years from the date transportation or maintenance 20 service commenced thereunder, or mobile instructional units were first 21 provided, if in his or her opinion, the best interests of the district 22 will be promoted thereby. Upon such rejection of any proposed extension, 23 the commissioner may order the board of education or trustee of the 24 district to seek, obtain and consider bids pursuant to the provisions of 25 this section; and to reject any extension of a contract for transporta- 26 tion, or new contract, if he or she finds that the amount to be paid by 27 the district to the contractor in any year of such proposed contract 28 fails to reflect the savings realized from the sales tax exemption on 29 school buses, parts, equipment, lubricants and fuel used for school 30 purposes pursuant to paragraph forty-five of subdivision (a) of section 31 eleven hundred fifteen of the tax law. The board of education or the 32 trustee of a school district electing to extend a contract as provided 33 herein, may, in its discretion, increase the amount to be paid in each 34 year of the contract extension by an amount not to exceed the regional 35 consumer price index increase for the N.Y., N.Y.-Northeastern, N.J. 36 area, based upon the index for all urban consumers (CPI-U), during the 37 preceding twelve month period, provided it has been satisfactorily 38 established by the contractor that there has been at least an equivalent 39 increase in the amount of his or her cost of operation, during the peri- 40 od of the contract. 41 § 3. This act shall take effect immediately; provided, however that 42 section one of this act shall take effect on the first day of a quarter- 43 ly sales tax period as set forth in subdivision (b) of section 1136 of 44 the tax law, next succeeding December 1, 2018; and provided further, 45 that such exemption shall only apply to contracts executed or extended 46 after such date. Provided further, that the commissioner of taxation and 47 finance may take any action necessary for the timely implementation of 48 this act on or before the date on which it shall have become a law. 49 PART OOO 50 Section 1. Short title. This act shall be known and may be cited as 51 the "education affordability act". 52 § 2. The tax law is amended by adding a new section 44 to read as 53 follows:S. 7509--B 90 1 § 44. Education affordability tax credit. (a) Definitions. For the 2 purposes of this section, the following terms shall have the same defi- 3 nition as provided for in article twenty-five of the education law: 4 "Authorized contribution"; 5 "Contribution"; 6 "Educational program"; 7 "Educational scholarship organization"; 8 "Eligible pupil"; 9 "Local education fund"; 10 "Nonpublic school"; 11 "Public education entity"; 12 "Public school"; 13 "Qualified contribution"; 14 "Qualified educator"; 15 "Qualified school"; 16 "Scholarship"; and 17 "School improvement organization". 18 (b) Allowance of credit. A taxpayer subject to tax under article 19 nine-A or twenty-two of this chapter shall be allowed credit against 20 such tax, pursuant to the provisions referenced in subdivision (l) of 21 this section, with respect to qualified contributions made during the 22 taxable year. 23 (c) Amount of credit. For taxpayers whose federal adjusted gross 24 income is less than three hundred thousand dollars for the taxable year 25 during which such taxpayer made at least one qualified contribution, the 26 amount of the credit shall be ninety percent of the taxpayer's total 27 qualified contributions, capped at eight hundred seventy-five thousand 28 dollars. For taxpayers whose federal adjusted gross income is greater 29 than or equal to three hundred thousand dollars for the taxable year 30 during which such taxpayer made at least one qualified contribution, the 31 amount of credit shall be seventy-five percent of the taxpayer's total 32 qualified contributions, capped at eight hundred seventy-five thousand 33 dollars. A taxpayer that is a partner in a partnership, member of a 34 limited liability company or shareholder in an S corporation shall be 35 allowed to claim its pro rata share of the credit earned by the partner- 36 ship, limited liability company or S corporation, provided that such a 37 taxpayer shall not claim credit in excess of eight hundred seventy-five 38 thousand dollars. 39 (d) Information to be posted on the department's website. The commis- 40 sioner shall maintain on the department's website a running total of the 41 amount of available credit for which taxpayers may apply pursuant to 42 this section. Such running total shall be updated on a daily basis. 43 Additionally, the commissioner shall maintain on the department's 44 website a list of the school improvement organizations, local education 45 funds and educational scholarship organizations approved to issue 46 certificates of receipt pursuant to article twenty-five of the education 47 law. The commissioner shall also maintain on the department's website a 48 list of public education entities, school improvement organizations, 49 local education funds and educational scholarship organizations whose 50 approval to issue certificates of receipt has been revoked along with 51 the date of revocation. 52 (e) Applications for contribution authorization certificates. Prior to 53 making a contribution to a public education entity, school improvement 54 organization, local education fund, or educational scholarship organiza- 55 tion, the taxpayer shall apply to the department for a contribution 56 authorization certificate for such contribution. Such application shallS. 7509--B 91 1 be in the form and manner prescribed by the department. The department 2 may allow taxpayers to make multiple applications on the same form, 3 provided that each contribution listed on such application shall be 4 treated as a separate application and that the department shall issue 5 separate contribution authorization certificates for each such applica- 6 tion. 7 (f) Contribution authorization certificates. 1. Issuance of certif- 8 icates. The commissioner shall issue contribution authorization certif- 9 icates in two phases. In phase one, which begins on the first day of 10 January and ends on the thirty-first day of January, the commissioner 11 shall accept applications for contribution authorization certificates. 12 Commencing after the fifth day of February, the commissioner shall issue 13 contribution authorization certificates for applications received during 14 phase one, provided that if the aggregate total of the contributions for 15 which applications have been received during phase one exceeds the 16 amount of the credit cap in subdivision (h) of this section, then phase 17 one of the credit cap application shall be allocated in two steps. In 18 step one, the allocation shall equal the contribution cap divided by the 19 total number of applications for contributions, rounded down to the 20 nearest cent. Each application requesting an amount which is less than 21 or equal to the allocation in step one shall receive the amount on their 22 application for contribution and the difference, which shall be referred 23 to as "excess distributions" for the purposes of this subdivision, shall 24 be available for allocation in step two. Each application requesting an 25 amount which exceeds the allocation in step one shall be allocated cred- 26 its in step two. In step two, if excess distributions equal zero then 27 each application shall receive the allocation amount from step one, 28 otherwise each application shall receive an amount equal to the sum of 29 the (i) the allocation amount in step one and (ii) a pro rata share of 30 aggregate excess distributions based on the difference between the 31 amount on their application for contribution and the allocation in step 32 one. For the purposes of this subdivision, multiple applications by the 33 same taxpayer shall be treated as one application. If the credit cap is 34 not exceeded, phase two commences on February twentieth and ends on 35 October thirty-first. During phase two the commissioner shall issue 36 contribution authorization certificates on a first-come first serve 37 basis based upon the date the department received the taxpayer's appli- 38 cation for such certificate. Contribution authorization certificates 39 for applications received during phase one shall be mailed no later than 40 the twentieth day of February. Contribution authorization certificates 41 for applications received during phase two shall be mailed within five 42 days of receipt of such applications. 43 2. Contribution authorization certificate contents. Each contribution 44 authorization certificate shall state (i) the date such certificate was 45 issued, (ii) the date by which the authorized contribution listed on the 46 certificate must be made, which shall be no later than December thirty- 47 first of the year for which the contribution authorization certificate 48 was issued, (iii) the amount of authorized contribution, (iv) the 49 certificate number, (v) the taxpayer's name and address, (vi) the name 50 and address of the public education entity, school improvement organiza- 51 tion, local education fund or educational scholarship organization to 52 which the taxpayer may make the authorized contribution, and (vii) any 53 other information that the commissioner deems necessary. 54 3. Notification of the issuance of a contribution authorization 55 certificate. Upon the issuance of a contribution authorization certif- 56 icate to a taxpayer, the commissioner shall notify the public educationS. 7509--B 92 1 entity, school improvement organization, local education fund or educa- 2 tional scholarship organization of the issuance of such contribution 3 authorization certificate. Such notification shall include (i) the 4 taxpayer's name and address, (ii) the date such certificate was issued, 5 (iii) the date by which the authorized contribution listed in the 6 notification must be made by the taxpayer, (iv) the amount of the 7 authorized contribution, (v) the contribution authorization certif- 8 icate's certificate number, and (vi) any other information that the 9 commissioner deems necessary. 10 (g) Certificate of receipt. 1. In general. No public education entity, 11 school improvement organization, local education fund, or educational 12 scholarship organization shall issue a certificate of receipt for any 13 contribution made by a taxpayer unless such public education entity, 14 school improvement organization, local education fund, or educational 15 scholarship organization has been approved to issue certificates of 16 receipt pursuant to article twenty-five of the education law. No public 17 education entity, school improvement organization, local education fund, 18 or educational scholarship organization shall issue a certificate of 19 receipt for a contribution made by a taxpayer unless such public educa- 20 tion entity, school improvement organization, local education fund, or 21 educational scholarship organization has received notice from the 22 department that the department issued a contribution authorization 23 certificate to the taxpayer for such contribution. 24 2. Timely contribution. If a taxpayer makes an authorized contribution 25 to the public education entity, school improvement organization, local 26 education fund, or educational scholarship organization set forth on the 27 contribution authorization certificate issued to the taxpayer no later 28 than the date by which such authorized contribution is required to be 29 made, such public education entity, school improvement organization, 30 local education fund, or educational scholarship organization shall, 31 within thirty days of receipt of the authorized contribution, issue to 32 the taxpayer a certificate of receipt; provided, however, that if the 33 taxpayer contributes an amount that is less than the amount listed on 34 the taxpayer's contribution authorization certificate, the taxpayer 35 shall not be issued a certificate of receipt for such contribution. 36 3. Certificate of receipt contents. Each certificate of receipt shall 37 state (i) the name and address of the issuing public education entity, 38 school improvement organization, local education fund, or educational 39 scholarship organization, (ii) the taxpayer's name and address, (iii) 40 the date for each contribution, (iv) the amount of each contribution and 41 the corresponding contribution authorization certificate number, (v) the 42 total amount of contributions, (vi) certificate of receipt number and 43 (vii) any other information that the commissioner may deem necessary. 44 4. Notification to the department for the issuance of a certificate of 45 receipt. Upon the issuance of a certificate of receipt, the issuing 46 public education entity, school improvement organization, local educa- 47 tion fund, or educational scholarship organization shall, within thirty 48 days of issuing the certificate of receipt, provide the department with 49 notification of the issuance of such certificate in the form and manner 50 prescribed by the department. 51 5. Notification to the department of the non-issuance of a certificate 52 of receipt. Each public education entity, school improvement organiza- 53 tion, local education fund, or educational scholarship organization that 54 received notification from the department pursuant to subdivision (f) of 55 this section regarding the issuance of a contribution authorization 56 certificate to a taxpayer shall, within thirty days of the expirationS. 7509--B 93 1 date for such authorized contribution, provide notification to the 2 department for each taxpayer that failed to make the authorized contrib- 3 ution to such public education entity, school improvement organization, 4 local education fund, or educational scholarship organization in the 5 form and manner prescribed by the department. 6 6. Failure to notify the department. Within thirty days of the discov- 7 ery of the failure of any public education entity, school improvement 8 program, local education fund, or educational scholarship organization 9 to comply with the notification requirements prescribed by paragraphs 10 four and five of this subdivision, the commissioner shall issue a notice 11 of compliance failure to such entity, program, fund, or organization. 12 Such entity, program, fund, or organization shall have thirty days from 13 the date of such notice to make the notifications prescribed by para- 14 graphs four and five of this subdivision. Such period may be extended 15 for an additional thirty days upon the request of the entity, program, 16 fund, or organization. Upon the expiration of period for compliance set 17 forth in the notice prescribed by this paragraph, the commissioner shall 18 notify the commissioner of education that such entity, program, fund, or 19 organization failed to make the notifications prescribed by paragraphs 20 four and five of this subdivision. 21 (h) Credit cap. The maximum permitted credits under this section 22 available to all taxpayers for qualified contributions for calendar year 23 two thousand nineteen shall be one hundred fifty million dollars. In 24 calendar year two thousand twenty, the maximum permitted credits under 25 this section available to all taxpayers shall be two hundred twenty-five 26 million dollars plus any amounts that are required to be added to the 27 cap pursuant to subdivision (i) of this section. For calendar year two 28 thousand twenty-one and each calendar year thereafter, the maximum 29 permitted credits available to all taxpayers shall be three hundred 30 million dollars plus any amounts that are required to be added to the 31 cap pursuant to subdivision (i) of this section. The maximum permitted 32 credits under this section for qualified contributions shall be allo- 33 cated fifty percent to public education entities, school improvement 34 organizations, and local education funds and fifty percent to educa- 35 tional scholarship organizations. 36 (i) Additions to credit cap. Unissued certificates of receipt. Any 37 amounts for which the department receives notification of non-issuance 38 of a certificate of receipt shall be added to the cap prescribed in 39 subdivision (h) of this section for the immediately following year. 40 (j) Regulations. The commissioner is hereby authorized to promulgate 41 and adopt on an emergency basis regulations necessary for the implemen- 42 tation of this section. 43 (k) Written report. On or before the last day of June for each calen- 44 dar year, for the immediately preceding year, the commissioner and the 45 commissioner of education shall jointly submit a written report to the 46 governor, the temporary president of the senate, the speaker of the 47 assembly, the chairman of the senate finance committee and the chairman 48 of the assembly ways and means committee regarding the education afford- 49 ability tax credit. Such report shall contain information for articles 50 nine-A and twenty-two of this chapter, respectively, regarding: (i) the 51 number of applications received; (ii) the number of and aggregate value 52 of the contribution authorization certificates issued for contributions 53 to public education entities, school improvement organizations, local 54 education funds, and scholarship organizations, respectively; (iii) the 55 geographical distribution by county of (A) the applications for contrib- 56 ution authorization certificates, distribution by county of (B) theS. 7509--B 94 1 public education entities, school improvement organizations, local 2 education funds, and educational scholarship organizations listed on the 3 issued contribution authorization certificates; and (iv) information, 4 including geographical distribution by county, of the number of eligible 5 pupils that received scholarships, the number of qualified schools 6 attended by eligible pupils that received such scholarships, and the 7 average value of scholarships received by such eligible pupils. The 8 commissioner and designated employees of the department, the commission- 9 er of education and designated employees of the state education depart- 10 ment, shall be allowed and are directed to share and exchange informa- 11 tion regarding the school improvement organizations, local education 12 funds and educational scholarship organizations that applied for 13 approval to be authorized to receive qualified contributions; and the 14 public education entities, school improvement organizations, local 15 education funds, and educational scholarship organizations authorized to 16 issue certificates of receipt, including information contained in or 17 derived from application forms and reports submitted to the commissioner 18 of education. 19 (l) Cross references. For application of the credit provided for in 20 this section, see the following provisions of this chapter: 21 1. Article 9-A: section 210-B; subdivision 53; 22 2. Article 22: section 606; subsections (i) and (ccc). 23 § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is 24 amended by adding a new subparagraph 23 to read as follows: 25 (23) The amount of any deduction allowed pursuant to section one 26 hundred seventy of the internal revenue code for which a credit is 27 claimed pursuant to subdivision fifty-three of section two hundred ten-B 28 of this article. 29 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 30 sion 53 to read as follows: 31 53. Education affordability tax credit. (a) Allowance of credit. A 32 taxpayer shall be allowed a credit, to be computed as provided in 33 section forty-four of this chapter, against the tax imposed by this 34 article. 35 (b) Application of credit. The credit allowed under this subdivision 36 for any taxable year shall not reduce the tax due for that year to less 37 than the higher of the amounts prescribed in paragraph (d) of subdivi- 38 sion one of section two hundred ten of this article. However, if the 39 amount of credit allowed under this subdivision for qualified contrib- 40 utions for any taxable year reduces the tax to such amount, any amount 41 of credit not deductible in such taxable year may be carried over to the 42 succeeding five years and may be deducted from the taxpayer's tax for 43 such year or years. 44 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 45 of the tax law is amended by adding a new clause (xliv) to read as 46 follows: 47 (xliv) Education affordability Amount of credit under 48 tax credit under subsection (ccc) subdivision fifty-three of section 49 two hundred ten-B 50 § 6. Section 606 of the tax law is amended by adding two new 51 subsections (w) and (w-1) to read as follows: 52 (w) Home-based instructional materials credit. (1) For taxable years 53 beginning on or after January first, two thousand nineteen, a taxpayer 54 shall be allowed a credit against the tax imposed by this article for 55 the purchase of instructional materials approved by the education 56 department for use in non-public home-based educational programs;S. 7509--B 95 1 provided, that the amount of credit claimed does not exceed the lesser 2 of two hundred dollars or one hundred percent of the cost of such 3 purchases made by the taxpayer during the taxable year. 4 (2) A husband and wife who file separate returns for a taxable year in 5 which they could have filed a joint return may each claim only one-half 6 of the tax credit that would have been allowed for a joint return. 7 (3) If the amount of the credit allowed under this subsection for any 8 taxable year shall exceed the taxpayer's tax for such year, the excess 9 shall be treated as an overpayment of tax to be credited or refunded in 10 accordance with the provisions of section six hundred eighty-six of this 11 article, provided, however, that no interest shall be paid thereon. 