This bill has been amended

Bill S2608-2013

Enacts into law major components of legislation necessary to implement the transportation, economic development and evironmental conservation budget for the 2013-2014

Authorizes funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2013-2014 (Part A); relates to the statewide transmission tax and amends part U1 of chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehicle transaction fees, in relation to the effectiveness thereof (Part B); imposes driver's license sanctions (Part C); relates to the hours of operation of the department of motor vehicles; and provides for the repeal of such provisions upon expiration thereof (Part D); relates to enforcement assistance; and repeals section 357-a of the public authorities law relating to payment by the New York state thruway authority for services provided by the division of state police (Part E); establishes the "Cleaner, Greener NY Act of 2013"; repeals section 27-1017 of the environmental conservation law relating thereto; provides for the repeal of certain provisions upon expiration thereof (Part F); relates to mandatory tire acceptance (Part G); amends chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part H); to amend chapter 58 of the laws of 2012 amending the public authorities law, relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to extending certain authority of the dormitory authority of the state of New York and directing the dormitory authority to report on a design and construction management agreement between such authority and the department of environmental conservation and/or the office of parks, recreation and historic preservation (Part I); authorizes and directs the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part K); authorizes the New York state energy research and development authority to finance a portion of its research, development and demonstration and policy and planning programs from assessments on gas and electric corporations (Part L); authorizes the department of health to finance certain activities with revenues generated from an assessment on cable television companies (Part M); amends chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part P); relates to the issuance of hunting and fishing licenses; amends part AA of chapter 60 of the laws of 2011, amending the environmental conservation law relating to saltwater recreational fishing registrations, in relation to making the provisions of such part permanent; and repeals certain provisions of such law relating thereto (Part R); amends the agriculture and markets law and the public authorities law, in relation to alternate generated power sources at retail gasoline outlets (Part S); requires the New York state energy research and development authority to develop recommendations regarding the establishment of microgrids (Part T); relates to the use of ultra low sulfur diesel fuel and best available technology by the state (Part U); relates to airport improvement and revitalization grants and loans (Part V).

Details

Actions

  • Jan 22, 2013: REFERRED TO FINANCE

Memo

BILL NUMBER:S2608

TITLE OF BILL: An act to authorize funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2013-2014 (Part A); to amend the tax law, in relation to the statewide transmission tax (Part B); to amend the vehicle and traffic law, in relation to imposing drivers license sanctions (Part C); to amend the vehicle and traffic law, in relation to the hours of operation of the department of motor vehicles (Part D); to amend the public authorities law, in relation to enforcement assistance; and to repeal section 357-a of such law relating to payment by the New York state thruway authority for services provided by the division of state police (Part E); to amend the environmental conservation law and the state finance law, in relation to establishing the "Cleaner, Greener NY Act of 2013"; and repealing section 27-1017 of the environmental conservation law relating thereto (Part F); to amend the environmental conservation law, in relation to waste tire management and recycling fees (Part G); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part H); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to extending certain authority of the dormitory authority of the state of New York (Part I); to amend the New York state urban development corporation act, in relation to the powers of the New York state urban development corporation to make grants (Part J); to authorize and direct the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part K); to authorize the New York state energy research and development authority to finance a portion of its research, development and demonstration and policy and planning programs from assessments on gas and electric corporations (Part L); to authorize the department of health to finance certain activities with revenues generated from an assessment on cable television companies (Part M); to amend the public service law, in relation to extending the temporary state energy and utility conservation assessment; and to amend section 6 of part NN of chapter 59 of the laws of 2009 amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, increasing the utility assessment cap and the minimum threshold for collection thereunder, and establishing a temporary state energy and utility service conservation assessment and providing for the collection

thereof, in relation to extending the effectiveness thereof (Part N); to amend the public service law, in relation to strengthening the oversight and enforcement mechanisms of the Public Service Commission; to amend the general business law, in relation to expanding the definition of underground facilities and increasing fines for violations relating to the protection of underground facilities; and to repeal certain provisions of the public service law relating thereto (Part O); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part P); and to amend the banking law, the cooperative corporations law, the general business law, and the not-for-profit corporation law, in relation to facilitating an online corporate filing system by removing the type classification system for not-for-profit corporations; to repeal certain provisions of the not-for-profit corporation law and the religious corporations law, relating thereto (Subpart A); to amend the business corporation law, the education law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the public health law and the transportation corporations law, in relation to facilitating online filing by authorizing self-certification by filers with regard to required consents; to repeal certain provisions of the business corporation law and the not-for-profit corporation law, relating thereto (Subpart B); to amend the business corporation law, the limited liability company law, the not-for-profit corporation law and the partnership law, in relation to authorizing electronic attendance at meetings (Subpart C); to amend the business corporation law, the limited liability company law and the not-for-profit corporation law, in relation to who may act as an incorporator (Subpart D); to amend the general associations law, in relation to serving process upon the secretary of state as agent (Subpart E); to amend the tax law, in relation to reducing the taxes on shares (Subpart F) (Part Q)

PURPOSE:

This bill contains provisions needed to implement the Transportation, Economic Development and Environmental Conservation portions of the 2013-14 Executive Budget.

This memorandum describes Parts A through Q the bill which are described wholly within the parts listed below.

Part A Provide the annual authorization for the CHIPS and Marchiselli programs

Purpose:

This bill would authorize funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and Marchiselli program for State fiscal year 2013-14.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill authorizes the CHIPS and Marchiselli capital aid programs to counties, cities, towns and villages for State fiscal year 2013-14 at $363.1 million and $39.7 million respectively.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget because annual authorization is required for these programs.

Effective Date:

This bill would take effect immediately upon enactment.

Part B - Continue the redistribution of the statewide collected transmission tax between the upstate (PTOA) and downstate (MMTOA) transit accounts in an equitable manner

Purpose:

This bill would continue to redistribute the revenue collected from the corporate and utilities taxes imposed under Sections 183 and 184 of the Tax Law to provide an equitable share to the public transportation systems operating assistance accounts.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill would amend Section 205 of Tax Law to provide that, on and after April 1, 2013, after reserving amounts for refunds and reimbursements, twenty percent of the moneys collected from the taxes imposed by Sections 183 and 184 of Tax Law shall be deposited to the credit of the Dedicated Highway and Bridge Trust Fund; fifty-four percent shall be deposited in the Mass Transportation Operating Assistance Fund, to the credit of the MMTOA account; and, twenty-six percent shall be deposited in the Mass Transportation Operating Assistance Fund, to the credit of the PTOA account.