12 (w-1) Instructional materials and supplies credit. (1) For taxable 13 years beginning on and after January first, two thousand nineteen, a 14 taxpayer shall be allowed a credit equal to the lesser of the amount 15 paid by the taxpayer during the taxable year for instructional materials 16 and supplies, or two hundred dollars; provided that the taxpayer is a 17 teacher or instructor in a qualified school, as defined in section 18 forty-four of this chapter, for at least nine hundred hours during a 19 school year. For purposes of this subsection, the term "materials and 20 supplies" means instructional materials or supplies that are used in the 21 classroom in any qualified school. 22 (2) A husband and wife who file separate returns for a taxable year in 23 which they could have filed a joint return may each claim only one-half 24 of the tax credit that would have been allowed for a joint return. 25 (3) If the amount of the credit allowed under this subsection for any 26 taxable year shall exceed the taxpayer's tax for such year, the excess 27 shall be treated as an overpayment of tax to be credited or refunded in 28 accordance with the provisions of section six hundred eighty-six of this 29 article, provided, however, that no interest shall be paid thereon. 30 § 7. Section 606 of the tax law is amended by adding a new subsection 31 (ccc) to read as follows: 32 (ccc) Education affordability tax credit. (1) Allowance of credit. A 33 taxpayer shall be allowed a credit to be computed as provided in section 34 forty-four of this chapter, against the tax imposed by this article. 35 (2) Application of credit. If the amount of the credit allowed under 36 this subsection for any qualified contributions for any taxable year 37 exceeds the taxpayer's tax for such year, the excess may be carried over 38 to the succeeding five years and may be deducted from the taxpayer's tax 39 for such year or years. 40 § 8. Subsection (c) of section 615 of the tax law is amended by adding 41 a new paragraph 10 to read as follows: 42 (10) The amount of any federal deduction for contributions made for 43 which a taxpayer claims a credit under subsection (ccc) of section six 44 hundred six of this article. 45 § 9. Section 606 of the tax law is amended by adding a new subsection 46 (iii) to read as follows: 47 (iii) Helping open opportunities to learn tax credit. (1) General. A 48 resident low and middle income taxpayer shall be allowed a credit, to be 49 computed as provided in paragraph three of this subsection, against the 50 tax imposed by this article for the qualified primary or secondary 51 education tuition expenses paid by the taxpayer during the taxable year. 52 (2) Definitions. For purposes of this subsection, the following terms 53 shall have the following meanings: 54 (A) "Resident low and middle income taxpayer" shall mean a taxpayer 55 who is a full-year resident of this state and whose federal taxable 56 income is equal to or less than seven hundred twenty percent of theS. 7509--B 96 1 federal poverty guidelines, as promulgated annually by the United States 2 department of health and human services, for the taxable year for which 3 this credit is claimed. 4 (B) "Qualified primary or secondary education tuition expenses" shall 5 mean the tuition required for the enrollment or attendance of an eligi- 6 ble student at a qualified school, as defined in section forty-four of 7 this chapter. Provided, however, that any tuition payments made for such 8 eligible student pursuant to the receipt of financial aid or one or more 9 scholarships shall be excluded from the definition of the term "quali- 10 fied primary or secondary education tuition expenses" for such eligible 11 student. 12 (C) "Eligible student" shall mean any dependent of the taxpayer with 13 respect to whom the taxpayer is allowed an exemption under section six 14 hundred sixteen of this article for the taxable year who is enrolled in, 15 and for whom qualified primary and secondary education tuition expenses 16 have been paid for, kindergarten or grade one through twelve in a quali- 17 fied school. 18 (3) Amount of credit. The amount of credit that a resident low and 19 middle income taxpayer may claim for the qualified primary or secondary 20 education tuition expenses paid for each eligible student shall equal 21 the lesser of twelve percent of the total per pupil state public school 22 expenditures or fifteen percent of the qualified primary or secondary 23 education tuition expenses paid by the taxpayer during the taxable year 24 for such eligible student. The total state public school expenditures 25 shall equal the school aid, as reported in the state enacted budget 26 financial plan for the taxable year in which the school year began, 27 divided by the total number of students enrolled in kindergarten and 28 grades one through twelve at public schools in this state as published 29 by the department of education for such taxable year. 30 (4) Application of credit. If the amount of the credit allowed under 31 this subsection for any taxable year shall exceed the taxpayer's tax for 32 such year, the excess shall be treated as an overpayment of tax to be 33 credited or refunded in accordance with the provisions of section six 34 hundred eighty-six of this article, provided, however, that no interest 35 shall be paid thereon. 36 (5) Husband and wife. In the case of a husband and wife who file a 37 joint federal return, but who are required to determine their New York 38 taxes separately, the credit allowed pursuant to this subsection may be 39 applied against the tax imposed of either or divided between them as 40 they may elect. 41 § 10. The education law is amended by adding a new article 25 to read 42 as follows: 43 ARTICLE 25 44 EDUCATION AFFORDABILITY PROGRAM 45 Section 1209. Short title. 46 1210. Definitions. 47 1211. Approval to issue certificates of receipt. 48 1212. Applications for approval to issue certificates of 49 receipt. 50 1213. Application approval. 51 1214. Revocation of approval to issue certificates of receipt. 52 1215. Recordkeeping. 53 1216. Joint annual report. 54 1217. Commissioner; powers. 55 § 1209. Short title. This article shall be known and may be cited as 56 the "education affordability program".S. 7509--B 97 1 § 1210. Definitions. As used in this article, the following terms 2 shall have the following meanings: 3 1. "Authorized contribution" means the contribution amount listed on 4 the contribution authorization certificate issued to a taxpayer. 5 2. "Contribution" means a donation paid by cash, check, electronic 6 funds transfer, debit card or credit card made by the taxpayer during 7 the tax year. 8 3. "Educational program" means an academic program of a public school 9 that enhances the curriculum, or provides or expands a pre-kindergarten 10 program or an after-school program to the public school. For purposes of 11 this definition, the instruction, materials, programs or other activ- 12 ities offered by or through an educational program may include, but are 13 not limited to, the following features: (a) instruction or materials 14 promoting health, physical education, and family and consumer sciences; 15 literary, performing and visual arts; mathematics, social studies, tech- 16 nology and scientific achievement; (b) instruction or programming to 17 meet the education needs of at-risk students or students with disabili- 18 ties, including tutoring or counseling; or (c) use of specialized 19 instructional materials, instructors or instruction not provided by a 20 public school. 21 4. "Educational scholarship organization" means a not-for-profit enti- 22 ty which (a) is exempt from taxation under paragraph three of subsection 23 (c) of section five hundred one of the internal revenue code, (b) 24 commits for the expenditure of at least ninety percent of the revenue 25 from qualified contributions received during the calendar year and any 26 income derived from qualified contributions for scholarships, (c) depos- 27 its and holds qualified contributions and any income derived from quali- 28 fied contributions in an account that is separate from the organiza- 29 tion's operating or other funds until such qualified contributions or 30 income are withdrawn for use, and (d) provides scholarships to eligible 31 pupils for use at no fewer than three qualified schools. 32 5. "Eligible pupil" means a child who (a) is a resident of this state, 33 (b) is school age in accordance with subdivision one of section thirty- 34 two hundred two of this chapter or who is four years of age on or before 35 December first of the year in which they are enrolled in a pre-kinder- 36 garten program, (c) attends or is about to attend a qualified school, 37 and (d) resides in a household that has a federal adjusted gross income 38 of five hundred thousand dollars or less, provided however, for house- 39 holds with three or more dependent children, such income level shall be 40 increased by ten thousand dollars per dependent child in excess of two, 41 not to exceed five hundred fifty thousand dollars. 42 6. "Local education fund" means a not-for-profit entity which (a) is 43 exempt from taxation under paragraph three of subsection (c) of section 44 five hundred one of the internal revenue code, (b) is established for 45 the purpose of supporting an educational program in at least one public 46 school, or public school district, (c) uses at least ninety percent of 47 the qualified contributions received during the calendar year and any 48 income derived from qualified contributions to support the public school 49 or schools or public school district or districts that such fund has 50 been established to support, and (d) deposits and holds qualified 51 contributions and any income derived from qualified contributions in an 52 account that is separate from the fund's operating or other funds until 53 such qualified contributions or income are withdrawn for use. 54 7. "Nonpublic school" means any not-for-profit pre-kindergarten 55 program or elementary, secondary sectarian or nonsectarian school 56 located in this state, other than a public school, that is providingS. 7509--B 98 1 instruction at one or more locations to a student in accordance with 2 subdivision two of section thirty-two hundred four of this chapter. 3 8. "Public education entity" means a public school or a public school 4 district, provided that such public school, or public school district 5 deposits and holds qualified contributions and any income derived from 6 qualified contributions in an account that is separate from the public 7 school or public school district's operating or other funds until such 8 qualified contributions or income are withdrawn for use, and is approved 9 to issue certificates of receipt pursuant to this article. 10 9. "Public school" means any free elementary or secondary school in 11 this state guaranteed by article eleven of the constitution or charter 12 school authorized by article fifty-six of this chapter. 13 10. "Qualified contribution" means the authorized contribution made by 14 a taxpayer to the public education entity, school improvement organiza- 15 tion, local education fund, or educational scholarship organization that 16 is listed on the contribution authorization certificate issued to the 17 taxpayer and for which the taxpayer has received a certificate of 18 receipt from such entity, fund, or organization. A contribution does 19 not qualify if the taxpayer designates the taxpayer's contribution to an 20 entity or organization for the direct benefit of any particular or spec- 21 ified student. 22 11. "Qualified educator" means an individual who is a teacher or 23 instructor in a qualified school for at least nine hundred hours during 24 a school year. 25 12. "Qualified school" means a public school or nonpublic school. 26 13. "Scholarship" means an educational scholarship which provides a 27 tuition grant awarded to an eligible pupil to attend a qualified school 28 in an amount not to exceed the tuition charged to attend such school 29 less any other educational scholarship received by such eligible pupil 30 or his or her parent, parents or guardian for such eligible pupil's 31 tuition; provided, however, in the case of an eligible pupil attending a 32 public school in a public school district of which such pupil is not a 33 resident, the amount of the educational scholarship awarded may not 34 exceed the tuition charged by the public school pursuant to paragraph d 35 of subdivision four of section thirty-two hundred two of this chapter 36 less any other educational scholarship received by such eligible pupil 37 or his or her parent, parents or guardian for such eligible pupil's 38 tuition, but only if the public school district of which such pupil is a 39 resident is not required to pay for such tuition. 40 14. "School improvement organization" means a not-for-profit entity 41 which (i) is exempt from taxation under paragraph three of subsection 42 (c) of section five hundred one of the internal revenue code, (ii) uses 43 at least ninety percent of the qualified contributions received during 44 the calendar year and any income derived from such qualified contrib- 45 utions to assist public schools or public school districts located in 46 this state in their provision of educational programs, either by making 47 contributions to one or more public schools or public school districts 48 located in this state or providing educational programs to, or in 49 conjunction with, one or more public schools or public school districts 50 located in this state, (iii) deposits and holds qualified contributions 51 and any income derived from such qualified contributions in an account 52 that is separate from the organization's operating or other funds until 53 such qualified contributions or income are withdrawn for use, and (iv) 54 is approved to issue certificates of receipt pursuant to this article. 55 Such entity may allow the taxpayer to choose to donate to a program,S. 7509--B 99 1 project or initiative identified by a qualified educator for use in a 2 public school. 3 § 1211. Approval to issue certificates of receipt. 1. Public schools 4 and public school districts. All public schools and public school 5 districts shall be approved to issue certificates of receipt provided, 6 that a public school or public school district shall not be approved if 7 either (a) the public school or public school district fails to deposit 8 and hold qualified contributions and any income derived from qualified 9 contributions in an account that is separate from the school or school 10 district's operating or other funds until such qualified contributions 11 or income are withdrawn for use, or (b) the commissioner has revoked 12 such approval for such public school or public school district pursuant 13 to section twelve hundred fourteen of this article. 14 2. School improvement organizations, educational scholarship organiza- 15 tions and local education funds. No school improvement organization, 16 educational scholarship organization or local education fund shall issue 17 any certificates of receipt without filing an application pursuant to 18 section twelve hundred twelve of this article and receiving approval 19 pursuant to section twelve hundred thirteen of this article. 20 § 1212. Applications for approval to issue certificates of receipt. 21 Each school improvement organization, educational scholarship organiza- 22 tion, and local education fund shall submit an application to the 23 commissioner for approval to issue certificates of receipt in the form 24 and manner prescribed by the commissioner; provided that such applica- 25 tion shall include: (a) submission of documentation that such school 26 improvement organization, local education fund or educational scholar- 27 ship organization has been granted exemption from taxation under para- 28 graph three of subsection (c) of section five hundred one of the inter- 29 nal revenue code; (b) the most recent annual financial audit, which 30 shall be completed by an independent certified public accountant and a 31 list of names and addresses of all members of the governing board of the 32 school improvement organization, local education fund or educational 33 scholarship organization; and (c) an educational scholarship organiza- 34 tion shall provide criteria for the awarding of scholarships to eligible 35 students. Neither the commissioner or the department shall require any 36 other information for such application except as authorized in this 37 article or by section forty-four of the tax law. 38 § 1213. Application approval. The commissioner shall review each 39 application to issue certificates of receipt pursuant to this article. 40 Approval or denial of an application shall be made within sixty days of 41 receipt of such application. 42 § 1214. Revocation of approval to issue certificates of receipt. The 43 commissioner, in consultation with the commissioner of taxation and 44 finance, may revoke the approval of a school improvement organization, 45 educational scholarship organization, local education fund, public 46 school or public school district to issue certificates of receipt upon a 47 finding that such organization, fund, school or school district has 48 violated this article or section forty-four of the tax law. These 49 violations shall include, but not be limited to, any of the following: 50 (a) failure to meet the requirements of this article or section forty- 51 four of the tax law, (b) the failure to maintain full and adequate 52 records with respect to the receipt of qualified contributions, (c) the 53 failure to supply such records to the commissioner or the department of 54 taxation and finance when requested by the department or the department 55 of taxation and finance, or (d) the failure to provide notice to the 56 department of taxation and finance of the issuance or nonissuance ofS. 7509--B 100 1 certificates of receipt pursuant to section forty-four of the tax law; 2 provided however, that the commissioner shall not revoke approval pursu- 3 ant to this section based upon a violation of the tax law unless the 4 commissioner of taxation and finance agrees that revocation is 5 warranted; and provided further that the commissioner shall not revoke 6 approval pursuant to this section when the failure to comply is due to 7 clerical error and not negligence or intentional disregard for the law. 8 Within five days of the determination revoking approval, the commission- 9 er shall provide notice of such revocation to the educational scholar- 10 ship organization, school improvement organization, local education 11 fund, public school, or public school district and to the department of 12 taxation and finance. 13 § 1215. Recordkeeping. Each school improvement organization, educa- 14 tional scholarship organization, local education fund, public school and 15 public school district that issued at least one certificate of receipt 16 shall maintain records including (a) notifications received from the 17 department of taxation and finance, (b) notifications made to the 18 department of taxation and finance, (c) copies of qualified contrib- 19 utions received, (d) copies of the deposit of such qualified contrib- 20 utions, (e) copies of issued certificates of receipt, (f) annual finan- 21 cial statements, (g) in the case of school improvement organizations, 22 educational scholarship organizations and local education funds, the 23 application submitted pursuant to section twelve hundred twelve of this 24 article and the approval issued by the commissioner, and (h) any other 25 information as prescribed by regulation promulgated by the commissioner. 26 § 1216. Joint annual report. On or before the last day of June for 27 each calendar year, the commissioner of taxation and finance and the 28 commissioner, jointly, shall submit a written report as provided in 29 subdivision (k) of section forty-four of the tax law. 30 § 1217. Commissioner; powers. The commissioner shall promulgate on an 31 emergency basis regulations necessary for the implementation of this 32 section. The commissioner shall make any application required to be 33 filed pursuant to this article available to applicants within sixty days 34 of the effective date of this article. 35 § 11. The education law is amended by adding a new section 1503-a to 36 read as follows: 37 § 1503-a. Power to accept and solicit gifts and donations. 1. All 38 school districts organized by special laws or pursuant to the provisions 39 of a general law are hereby authorized and empowered to accept gifts, 40 donations, and contributions to the district and to solicit the same. 41 2. Notwithstanding any other provision of this chapter or of any other 42 general or special law to the contrary, the receipt of such gifts, 43 donations, contributions and other funds, and any income derived there- 44 from, shall be disregarded for the purposes of all apportionments, 45 computations, and determinations of state aid. 46 § 12. Severability. If any provision of this act or the application 47 thereof to any person or circumstances is held invalid, such invalidity 48 shall not affect other provisions or applications of this act which can 49 be given effect without the invalid provision or application, and to 50 this end the provisions of this act are declared to be severable. 51 § 13. This act shall take effect immediately and shall apply to taxa- 52 ble years beginning on and after January 1, 2019. 