This bill would not increase the tax rate; it would simply continue the redistribution of the amount currently deposited in the Mass Transportation Operating Assistance Fund between the two accounts within the fund, in accordance with a regional split. Since the taxes are collected statewide, the distribution is based upon population within the downstate and upstate service districts.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget because without this tax distribution, the PTOA account would not receive sufficient revenues for operating aid to upstate transit systems.

Effective Date:

This bill would take effect April 1, 2013.

Part C - Impose license sanctions for violations of the cell phone (mobile telephone) and texting (portable electronic device) laws by commercial motor vehicle operators and conform State law to federal law regarding cell phone use and texting by such operators

Purpose:

This bill would impose license sanctions for violations of the cell phone (mobile telephone) and texting (portable electronic device) laws by commercial motor vehicle operators and conform state law to federal law regarding cell phone use and texting by such operators.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

Federal Motor Carrier Safety Administration (FMCSA) rules prohibit operators of commercial motor vehicles (CMV) from texting and using a cell phone while driving. Additionally, motor carriers may not allow or require their drivers to text or use a cell phone while driving. Violators of these rules are subject to suspension of their commercial driver's license (CDL).

The FMCSA adopted a final rule effective October 27, 2010, requiring states to comply with federal rules, no later than October 28, 2013, related to texting while operating a CMV. The FMCSA also adopted a final rule, effective January 3, 2012, requiring states to comply with federal rules, no later than January 3, 2015, related to using a cell phone while operating a CMV. The FMCSA promulgated these rules after researching the use of cell phones and texting devices by drivers on our highways.

In 2011, there were 3,471 convictions for texting violations and 186,844 convictions for cell phone violations in New York State. As of September 1, 2012, there have been 7,925 convictions for texting violations and 105,389 convictions for cell phone violations.

This bill would conform New York law to FMCSA rules by amending various sections of Vehicle and Traffic Law providing:

*for the suspension of a CDL if the operator of a CMV violates a State or local law regarding cell phone use or texting; *that no person shall use a cell phone or portable electronic device while operating a CMV on a public highway if the vehicle is temporarily stationary because of traffic, a traffic control device, or other momentary delays; and *that no motor carrier shall allow or require its drivers to use a cell phone or portable electronic device while operating a CMV.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget because failure to do so could result in the loss of up to $64 million in federal highway funding and $8 million in FMCSA program funding.

Effective Date:

This bill would take effect on October 28, 2013 and would apply to offenses committed on or after such date.

Part D - Permit the Department of Motor Vehicles to serve the public on Saturdays

Purpose:

This bill would permit the Department of Motor Vehicles (DMV) to serve the public on Saturdays.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History

This bill would amend Vehicle and Traffic Law § 200(1) to permit the Commissioner of DMV to designate certain branch offices to be open to serve the public and transact business on Saturdays.

Saturday office hours are a popular option currently offered by two offices operated by DMV's county clerk agents. Those hours are very popular with the residents served by those offices, which offer additional flexibility and greater customer service than can be afforded by State-run DMV offices. Notably, Public Officers Law § 62(1) permits the public offices of a county to operate on Saturdays, yet § 62(2) prohibits such operation by the State. DMV would like to offer Saturday hours in certain offices to improve customer service levels offered to citizens living in areas not served by county clerk agents. By offering DMV services on Saturdays, the DMV will be able to both give customers the flexibility of obtaining such services during non-working hours and also reduce waiting times during the week.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget in order to achieve the goals of DMV's customer service initiative. DMV will combine the use of advanced technology and best practices in customer service in order to reduce office wait times, make DMV more customer friendly, increase percentage of transactions through alternate service channels and provide overall improved customer experience.

This bill would provide a neutral budget impact by offering employees the opportunity to work the same number of hours each week, with a portion of them on Saturday.

Effective Date:

This bill would take effect immediately upon enactment.

Part E - Provide financial assistance for the New York State Thruway Authority and eliminate the need for a commercial toll hike

Purpose:

This bill would amend existing law to provide for State assumption of certain Thruway expenses and would exempt the Thruway Authority from

the cost recovery provisions of the Public Authorities Law. These actions will provide the Thruway Authority with the financial assistance necessary to eliminate the need for a substantial commercial toll increase.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill would ensure that the Thruway Authority's expenses are reduced by approximately $85 million per year.

The provisions of the bill amend Section 357-a of the Public Authorities Law to (i) eliminate the existing requirement that the Thruway Authority reimburse the State for certain costs associated with State Police personnel provided on the Thruway System and ensure such policing is maintained at a level of service consistent with historical precedent, while also continuing to fund certain retained costs pursuant to a written agreement between the Thruway Authority and the State Police; (ii) authorize the State to assume $24 million in other annual Thruway operating costs incurred on its behalf, as specified in an agreement between the Thruway Authority and the Director of the Division of the Budget; and (iii) exempt the Thruway Authority from the cost recovery provisions of Section 2975 of the Public Authorities Law.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget that includes $85 million in Thruway Authority operating cost reductions.

Effective Date:

This bill takes effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2013.

Part F - Enact the Cleaner Greener New York Act of 2013 to increase revenues deposited to the Environmental Protection Fund by redirecting unclaimed bottle deposit receipts and by strengthening enforcement of the Bottle Bill to prevent fraud

Purpose:

This bill would require the payment of $15 million per year to the Environmental Protection Fund (EPF) from unredeemed "Bottle Bill" deposit collections currently deposited to the General Fund and establish a formula for further increasing the revenue the State receives from unclaimed deposits based on increased enforcement of the Bottle Bill, and directing those increased funds to the EPF.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

The EPF was created in 1993 to provide a permanent funding mechanism for environmental programs, including those associated with open space and farm land protections, land acquisition, estuary management, waterfront revitalization, and recycling. Well-over $1

billion has been expended since creation of the fund. The increased funding sources to the EPF proposed in the bill represent New York's continuing leadership with respect to open space, farmland and environmental protection.

This administration has protected the EPF from sweeps and cuts over the past two fiscal years and has ensured that it is used for the purposes for which it was created. Before the SFY 2010-11, there were significant reductions to the EPF, but since that time, it has been maintained at $134 million per year. This bill would, for the first time in several years, increase revenue going to the EPF. In particular, the bill would require the deposit of $15 million per year from unredeemed deposits associated with the Bottle Bill. The bill would also require that all unredeemed deposits collected each fiscal year in excess of the amount collected in SFY 2012-13 be deposited to the EPF.