53 PART PPPS. 7509--B 101 1 Section 1. Subdivision 41 of section 1301 of the racing, pari-mutuel 2 wagering and breeding law, as added by chapter 174 of the laws of 2013, 3 is amended and a new subdivision 43 is added to read as follows: 4 41. "Table game". A game, including dealer-controlled electronic table 5 games, other than a slot machine, which is authorized by the commission 6 to be played in a gaming facility. 7 43. "Dealer-controlled electronic table game". A table game operated 8 by a live dealer in which the outcome is determined by the actions of 9 the dealer, that uses electronics as part of the game's operation in 10 connection with the collection and payoff of wagers, but not to deter- 11 mine the game outcome. 12 § 2. Section 1348 of the racing, pari-mutuel wagering and breeding 13 law, as added by chapter 174 of the laws of 2013, is amended to read as 14 follows: 15 § 1348. Machine and table fees. In addition to any other tax or fee 16 imposed by this article, there shall be imposed an annual license fee of 17 five hundred dollars for each slot machine and table approved by the 18 commission for use by a gaming licensee at a gaming facility; provided, 19 however, that not sooner than five years after award of an original 20 gaming license, the commission may annually adjust the fee for 21 inflation. The fee shall be imposed as of July first of each year for 22 all approved slot machines and [tables] table games, including dealer- 23 controlled electronic table games, on that date and shall be assessed on 24 a pro rata basis for any slot machine or table, including dealer-cont- 25 rolled electronic table games, approved for use thereafter. 26 Such assessed fees shall be deposited into the commercial gaming 27 revenue fund established pursuant to section one thousand three hundred 28 fifty-two of this article. 29 § 3. This act shall take effect immediately. 30 PART QQQ 31 Section 1. Paragraph 3 of subdivision i of section 1617-a of the tax 32 law, as amended by section 1 of part SS of chapter 60 of the laws of 33 2016, is amended to read as follows: 34 (3) For each video lottery facility, the annual value of the free play 35 allowance credits authorized for use by the operator pursuant to this 36 subdivision shall not exceed an amount equal to fifteen percent of the 37 total amount wagered on video lottery games after payout of prizes 38 provided, however, if a video lottery facility is located in development 39 zone two as defined by section thirteen hundred ten of the racing, pari- 40 mutuel wagering and breeding law, and the nearest commercial casino, as 41 defined by section thirteen hundred one of the racing, pari-mutuel 42 wagering and breeding law, is given a greater than fifteen percent free 43 play allowance, the video lottery facility shall receive the same 44 percentage of free play allowance credits as allowed to the nearest 45 commercial casino. The gaming commission shall establish procedures to 46 assure that free play allowance credits do not exceed such amount. 47 § 2. This act shall take effect immediately. 48 PART RRR 49 Section 1. The racing, pari-mutuel wagering and breeding law is 50 amended by adding a new article 15 to read as follows: 51 ARTICLE 15 52 INTERACTIVE GAMINGS. 7509--B 102 1 Section 1500. Legislative findings and purpose. 2 1501. Definitions. 3 1502. Authorization. 4 1503. Required safeguards/minimum standards. 5 1504. Scope of licensing review. 6 1505. State tax. 7 1506. Disposition of taxes. 8 § 1500. Legislative findings and purpose. The legislature hereby finds 9 and declares that: 1. Under the New York penal law a person engages in 10 gambling when he or she stakes or risks something of value upon the 11 outcome of a contest of chance or a future contingent event not under 12 his or her control or influence, upon an agreement or understanding that 13 he or she will receive something of value in the event of a certain 14 outcome. 15 2. A contest of chance is defined as any contest, game, gaming scheme 16 or gaming device in which the outcome depends in a material degree upon 17 an element of chance, notwithstanding that skill of the contestants may 18 also be a factor therein. (Subdivision 1 of section 225.00 of the penal 19 law). Thus, games of chance may involve some skill, but in those games 20 the level of skill does not determine the outcome regardless of the 21 degree of skill employed. See People v. Turner, 165 Misc. 2d 222, 224, 22 629 N.Y.S.2d 661, 662 (Crim. Ct. 1995). On the other hand, where a 23 contest pits the skill levels of the players against each other, New 24 York courts have found a game to be one of skill rather than chance. See 25 People v. Hunt, 162 Misc. 2d 70, 72, 616 N.Y.S.2d 168, 170 (Crim. Ct. 26 1994) ("Played fairly, skill rather than chance is the material compo- 27 nent of three-card monte."); 28 3. Poker in many instances has been defined as a game of skill and a 29 New York federal court in U.S. v. DiCristina, 886 F. Supp. 2d 164, 224, 30 assessed that under federal law poker was predominantly a game of skill; 31 4. New York courts have interpreted New York law to apply a more 32 rigorous test in identifying a "contest of chance" than is applied by 33 most states in this nation and the courts have found that where a 34 contest pits the skill levels of the players against each other, those 35 games are games of skill and not games of chance. Furthermore, the 36 courts have not limited the legislature's ability to determine that 37 certain forms of poker should fall outside the general definition of 38 gambling since those games are games of skill; 39 5. Texas Hold'em poker involves two cards dealt face down to each 40 player and then five community cards placed face-up by the dealer, a 41 series of three, then two additional single cards, with players deter- 42 mining whether to check, bet, raise or fold after each deal. Omaha 43 Hold'em poker is a similar game, in which each player is dealt four 44 cards and makes his or her best hand using exactly two of them, plus 45 exactly three of the five community cards. These games are considered to 46 be complex forms of poker which involve player strategy and decision- 47 making and which pit the skill levels of the players against each other. 48 As games of skill, these forms of poker do not fall under the definition 49 of gambling as prohibited by the penal law; and 50 6. The legislature further finds that as the internet has become an 51 integral part of society, and internet poker a major form of enter- 52 tainment for many consumers, any interactive gaming enforcement and 53 regulatory structure must begin from the bedrock premise that partic- 54 ipation in a lawful and licensed gaming industry is a privilege and not 55 a right, and that regulatory oversight is intended to safeguard theS. 7509--B 103 1 integrity of the games and participants and to ensure accountability and 2 the public trust. 3 § 1501. Definitions. As used in this article, the following terms 4 shall have the following meanings: 5 1. "Authorized game" means Omaha Hold'em and Texas Hold'em poker, as 6 well as any other poker game that the commission determines is the mate- 7 rial equivalent of either of those, whether in a cash game or tourna- 8 ment. 9 2. "Authorized participants" means persons who are either physically 10 present in this state when placing a wager or who otherwise are permit- 11 ted by applicable law, as determined by the commission, to place a 12 wager. The intermediate routing of electronic data in connection with 13 interactive gaming shall not determine the location or locations in 14 which a wager is initiated, received or otherwise made. 15 3. "Core function" means any of the following: (a) the management, 16 administration or control of wagers on interactive gaming; (b) the 17 management, administration or control of the games with which those 18 wagers are associated; or (c) the development, maintenance, provision or 19 operation of an interactive gaming platform. 20 4. "Commission" means the New York state gaming commission. 21 5. "Covered asset" means any of the following categories of assets if 22 used in connection with the knowing and willful acceptance of any wager 23 from persons located in the United States of any form of interactive 24 gaming (including but not limited to poker) after December thirty-first, 25 two thousand six, that has not been affirmatively authorized by law of 26 the United States or of each state in which persons making such wager 27 were located: (a) any trademark, trade name, service mark or similar 28 intellectual property that was used to identify any aspect of the inter- 29 net website or of the operator offering the wagers or games to its 30 patrons; (b) any database or customer list of individuals residing in 31 the United States who placed such wagers; (c) any derivative of a data- 32 base or customer list described in paragraph (b) of this subdivision; or 33 (d) an asset used to provide a core function. 34 6. "Division" means the division of gaming, established under para- 35 graph (c) of subdivision two of section one hundred three of this chap- 36 ter. 37 7. "Interactive gaming" means the conduct of games through the use of 38 the internet or other communications technology that allows a person, 39 utilizing money, checks, electronic checks, electronic transfers of 40 money, credit cards, debit cards or any other instrumentality, to trans- 41 mit to a computer information to assist in the placing of a wager and 42 corresponding information related to the display of the game, game 43 outcomes or other similar information. The term does not include the 44 conduct of (a) non-gambling games that do not otherwise require a 45 license under state or federal law; or (b) games that occur entirely 46 among participants who are located on a licensed casino premises. For 47 purposes of this provision, "communications technology" means any method 48 used and the components employed by an establishment to facilitate the 49 transmission of information, including, without limitation, transmission 50 and reception by systems based on wire, cable, radio, microwave, light, 51 optics or computer data networks, including, without limitation, the 52 internet and intranets. 53 8. "Interactive gaming gross revenue" means the total of all sums paid 54 to a licensee from interactive gaming involving authorized participants, 55 less only the total of all sums paid out as winnings to patrons and 56 promotional gaming credits; provided, however, that the cash equivalentS. 7509--B 104 1 value of any merchandise or other non-cash thing of value included in a 2 contest or tournament shall not be included in the total of all sums 3 paid out as winnings to players for purposes of determining interactive 4 gaming gross revenue. 5 (a) Neither amounts deposited with a licensee for purposes of interac- 6 tive gaming nor amounts taken in fraudulent acts perpetrated against a 7 licensee for which the licensee is not reimbursed shall be considered to 8 have been "paid" to the licensee for purposes of calculating interactive 9 gaming gross revenue. 10 (b) "Promotional gaming credit" includes bonuses, promotions and any 11 amount received by a licensee from a patron for which the licensee can 12 demonstrate that it or its affiliate has not received cash. 13 9. "Interactive gaming platform" means the combination of hardware, 14 software and data networks used to manage, administer or control wagers 15 on interactive gaming or the games with which those wagers are associ- 16 ated. 17 10. "Internet" means a computer network of interoperable packet- 18 switched data networks. 19 11. "Licensee" means a person who is licensed by the commission to 20 offer interactive gaming, using an interactive gaming platform to 21 authorized participants. A licensee may utilize multiple interactive 22 gaming platforms provided that each platform is approved by the commis- 23 sion. 24 12. "Omaha Hold'em poker" means the poker game marketed as Omaha 25 Hold'em poker or Omaha poker in which each player is dealt four cards 26 and must make his or her best hand using exactly two of them, plus 27 exactly three of the five community cards. 28 13. "Significant vendor" means any person who offers or who proposes 29 to offer any of the following services with respect to interactive 30 gaming: (a) a core function; (b) sale, licensing or other receipt of 31 compensation for selling or licensing a database or customer list of 32 individuals residing in the United States selected in whole or in part 33 because they placed wagers or participated in gambling games with or 34 through an internet website or operator (or any derivative of such a 35 database or customer list); (c) provision of any trademark, tradename, 36 service mark or similar intellectual property under which a licensee or 37 significant vendor identifies interactive games to customers; or (d) 38 provision of any product, service or asset to a licensee or significant 39 vendor in return for a percentage of interactive gaming revenue (not 40 including fees to financial institutions and payment providers for 41 facilitating a deposit or withdrawal by an authorized participant). The 42 term "significant vendor" shall not include a provider of goods or 43 services to a licensee that are not specifically designed for use and 44 not principally used in connection with interactive gaming. 45 14. "Texas Hold'em poker" means the type of poker marketed as Texas 46 Hold'em poker that involves two cards being dealt face down to each 47 player and then five community cards being placed face-up by the dealer, 48 a series of three then two additional single cards, with players having 49 the option to check, bet, raise or fold after each deal. 50 § 1502. Authorization. 1. The commission shall, within one hundred 51 eighty days of the date this article becomes law, promulgate regulations 52 to implement interactive gaming in this state and shall authorize up to 53 eleven licenses to operate interactive gaming involving authorized 54 participants, subject to the provisions of this article and other appli- 55 cable provisions of law.S. 7509--B 105 1 2. Applicants eligible to apply for a license as an operator pursuant 2 to this article shall be those entities: 3 (a) licensed by the state pursuant to section sixteen hundred seven- 4 teen-a of the tax law to operate video lottery gaming and has experience 5 in the operation of interactive gaming by being licensed in a state with 6 comparable licensing requirements or guarantees acquisition of adequate 7 business competence and experience in the operation of interactive 8 gaming; or 9 (b) licensed by the state to operate a class III gaming facility 10 pursuant to article thirteen of this chapter and has experience in the 11 operation of interactive gaming by being licensed in a state with compa- 12 rable licensing requirements or guarantees acquisition of adequate busi- 13 ness competence and experience in the operation of interactive gaming. 14 3. The commission shall, to the extent practicable, issue licenses to 15 multiple applicants no sooner than one hundred eighty days after the 16 promulgation of regulations in order to ensure a robust and competitive 17 market for consumers and to prevent early licensees from gaining an 18 unfair competitive advantage. 19 4. No person may operate, manage or make available an interactive 20 gaming platform or act as a significant vendor with respect to interac- 21 tive gaming that is offered to persons located in this state unless 22 licensed by the commission pursuant to this article and only those games 23 authorized by the commission shall be permitted. 24 5. License applicants may form a partnership, joint venture or other 25 contractual arrangement in order to facilitate the purposes of this 26 article. 27 6. Any person found suitable by the commission may be issued a license 28 as an operator or significant vendor pursuant to this article. In deter- 29 mining suitability, the commission shall consider those factors it deems 30 relevant in its discretion, including but not limited to: 31 (a) Whether the applicant is a person of good character, honesty and 32 integrity; 33 (b) Whether the applicant is person whose prior activities, criminal 34 record, if any, reputation, habits and associations do not: 35 (i) pose a threat to the public interest or to the effective regu- 36 lation and control of interactive gaming; or 37 (ii) create or enhance the dangers of unsuitable, unfair or illegal 38 practices, methods and activities in the conduct of interactive gaming 39 or in the carrying on of the business and financial arrangements inci- 40 dental to such gaming; 41 (c) Whether the applicant is capable of and likely to conduct the 42 activities for which the applicant is licensed in accordance with the 43 provisions of this article, any regulations prescribed under this arti- 44 cle and all other applicable laws; 45 (d) Whether the applicant has or guarantees acquisition of adequate 46 business competence and experience in the operation of licensed gaming 47 or of interactive gaming in this state or in a state with comparable 48 licensing requirements; 49 (e) Whether the applicant has or will obtain sufficient financing for 50 the nature of the proposed operation and from a suitable source; and 51 (f) Whether the applicant: 52 (i) has at any time, either directly, or through another person whom 53 it owned, in whole or in significant part, or controlled: 54 (A) knowingly and willfully accepted or made available wagers on 55 interactive gaming (including poker) from persons located in the United 56 States after December thirty-first, two thousand six, unless such wagersS. 7509--B 106 1 were affirmatively authorized by law of the United States or of each 2 state in which persons making such wagers were located; or 3 (B) knowingly facilitated or otherwise provided services with respect 4 to interactive gaming (including poker) involving persons located in the 5 United States for a person described in clause (A) of this subparagraph 6 and acted with knowledge of the fact that such wagers or interactive 7 gaming involved persons located in the United States; or 8 (ii) has purchased or acquired, directly or indirectly, in whole or in 9 significant part, a person described in subparagraph (i) of this para- 10 graph or will use that person or a covered asset in connection with 11 interactive gaming licensed pursuant to this article. 12 7. The commission further shall develop standards by which to evaluate 13 and approve interactive gaming platforms for use with interactive 14 gaming. Interactive gaming platforms must be approved by the commission 15 before being used by a licensee or significant vendor to conduct inter- 16 active gaming in this state. 17 8. The commission shall require all licensees to operate interactive 18 gaming to pay a one-time fee of ten million dollars. Such fee paid by 19 each licensee shall be applied to satisfy, in whole or in part, as 20 applicable, that licensee's tax obligation pursuant to section fifteen 21 hundred five of this article in sixty equal monthly installments, allo- 22 cated to each of the first sixty months of tax owed after the licensee 23 has begun operating interactive gaming pursuant to this article. No 24 amounts not required to be used to satisfy such tax obligation during 25 that period shall be allocated to payment of such tax obligation after 26 that period. 27 9. Licenses to operate interactive gaming issued by the commission 28 shall remain in effect for ten years. 29 10. The commission, by regulation, may authorize and promulgate any 30 rules necessary to implement agreements with other states, or authorized 31 agencies thereof (a) to enable patrons in those states to participate in 32 interactive gaming offered by licensees under this article or (b) to 33 enable patrons in this state to participate in interactive gaming 34 offered by licensees under the laws of those other states, provided that 35 such other state or authorized agency applies suitability standards and 36 review materially consistent with the provisions of this article. 37 11. Any regulations adopted pursuant to subdivision ten of this 38 section must set forth provisions that address: 39 (a) Any arrangements to share revenue between New York and any other 40 state or agency within another state; and 41 (b) Arrangements to ensure the integrity of interactive gaming offered 42 pursuant to any such agreement and the protection of patrons located in 43 this state. 44 12. The commission may delegate its responsibilities to administer the 45 provisions of this article to the division, as it sees fit, except for 46 its responsibilities to approve licenses. 47 § 1503. Required safeguards/minimum standards. The commission shall 48 require licensees to implement measures to meet the standards set out in 49 this section, along with such other standards that the commission in its 50 discretion may choose to require. 51 (a) Appropriate safeguards to ensure, to a reasonable degree of 52 certainty, that participants in interactive gaming are not younger than 53 twenty-one years of age. 54 (b) Appropriate safeguards to ensure, to a reasonable degree of 55 certainty, that participants in interactive gaming are physicallyS. 7509--B 107 1 located within the state or such other jurisdiction that the commission 2 has determined to be permissible. 3 (c) Appropriate safeguards to protect, to a reasonable degree of 4 certainty, the privacy and online security of participants in interac- 5 tive gaming. 6 (d) Appropriate safeguards to ensure, to a reasonable degree of 7 certainty, that the interactive gaming is fair and honest and that 8 appropriate measures are in place to deter, detect and, to the extent 9 reasonably possible, to prevent cheating, including collusion, and use 10 of cheating devices, including use of software programs (sometimes 11 referred to as "bots") that make bets or wagers according to algorithms. 12 (e) Appropriate safeguards to minimize compulsive gaming and to 13 provide notice to participants of resources to help problem gamblers. 14 (f) Appropriate safeguards to ensure participants' funds are held in 15 accounts segregated from the funds of licensees and otherwise are 16 protected from corporate insolvency, financial risk or criminal or civil 17 actions against the licensee. 18 § 1504. Scope of licensing review. 1. In connection with any license 19 issued pursuant to this article, the licensee, significant vendor or 20 applicant shall identify and the commission shall review the suitability 21 of such licensee's, significant vendor's or applicant's owner, chief 22 executive officer, chief financial officer and any other officer or 23 employee who the commission deems is significantly involved in the 24 management or control of the licensee, significant vendor or applicant 25 or of the interactive gaming platform. "Owner" for purposes of this 26 provision means any person who directly or indirectly holds any benefi- 27 cial or ownership interest in the applicant of five percent or greater 28 or any amount of ownership that the commission determines to be signif- 29 icant ownership of the licensee, significant vendor, or applicant. 30 2. Institutional investors are subject to the provisions set out in 31 this section. 32 (a) An institutional investor holding under twenty-five percent of the 33 equity securities of a licensee's or significant vendor's (or appli- 34 cant's) holding or intermediary companies, shall be granted a waiver of 35 any investigation of suitability or other requirement if such securities 36 are those of a corporation, whether publicly traded or privately held, 37 and its holdings of such securities were purchased for investment 38 purposes only and it files a certified statement to the effect that it 39 has no intention of influencing or affecting the affairs of the issuer, 40 the licensee (or significant vendor or applicant, as applicable) or its 41 holding or intermediary companies; provided, however, that it shall be 42 permitted to vote on matters put to the vote of the outstanding security 43 holders. The commission may grant such a waiver to an institutional 44 investor holding a higher percentage of such securities upon a showing 45 of good cause and if the conditions specified above are met. Any insti- 46 tutional investor granted a waiver under this paragraph which subse- 47 quently determines to influence or affect the affairs of the issuer 48 shall provide not less than thirty days' notice of such intent and shall 49 file with the commission a request for determination of suitability 50 before taking any action that may influence or affect the affairs of the 51 issuer; provided, however, that it shall be permitted to vote on matters 52 put to the vote of the outstanding security holders. If an institutional 53 investor changes its investment intent, or if the commission finds 54 reasonable cause to believe that the institutional investor may be found 55 unsuitable, no action other than divestiture shall be taken by such 56 investor with respect to its security holdings until there has beenS. 7509--B 108 1 compliance with any requirements established by the commission, which 2 may include the execution of a trust agreement. The licensee (or signif- 3 icant vendor or applicant, as applicable) and its relevant holding, 4 intermediary or subsidiary company shall notify the commission imme- 5 diately of any information about, or actions of, an institutional inves- 6 tor holding its equity securities where such information or action may 7 impact upon the eligibility of such institutional investor for a waiver 8 pursuant to this paragraph. 9 (b) If at any time the commission finds that an institutional investor 10 holding any security of a holding or intermediary company of a licensee 11 or significant vendor or applicant, or, where relevant, of another 12 subsidiary company of a holding or intermediary company of a licensee or 13 significant vendor or applicant which is related in any way to the 14 financing of the licensee or significant vendor or applicant, fails to 15 comply with the terms of paragraph (a) of this section, or if at any 16 time the commission finds that, by reason of the extent or nature of its 17 holdings, an institutional investor is in a position to exercise such a 18 substantial impact upon the controlling interests of a licensee or 19 significant vendor or applicant that investigation and determination of 20 suitability of the institutional investor is necessary to protect the 21 public interest, the commission may take any necessary action otherwise 22 authorized under this article to protect the public interest. 23 (c) For purposes of this section, an "institutional investor" shall 24 mean any retirement fund administered by a public agency for the exclu- 25 sive benefit of federal, state, or local public employees; investment 26 company registered under the Investment Company Act of 1940 (15 U.S.C. § 27 80a-1 et seq.); collective investment trust organized by banks under 28 Part Nine of the Rules of the Comptroller of the Currency; closed end 29 investment trust; chartered or licensed life insurance company or prop- 30 erty and casualty insurance company; banking and other chartered or 31 licensed lending institution; investment advisor registered under The 32 Investment Advisors Act of 1940 (15 U.S.C. § 80b-1 et seq.); and such 33 other persons as the commission may determine for reasons consistent 34 with the public interest. 35 § 1505. State tax. Licensees engaged in the business of conducting 36 interactive gaming pursuant to this article shall pay a privilege tax 37 based on the licensee's interactive gaming gross revenue at a fifteen 38 percent rate. 39 § 1506. Disposition of taxes. The commission shall pay into the state 40 lottery fund all taxes imposed by this article; any interest and penal- 41 ties imposed by the commission relating to those taxes; all penalties 42 levied and collected by the commission; and the appropriate funds, cash 43 or prizes forfeited from interactive gaming. 44 § 2. Subdivision 1 of section 225.00 of the penal law is amended to 45 read as follows: 46 1. "Contest of chance" means any contest, game, gaming scheme or 47 gaming device in which the outcome depends [in a material degree] 48 predominantly upon an element of chance, notwithstanding that skill of 49 the contestants may also be a factor therein. 50 § 3. The penal law is amended by adding a new section 225.36 to read 51 as follows: 52 § 225.36 Interactive gaming offenses and exceptions. 53 1. The knowing and willful offering of unlicensed interactive gaming 54 to persons in this state, or the knowing and willful provision of 55 services with respect thereto, shall constitute a gambling offense under 56 this article.S. 7509--B 109 1 2. Licensed interactive gaming activities under section fifteen 2 hundred two of the racing, pari-mutuel wagering and breeding law shall 3 not be a gambling offense under this article. 4 3. A person offering unlicensed interactive gaming to persons in this 5 state shall be liable for all taxes set forth in section fifteen hundred 6 five of the racing, pari-mutuel wagering and breeding law in the same 7 manner and amounts as if such person were a licensee. Timely payment of 8 such taxes shall not constitute a defense to any prosecution or other 9 proceeding in connection with the interactive gaming except for a prose- 10 cution or proceeding alleging failure to make such payment. 11 § 4. Severability clause. If any provision of this act or application 12 thereof shall for any reason be adjudged by any court of competent 13 jurisdiction to be invalid, such judgment shall not affect, impair, or 14 invalidate the remainder of the act, but shall be confined in its opera- 15 tion to the provision thereof directly involved in the controversy in 16 which the judgment shall have been rendered. 17 § 5. This act shall take effect on the one hundred eightieth day after 18 it shall have become a law. 19 PART SSS 20 Section 1. Section 486 of the general municipal law, as amended by 21 section 6 of part MM of chapter 59 of the laws of 2017, is amended to 22 read as follows: 23 § 486. Participation by persons under the age of eighteen. No person 24 under the age of eighteen years shall be permitted to play any game or 25 games of bingo conducted pursuant to any license issued under this arti- 26 cle unless accompanied by an adult. No person under the age of eighteen 27 years shall be permitted to conduct, operate or assist in the conduct of 28 any game of bingo conducted pursuant to any license issued pursuant to 29 this article. Nothing in this section shall prevent a person sixteen 30 years of age or older from performing ancillary non-gaming activities 31 conducted in conjunction with any game of bingo conducted pursuant to 32 any license pursuant to this article. 33 § 2. This act shall take effect immediately. 34 PART TTT 35 Section 1. Subdivision f-1 of section 1612 of the tax law, as amended 36 by chapter 175 of the laws of 2013, is amended to read as follows: 37 f-1. As consideration for operation of video lottery gaming facility 38 located in the county of Nassau or Suffolk and operated by a corporation 39 established pursuant to section five hundred two of the racing, pari-mu- 40 tuel wagering and breeding law, the division shall cause the investment 41 in the racing industry of the following percentages of the vendor fee to 42 be deposited or paid as follows: 43 1. Two and three tenths percent of the total wagered after payout of 44 prizes for the purpose of enhancing purses at Aqueduct racetrack, 45 Belmont Park racetrack and Saratoga race course[, provided, however,46that any amount that is in excess of the amount necessary to maintain47purse support from video lottery gaming at Aqueduct racetrack, Belmont48Park racetrack and Saratoga race course at the same level realized in49two thousand thirteen, to be adjusted by the consumer price index for50all urban consumers, as published annually by the United States depart-51ment of labor, bureau of labor statistics, shall instead be returned to52the commission].S. 7509--B 110 1 2. five tenths percent of the total wagered after payout of prizes for 2 the appropriate breeding fund for the manner of racing at Aqueduct race- 3 track, Belmont Park racetrack and Saratoga race course[, provided,4however, that any amount that is in excess of the amount necessary to5maintain payments from video lottery gaming at Aqueduct racetrack at the6same level realized in two thousand thirteen, to be adjusted by the7consumer price index for all urban consumers, as published annually by8the United States department of labor, bureau of labor statistics, shall9instead be returned to the commission]. 10 3. one and three tenths percent of the total revenue wagered after 11 payout of prizes to be deposited into an account of the franchised 12 corporation established pursuant to section two hundred six of the 13 racing, pari-mutuel wagering and breeding law to be used for capital 14 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont 15 Park racetrack and Saratoga race course[, provided, however, that any16amount that is in excess of the amount necessary to maintain payments17for capital expenditures from video lottery gaming at Aqueduct racetrack18at the same level realized in two thousand thirteen, to be adjusted by19the consumer price index for all urban consumers, as published annually20by the United States department of labor, bureau of labor statistics,21shall instead be returned to the commission]. 22 4. Nine tenths percent of the total revenue wagered after payout for 23 prizes to be deposited into an account of the franchised corporation 24 established pursuant to section two hundred six of the racing, pari-mu- 25 tuel wagering and breeding law to be used for general thoroughbred 26 racing operations at Aqueduct racetrack, Belmont Park racetrack and 27 Saratoga race course[, provided, however, that any amount that is in28excess of the amount necessary to maintain payments for general29thoroughbred racing operations from video lottery gaming at Aqueduct30racetrack at the same level realized in two thousand thirteen, to be31adjusted by the consumer price index for all urban consumers, as32published annually by the United States department of labor, bureau of33labor statistics, shall instead be returned to the commission]. 34 § 2. This act shall take effect immediately. 35 PART UUU 36 Section 1. Subdivision 2 of section 516 of the racing, pari-mutuel 37 wagering and breeding law is amended to read as follows: 38 2. After payment of all of the costs of the corporation's functions, 39 net revenue remaining to the corporation shall be divided[, quarterly,40not more than thirty days after the close of the calendar quarter], 41 among the participating counties in accordance with the following 42 provisions: 43 a. Each off-track betting corporation shall determine, at their organ- 44 izational meeting, if such net revenue remaining to the corporation 45 shall be divided to participating counties on an annual, bi-annual or 46 quarterly basis, to be divided not more than thirty days after the close 47 of the calendar year, the close of the bi-annual year (January-June and 48 July-December) or calendar quarter; 49 b. Fifty percent of such revenue distributed among the participating 50 counties on the basis of the proportion of the total off-track pari-mu- 51 tuel wagering accepted by the corporation during the previous [calendar52quarter] period that originated in the branch offices located in each 53 participating county;S. 7509--B 111 1 [b.] c. Fifty percent of such revenue on the basis of population, as 2 defined as the total population in each participating county shown by 3 the latest preceding decennial federal census completed and published as 4 a final population count by the United States bureau of the census 5 preceding the commencement of the calendar year in which such distrib- 6 ution is to be made; and 7 [c.] d. A participating county containing a city electing to partic- 8 ipate in the management and revenues of a corporation under subdivision 9 two of section five hundred two of this article shall distribute revenue 10 received under paragraphs [a] b and [b] c of this subdivision to such 11 city according to the proportion such city's population bears to the 12 county's population. 13 § 2. This act shall take effect immediately. 14 PART VVV 15 Section 1. The racing, pari-mutuel wagering and breeding law is 16 amended by adding a new section 103-a to read as follows: 17 § 103-a. Racing fan advisory council. There is hereby established a 18 racing fan advisory council within the commission which will operate as 19 follows: 20 1. The council shall be composed of five members. None of the members 21 of the council shall be employees or officers of the commission or be 22 paid employees, lobbyists, or officers of any licensed or franchised 23 racetrack or off-track betting corporation or any nonprofit corporation 24 which represents breeders or horsemen. Members shall be selected based 25 on their long-term involvement and interest in, knowledge of, and 26 devotion to the sport of horse racing as fans of the sport. Five persons 27 shall be appointed by the executive director of the commission. One 28 person shall be appointed upon the recommendation of the chairperson of 29 the senate committee on racing, gaming and wagering, and one person 30 shall be appointed by the chairperson of the assembly committee on 31 racing and wagering. 32 2. The chairperson of the council shall be selected by the executive 33 director of the commission. The deputy chairperson shall be selected by 34 a majority vote of the council from among the persons appointed at the 35 recommendation of the chairpersons of the designated legislative commit- 36 tees. 37 3. The members of the council shall serve for a period of five years 38 with all terms beginning September first, two thousand sixteen. In the 39 event of a vacancy occurring during a term of appointment by reason of 40 death, resignation, disqualification or otherwise, such vacancy shall be 41 filled for the unexpired term in the same manner as the original 42 appointment. 43 4. The racing fan advisory council shall request and shall receive the 44 assistance and cooperation of the commission in regard to receipt of 45 information relating to horse racing and wagering in this state. 46 5. The racing fan advisory council shall: 47 (a) have as its mission the growth of the fan base related to the 48 sport of horse racing; 49 (b) recommend procedures to ensure that the opinion of the fan is a 50 central part of the regulation of horse racing; 51 (c) prepare an annual report, and any other reports it deems neces- 52 sary, to the commission regarding the operation of the state's thorough- 53 bred and harness racetracks and the state's off-track betting corpo- 54 rations;S. 7509--B 112 1 (d) advise the commission on appropriate actions to encourage fan 2 attendance and wagering at the state's thoroughbred and harness race- 3 tracks and the state's off-track betting corporations; 4 (e) be authorized by the commission to enter upon the racetracks and 5 their facilities regulated or controlled by the board during race times, 6 and during periods of horse workouts, and during hours when members of 7 the media are permitted to be present at the facilities; 8 (f) recommend changes to the rules of the commission and to the laws 9 affecting horse racing; 10 (g) perform such other duties as may be increased by order of the 11 commission; 12 (h) engage New York state's racing fan population on how to make the 13 sport more appealing; 14 (i) recommend to the commission further procedures to make steward and 15 presiding judge actions that impact the betting public more transparent; 16 and 17 (j) work with relevant component industries to better educate the 18 casual fan as to significant industry topics. 19 § 2. This act shall take effect immediately; provided, however, that 20 the members of the racing fan advisory council as created by resolution 21 of the New York Gaming Commission dated September 1, 2016, shall be the 22 initial members of the racing fan advisory council as established by 23 this act. 24 PART WWW 25 Section 1. The racing, pari-mutuel wagering and breeding law is 26 amended by adding a new section 103-a to read as follows: 27 § 103-a. Advisory council on retired race horses. 1. For the purposes 28 of this section: 29 (a) "Council" means the advisory council on retired race horses estab- 30 lished in this section. 31 (b) "Retired race horse" means (i) a New York-bred thoroughbred, as 32 defined by subdivision three of section two hundred fifty-one of this 33 chapter, which is no longer engaged in horse racing; (ii) a standardbred 34 which meets the standard set forth in section three hundred thirty-four 35 of this chapter, which is no longer engaged in horse racing; or (iii) 36 any horse that is specifically bred for the intended purpose of 37 thoroughbred or standardbred horse racing, but was never used in horse 38 racing. The term retired race horse shall be broadly construed to 39 include those horses that were actually used in racing and those that 40 were bred and intended to be so used but were not so used. 41 2. There is hereby established in the commission the advisory council 42 on retired race horses. The council shall be comprised of thirteen 43 members. Such council shall have two ex-officio co-chairpersons, one of 44 whom shall be the chair of the commission and the other of whom shall be 45 the commissioner of agriculture and markets, or their designees. Five 46 members shall be appointed by the governor, two members shall be 47 appointed by the temporary president of the senate, two members shall be 48 appointed by the speaker of the assembly, one member shall be appointed 49 by the minority leader of the senate, and one member shall be appointed 50 by the minority leader of the assembly. The members appointed to the 51 council shall serve terms of five years; provided, however, that of the 52 members initially appointed to the council: one member appointed by the 53 governor and the member appointed by the minority leader of the senate 54 shall serve terms of one year; one member appointed by the governor, oneS. 7509--B 113 1 member appointed by the temporary president of the senate and one member 2 appointed by the speaker of the assembly shall be appointed to terms of 3 two years; one member appointed by the governor and one member appointed 4 by the speaker of the assembly shall be appointed for terms of three 5 years; one member appointed by the governor and one member appointed by 6 the temporary president of the senate shall be appointed for terms of 7 four years; and one member appointed by the governor and the member 8 appointed by the minority leader of the assembly shall serve terms of 9 five years. All initially appointed members of the council shall be 10 appointed within one hundred twenty days of the effective date of this 11 section. The appointed members of such council shall be representative 12 of: (a) owners, breeders and trainers of standardbred and thoroughbred 13 horses, (b) persons with expertise in training horses for uses other 14 than racing, such as riding schools, steeplechase competitions, show 15 horse competitions and other recreational uses, (c) persons with experi- 16 ence in the potential farm applications or other rural, suburban or 17 urban economic business applications for horses, and (d) persons famil- 18 iar with the use of horses for recreational or therapeutic uses in 19 either private, public health, college, university or correctional 20 facility settings. Any vacancy on such council shall be filled by the 21 original appointing authority. Council members shall receive no compen- 22 sation for their services, but shall be reimbursed for actual and neces- 23 sary travel expenses incurred in the performance of their duties. 