Further, the bill would amend the Bottle Bill law to enhance enforcement provisions. The proposal would prevent: (i) the sale of containers for which no deposit was initiated in New York; (ii) the redemption of containers for which no deposit was paid; and (iii) the repeated redemption of the same containers - all of which constitute violations of the Bottle Bill. For example, the bill would authorize the imposition of new criminal sanctions associated with certain violations of the Bottle Bill. The bill would also authorize localities to enforce the Bottle Bill with associated civil penalties payable to such locality. The Department of Environmental Conservation would be authorized to require redemption centers to obtain registrations or permits and revoke the same, and to take any and all measures to reduce fraud associated with the Bottle Bill.

It is expected that these "anti-fraud" measures will increase the amount of unredeemed Bottle Bill deposits in excess of the 2012-13 base year and, concomitantly, the amount deposited to EPF in future fiscal years by an additional $4 million in SFY 2013-14 and $8 million for each fiscal year thereafter.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-2014 Executive Budget, because it would deposit an additional $19 million in revenues to the EPF for environmental programs in SFY 2013-14 and $23 million in each fiscal year thereafter.

Effective Date:

This bill would take effect immediately upon enactment.

Part G - Make permanent the waste tire management and recycling fee

Purpose:

This bill would eliminate the December 31, 2013 sunset applicable to the waste tire management and recycling fee.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill would ensure that adequate monies continue to be available to DEC for the regulation of waste tire storage facilities and abatement of noncompliant waste tire stockpiles. This bill would also make permanent the current $2.50 fee which is collected on each new tire sold, the current requirement that the tire service collect the fee and remit it to the Department of Taxation and Finance (DTF), and provisions authorizing additional waste tire management and recycling costs of the tire service. Additionally, it would provide that the commissioner of DTF may require that the tire service pay the fee electronically and extends the provision that each tire service make a return to DTF on a quarterly basis. Furthermore, it would provide that the manner and form of the quarterly return be prescribed by the DTF commissioner and would adjust the date that such returns be filed to the last day of February, May, August and November of each year.

The fund will also be used to administer and enforce other provisions of Environmental Conservation Law in relation to the collection, treatment, disposal, and management of solid and hazardous wastes.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-2014 Executive Budget because it would continue revenue that will be used to offset DEC General Fund costs resulting in approximately $2.8 million of financial plan savings.

Effective Date:

This bill would take effect immediately upon enactment.

Part H - Make permanent the general loan powers of the New York State Urban Development Corporation

Purpose:

This bill would make permanent the general loan powers of the New York State Urban Development Corporation (UDC).

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

Chapter 393 of the Laws of 1994 provides UDC with the general power to make loans. This authorization has been renewed annually since 1997 and is currently set to expire on July 1, 2013.

Absent enactment of this bill, UDC will only be authorized to make loans in connection with certain State-funded economic development programs that have statutory loan authorization. Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget, which assumes that UDC will provide certain economic development assistance through loans. Absent this legislation, the UDC could not fund approved loans made through economic programs lacking specific statutory authorization.

Effective Date:

This bill would take effect immediately upon enactment.

Part I - Extend the authorization for the Dormitory Authority of the State of New York to enter into certain design and construction management agreements

Purpose:

This bill would extend for two years the authorization of the Dormitory Authority of the State of New York (DASNY) to enter into a design and construction management agreement with the Department of Environmental Conservation (DEC) and the Office of Parks, Recreation and Historic Preservation (OPRHP).

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

Last year DASNY was granted the authority to enter into management agreements with DEC and OPRHP to provide design and construction services. This bill would extend the authorization for two years, allowing DASNY to continue current agreements beyond the April 1, 2013 sunset date.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget, portions of which appropriate funding to DEC and Parks for capital purposes requiring DASNY services.

Effective Date:

This bill would take effect immediately upon enactment.

Part J - Provide general grant-making power for the New York State Urban Development Corporation

Purpose:

This bill would add grant-making to the general powers of the New York State Urban Development Corporation (UDC).

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

Currently, UDC's ability to make grants derives primarily from the program-specific sections of the New York State Urban Development Corporation Act (UDC Act). These individual program sections typically include program-specific loan-making and grant-making authority.

To further support and clarify the statutory activities of UDC, the corporation was given the legal authority to make loans without program-specific authorization in 1994. UDC has relied on this general loan-making power to make loans using available funds that do not relate to a program contained within the UDC Act. Enactment of

this bill would clarify UDC's ability to make grants as well as loans with all available funds for initiatives that are in furtherance of the UDC Act's legislative findings and purpose and is a logical corollary to UDC's general loan-making power.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget, portions of which appropriate funding for purposes related to programs authorized outside of the UDC Act.

Effective Date:

This bill would take effect immediately upon enactment.

Part K - Authorize and direct the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from the New York State Energy Research and Development Authority to offset debt service related to the Western New York Nuclear Service Center (West Valley)

Purpose:

This bill authorizes and directs the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from the New York State Energy Research and Development Authority (NYSERDA).

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill authorizes and directs the Comptroller to receive for deposit to the credit of the General Fund a payment of up to $913,000 from NYSERDA from unrestricted corporate funds. The $913,000 transfer would help offset New York State's debt service requirements relating to the Western New York Nuclear Service Center (West Valley). Chapter 58 of the Laws of 2012 provided a similar one year authorization.

Budget Implications:

The $913,000 transfer authorized by this legislation is necessary to implement the 2013-2014 Executive Budget and State Financial Plan.

Effective Date:

This bill would take effect immediately upon enactment.

Part L Authorize the New York State Energy Research and Development Authority to finance a portion of its research, development and demonstration, and policy and planning programs, and to finance the Department of Environmental Conservation's climate change program, from an assessment on gas and electric corporations

Purpose:

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to obtain revenue for certain

programs from a special assessment on gas corporations and electric corporations.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

The bill authorizes NYSERDA to finance its research, development and demonstration, and policy and planning programs, and to finance the Department of Environmental Conservation's climate change program, from a special assessment on gas corporations and electric corporations. This special assessment is in addition to Section 18-a of the Public Service Law which authorizes the Department of Public Service to assess gas corporations and electric corporations for expenses related to administering Public Service Law programs. This bill which has been proposed annually as an Article VII provision, and a similar bill was last enacted as Part P of Chapter 58 of the Laws of 2012. Without this authorization, NYSERDA and DEC could not continue to implement necessary programs in the 2013-14 State Fiscal Year.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-2014 Executive Budget because it authorizes the collection of assessments to fund NYSERDA's research, development and demonstration, and policy and planning programs and, as set forth in the appropriation, DEC's climate change program. This special assessment supports a $16.2 million appropriation included in NYSERDA's budget for these programs.