24 3. The mission of the council is to identify and make recommendations 25 to promote the productive use of retired race horses and to increase the 26 number of such horses made available for such uses and so used. The 27 council shall develop and identify new and innovative ideas and methods 28 that can utilize private and public funding sources or public/private 29 partnerships to place retired race horses in such productive and benefi- 30 cial uses, and to increase both the number of horses so used and the 31 scale and variety of such uses. 32 4. The council shall be responsible for: 33 (a) promoting the proper care and treatment of retired race horses in 34 a humane and productive manner; 35 (b) advising the commission, the department of agriculture and 36 markets, the New York state thoroughbred breeding and development fund 37 and the agriculture and New York state breeding development fund on ways 38 to promote the humane care and treatment of such horses after their 39 racing careers are over via public policies, funding allocations and 40 specific courses of action that can be taken to reduce the number of 41 race track fatalities and injuries during the conduct of race meets and 42 training; 43 (c) explore the possibility of developing a limited retired race horse 44 tracking system to obtain useful information on the uses and ultimate 45 placement of such horses after their racing careers have ended. Such 46 information may be shared with the commission, the department of agri- 47 culture and markets, the New York state thoroughbred breeding and devel- 48 opment fund, and the agriculture and New York state breeding development 49 fund so as to assist such entities in their duties to ensure the humane 50 care and treatment of retired race horses, and to develop strategies to 51 enhance the humane and productive use of such horses after their racing 52 careers have ended; and 53 (d) the development of strategies to minimize the abandonment and 54 unnecessary slaughter of such retired race horses. 55 5. The council shall investigate, study and make recommendations on 56 the feasibility of promoting the reuse of retired race horses in aS. 7509--B 114 1 manner that expands the number of potential opportunities for the 2 productive future use of such animals and for activities such as, but 3 not limited to: 4 (a) promoting and facilitating a larger market for the purchase and 5 sale of retired race horses; 6 (b) promoting the expanded therapeutic use of such horses in the 7 medical, psychological, or rehabilitative care or treatment of patients; 8 (c) the expansion of the use of horses at federal, state, and local 9 correctional facilities and youth detention facilities to train the 10 inmates thereof for careers, after their release, in the racing indus- 11 try, in the care of horses for recreational purposes, or as large animal 12 veterinary assistants or technicians; 13 (d) supporting the work of the Performance Horse Registry of the 14 United States Equestrian Federation to help to market and sell a higher 15 volume of such horses by informing prospective purchasers of the pedi- 16 grees of the horses under consideration and the suitability of the hors- 17 es for the prospective purchasers' intended uses; 18 (e) supporting existing or establishing new standardbred and thorough- 19 bred adoption programs that may be supported by private donations or 20 racing industry funding sources; 21 (f) studying and ultimately promoting the alteration of current race 22 horse training regimens so that retired race horses can more readily be 23 retrained for other economically viable uses; 24 (g) developing and promoting college, university, secondary school, 25 BOCES, correctional or other educational internship programs to supply 26 students to staff programs that promote the maintenance of retired race 27 horses or that facilitate the marketability of retired race horses; 28 (h) facilitating the retraining and financing of the retraining of 29 retired race horses to be used for other purposes; and 30 (i) other potential uses for retired race horses. 31 6. Not later than two years after the effective date of this section 32 and every two years thereafter, the council shall report to the gover- 33 nor, the legislature, the commission, the department of agriculture and 34 markets, the New York state thoroughbred breeding and development fund, 35 and the agriculture and New York state breeding development fund on its 36 activities, findings, and recommendations. 37 § 2. This act shall take effect immediately. 38 PART XXX 39 Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- 40 ing law, as added by chapter 174 of the laws of 2013, is amended to read 41 as follows: 42 § 1367. Sports wagering. 1. As used in this section: 43 (a) "Affiliate" means any off-track betting corporation, franchised 44 corporation, or race track licensed pursuant to this chapter, or an 45 operator of video lottery gaming at Aqueduct licensed pursuant to 46 section sixteen hundred seventeen-a of the tax law, which has a mobile 47 sports wagering agreement with a casino pursuant to section thirteen 48 hundred sixty-seven-a of this title; 49 (b) "Agent" means an entity that is party to a contract with a 50 licensed gaming facility authorized to operate a sports pool and is 51 approved by the commission to operate a sports pool on behalf of such 52 licensed gaming facility; 53 (c) "Authorized sports bettor" means an individual who is physically 54 present in this state when placing a sports wager, who is not a prohib-S. 7509--B 115 1 ited sports bettor, that participates in sports wagering offered by a 2 casino. The intermediate routing of electronic data in connection with 3 mobile sports wagering shall not determine the location or locations in 4 which a wager is initiated, received or otherwise made; 5 (d) "Casino" means a licensed gaming facility at which gambling is 6 conducted pursuant to the provisions of this article or the agent of 7 such licensed gaming facility; 8 [(b)] (e) "Commission" means the commission established pursuant to 9 section one hundred two of this chapter; 10 [(c)] (f) "Collegiate sport or athletic event" means a sport or 11 athletic event offered or sponsored by or played in connection with a 12 public or private institution that offers educational services beyond 13 the secondary level; 14 (g) "Global risk management" means the direction, management, consul- 15 tation and/or instruction for purposes of managing risks associated with 16 sports wagering conducted pursuant to this section and includes the 17 setting and adjustment of betting lines, point spreads, or odds and 18 whether to place layoff bets as permitted by this section; 19 [(d)] (h) "High school sport or athletic event" means a sport or 20 athletic event offered or sponsored by or played in connection with a 21 public or private institution that offers education services at the 22 secondary level; 23 (i) "Horse racing event" means any sport or athletic event conducted 24 in New York state subject to the provisions of articles two, three, 25 four, five, six, nine, ten and eleven of this chapter, or any sport or 26 athletic event conducted outside of New York state, which if conducted 27 in New York state would be subject to the provisions of this chapter; 28 (j) "In-play sports wager" means a sports wager placed on a sports 29 event after the sports event has begun and before it ends; 30 (k) "Layoff bet" means a sports wager placed by a casino sports pool 31 with another casino sports pool; 32 (l) "Minor" means any person under the age of twenty-one years; 33 (m) "Mobile sports wagering platform" or "platform" means the combina- 34 tion of hardware, software, and data networks used to manage, adminis- 35 ter, or control sports wagering and any associated wagers accessible by 36 any electronic means including mobile applications and internet 37 websites; 38 (n) "Official league data" means statistics, results, outcomes, and 39 other data relating to a sporting event that have been obtained from the 40 relevant sports governing body or an entity expressly authorized by the 41 sports governing body to provide such information to casinos; 42 (o) "Operator" means a casino which has elected to operate a sports 43 pool; 44 [(e)] (p) "Professional sport or athletic event" means an event at 45 which two or more persons participate in sports or athletic events and 46 receive compensation in excess of actual expenses for their partic- 47 ipation in such event; 48 (q) "Prohibited sports bettor" means: 49 (i) any officer or employee of the commission; 50 (ii) any principal or key employee of a casino or affiliate, except as 51 may be permitted by the commission for good cause shown; 52 (iii) any casino gaming or non-gaming employee at the casino that 53 employs such person and at any affiliate that has an agreement with that 54 casino; 55 (iv) any contractor, subcontractor, or consultant, or officer or 56 employee of a contractor, subcontractor, or consultant, of a casino ifS. 7509--B 116 1 such person is directly involved in the operation or observation of 2 sports wagering, or the processing of sports wagering claims or 3 payments; 4 (v) Any person subject to a contract with the commission if such 5 contract contains a provision prohibiting such person from participating 6 in sports wagering; 7 (vi) Any spouse, child, brother, sister or parent residing as a member 8 of the same household in the principal place of abode of any of the 9 foregoing persons at the same casino where the foregoing person is 10 prohibited from participating in sports wagering; 11 (vii) any individual with access to non-public confidential informa- 12 tion about sports wagering; 13 (viii) any amateur or professional athlete if the sports wager is 14 based on any sport or athletic event overseen by the athlete's sports 15 governing body; 16 (ix) any sports agent, owner or employee of a team, player and umpire 17 union personnel, and employee referee, coach or official of a sports 18 governing body, if the sports wager is based on any sport or athletic 19 event overseen by the individual's sports governing body; 20 (x) any individual placing a wager as an agent or proxy for an other- 21 wise prohibited sports bettor; or 22 (xi) any minor; 23 [(f)] (r) "Prohibited sports event" means any [collegiate sport or24athletic event that takes place in New York or a sport or athletic event25in which any New York college team participates regardless of where the26event takes place] high school sport or athletic event; 27 [(g)] (s) "Sports event" means any professional sport or athletic 28 event and any collegiate sport or athletic event, except a prohibited 29 sports event or a horse racing event; 30 [(h)] (t) "Sports governing body" means the organization that 31 prescribes final rules and enforces codes of conduct with respect to a 32 sporting event and participants therein; 33 (u) "Sports pool" means the business of accepting wagers on any sports 34 event by any system or method of wagering; [and35(i)] (v) "Sports wager" means cash or cash equivalent that is paid by 36 an authorized sports bettor to a casino to participate in sports wager- 37 ing offered by such casino; 38 (w) "Sports wagering" means wagering on sporting events or any portion 39 thereof, or on the individual performance statistics of athletes partic- 40 ipating in a sporting event, or combination of sporting events, by any 41 system or method of wagering, including, but not limited to, in-person 42 communication and electronic communication through internet websites and 43 mobile device applications. The term "sports wagering" shall include, 44 but is not limited to, single-game bets, teaser bets, parlays, over-un- 45 der bets, moneyline, pools, exchange wagering, in-game wagering, in-play 46 bets, proposition bets and straight bets; 47 (x) "Sports wagering gross revenue" means: (i) the amount equal to the 48 total of all sports wagers not attributable to prohibited sports events 49 that an operator collects from all players, less the total of all sums 50 not attributable to prohibited sports events paid out as winnings to all 51 sports bettors, however, that the total of all sums paid out as winnings 52 to sports bettors shall not include the cash equivalent value of any 53 merchandise or thing of value awarded as a prize, or (ii) in the case of 54 exchange wagering pursuant to this section, the commission on winning 55 sports wagers by authorized sports bettors retained by the operator. The 56 issuance to or wagering by authorized sports bettors at a casino of anyS. 7509--B 117 1 promotional gaming credit shall not be taxable for the purposes of 2 determining sports wagering gross revenue; 3 (y) "Sports wagering lounge" means an area wherein a sports pool is 4 operated; 5 (z) "Tier one sports wager" means a sports wager that is determined 6 solely by the final score or final outcome of the sports event and 7 placed before the sports event has begun; 8 (aa) "Tier two sports wager" means an in-play sports wager; and 9 (bb) "Tier three sports wager" means a sports wager that is neither a 10 tier one nor a tier two sports wager. 11 2. No gaming facility may conduct sports wagering until such time as 12 there has been a change in federal law authorizing such or upon a ruling 13 of a court of competent jurisdiction that such activity is lawful. 14 3. (a) In addition to authorized gaming activities, a licensed gaming 15 facility may when authorized by subdivision two of this section operate 16 a sports pool upon the approval of the commission and in accordance with 17 the provisions of this section and applicable regulations promulgated 18 pursuant to this article. The commission shall hear and decide promptly 19 and in reasonable order all applications for a license to operate a 20 sports pool, shall have the general responsibility for the implementa- 21 tion of this section and shall have all other duties specified in this 22 section with regard to the operation of a sports pool. The license to 23 operate a sports pool shall be in addition to any other license required 24 to be issued to operate a gaming facility. No license to operate a 25 sports pool shall be issued by the commission to any entity unless it 26 has established its financial stability, integrity and responsibility 27 and its good character, honesty and integrity. 28 No later than five years after the date of the issuance of a license 29 and every five years thereafter or within such lesser periods as the 30 commission may direct, a licensee shall submit to the commission such 31 documentation or information as the commission may by regulation 32 require, to demonstrate to the satisfaction of the executive director of 33 the commission that the licensee continues to meet the requirements of 34 the law and regulations. 35 (b) A sports pool shall be operated in a sports wagering lounge 36 located at a casino. The lounge shall conform to all requirements 37 concerning square footage, design, equipment, security measures and 38 related matters which the commission shall by regulation prescribe. 39 (c) The operator of a sports pool shall establish or display the odds 40 at which wagers may be placed on sports events. 41 (d) An operator shall accept wagers on sports events only from persons 42 physically present in the sports wagering lounge, or through mobile 43 sports wagering offered pursuant to section thirteen hundred sixty-sev- 44 en-a of this title. A person placing a wager shall be at least twenty- 45 one years of age. 46 (e) An operator may also accept layoff bets as long as the authorized 47 sports pool places such wagers with another authorized sports pool or 48 pools in accordance with regulations of the commission. A sports pool 49 that places a layoff bet shall inform the sports pool accepting the 50 wager that the wager is being placed by a sports pool and shall disclose 51 its identity. 52 (f) An operator may utilize global risk management pursuant to the 53 approval of the commission. 54 (g) An operator shall not admit into the sports wagering lounge, or 55 accept wagers from, any person whose name appears on the exclusion list.S. 7509--B 118 1 [(f)] (h) The holder of a license to operate a sports pool may 2 contract with [an entity] one or more agents to conduct any or all 3 aspects of that operation, or the operation of mobile sports wagering 4 offered pursuant to section thirteen hundred sixty-seven-a of this 5 title, including but not limited to brand, marketing and customer 6 service, in accordance with the regulations of the commission. [That7entity] Each agent shall obtain a license as a casino vendor enterprise 8 prior to the execution of any such contract, and such license shall be 9 issued pursuant to the provisions of section one thousand three hundred 10 twenty-seven of this article and in accordance with the regulations 11 promulgated by the commission. 12 [(g)] (i) If any provision of this article or its application to any 13 person or circumstance is held invalid, the invalidity shall not affect 14 other provisions or applications of this article which can be given 15 effect without the invalid provision or application, and to this end the 16 provisions of this article are severable. 17 4. (a) All persons employed directly in wagering-related activities 18 conducted within a sports wagering lounge shall be licensed as a casino 19 key employee or registered as a gaming employee, as determined by the 20 commission. All other employees who are working in the sports wagering 21 lounge may be required to be registered, if appropriate, in accordance 22 with regulations of the commission. 23 (b) Each operator of a sports pool shall designate one or more casino 24 key employees who shall be responsible for the operation of the sports 25 pool. At least one such casino key employee shall be on the premises 26 whenever sports wagering is conducted. 27 5. Except as otherwise provided by this article, the commission shall 28 have the authority to regulate sports pools and the conduct of sports 29 wagering under this article to the same extent that the commission regu- 30 lates other gaming. No casino shall be authorized to operate a sports 31 pool unless it has produced information, documentation, and assurances 32 concerning its financial background and resources, including cash 33 reserves, that are sufficient to demonstrate that it has the financial 34 stability, integrity, and responsibility to operate a sports pool. In 35 developing rules and regulations applicable to sports wagering, the 36 commission shall examine the regulations implemented in other states 37 where sports wagering is conducted and shall, as far as practicable, 38 adopt a similar regulatory framework. The commission shall promulgate 39 regulations necessary to carry out the provisions of this section, 40 including, but not limited to, regulations governing the: 41 (a) amount of cash reserves to be maintained by operators to cover 42 winning wagers; 43 (b) acceptance of wagers on a series of sports events; 44 (c) maximum wagers which may be accepted by an operator from any one 45 patron on any one sports event; 46 (d) type of wagering tickets which may be used; 47 (e) method of issuing tickets; 48 (f) method of accounting to be used by operators; 49 (g) types of records which shall be kept; 50 (h) use of credit and checks by patrons; 51 (i) the process by which a casino may place a layoff bet; 52 (j) the use of global risk management; 53 (k) type of system for wagering; and 54 [(j)] (l) protections for a person placing a wager. 55 6. Each operator shall adopt comprehensive house rules governing 56 sports wagering transactions with its [patrons] authorized sportsS. 7509--B 119 1 bettors. The rules shall specify the amounts to be paid on winning 2 wagers and the effect of schedule changes. The house rules, together 3 with any other information the commission deems appropriate, shall be 4 conspicuously displayed in the sports wagering lounge and included in 5 the terms and conditions of the account wagering system, and copies 6 shall be made readily available to patrons. 7 7. (a) Each casino that offers sports wagering shall annually submit a 8 report to the commission no later than the twenty-eighth of February of 9 each year, which shall include the following information: 10 (i) the total amount of sports wagers received from authorized sports 11 bettors; 12 (ii) the total amount of prizes awarded to authorized sports bettors; 13 (iii) the total amount of sports wagering gross revenue received by 14 the casino; 15 (iv) the total amount contributed to the sport betting integrity fund 16 pursuant to subdivision eight of this section; 17 (v) the total amount of wagers received on each sports governing 18 body's sporting events; 19 (vi) the total number of authorized sports bettors that requested to 20 exclude themselves from sports wagering; and 21 (vii) any additional information that the commission deems necessary 22 to carry out the provisions of this article. 