Effective Date:

This bill would take effect immediately upon enactment.

Part M - Authorize the Department of Health to finance certain activities with revenues generated from an assessment on cable television companies

Purpose:

This bill authorizes the Department of Health (DOH) to finance public service education activities with revenues generated from an assessment on cable television companies.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

The bill authorizes certain expenditures of DOH as eligible expenses of the Department of Public Service (DPS). Section 217 of the Public Service Law authorizes the Department of Public Service (DPS) to assess cable television companies for DPS costs associated with the regulation of cable television companies. This annual Article VII bill also makes DOH public service education expenses, charged to the special revenue cable television account, eligible for this funding. Chapter 58 of the Laws of 2012 provided similar authorization.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-2014 Executive Budget because it ensures the recovery of public service education expenses incurred by DOH, as provided for in the Financial Plan. A $454,000 appropriation is included in DOH's budget for these activities.

Effective Date:

This bill would take effect immediately upon enactment.

Part N - Extend the Temporary State Energy and Utility Service Conservation Assessment, to provide continued revenues in support of necessary expenses of the State, including the purchase of utility services

Purpose:

This bill would extend the "Temporary State Energy and Utility Service Conservation Assessment" ("Temporary Utility Assessment") on utility entities, capped at two percent of a utility entity's gross intrastate utility revenues less the amount such entity is assessed for the costs of the Public Service Commission and Department of Public Service.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

This bill would expend the Temporary Utility Assessment for 5 years, until March 31, 2019. Originally enacted in 2009, the assessment provides over $500 million annually to the General Fund and is an important component in funding a portion of the State's over $900 million in annual energy costs. The Temporary Utility Assessment is levied on electric, gas, steam and water utilities.

The Temporary Utility Assessment supports necessary expenses of the State, including the purchase of utility services. Extending the assessment prevents the need to reduce these or other essential expenses financed by the General Fund.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget because it authorizes the collection of assessment revenues for deposit to the General Fund, as contemplated in the Financial Plan. The bill will generate $254 million in revenues in 2013-14 and $509 million annually thereafter.

Effective Date:

This bill would take effect immediately upon enactment.

Part 0 - Implement recommendations made by the Moreland Commission on Utility Storm Preparation and Response, related to strengthening the oversight and enforcement mechanisms of the Public Service Commission to ensure that public utility companies are held accountable and responsive to regulators and customers.

Purpose: This bill would expand the authority of the Public Service Commission (PSC) to, among other things, (i) initiate administrative proceedings to recover civil penalties against each public utility company and obtain increased penalties to ensure adequate deterrence, (ii) review the performance of each company to provide safe and adequate service and order appropriate relief in the context of such review, (iii) formerly review each company's emergency response plan and initiate proceedings regarding compliance with such plan, and (iv) require each company to file a report in connection with a management and operations audit detailing how it intends to implement such audit and to make such plan enforceable upon the PSC's approval.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

On November 13, 2012, Governor Cuomo established a Moreland Commission pursuant to Executive Law § 6 to study, examine, investigate, and review the response, preparation, and management of New York's power utility companies with respect to several major storms that have impacted the State. Due to the urgent need to address, in part, the shortcomings in the PSC's authority over electric utility companies, the Moreland Commission determined it would be appropriate to issue an Interim Report and make preliminary recommendations for consideration regarding new oversight and enforcement mechanisms to permit the PSC to make such companies more accountable and responsive to regulators and customers. This bill would implement the Moreland Commission's recommendations and otherwise provide the PSC with expanded authority to protect the public health and safety of all New Yorkers.

Key provisions include:

A new Public Service Law (PSL) § 24 would be added to authorize the PSC to initiate an administrative proceeding to recover penalties against a public utility company, without having to prove a "knowing" violation as required under existing law. The maximum civil penalty amount would be increased in a manner that takes into consideration a utility's gross operating revenue. The new provision would also require the recovery of any penalties to be remitted to, or for the benefit of, ratepayers and prohibit a utility from recovering the payment associated with such penalty from ratepayers.

The PSC's role with respect to examining a utility's emergency management plan would be substantially strengthened. Each electric utility would be required by December 15 of each year to provide its emergency management plan to the PSC for review and approval, and the

PSC would be authorized to initiate investigations associated with the sufficiency of such plan and/or the performance of a utility in restoring service or otherwise meeting the requirements of its emergency response plan during an emergency event. In the context of such investigation, the PSC would be authorized to issue an order requiring implementation of specific measures and assessing a civil penalty under the new PSL § 24.

To ensure compliance with audit recommendations, each electric or gas utility subject to a management and operations audit would be required to file a report with the PSC detailing its plan to implement such recommendations and the plan itself would become enforceable upon approval by the PSC. The PSC would also be required to, in conjunction with each management and operations audit (i.e., at least once every five years), review the capability of each electric or gas utility to provide safe and adequate service. Such review would also examine the capability of a utility to meet the standards specified in its emergency management plan. The PSC would be provided with new authority, in the context of such review, to direct a utility to comply with more stringent terms of service or cause it to divest some or all of its state-based utility assets, based upon standards and procedures to ensure continuity of safe and adequate service, due process, and fair and just compensation.

In accordance with similar provision in several other states, PSL § 68 would be amended to authorize the PSC to modify or revoke a certificate of public convenience and necessity previously issued to any gas or electric utility, based on consideration of several factors, including whether such modification or revocation could be undertaken in such manner to ensure the continuity of safe and adequate service, due process and fair and just compensation.

The Chief Executive Officer of each utility would be required to certify that such utility is in compliance with all applicable laws and procedures, including the obligation to provide safe and adequate service.

Finally, the General Business Law would be amended to increase the civil penalties for violations of the one-call procedures intended to protect underground facilities - such as gas pipelines - from excavation activities.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-2014 Executive Budget because it would strengthen PSC oversight of utilities. In order to implement the requirements of this bill, the Executive Budget includes funding to support a staffing level of 524 for the PSC, as recommended by the Moreland Commission. Additionally, the increased civil penalties for violations of the one-call procedures will result in additional revenues deposited to the Underground Facilities Safety Training Account of approximately $190,000 annually.

Effective Date:

This bill would take effect immediately upon enactment.

Part P - Extend for one year the authority of the Secretary of State to charge increased fees for expedited handling of documents

Purpose:

This bill would extend for one year the Secretary of State's authority to charge increased fees for the expedited handling of documents

issued by or requested from the Department's Division of Corporations. The increased fees for expedited handling are necessary to reimburse the Department of State for increased administrative costs associated with expedited handling.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

The Executive Law currently authorizing the Secretary of State to charge increased fees for expedited handling expires on March 31, 2013. This statute has been extended annually to coincide with the enactment of the Budget since 2003.

Budget Implications:

Enactment of this bill is necessary to implement the 2013-14 Executive Budget. The 2013-14 Executive Budget assumes that expedited handling fees will be continued since the costs associated with expedited handling are greater than those associated with traditional requests. Failure to enact this legislation will result in annual revenue losses of approximately $4.5 million, forcing the Department to bear the additional costs related to expedited services without supporting revenues.

Effective Date:

This bill would take effect immediately upon enactment.

Part Q - Facilitate an online corporate filing system and reduce costs and regulatory burdens on the State's businesses

Purpose:

This bill supports reform of the State's filing process for corporations and other business entities. It would alleviate burdensome processing requirements on businesses and not-for-profit corporations, and local governments, facilitate the development of a streamlined online corporate filing system and reduce costs to the State by eliminating duplicative and unnecessary administrative practices.

Statement in Support, Summary of Provisions, Existing Law, and Prior Legislative History:

New York law governing corporations and other business entities includes certain duplicative and antiquated provisions, which unnecessarily hinder the formation of corporations and other business entities, increase the cost of doing business in New York State and produce inefficiencies within State government. This bill would amend New York law to reduce the cost of forming corporations and other business entities and ease regulatory burdens while at the same time facilitating the development of a streamlined, efficient online corporation filing system.

This bill would, among other things, do the following:

*The bill would eliminate the Not-For-Profit Corporation Law's (NCPL)

"type" classification system. This revision of the law would, to a great extent,-standardize the application of the provisions of the NCPL. In light of the range of purposes pursued by not-for-profits, certain variations would be preserved in the law.

*In order to implement its online filing system, the bill would authorize the State to allow certain corporations seeking to incorporate to self-certify that they have received the necessary consent or approval to pursue their proposed activities from any State agency or other entity from which such consent or approval must be obtained. The bill would penalize false certification by suspending the authority to conduct business in New York of a business that falsely certifies that it has consent from a State agency. Currently, filers must attach the original consent or approval to their paper incorporation materials. Submitting such documents online limit the benefits of speed and efficiency that can be gained from an electronic filing system. New York is one of very few states that require such consents for incorporation.

*This bill would allow shareholders of business corporations and members of not-for-profit corporations to participate in shareholder meetings or meetings of members, respectively, by conference call or similar means, unless the organization's by-laws provide otherwise. It would also permit members of limited liability companies (LLCs) to vote by electronic means, unless otherwise provided by the LLC's operating agreement and allow partnership agreements of limited partnerships to permit voting by electronic means.

*Under the provisions of this bill, partnerships, LLCs, and corporations would be authorized to incorporate business corporations and non-profit corporations. Similarly, corporations, partnerships and LLCs would be permitted to act as organizers of an LLC. Currently, only natural persons at least 18 years old may act as incorporators and organizers. It's notable, however, that such incorporators do not necessarily, or even typically, remain associated with the newly formed entity. In fact, more than half of incorporations in New York are filed by a service company using a service company employee as the incorporator. Once an organizational meeting takes place, the incorporator has no further duty to the corporation (in cases where an organizational meeting does not take place, certain responsibilities of the incorporator survive-these duties should fall upon the actual filer, rather than someone who is not associated with the corporation).

*Upon filing a Certificate of Incorporation, a business corporation currently must pay a fee of $125 as well as a tax on shares. This tax is one-twentieth of one per centum upon the amount of the par value of all the shares with a par value and a tax of five cents on each share without a par value. The minimum tax to be collected is $10. Many corporations set an extremely low par value in order to pay the minimum tax. The bill would provide a uniform $10 tax regardless of the number of shares or par value.

Budget Implications:

It is anticipated that due to eased requirements and elimination of barriers to business formation, the bill will lead to increased

revenue from new businesses being formed in the State. It is also expected that, this increase will offset, in part, the elimination of filing fees and the reduction in the amount of organizational tax collected.

Effective Date:

Sub-part A of this bill would take effect 60 days following enactment. Sub-parts B through F would take effect immediately, except that Section 23 of sub-part B would take effect 60 days after enactment.

The provisions of this act shall take effect immediately, provided, however, that the applicable effective date of each part of this act shall be as specifically set forth in the last section of such part.