23 (b) Upon the submission of such annual report, to such extent that the 24 commission deems it to be in the public interest, the commission shall 25 be authorized to conduct a financial audit of any casino, at any time, 26 to ensure compliance with this article. 27 (c) The commission shall annually publish a report based on the aggre- 28 gate information provided by all casinos pursuant to paragraph (a) of 29 this subdivision, which shall be published on the commission's website 30 no later than one hundred eighty days after the deadline for the 31 submission of individual reports as specified in such paragraph (a). 32 8. (a) Within thirty days of the end of each calendar quarter, a casi- 33 no offering sports wagering shall remit to the commission a sports 34 wagering integrity fee of up to one-quarter of one percent of the amount 35 wagered on sports events, however, in no case shall the integrity fee be 36 greater than two percent of the casino's sports wagering gross revenue. 37 The fee shall be remitted on a form as the commission may require, on 38 which the casino shall identify the percentage of wagering during the 39 reporting period attributable to each sport governing body's sports 40 events. 41 (b) No later than the thirtieth of April of each year, a sports 42 governing body may submit a claim for disbursement of the integrity 43 funds remitted by casinos in the previous calendar year in pro rata 44 proportion of the total amount wagered on their respective sports events 45 to reimburse the sports governing body for expenses incurred for integ- 46 rity operations. Eligible expenses shall include, but not be limited 47 to, integrity monitoring expenses, expenses incurred related to integri- 48 ty investigations, public relations expenses associated with integrity 49 issues, and any other eligible expenses approved by the commission. 50 (c) Each sports governing body which receives in excess of fifty-thou- 51 sand dollars annually from the integrity fee shall annually submit a 52 report to the commission no later than the twenty-eighth of February of 53 each year, which shall include the following information: 54 (i) the total amount of integrity fund reimbursement received from New 55 York;S. 7509--B 120 1 (ii) a detailed summary of the final dispositions of integrity inves- 2 tigations where it was determined that misconduct took place; 3 (iii) any additional information that the commission deems necessary 4 to carry out the provisions of this article. 5 (d) Upon the submission of such annual report, to such extent that the 6 commission deems it to be in the public interest, the commission shall 7 be authorized to conduct a financial audit of any sports governing body, 8 at any time, to ensure compliance with this article. 9 (e) The commission shall annually publish a report based on the aggre- 10 gate information provided by all sports governing bodies pursuant to 11 paragraph (c) of this subdivision, which shall be published on the 12 commission's website no later than one hundred eighty days after the 13 deadline for the submission of individual reports as specified in para- 14 graph (c) of this subdivision. 15 (f) At the end of the year, any unclaimed integrity fee revenue shall 16 be distributed to the sports governing bodies which were approved to 17 receive funding, on a pro rata basis. 18 9. For the privilege of conducting sports wagering in the state, casi- 19 nos shall pay a tax equivalent to eight and one-half percent of their 20 sports wagering gross revenue. 21 10. The commission shall pay into the commercial gaming revenue fund 22 established pursuant to section ninety-seven-nnnn of the state finance 23 law eighty-five percent of the state tax imposed by this section; any 24 interest and penalties imposed by the commission relating to those 25 taxes; all penalties levied and collected by the commission; and the 26 appropriate funds, cash or prizes forfeited from sports wagering. The 27 commission shall pay into the commercial gaming fund five percent of the 28 state tax imposed by this section to be distributed for problem gambling 29 education and treatment purposes pursuant to paragraph a of subdivision 30 five of section ninety-seven-nnnn of the state finance law. The commis- 31 sion shall pay into the commercial gaming fund five percent of the state 32 tax imposed by this section to be distributed for the cost of regulation 33 pursuant to paragraph c of subdivision five of section ninety-seven-nnnn 34 of the state finance law. The commission shall pay into the commercial 35 gaming fund five percent of the state tax imposed by this section to be 36 distributed in the same formula as market origin credits pursuant to 37 section one hundred fifteen-b of this chapter. The commission shall 38 require at least monthly deposits by the casino of any payments pursuant 39 to subdivision nine of this section, at such times, under such condi- 40 tions, and in such depositories as shall be prescribed by the state 41 comptroller. The deposits shall be deposited to the credit of the state 42 commercial gaming revenue fund. The commission shall require a monthly 43 report and reconciliation statement to be filed with it on or before the 44 tenth day of each month, with respect to gross revenues and deposits 45 received and made, respectively, during the preceding month. 46 11. The commission may perform audits of the books and records of a 47 casino, at such times and intervals as it deems appropriate, for the 48 purpose of determining the sufficiency of tax payments. If a return 49 required with regard to obligations imposed is not filed, or if a return 50 when filed or is determined by the commission to be incorrect or insuf- 51 ficient with or without an audit, the amount of tax due shall be deter- 52 mined by the commission. Notice of such determination shall be given to 53 the casino liable for the payment of the tax. Such determination shall 54 finally and irrevocably fix the tax unless the casino against whom it is 55 assessed, within thirty days after receiving notice of such determi-S. 7509--B 121 1 nation, shall apply to the commission for a hearing in accordance with 2 the regulations of the commission. 3 12. Nothing in this section shall apply to interactive fantasy sports 4 offered pursuant to article fourteen of this chapter. Nothing in this 5 section authorizes any entity that conducts interactive fantasy sports 6 offered pursuant to article fourteen of this chapter to conduct sports 7 wagering unless it separately qualifies for, and obtains, authorization 8 pursuant to this section. 9 13. A casino that is also licensed under article three of this chap- 10 ter, and must maintain racing pursuant to paragraph (b) of subdivision 11 one of section thirteen hundred fifty-five of this chapter, shall be 12 allowed to offer pari-mutuel wagering on horse racing events in accord- 13 ance with their license under article three of this chapter. Notwith- 14 standing subparagraph (ii) of paragraph c of subdivision two of section 15 one thousand eight of this chapter, a casino located in the city of 16 Schenectady shall be allowed to offer pari-mutuel wagering on horse 17 racing events, provided such wagering is conducted by the regional off- 18 track betting corporation in such region as the casino is located. Any 19 other casino shall be allowed to offer pari-mutuel wagering on horse 20 racing events, provided such wagering is conducted by the regional off- 21 track betting corporation in such region as the casino is located. Any 22 physical location where pari-mutuel wagering on horse racing events is 23 offered by a casino and conducted by a regional off-track betting corpo- 24 ration in accordance with this subdivision shall be deemed to be a 25 branch location of the regional off-track betting corporation in accord- 26 ance with section one thousand eight of this chapter. In the event that 27 the commission approves the location of self-service mobile sports 28 betting kiosks on the premises of affiliates in accordance with para- 29 graph (d) of subdivision five of section thirteen hundred sixty-seven-a 30 of this chapter, such kiosks shall not be allowed to offer pari-mutuel 31 wagering on horse racing events. 32 14. A sports governing body may notify the commission that it desires 33 to restrict, limit, or exclude wagering on its sporting events by 34 providing notice in the form and manner as the commission may require. 35 Upon receiving such notice, the commission shall review the request in 36 good faith, seek input from the casinos on such a request, and if the 37 commission deems it appropriate, promulgate regulations to restrict such 38 sports wagering. If the commission denies a request, the sports govern- 39 ing body shall be afforded notice and the right to be heard and offer 40 proof in opposition to such determination in accordance with the regu- 41 lations of the commission. Offering or taking wagers contrary to 42 restrictions promulgated by the commission is a violation of this 43 section. In the event that the request is in relation to an emergency 44 situation, the executive director of the commission may temporarily 45 prohibit the specific wager in question until the commission has the 46 opportunity to issue temporary regulations addressing the issue. 47 15. (a) The commission shall designate the division of the state 48 police to have primary responsibility for conducting, or assisting the 49 commission in conducting, investigations into abnormal betting activity, 50 match fixing, and other conduct that corrupts a betting outcome of a 51 sporting event or events for purposes of financial gain. 52 (b) The commission and casinos shall cooperate with investigations 53 conducted by sports governing bodies or law enforcement agencies, 54 including but not limited to providing or facilitating the provision of 55 account-level betting information and audio or video files relating to 56 persons placing wagers; provided, however, that the casino be requiredS. 7509--B 122 1 to share any personally identifiable information of an authorized sports 2 bettor with a sports governing body only pursuant to an order to do so 3 by the commission or a law enforcement agency or court of competent 4 jurisdiction. 5 (c) Casinos shall immediately report to the commission any information 6 relating to: 7 (i) criminal or disciplinary proceedings commenced against the casino 8 in connection with its operations; 9 (ii) abnormal betting activity or patterns that may indicate a concern 10 with the integrity of a sporting event or events; 11 (iii) any potential breach of the relevant sports governing body's 12 internal rules and codes of conduct pertaining to sports wagering, as 13 they have been provided by the sports governing body to the casino; 14 (iv) any other conduct that corrupts a betting outcome of a sporting 15 event or events for purposes of financial gain, including match fixing; 16 and 17 (v) suspicious or illegal wagering activities, including use of funds 18 derived from illegal activity, wagers to conceal or launder funds 19 derived from illegal activity, using agents to place wagers, using 20 confidential non-public information, and using false identification. 21 The commission shall also immediately report information relating to 22 conduct described in subparagraphs (ii), (iii) and (iv) of this para- 23 graph to the relevant sports governing body. 24 (d) Casinos shall maintain the confidentiality of information provided 25 by a sports governing body to the casino, unless disclosure is required 26 by this section, the commission, other law, or court order. 27 16. Casinos shall use whatever data source they deem appropriate for 28 determining the result of sports wagering involving tier one sports 29 wagers. Casinos shall only use official league data in all sports wager- 30 ing involving tier two sports wagers, if the relevant sports governing 31 body possesses a feed of official league data, and makes such feed 32 available for purchase by the casinos. A sports governing body may noti- 33 fy the commission that it desires to require casinos to use official 34 league data in sports wagering involving specific tier three sports 35 wagers by providing notice in the form and manner as the commission may 36 require. Upon receiving such notice, the commission shall review the 37 request, seek input from the casinos on such a request, and if the 38 commission deems it appropriate, promulgate regulations to require casi- 39 nos to use official league data on sports wagering involving such tier 40 three sports wagers if the relevant sports governing body possesses a 41 feed of official league data, and makes such feed available for purchase 42 by the casinos. No casino shall enter into an agreement with a sports 43 governing body to be the exclusive recipient of their official league 44 data. 45 17. (a) Casinos shall maintain records of all bets and wagers placed, 46 including personally identifiable information of the mobile sports 47 wagering bettor, amount and type of bet, time the bet was placed, 48 location of the bet, including IP address if applicable, the outcome of 49 the bet, records of abnormal betting activity, and video camera 50 recordings in the case of in-person wagers for at least three years 51 after the sporting event occurs and make such data available for 52 inspection upon request of the commission or as required by court order. 53 (b) If a sports governing body has notified the commission that real- 54 time information sharing for wagers placed on sporting events is neces- 55 sary and desirable, casinos shall share in real time, at the account- 56 level, and in pseudonymous form, the information required to be retainedS. 7509--B 123 1 pursuant to paragraph (a) of this subdivision (other than video files) 2 with the commission, and the commission shall share in real time the 3 information with the sports governing body or its designee with respect 4 to wagers on its sporting events. 5 (c) The commission shall cooperate with a sports governing body and 6 casinos to ensure the timely, efficient, and accurate sharing of infor- 7 mation. 8 18. A casino shall not permit sports wagering by anyone they know, or 9 should have known, to be a prohibited sports bettor. 10 19. Sports wagering conducted pursuant to the provisions of this 11 section is hereby authorized. 12 20. The conduct of sports wagering in violation of this section is 13 prohibited. 14 21. Any person, firm, corporation, association, agent, or employee who 15 knowingly violates any procedure implemented under this section, or 16 section thirteen hundred sixty-seven-a of this title, shall be liable 17 for a civil penalty of not more than five thousand dollars for each 18 violation, not to exceed fifty thousand dollars for violations arising 19 out of the same transaction or occurrence, which shall accrue to the 20 state and may be recovered in a civil action brought by the commission. 21 § 2. The racing, pari-mutuel wagering and breeding law is amended by 22 adding a new section 1367-a to read as follows: 23 § 1367-a. Mobile sports wagering. 1. As used in this section, the 24 following terms shall have the following meanings: 25 (a) "Affiliate" means any off-track betting corporation, franchised 26 corporation, or race track licensed pursuant to the racing, pari-mutuel 27 wagering and breeding law, or an operator of video lottery gaming at 28 Aqueduct licensed pursuant to section sixteen hundred seventeen-a of the 29 tax law, which has a mobile sports wagering agreement with a casino 30 pursuant to this section; 31 (b) "Agent" means an entity that is party to a contract with a 32 licensed gaming facility authorized to operate a sports pool and is 33 approved by the commission to operate a sports pool on behalf of such 34 licensed gaming facility; 35 (c) "Authorized sports bettor" means an individual who is physically 36 present in this state when placing a sports wager, who is not a prohib- 37 ited sports bettor, that participates in sports wagering offered by a 38 casino. The intermediate routing of electronic data in connection with 39 mobile sports wagering shall not determine the location or locations in 40 which a wager is initiated, received or otherwise made; 41 (d) "Casino" means a licensed gaming facility at which gambling is 42 conducted pursuant to the provisions of this article or the agent of 43 such licensed gaming facility; 44 (e) "Collegiate sport or athletic event" means a sport or athletic 45 event offered or sponsored by or played in connection with a public or 46 private institution that offers education services beyond the secondary 47 level; 48 (f) "Commission" means the commission established pursuant to section 49 one hundred two of this chapter; 50 (g) "High school sport or athletic event" means a sport or athletic 51 event offered or sponsored by or played in connection with a public or 52 private institution that offers education services at the secondary 53 level; 54 (h) "Horse racing event" means any sport or athletic event conducted 55 in New York state subject to the provisions of articles two, three, 56 four, five, six, nine, ten and eleven of this chapter, or any sport orS. 7509--B 124 1 athletic event conducted outside of New York state, which if conducted 2 in New York state would be subject to the provisions of this chapter; 3 (i) "Minor" means any person under the age of twenty-one years; 4 (j) "Mobile sports wagering platform" or "platform" means the combina- 5 tion of hardware, software, and data networks used to manage, adminis- 6 ter, or control sports wagering and any associated wagers accessible by 7 any electronic means including mobile applications and internet 8 websites; 9 (k) "Operator" means an entity offering a mobile sports wagering plat- 10 form including an agent; 11 (l) "Professional sport or athletic event" means an event at which two 12 or more persons participate in sports or athletic events and receive 13 compensation in excess of actual expenses for their participation in 14 such event; 15 (m) "Prohibited sports bettor" means: 16 (i) any officer or employee of the commission; 17 (ii) any principal or key employee of a casino or affiliate, except as 18 may be permitted by the commission for good cause shown; 19 (iii) any casino gaming or non-gaming employee at the casino that 20 employs such person and at any affiliate that has an agreement with that 21 casino; 22 (iv) any contractor, subcontractor, or consultant, or officer or 23 employee of a contractor, subcontractor, or consultant, of a casino if 24 such person is directly involved in the operation or observation of 25 sports wagering, or the processing of sports wagering claims or 26 payments; 27 (v) any person subject to a contract with the commission if such 28 contract contains a provision prohibiting such person from participating 29 in sports wagering; 30 (vi) any spouse, child, brother, sister or parent residing as a member 31 of the same household in the principal place of abode of any of the 32 foregoing persons at the same casino where the foregoing person is 33 prohibited from participating in sports wagering; 34 (vii) any individual with access to non-public confidential informa- 35 tion about sports wagering; 36 (viii) any amateur or professional athlete if the sports wager is 37 based on any sport or athletic event overseen by the athlete's sports 38 governing body; 39 (ix) any sports agent, owner or employee of a team, player and umpire 40 union personnel, and employee referee, coach or official of a sports 41 governing body, if the sports wager is based on any sport or athletic 42 event overseen by the individual's sports governing body; 43 (x) any individual placing a wager as an agent or proxy for an other- 44 wise prohibited sports bettor; or 45 (xi) any minor; 46 (n) "Prohibited sports event" means any high school sport or athletic 47 event; 48 (o) "Sports event" means any professional sport or athletic event and 49 any collegiate sport or athletic event, except a prohibited sports 50 event; 51 (p) "Sports governing body" means the organization that prescribes 52 final rules and enforces codes of conduct with respect to a sporting 53 event and participants therein; 54 (q) "Sports pool" means the business of accepting wagers on any sports 55 event by any system or method of wagering;S. 7509--B 125 1 (r) "Sports wager" means cash or cash equivalent that is paid by an 2 authorized sports bettor to a casino to participate in sports wagering 3 offered by such casino; 4 (s) "Sports wagering" means wagering on sporting events or any portion 5 thereof, or on the individual performance statistics of athletes partic- 6 ipating in a sporting event, or combination of sporting events, by any 7 system or method of wagering, including, but not limited to, in-person 8 communication and electronic communication through internet websites and 9 mobile device applications. The term "sports wagering" shall include, 10 but is not limited to, single-game bets, teaser bets, parlays, over-un- 11 der bets, moneyline, pools, exchange wagering, in-game wagering, in-play 12 bets, proposition bets and straight bets; and 13 (t) "Sports wagering gross revenue" means: (i) the amount equal to the 14 total of all sports wagers not attributable to prohibited sports events 15 that an operator collects from all players, less the total of all sums 16 not attributable to prohibited sports events paid out as winnings to all 17 sports bettors, however, that the total of all sums paid out as winnings 18 to sports bettors shall not include the cash equivalent value of any 19 merchandise or thing of value awarded as a prize; or (ii) in the case of 20 exchange wagering pursuant to this section, the commission on winning 21 sports wagers by authorized sports bettors retained by the operator. The 22 issuance to or wagering by authorized sports bettors at a casino of any 23 promotional gaming credits shall not be taxable for the purposes of 24 determining sports wagering gross revenue. 