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STATE OF NEW YORK ________________________________________________________________________ S. 2608 A. 3008 S E N A T E - A S S E M B L Y January 22, 2013 ___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to authorize funding for the Consolidated Local Street and High- way Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2013-2014 (Part A); to amend the tax law, in relation to the statewide transmission tax (Part B); to amend the vehicle and traffic law, in relation to imposing drivers license sanctions (Part C); to amend the vehicle and traffic law, in relation to the hours of operation of the department of motor vehicles (Part D); to amend the public authorities law, in relation to enforcement assistance; and to repeal section 357-a of such law relating to payment by the New York state thruway authority for services provided by the division of state police (Part E); to amend the environmental conservation law and the state finance law, in relation to establishing the "Cleaner, Greener NY Act of 2013"; and repealing section 27-1017 of the environmental conservation law relating thereto (Part F); to amend the environmental conservation law, in relation to waste tire management and recycling fees (Part G); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part H); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to extend- ing certain authority of the dormitory authority of the state of New York (Part I); to amend the New York state urban development corpo- ration act, in relation to the powers of the New York state urban development corporation to make grants (Part J); to authorize and direct the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part K); to authorize the New York state energy research and development authority to finance a portion of its research, development and demonstration EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-01-3 S. 2608 2 A. 3008 and policy and planning programs from assessments on gas and electric corporations (Part L); to authorize the department of health to finance certain activities with revenues generated from an assessment on cable television companies (Part M); to amend the public service law, in relation to extending the temporary state energy and utility conservation assessment; and to amend section 6 of part NN of chapter 59 of the laws of 2009 amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, increasing the utility assessment cap and the minimum threshold for collection thereunder, and establishing a temporary state energy and utility service conser- vation assessment and providing for the collection thereof, in relation to extending the effectiveness thereof (Part N); to amend the public service law, in relation to strengthening the oversight and enforcement mechanisms of the Public Service Commission; to amend the general business law, in relation to expanding the definition of underground facilities and increasing fines for violations relating to the protection of underground facilities; and to repeal certain provisions of the public service law relating thereto (Part O); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corpo- rations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part P); and to amend the banking law, the cooperative corporations law, the general business law, and the not-for-profit corporation law, in relation to facilitating an online corporate filing system by removing the type classification system for not-for-profit corporations; to repeal certain provisions of the not-for-profit corporation law and the reli- gious corporations law, relating thereto (Subpart A); to amend the business corporation law, the education law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the public health law and the transportation corporations law, in relation to facilitating online filing by authorizing self-certification by filers with regard to required consents; to repeal certain provisions of the business corporation law and the not-for-profit corporation law, relating thereto (Subpart B); to amend the business corporation law, the limited liability company law, the not-for-profit corporation law and the partnership law, in relation to authorizing electronic attend- ance at meetings (Subpart C); to amend the business corporation law, the limited liability company law and the not-for-profit corporation law, in relation to who may act as an incorporator (Subpart D); to amend the general associations law, in relation to serving process upon the secretary of state as agent (Subpart E); to amend the tax law, in relation to reducing the taxes on shares (Subpart F) (Part Q) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2013-2014 state fiscal year. Each component is wholly contained within a Part identified as Parts A through Q. The effective date for each particular
provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. The sum of four hundred two million seven hundred ninety- seven thousand dollars ($402,797,000), or so much thereof as shall be necessary, and in addition to amounts previously appropriated by law, is hereby made available, in accordance with subdivision 1 of section 380 of the public authorities law as amended, according to the following schedule. Payments pursuant to subdivision (a) of this section shall be made available as moneys become available for such payments. Payments pursuant to subdivisions (b) and (c) of this section shall be made available on the fifteenth day of June, September, December and March or as soon thereafter as moneys become available for such payments. No moneys of the state in the state treasury or any of its funds shall be available for payments pursuant to this section: SCHEDULE (a) Thirty-nine million seven hundred thousand dollars ($39,700,000) to municipalities for repayment of eligible costs of federal aid munici- pal street and highway projects pursuant to section 15 of chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, as amended. The department of transportation shall provide such information to the municipalities as may be necessary to maintain the federal tax exempt status of any bonds, notes, or other obligations issued by such municipalities to provide for the non-federal share of the cost of projects pursuant to chapter 330 of the laws of 1991 or section 80-b of the highway law. The program authorized pursuant to section 15 of chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, as amended, shall additionally make payments for reimbursement according to the following schedule: State Fiscal Year Amount 2013-14 $39,700,000 (b) Three hundred four million three hundred thousand dollars ($304,300,000) to counties, cities, towns and villages for reimbursement of eligible costs of local highway and bridge projects pursuant to sections 16 and 16-a of chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, as amended. For the purposes of computing allocations to municipalities, the amount distrib- uted pursuant to section 16 of chapter 329 of the laws of 1991 shall be deemed to be $121,520,000. The amount distributed pursuant to section 16-a of chapter 329 of the laws of 1991 shall be deemed to be $182,780,000. Notwithstanding the provisions of any general or special law, the amounts deemed distributed in accordance with section 16 of chapter 329 of the laws of 1991 shall be adjusted so that such amounts will not be less than 83.807 percent of the "funding level" as defined in subdivision 5 of section 10-c of the highway law for each such muni- cipality. In order to achieve the objectives of section 16 of chapter 329 of the laws of 1991, to the extent necessary, the amounts in excess of 83.807 percent of the funding level to be deemed distributed to each