25 2. (a) No casino shall administer, manage, or otherwise make available 26 a mobile sports wagering platform to persons located in New York state 27 unless registered with the commission pursuant to this section. A casino 28 may use multiple mobile sports wagering platforms provided that each 29 platform has been reviewed and approved by the commission. A casino may 30 contract with one or more independent operators to provide its mobile 31 sports wagering platforms. 32 (b) Registrations issued by the commission shall remain in effect for 33 five years. The commission shall establish a process for renewal. 34 (c) The commission shall publish a list of all casinos registered to 35 offer mobile sports wagering in New York state pursuant to this section 36 on the commission's website for public use. 37 (d) The commission shall promulgate regulations to implement the 38 provisions of this section, including the development of the initial 39 form of the application for registration. Such regulations shall provide 40 for the registration and operation of mobile sports wagering in New York 41 state and shall include, but not be limited to, responsible protections 42 with regard to compulsive play and safeguards for fair play. 43 3. In the event that a casino contracts with one or more independent 44 operators to provide its mobile sports wagering platforms, each inde- 45 pendent entity shall obtain a license as a casino vendor enterprise 46 prior to the execution of any such contract, and such license shall be 47 issued pursuant to the provisions of section one thousand three hundred 48 twenty-seven of this article and in accordance with the regulations 49 promulgated by the commission. 50 4. (a) As a condition of registration in New York state, each operator 51 shall implement the following measures: 52 (i) limit each authorized sports bettor to one active and continuously 53 used account, and prevent anyone they know, or should have known to be a 54 prohibited sports bettor from maintaining accounts or participating in 55 any sports wagering offered by such operator;S. 7509--B 126 1 (ii) adopt appropriate safeguards to ensure, to a reasonable degree of 2 certainty, that authorized sports bettors are physically located within 3 the state when engaging in mobile sports betting; 4 (iii) prohibit minors from participating in any sports wagering, which 5 includes: 6 (1) if an operator becomes or is made aware that a minor has created 7 an account, or accessed the account of another, such operator shall 8 promptly, within no more than two business days, refund any deposit 9 received from the minor, whether or not the minor has engaged in or 10 attempted to engage in sports wagering; provided, however, that any 11 refund may be offset by any prizes already awarded; 12 (2) each operator shall provide parental control procedures to allow 13 parents or guardians to exclude minors from access to any sports wager- 14 ing or platform. Such procedures shall include a toll-free number to 15 call for help in establishing such parental controls; and 16 (3) each operator shall take appropriate steps to confirm that an 17 individual opening an account is not a minor; 18 (iv) when referencing the chances or likelihood of winning in adver- 19 tisements or upon placement of a sports wager, make clear and conspicu- 20 ous statements that are not inaccurate or misleading concerning the 21 chances of winning and the number of winners; 22 (v) enable authorized sports bettors to exclude themselves from sports 23 wagering and take reasonable steps to prevent such bettors from engaging 24 in sports wagering from which they have excluded themselves; 25 (vi) permit any authorized sports bettor to permanently close an 26 account registered to such bettor, on any and all platforms supported by 27 such operator, at any time and for any reason; 28 (vii) offer introductory procedures for authorized sports bettors, 29 that shall be prominently displayed on the main page of such operator 30 platform, that explain sports wagering; 31 (viii) implement measures to protect the privacy and online security 32 of authorized sports bettors and their accounts; 33 (ix) offer all authorized sports bettors access to his or her account 34 history and account details; 35 (x) ensure authorized sports bettors' funds are protected upon deposit 36 and segregated from the operating funds of such operator and otherwise 37 protected from corporate insolvency, financial risk, or criminal or 38 civil actions against such operator; 39 (xi) list on each website, in a prominent place, information concern- 40 ing assistance for compulsive play in New York state, including a toll- 41 free number directing callers to reputable resources containing further 42 information, which shall be free of charge; and 43 (xii) ensure no sports wagering shall be based on a prohibited sports 44 event. 45 (b) Operators shall not directly or indirectly operate, promote, or 46 advertise any platform or sports wagering to persons located in New York 47 state unless registered pursuant to this article. 48 (c) Operators shall not offer any sports wagering based on any prohib- 49 ited sports event. 50 (d) Operators shall not permit sports wagering by anyone they know, or 51 should have known, to be a prohibited sports bettor. 52 (e) Advertisements for contests and prizes offered by an operator 53 shall not target prohibited sports bettors, minors, or self-excluded 54 persons. 55 (f) Operators shall prohibit the use of third-party scripts or script- 56 ing programs for any contest and ensure that measures are in place toS. 7509--B 127 1 deter, detect and, to the extent reasonably possible, prevent cheating, 2 including collusion, and the use of cheating devices, including use of 3 software programs that submit sports wagers unless otherwise approved by 4 the commission. 5 (g) Operators shall develop and prominently display procedures on the 6 main page of such operator's platform for the filing of a complaint by 7 an authorized sports bettor against such operator. An initial response 8 shall be given by such operator to such bettor filing the complaint 9 within forty-eight hours. A complete response shall be given by such 10 operator to such bettor filing the complaint within ten business days. 11 An authorized sports bettor may file a complaint alleging a violation of 12 the provisions of this article with the commission. 13 (h) Operators shall maintain records of all accounts belonging to 14 authorized sports bettors and retain such records of all transactions in 15 such accounts for the preceding five years. 16 5. (a) Subject to regulations promulgated by the commission, casinos 17 may enter into agreements with affiliates to allow for authorized 18 bettors to sign up to create and fund accounts on their mobile sports 19 wagering platform or platforms. 20 (b) Authorized sports bettors must sign up to create their account on 21 a mobile sports wagering platform in person at a casino or an affiliate 22 of a casino. 23 (c) Authorized sports bettors may deposit funds in their account on a 24 mobile sports wagering platform in person at a casino or an affiliate of 25 a casino, electronically recognized payment methods, or any other means 26 approved by the commission. 27 (d) Subject to approval of the commission, and in accordance with 28 regulations promulgated by the commission, casinos may enter into agree- 29 ments with affiliates to locate self-service mobile sports betting 30 kiosks, which are owned, operated and maintained by the casino, and 31 connected via the internet to the casino, upon the premises of the 32 affiliate. 33 § 3. Section 104 of the racing, pari-mutuel wagering and breeding law 34 is amended by adding a new subdivision 24 to read as follows: 35 24. To regulate sports wagering in New York state. 36 § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager- 37 ing and breeding law, as added by chapter 237 of the laws of 2016, is 38 amended to read as follows: 39 15. "Prohibited sports event" shall mean any [collegiate sport or40athletic event, any] high school sport or athletic event or any horse 41 racing event. 42 § 5. Severability clause. If any provision of this act or application 43 thereof shall for any reason be adjudged by any court of competent 44 jurisdiction to be invalid, such judgment shall not affect, impair, or 45 invalidate the remainder of the act, but shall be confined in its opera- 46 tion to the provision thereof directly involved in the controversy in 47 which the judgment shall have been rendered. 48 § 6. This act shall take effect on the same date and in the same 49 manner as section 1367 of the racing, pari-mutuel wagering and breeding 50 law pursuant to subdivision (c) of section 52 of chapter 174 of the laws 51 of 2013, takes effect. 52 PART YYY 53 Section 1. The opening paragraph of subdivision 7 of section 221 of 54 the racing, pari-mutuel wagering and breeding law, as amended by sectionS. 7509--B 128 1 2 of part SS of chapter 59 of the laws of 2017, is amended to read as 2 follows: 3 In order to pay the costs of the insurance required by this section 4 and by the workers' compensation law and to carry out its other powers 5 and duties and to pay for any of its liabilities under section four- 6 teen-a of the workers' compensation law, the New York Jockey Injury 7 Compensation Fund, Inc. shall ascertain the total funding necessary and 8 establish the sums that are to be paid by all owners and trainers 9 licensed or required to be licensed under section two hundred twenty of 10 this article, to obtain the total funding amount required annually. In 11 order to provide that any sum required to be paid by an owner or trainer 12 is equitable, the fund shall establish payment schedules which reflect 13 such factors as are appropriate, including where applicable, the 14 geographic location of the racing corporation at which the owner or 15 trainer participates, the duration of such participation, the amount of 16 any purse earnings, the number of horses involved, or such other factors 17 as the fund shall determine to be fair, equitable and in the best inter- 18 ests of racing. In no event shall the amount deducted from an owner's 19 share of purses exceed two per centum; provided, however, for two thou- 20 sand [seventeen] eighteen the New York Jockey Injury Compensation Fund, 21 Inc. may use up to two million dollars from the account established 22 pursuant to subdivision nine of section two hundred eight of this arti- 23 cle to pay the annual costs required by this section and the funds from 24 such account shall not count against the two per centum of purses 25 deducted from an owner's share of purses. The amount deducted from an 26 owner's share of purses shall not exceed one per centum after April 27 first, two thousand twenty. In the cases of multiple ownerships and 28 limited racing appearances, the fund shall equitably adjust the sum 29 required. 30 § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, 31 pari-mutuel wagering and breeding law, as amended by section 2 of part 32 PP of chapter 60 of the laws of 2016, is amended to read as follows: 33 (a) The franchised corporation shall maintain a separate account for 34 all funds held on deposit in trust by the corporation for individual 35 horsemen's accounts. Purse funds shall be paid by the corporation as 36 required to meet its purse payment obligations. Funds held in horsemen's 37 accounts shall only be released or applied as requested and directed by 38 the individual horseman. For two thousand [sixteen] eighteen the New 39 York Jockey Injury Compensation Fund, Inc. may use up to two million 40 dollars from the account established pursuant to this subdivision to pay 41 the annual costs required by section two hundred twenty-one of this 42 article. 43 § 3. Paragraph (c) of subdivision 9 of section 208 of the racing, 44 pari-mutuel wagering and breeding law is relettered paragraph (e) and 45 two new paragraphs (c) and (d) are added to read as follows: 46 (c) The franchised corporation shall establish and maintain a separate 47 account for funds to be held on deposit in trust by the franchised 48 corporation for the horsemen's organization recognized pursuant to 49 section two hundred twenty-eight of this article. Starting in two thou- 50 sand eighteen and annually thereafter, funds from the account estab- 51 lished pursuant to this subdivision shall be deposited in the separate 52 account established under this paragraph in an amount to be agreed upon 53 by the franchised corporation and the horsemen's organization recognized 54 pursuant to section two hundred twenty-eight of this article. Funds 55 held in this account shall be used by the appropriately recognized 56 horsemen's organization solely as collateral to secure workers' compen-S. 7509--B 129 1 sation insurance coverage, including loss sensitive programs, including 2 through the New York Jockey Injury Compensation Fund, Inc. 3 (d) In the event the horsemen's organization recognized pursuant to 4 section two hundred twenty-eight of this article determines that the 5 funds are no longer needed as collateral to secure workers' compensation 6 insurance coverage, then, upon agreement by the franchised corporation 7 and the appropriately recognized horsemen's organization, funds in the 8 separate account established under paragraph (c) of this subdivision 9 shall be returned to the account established pursuant to this subdivi- 10 sion. 11 § 4. This act shall take effect immediately. 12 PART ZZZ 13 Section 1. Paragraph 3 of subdivision (t) of section 1115 of the tax 14 law is renumbered paragraph 4 and a new paragraph 3 is added to read as 15 follows: 16 (3) Receipts from every sale, except for resale, of the service of 17 inflating of tires and other inflatable tangible personal property and 18 consideration given or contracted to be given for such service, where 19 the purchaser or user of the service inflates the tires or other such 20 tangible personal property at the facility where the air stand or tire 21 inflation equipment is located, by means exclusively of coin-operated 22 equipment and neither the vendor operating the facility nor any employee 23 of the vendor assists the purchaser in inflating the tires or other 24 property, shall be exempt from tax under this article, to the extent of 25 the amount of money or value, in money, of tokens deposited in such 26 coin-operated equipment by the purchaser of the service. 27 § 2. This act shall take effect April 1, 2019. 28 PART AAAA 29 Section 1. Subdivision 1 of section 483 of the real property tax law, 30 as amended by chapter 544 of the laws of 2008, is amended to read as 31 follows: 32 1. Structures and buildings essential to the operation of lands 33 actively devoted to agricultural or horticultural use and actually used 34 and occupied to carry out such operation which are constructed or recon- 35 structed subsequent to January first, nineteen hundred sixty-nine and 36 prior to January first, two thousand [nineteen] twenty-nine shall be 37 exempt from taxation to the extent of any increase in value thereof by 38 reason of such construction or reconstruction for a period of ten years. 39 § 2. This act shall take effect immediately. 40 PART BBBB 41 Section 1. The article heading of article 14-A of the education law, 42 as added by chapter 546 of the laws of 1997, is amended to read as 43 follows: 44 NEW YORK STATE 45 [COLLEGE] EDUCATION CHOICE TUITION SAVINGS PROGRAM 46 § 2. Section 695 of the education law, as added by chapter 546 of the 47 laws of 1997, is amended to read as follows:S. 7509--B 130 1 § 695. Program established. There is hereby established the [college] 2 education choice tuition savings program and such program shall be known 3 and may be cited as the "New York state [college] education choice 4 tuition savings program". 5 § 3. Subdivision 5 of section 695-b of the education law, as amended 6 by chapter 535 of the laws of 2000, is amended to read as follows: 7 5. "Eligible educational institution" shall mean any institution of 8 higher education defined as an eligible educational institution in 9 section 529(e)(5) of the Internal Revenue Code of 1986, as amended, and 10 any nonpublic elementary or secondary school for which tuition expenses 11 are charged or any public elementary or secondary school. 12 § 4. Subdivision 10 of section 695-e of the education law, as amended 13 by chapter 593 of the laws of 2003, is amended to read as follows: 14 10. The comptroller shall promulgate rules or regulations to prevent 15 contributions on behalf of a designated beneficiary in excess of an 16 amount that would cause the aggregate account balance for all accounts 17 for a designated beneficiary to exceed a maximum account balance, as 18 established from time to time by the comptroller and the corporation on 19 the basis of nonpublic elementary and secondary tuition costs, public 20 elementary or secondary school costs, or the higher education costs in 21 the state, with adequate safeguards to prevent more contributions than 22 necessary to provide for the qualified higher education costs of the 23 beneficiary, as required to maintain the program as a "qualified tuition 24 program" under section 529 of the Internal Revenue Code of 1986, as 25 amended. 26 § 5. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax 27 law, paragraph 32 as amended by chapter 81 of the laws of 2008, para- 28 graph 33 as added by chapter 546 of the laws of 1997, are amended to 29 read as follows: 30 (32) Contributions made during the taxable year by an account owner to 31 one or more family tuition accounts established under the New York state 32 [college] education choice tuition savings program provided for under 33 article fourteen-A of the education law, to the extent not deductible or 34 eligible for credit for federal income tax purposes, provided, however, 35 the exclusion provided for in this paragraph shall not exceed five thou- 36 sand dollars for an individual or head of household, and for married 37 couples who file joint tax returns, shall not exceed ten thousand 38 dollars; provided, further, that such exclusion shall be available only 39 to the account owner and not to any other person. 40 (33) Distributions from a family tuition account established under the 41 New York state [college] education choice tuition savings program 42 provided for under article fourteen-A of the education law, to the 43 extent includible in gross income for federal income tax purposes. 44 § 6. This act shall take effect immediately and shall apply to 45 contributions and distributions made on and after January 1, 2018. 46 PART CCCC 47 Section 1. Section 452 of the tax law, as amended by chapter 32 of the 48 laws of 2016, is amended to read as follows: 49 § 452. Imposition of tax. [1.] On and after October first, nineteen 50 hundred ninety-nine, a tax is hereby imposed and shall be paid upon the 51 gross receipts of every person holding any professional or amateur 52 boxing, sparring, combative sport or wrestling match or exhibition in 53 this state. Such tax shall be imposed on such gross receipts, exclusive 54 of any federal taxes, as follows:S. 7509--B 131 1 (a) three percent of gross receipts from ticket sales, except that in 2 no event shall the tax imposed by this [paragraph] subdivision exceed 3 fifty thousand dollars for any match or exhibition; 4 (b) three percent of the sum of (i) gross receipts from broadcasting 5 rights, and (ii) gross receipts from digital streaming over the Inter- 6 net, except that in no event shall the tax imposed by this [paragraph] 7 subdivision exceed fifty thousand dollars for any match or exhibition. 8 [2. On and after the effective date of this subdivision, a tax is9hereby imposed and shall be paid upon the gross receipts of every person10holding any authorized combative sport in this state, other than any11professional or amateur boxing, sparring or wrestling exhibition or12match, exclusive of any federal taxes as follows:13(a) eight and one-half percent of gross receipts from ticket sales;14and15(b) three percent of the sum of (i) gross receipts from broadcasting16rights, and (ii) gross receipts from digital streaming over the inter-17net, except that in no event shall such tax imposed pursuant to this18paragraph exceed fifty thousand dollars for any match or exhibition.] 19 § 2. This act shall take effect immediately, and shall apply to all 20 taxable years beginning on or after January 1, 2019. 21 PART DDDD 22 Section 1. Legislative intent. This legislation would allow a taxpayer 23 who does not feel that the taxes in the State of New York are high 24 enough to contribute an additional amount to the state general fund. 25 § 2. The tax law is amended by adding a new section 630-f to read as 26 follows: 27 § 630-f. Gift for New York state general fund. An individual in any 28 taxable year may elect to contribute to the state's general fund. The 29 contribution shall be in any whole dollar amount and shall not reduce 30 the amount of state tax owed by such individual. The commissioner shall 31 include space on the personal income tax return to enable a taxpayer to 32 make such contribution. Notwithstanding any other provision of law all 33 revenues collected pursuant to this section shall be credited to the 34 state's general fund and used only for those purposes enumerated in 35 section seventy-two of the state finance law. 36 § 3. This act shall take effect immediately. 37 PART EEEE 38 Section 1. Section 43 of the tax law, as added by section 2 of part Q 39 of chapter 59 of the laws of 2017, is renumbered section 44 and a new 40 section 45 is added to read as follows: 41 § 45. Empire state digital gaming media production credit. (a) Allow- 42 ance of credit. (1) A taxpayer which is a digital gaming media 43 production entity engaged in qualified digital gaming media production, 44 or who is a sole proprietor of or a member of a partnership, which is a 45 digital gaming media production entity engaged in qualified digital 46 gaming media production, and is subject to tax under article nine-A or 47 twenty-two of this chapter, shall be allowed a credit against such tax 48 to be computed as provided herein. 49 (2) The amount of the credit shall be the product (or pro rata share 50 of the product, in the case of a member of a partnership or limited 51 liability company) of twenty-five percent and the eligible production 52 costs of one or more qualified digital gaming media productions.S. 7509--B 132 1 (3) Eligible digital gaming media production costs for a qualified 2 digital gaming media production incurred and paid in this state but 3 outside such metropolitan commuter transportation district shall be 4 eligible for a credit of ten percent of such eligible production costs 5 in addition to the credit specified in paragraph two of this subdivi- 6 sion. 7 (4) Eligible production costs shall not include those costs used by 8 the taxpayer or another taxpayer as the basis calculation of any other 9 tax credit allowed under this chapter or allowed in any other state. 10 (b) Allocation of credit. The aggregate amount of tax credits allowed 11 under this section, subdivision fifty-four of section two hundred ten-B 12 and subsection (jjj) of section six hundred six of this chapter in any 13 taxable year shall be fifty million dollars. The aggregate amount of 14 credits for any taxable year must be distributed on a regional basis as 15 follows: fifty percent of the aggregate amount of credits shall be 16 available for qualified digital gaming media productions that incur at 17 least sixty percent of eligible production costs for a qualified digital 18 gaming media production in region one; twenty percent of the aggregate 19 amount of credits shall be available for qualified digital gaming media 20 productions that incur at least sixty percent of eligible production 21 costs for a qualified digital gaming media production in region two; and 22 thirty percent of the aggregate amount of credits shall be available for 23 qualified digital gaming media productions that incur at least sixty 24 percent of eligible production costs for a qualified digital gaming 25 media production in region three. If such regional distribution is not 26 fully allocated in any taxable year, the remainder of such credits shall 27 be available for allocation to any region in the subsequent tax year. 28 For the purposes of this section region one shall contain the city of 29 New York; region two shall contain the counties of Westchester, Rock- 30 land, Nassau and Suffolk; and region three shall contain any county not 31 contained in regions one and two. Such credit shall be allocated by the 32 empire state development corporation among taxpayers in order of priori- 33 ty based upon the date of filing an application for allocation of 34 digital gaming media production credit with such office. If the total 35 amount of allocated credits applied for in any particular year exceeds 36 the aggregate amount of tax credits allowed for such year under this 37 section, such excess shall be treated as having been applied for on the 38 first day of the subsequent taxable year. 39 (c) Definitions. As used in this section: 40 (1) "Qualified digital gaming media production" means: (i) a website, 41 the digital media production costs of which are paid or incurred predo- 42 minately in connection with (A) video simulation, animation, text, 43 audio, graphics or similar gaming related property embodied in digital 44 format, and (B) interactive features of digital gaming (e.g., links, 45 message boards, communities or content manipulation); (ii) video or 46 interactive games produced primarily for distribution over the internet, 47 wireless network or successors thereto; (iii) animation, simulation or 48 embedded graphics digital gaming related software intended for commer- 49 cial distribution regardless of medium; and (iv) a digital gaming media 50 production in which qualified digital gaming media production costs 51 equal to or are in excess of seven thousand five hundred dollars if 52 incurred and paid in this state in twelve months preceding the date on 53 which the credit is claimed. Provided, however, if such a production 54 costs are incurred and paid outside the metropolitan commuter transpor- 55 tation district in this state, such production costs shall be equal to 56 or in excess of three thousand seven hundred fifty dollars to be a qual-S. 7509--B 133 1 ified digital gaming media production for purposes of this paragraph. A 2 qualified digital gaming media production does not include a website, 3 video, interactive game or software that is used predominately for: 4 electronic commerce (retail or wholesale purposes other than the sale of 5 video or interactive games), gambling (including activities regulated by 6 a New York gaming agency), exclusive local consumption for entities not 7 accessible by the general public including industrial or other private 8 purposes, and political advocacy purposes. 9 (2) "Digital gaming media production costs" means any costs for prop- 10 erty used and wages or salaries paid to individuals directly employed 11 for services performed by those individuals directly and predominately 12 in the creation of a digital gaming media production or productions. 13 Digital gaming media production costs include but shall not be limited 14 to to payments for property used and services performed directly and 15 predominately in the development (including concept creation), design, 16 production (including concept creation), design, production (including 17 testing), editing (including encoding) and compositing (including the 18 integration of digital files for interaction by end users) of digital 19 gaming media. Digital gaming media production costs shall not include 20 expenses incurred for the distribution, marketing, promotion, or adver- 21 tising content generated by end-users or other costs not directly and 22 predominately related to the creation, production or modification of 23 digital gaming media. In addition, salaries or other income distribution 24 related to the creation of digital gaming media for any person who 25 serves in the role of chief executive officer, chief financial officer, 26 president, treasurer or similar position shall not be included as 27 digital gaming media production costs. Furthermore, any income or other 28 distribution to any individual who holds an ownership interest in a 29 digital gaming media production entity shall not be included as digital 30 gaming media production costs. 31 (3) "Qualified digital gaming media production costs" means digital 32 gaming media production costs only to the extent such costs are attrib- 33 utable to the use of property or the performance of services by any 34 persons within the state directly and predominantly in the creation, 35 production or modification of digital gaming related media. Such total 36 production costs incurred and paid in this state shall be equal to or 37 exceed seventy-five percent of total cost of an eligible production 38 incurred and paid within and without this state. 39 (d) Cross-references. For application of the credit provided for in 40 this section, see the following provisions of this chapter: 41 (1) Article nine-A: section two hundred ten-B, subdivision fifty-four. 42 (2) Article twenty-two: section six hundred six, subsection (i), para- 43 graph one, subparagraph (B), clause (xliv). 44 (3) Article twenty-two: section six hundred six, subsection (jjj). 45 § 2. Subdivision 52 of section 210-B of the tax law, as added by 46 section 4 of part DDD of chapter 59 of the laws of 2017, is renumbered 47 subdivision 53 and a new subdivision 54 is added to read as follows: 48 54. Empire state digital gaming media production credit. (a) Allowance 49 of credit. A taxpayer who is eligible pursuant to section forty-five of 50 this chapter shall be allowed a credit to be computed as provided in 51 such section forty-five against the tax imposed by this article. 52 (b) Application of credit. The credit allowed under this subdivision 53 for any taxable year shall not reduce the tax due for such year to less 54 than the amount prescribed in paragraph (d) of subdivision one of 55 section two hundred ten of this article. Provided, however, that if the 56 amount of the credit allowable under this subdivision for any taxableS. 7509--B 134 1 year reduces the tax to such amount, the excess shall be treated as an 2 overpayment of tax to be credited or refunded in accordance with the 3 provisions of section one thousand eighty-six of this chapter, provided, 4 however, no interest shall be paid thereon. 5 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 6 of the tax law is amended by adding a new clause (xliv) to read as 7 follows: 8 (xliv) Empire state digital Amount of credit 9 gaming media production under subdivision 10 credit under subsection (jjj) fifty-four of section 11 two hundred ten-B 12 § 4. Section 606 of the tax law is amended by adding a new subsection 13 (jjj) to read as follows: 14 (jjj) Empire state digital gaming media production credit. (1) Allow- 15 ance of credit. A taxpayer who is eligible pursuant to section forty- 16 five of this chapter shall be allowed a credit to be computed as 17 provided in such section forty-five against the tax imposed by this 18 article. 19 (2) Application of credit. If the amount of the credit allowable under 20 this subsection for any taxable year exceeds the taxpayer's tax for such 21 year, the excess shall be treated as an overpayment of tax to be credit- 22 ed or refunded as provided in section six hundred eighty-six of this 23 article, provided, however, that no interest shall be paid thereon. 24 § 5. The state commissioner of economic development, after consulting 25 with the state commissioner of taxation and finance, shall promulgate 26 regulations by December 31, 2018 to establish procedures for the allo- 27 cation of tax credits as required by subdivision (a) of section 44 of 28 the tax law. Such rules and regulations shall include provisions 29 describing the application process, the due dates for such applications, 30 the standards which shall be used to evaluate the applications, the 31 documentation that will be provided to taxpayers substantiate to the New 32 York state department of taxation and finance the amount of tax credits 33 allocated to such taxpayers, under what conditions all or a portion of 34 this tax credit may be revoked, and such other provisions as deemed 35 necessary and appropriate. Notwithstanding any other provisions to the 36 contrary in the state administrative procedure act, such rules and regu- 37 lations may be adopted on an emergency basis if necessary to meet such 38 December 31, 2018 deadline. 39 § 6. Subdivision 23 of section 352 of the economic development law, as 40 amended by section 1 of part K of chapter 59 of the laws of 2017, is 41 amended to read as follows: 42 23. "Software development" means the creation of coded computer 43 instructions [or production or post-production of video games, as44defined in subdivision one-a of section six hundred eleven of the gener-45al business law, other than those embedded and used exclusively in46advertising, promotional websites or microsites,] and [also] includes 47 new media as defined by the commissioner in regulations. 48 § 7. The economic development law is amended by adding a new section 49 243 to read as follows: 50 § 243. Reports on the digital gaming industry in New York. 1. The 51 empire state development corporation shall file a report on a biannual 52 basis with the director of the division of the budget and the chair- 53 persons of the assembly ways and means committee and senate finance 54 committee. The report shall be filed no later than thirty days before 55 the mid-point and the end of the state fiscal year. The first reportS. 7509--B 135 1 shall cover the calendar half year that begins on January first, two 2 thousand nineteen. Each report must contain the following information 3 for the covered calendar half year: 4 (a) the total dollar amount of credits allocated pursuant to section 5 forty-five of the tax law during the half year, broken down by month; 6 (b) the number of digital gaming projects, which have been allocated 7 tax credits of less than one million dollars per project, and the total 8 dollar amount of credits allocated to those projects distributed by 9 region pursuant to subdivision (b) of section forty-five of the tax law; 10 (c) the number of digital gaming projects, which have been allocated 11 tax credits of more than one million dollars, and the total dollar 12 amount of credits allocated to those projects distributed by region 13 pursuant to subdivision (b) of section forty-five of the tax law; 14 (d) a list of each eligible digital gaming project, which has been 15 allocated a tax credit enumerated by region pursuant to subdivision (b) 16 of section forty-five of the tax law, and for each of those projects, 17 (i) the estimated number of employees associated with the project, (ii) 18 the estimated qualifying costs for the projects, (iii) the estimated 19 total costs of the project, (iv) the credit eligible employee hours for 20 each project, and (v) total wages for such credit eligible employee 21 hours for each project; and 22 (e) (i) the name of each taxpayer allocated a tax credit for each 23 project and the county of residence or incorporation of such taxpayer 24 or, if the taxpayer does not reside or is not incorporated in New York, 25 the state of residence or incorporation; however, if the taxpayer claims 26 a tax credit because the taxpayer is a member of a limited liability 27 company, a partner in a partnership or a shareholder in a subchapter S 28 corporation, the name of each limited liability company, partnership or 29 subchapter S corporation earning any of those tax credits must be 30 included in the report instead of information about the taxpayer claim- 31 ing the tax credit, (ii) the amount of tax credit allocated to each 32 taxpayer; provided however, if the taxpayer claims a tax credit because 33 the taxpayer is a member of a limited liability company, a partner in a 34 partnership or a shareholder in a subchapter S corporation, the amount 35 of tax credit earned by each entity must be included in the report 36 instead of information about the taxpayer claiming the tax credit, and 37 (iii) information identifying the project associated with each taxpayer 38 for which a tax credit was claimed under section forty-five of the tax 39 law. 40 2. The empire state development corporation shall file a report on a 41 triennial basis with the director of the division of the budget and the 42 chairpersons of the assembly ways and means committee and senate finance 43 committee. The first report shall be filed no later than March first, 44 two thousand twenty-one. The report must be prepared by an independent 45 third party auditor and include: (a) information regarding the empire 46 state digital gaming production credit program including the efficiency 47 of operations, reliability of financial reporting, compliance with laws 48 and regulations and distribution of assets and funds; (b) and economic 49 impact study prepared by an independent third party of the program with 50 special emphasis on the regional impact by region and the total dollar 51 amount of credits allocated to those projects distributed by region 52 pursuant to subdivision (b) of section forty-five of the tax law; and 53 (c) any other information or statistical information that the commis- 54 sioner of economic development deems to be useful in analyzing the 55 effects of the programs.S. 7509--B 136 1 § 8. This act shall take effect immediately and shall apply to taxable 2 years beginning on January 1, 2019 and before January 1, 2024; provided 3 that this act shall expire and be deemed repealed December 31, 2023. 4 PART FFFF 5 Section 1. This act shall be known and may be cited as the "local 6 government jobs and revenue protection act of 2018." 7 § 2. Legislative intent. New York state, New York city and county 8 governments throughout the state are the recipients of hundred of 9 millions of dollars each year under the master settlement agreement. The 10 total of all master settlement payments to these governments over the 11 years has so far exceeded fourteen billion dollars. These funds are 12 vitally important and any disruption in these payments would put the 13 recipients at financial risk. The legislature hereby finds that it is in 14 the public interest to enact the "local government jobs and revenue 15 protection act of 2018" in order to continue the flow of these funds to 16 the state and local governments which depend on this revenue during the 17 appeal of a judgement against master settlement agreement signatories, 18 affiliates, successors and non-participating manufacturers. 19 § 3. The civil practice law and rules is amended by adding a new 20 section 5519-a to read as follows: 21 § 5519-a. Stay of enforcement for tobacco product master settlement 22 agreement participating or non-participating manufacturers or their 23 successors or affiliates. (a) In civil litigation under any legal theory 24 involving a participating manufacturer or a non-participating manufac- 25 turer, as those terms are defined in the master settlement agreement, or 26 any of their successors or affiliates, the undertaking required during 27 the pendency of all appeals or discretionary reviews by any appellate 28 courts in order to stay the execution of any judgment or order granting 29 legal, equitable or other relief during the entire course of appellate 30 review, including review by the United States supreme court, shall be 31 set pursuant to the applicable provisions of law or court rules; 32 provided, however that the total undertaking required of all appellants 33 collectively shall not exceed two hundred fifty million dollars, regard- 34 less of the value of the judgment appealed. 35 (b) Notwithstanding the provisions of subdivision (a) of this section, 36 upon proof by a preponderance of the evidence, by an appellee, that an 37 appellant is dissipating assets outside the course of ordinary business 38 to avoid payment of a judgment, a court may require the appellant to 39 post a bond in an amount up to the total amount of the judgement. 40 § 4. This act shall take effect on the thirtieth day after it shall 41 have become a law, and shall apply to any cause of action pending on or 42 filed on or after such effective date. 43 PART GGGG 44 Section 1. Section 1261 of the tax law is amended by adding a new 45 subdivision (h) to read as follows: 46 (h) Notwithstanding any provision of state or local law, ordinance or 47 resolution to the contrary, from the moneys collected pursuant to 48 section twelve hundred ten of this article for the rent of every occu- 49 pancy of a room or rooms, as described in subdivision (e) of section 50 eleven hundred five of this chapter, in a city having a population of 51 one million or more, four percent of such moneys or the first three 52 hundred thousand dollars of such moneys collected during each calendarS. 7509--B 137 1 year, whichever shall be less, in each borough of such city shall be 2 deposited into a separate account by the commissioner with the moneys in 3 each such account being expended solely for the purpose of promoting 4 tourism in the borough to which each account relates. The moneys in each 5 account shall be made available for tourism promotion purposes, exclu- 6 sive of administrative expenses, to an entity designated by the borough 7 president and approved by the department of economic development as 8 responsible for tourism promotion in the borough. 9 § 2. This act shall take effect on the first of January next succeed- 10 ing the date on which it shall have become a law. 11 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 12 sion, section or part of this act shall be adjudged by any court of 13 competent jurisdiction to be invalid, such judgment shall not affect, 14 impair, or invalidate the remainder thereof, but shall be confined in 15 its operation to the clause, sentence, paragraph, subdivision, section 16 or part thereof directly involved in the controversy in which such judg- 17 ment shall have been rendered. It is hereby declared to be the intent of 18 the legislature that this act would have been enacted even if such 19 invalid provisions had not been included herein. 20 § 3. This act shall take effect immediately provided, however, that 21 the applicable effective date of Parts A through GGGG of this act shall 22 be as specifically set forth in the last section of such Parts.