municipality under this subdivision shall be reduced in equal propor- tion. (c) Fifty-eight million seven hundred ninety-seven thousand dollars ($58,797,000) to municipalities for reimbursement of eligible costs of local highway and bridge projects pursuant to sections 16 and 16-a of chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, as amended. For the purposes of computing allocations to municipalities, the amount distributed pursuant to section 16 of chapter 329 of the laws of 1991 shall be deemed to be $23,480,000. The amount distributed pursuant to section 16-a of chapter 329 of the laws of 1991 shall be deemed to be $35,317,000. Notwithstanding the provisions of any general or special law, the amounts deemed distributed in accordance with section 16 of chapter 329 of the laws of 1991 shall be adjusted so that such amounts will not be less than 16.193 percent of the "funding level" as defined in subdivision 5 of section 10-c of the highway law for each such municipality. In order to achieve the objec- tives of section 16 of chapter 329 of the laws of 1991, to the extent necessary, the amounts in excess of 16.193 percent of the funding level to be deemed distributed to each municipality under this subdivision shall be reduced in equal proportion. To the extent that the total of remaining payment allocations calculated herein varies from $58,797,000, the payment amounts to each locality shall be adjusted by a uniform percentage so that the total payments equal $58,797,000. The program authorized pursuant to sections 16 and 16-a of chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, as amended, shall additionally make payments for reimbursement according to the following schedule: State Fiscal Year Amount 2013-14 $363,097,000 S 2. This act shall take effect immediately. PART B Section 1. Subdivision 3 of section 205 of the tax law, as added by section 8 of part U1 of chapter 62 of the laws of 2003, is amended to read as follows: 3. [From the] THE moneys collected from the taxes imposed by sections one hundred eighty-three and one hundred eighty-four of this article on and after April first, two thousand [four] THIRTEEN, after reserving amounts for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS: twenty percent of such moneys shall be deposited to the credit of the dedicated highway and bridge trust fund established by section eighty- nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT OF SUCH MONEYS shall be deposited in the mass transportation operating assistance fund to the credit of the metropolitan mass transportation operating assistance account created pursuant to section eighty-eight-a of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL BE DEPOSITED IN THE MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. S 2. This act shall take effect on the same date and in the same manner as the expiration and repeal of subdivision 3 of section 205 of the tax law per section 2 of part P of chapter 59 of the laws of 2012, as amended; provided, however, that the amendments to subdivision 3 of section 205 of the tax law made by section one of this act shall not
affect the repeal of such subdivision and shall be deemed repealed ther- ewith. PART C Section 1. Paragraph (a) of subdivision 4 of section 510-a of the vehicle and traffic law, as amended by section 14 of part E of chapter 60 of the laws of 2005, is amended to read as follows: (a) A serious traffic violation shall mean operating a commercial motor vehicle IN VIOLATION OF A STATE OR LOCAL LAW OR ORDINANCE RESTRICTING OR PROHIBITING THE USE OF A HAND-HELD MOBILE TELEPHONE OR A PORTABLE ELECTRONIC DEVICE WHILE DRIVING OR in violation of any provision of this chapter or the laws of any other state, the District of Columbia or any Canadian province which (i) limits the speed of motor vehicles, provided the violation involved fifteen or more miles per hour over the established speed limit; (ii) is defined as reckless driving by state or local law or regulation; (iii) prohibits improper or erratic lane change; (iv) prohibits following too closely; (v) relates to motor vehicle traffic (other than parking, standing or stopping) and which arises in connection with a fatal accident; (vi) operating a commercial motor vehicle without first obtaining a commercial driver's license as required by section five hundred one of this title; (vii) operating a commercial motor vehicle without a commercial driver's license in the driver's possession; or (viii) operating a commercial motor vehicle without the proper class of commercial driver's license and/or endorse- ment for the specific vehicle being operated or for the passengers or type of cargo being transported. S 2. Paragraphs (c) and (e) of subdivision 1 of section 1225-c of the vehicle and traffic law, as added by chapter 69 of the laws of 2001, are amended to read as follows: (c) "Using" shall mean holding a mobile telephone to, or in the imme- diate proximity of, the user's ear, DIALING OR ANSWERING A MOBILE TELE- PHONE BY PRESSING MORE THAN A SINGLE BUTTON, OR REACHING FOR A MOBILE TELEPHONE IN A MANNER THAT REQUIRES A DRIVER TO MANEUVER SO THAT SUCH DRIVER IS NO LONGER IN A SEATED POSITION, RESTRAINED BY A SEAT BELT THAT IS INSTALLED IN ACCORDANCE WITH 49 CFR 393.93 AND ADJUSTED IN ACCORDANCE WITH THE VEHICLE MANUFACTURER'S INSTRUCTIONS. (e) "Hands-free mobile telephone" shall mean a mobile telephone that has an internal feature or function, or that is equipped with an attach- ment or addition, whether or not permanently part of such mobile tele- phone, by which a user engages in a call without the use of either hand, whether or not the use of either hand is necessary to activate, deacti- vate or initiate a function of such telephone, PROVIDED, HOWEVER, THAT A TELEPHONE THAT REQUIRES DIALING OR ANSWERING SUCH TELEPHONE BY PRESSING MORE THAN A SINGLE BUTTON SHALL NOT CONSTITUTE A HANDS-FREE MOBILE TELE- PHONE. S 3. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of the vehicle and traffic law, as added by chapter 69 of the laws of 2001, are amended and a new paragraph (d) is added to read as follows: (a) Except as otherwise provided in this section, no person shall operate a motor vehicle upon a public highway while using a mobile tele- phone to engage in a call while such vehicle is in motion, PROVIDED, HOWEVER, NO PERSON SHALL OPERATE A COMMERCIAL MOTOR VEHICLE, AS DEFINED IN SUBDIVISION FOUR-A OF SECTION TWO OF THE TRANSPORTATION LAW, WHILE USING A MOBILE TELEPHONE ON A PUBLIC HIGHWAY, INCLUDING WHILE TEMPORAR- ILY STATIONARY BECAUSE OF TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER
MOMENTARY DELAYS. THE OPERATOR OF A COMMERCIAL MOTOR VEHICLE MAY USE A MOBILE TELEPHONE WHEN SUCH OPERATOR HAS MOVED THE VEHICLE TO THE SIDE OF, OR OFF, A HIGHWAY AND HAS HALTED IN A LOCATION WHERE THE VEHICLE CAN REMAIN STATIONARY UNLESS STOPPING IS PROHIBITED BY LAW, RULES AND REGU- LATIONS OR BY A DIRECTIVE OF LAW ENFORCEMENT. (b) An operator of [a] ANY motor vehicle who holds a mobile telephone to, or in the immediate proximity of his or her ear while such vehicle is in motion is presumed to be engaging in a call within the meaning of this section, PROVIDED, HOWEVER, THAT AN OPERATOR OF A COMMERCIAL MOTOR VEHICLE WHO HOLDS A MOBILE TELEPHONE TO, OR IN THE IMMEDIATE PROXIMITY OF HIS OR HER EAR WHILE SUCH VEHICLE IS TEMPORARILY STATIONARY BECAUSE OF TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER MOMENTARY DELAYS IS ALSO PRESUMED TO BE ENGAGING IN A CALL WITHIN THE MEANING OF THIS SECTION. The presumption established by this subdivision is rebuttable by evidence tending to show that the operator was not engaged in a call. (D) NO MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION TWO OF THE TRANSPORTATION LAW, SHALL ALLOW OR REQUIRE ITS DRIVERS TO USE A HAND-HELD MOBILE TELEPHONE WHILE DRIVING A COMMERCIAL MOTOR VEHICLE. S 4. Subdivision 1 of section 1225-d of the vehicle and traffic law, as added by chapter 403 of the laws of 2009, is amended to read as follows: 1. Except as otherwise provided in this section, no person shall oper- ate a motor vehicle while using any portable electronic device while such vehicle is in motion, PROVIDED, HOWEVER, NO PERSON SHALL OPERATE A COMMERCIAL MOTOR VEHICLE, AS DEFINED IN SUBDIVISION FOUR-A OF SECTION TWO OF THE TRANSPORTATION LAW, WHILE USING A PORTABLE ELECTRONIC DEVICE ON A PUBLIC HIGHWAY, INCLUDING WHILE TEMPORARILY STATIONARY BECAUSE OF TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER MOMENTARY DELAYS. THE OPERA- TOR OF A COMMERCIAL MOTOR VEHICLE MAY USE A PORTABLE ELECTRONIC DEVICE WHEN SUCH OPERATOR HAS MOVED THE VEHICLE TO THE SIDE OF, OR OFF, A HIGH- WAY AND HAS HALTED IN A LOCATION WHERE THE VEHICLE CAN REMAIN STATIONARY UNLESS STOPPING IS PROHIBITED BY LAW, RULES, AND REGULATIONS OR BY A DIRECTIVE OF LAW ENFORCEMENT. S 5. Section 1225-d of the vehicle and traffic law is amended by adding a new subdivision 1-a to read as follows: 1-A. NO MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION TWO OF THE TRANSPORTATION LAW, SHALL ALLOW OR REQUIRE ITS DRIVERS TO USE A PORTABLE ELECTRONIC DEVICE WHILE DRIVING A COMMERCIAL MOTOR VEHICLE. S 6. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the vehicle and traffic law, as added by chapter 403 of the laws of 2009, are amended to read as follows: (a) "Portable electronic device" shall mean any hand-held mobile tele- phone, as defined by subdivision one of section twelve hundred twenty- five-c of this article, personal digital assistant (PDA), handheld device with mobile data access, laptop computer, pager, broadband personal communication device, two-way messaging device, electronic game, or portable computing device OR ANY OTHER DEVICE USED TO INPUT, WRITE, SEND, RECEIVE OR READ TEXT. (b) "Using" shall mean holding a portable electronic device while viewing, taking or transmitting images, INSTANT MESSAGING, PERFORMING A COMMAND OR REQUEST TO ACCESS A WORLD WIDE WEB PAGE, playing games, or composing, sending, reading, viewing, accessing, browsing, transmitting, saving or retrieving e-mail, text messages, or other electronic data. S 7. This act shall take effect October 28, 2013 and shall apply to violations committed on or after such date.
PART D Section 1. Subdivision 1 of section 200 of the vehicle and traffic law, as amended by chapter 60 of the laws of 1993, is amended to read as follows: 1. There shall be in the state government a department of motor vehi- cles. The head of the department shall be the commissioner of motor vehicles who shall be appointed by the governor, by and with the advice and consent of the senate, and hold office until the end of the term of the appointing governor and until a successor is appointed and has qual- ified, and who shall receive an annual salary within the amount appro- priated therefor. The commissioner of motor vehicles shall have the immediate charge of the department. The commissioner of motor vehicles may appoint, and at pleasure remove, such deputy commissioners of motor vehicles, inspectors, examiners and other assistants and employees of the department as are deemed necessary, within the amounts available therefor by appropriation. The commissioner of motor vehicles and all other officers and employees of the department shall be paid and allowed their necessary, actual and reasonable expenses incurred in the exercise of their duties. All salaries and expenses of the department shall be paid out of the state treasury on the audit and warrant of the comp- troller on the certificate of the commissioner of motor vehicles. The principal office of the department shall be in the city of Albany. NOTWITHSTANDING THE PROVISIONS OF SECTION SIXTY-TWO OF THE PUBLIC OFFI- CERS LAW, THE COMMISSIONER OF MOTOR VEHICLES MAY DESIGNATE CERTAIN BRANCH OFFICES OF THE DEPARTMENT TO BE OPEN TO SERVE THE PUBLIC AND TRANSACT BUSINESS ON SATURDAYS. S 2. This act shall take effect immediately. PART E Section 1. Section 357-a of public authorities law is REPEALED and a new section 357-a is added to read as follows: S 357-A. STATE POLICE AND STATE PAYMENT FOR SERVICES. 1. ENFORCEMENT ASSISTANCE SHALL BE PROVIDED BY THE DIVISION OF STATE POLICE AT A LEVEL CONSISTENT WITH HISTORICAL PRECEDENTS, AS A MATTER OF STATE INTEREST, ON ALL SECTIONS OF THE THRUWAY. THE AUTHORITY SHALL PROVIDE GOODS AND SERVICES TO THE DIVISION OF STATE POLICE IN CONNECTION WITH ITS ENFORCE- MENT ACTIVITY ON THE THRUWAY. THE DIVISION OF STATE POLICE AND THE AUTHORITY SHALL ENTER INTO AN AGREEMENT IDENTIFYING THOSE GOODS AND SERVICES THAT THE AUTHORITY WILL PROVIDE TO THE DIVISION OF STATE POLICE AND DETERMINE REPORTING AND OTHER REQUIREMENTS RELATED THERETO. ANY COSTS BORNE BY THE STATE POLICE OUTSIDE OF SUCH AGREEMENT SHALL NOT BE REIMBURSED BY THE AUTHORITY NOR SHALL THEY BE DEEMED COSTS OF THE AUTHORITY. 2. THE STATE SHALL BE RESPONSIBLE FOR ADDITIONAL GOODS AND SERVICES PROVIDED BY THE AUTHORITY EQUAL TO TWENTY-FOUR MILLION DOLLARS IN EACH CALENDAR YEAR. SUCH GOODS AND SERVICES SHALL BE DEEMED TO BE COSTS TO THE STATE AND NOT OPERATING COSTS OF THE AUTHORITY. THE AUTHORITY AND THE DIRECTOR OF THE DIVISION OF THE BUDGET SHALL ENTER INTO AN AGREEMENT IDENTIFYING ANY SUCH STATE COSTS AND DETERMINE REPORTING AND OTHER REQUIREMENTS RELATED THERETO. 3. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE AUTHORITY SHALL NOT CONSTITUTE A PUBLIC BENEFIT CORPORATION WITHIN THE MEANING OF SECTION TWENTY-NINE HUNDRED SEVENTY-FIVE OF THIS CHAPTER AND SHALL NOT BE ASSESSED AN ANNUAL COST RECOVERY CHARGE UNDER SAID SECTION.
S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2013. PART F Section 1. This act shall be known and may be cited as the "Cleaner, Greener NY act of 2013." S 2. Subdivision 2-a of section 27-1003 of the environmental conserva- tion law, as added by section 3 of part SS of chapter 59 of the laws of 2009, is amended to read as follows: 2-a. "Bottler" means a person, firm or corporation who: a. bottles, cans or otherwise packages beverages in beverage contain- ers except that if such packaging is for [a distributor] ANY OTHER PERSON, FIRM OR CORPORATION having the right to bottle, can or otherwise package the same brand of beverage, then such [distributor] OTHER PERSON, FIRM OR CORPORATION shall be the bottler; or b. imports filled beverage containers into the United States. S 3. Subdivisions 2, 3, 4, 5, 7, 8 and 11 of section 27-1007 of the environmental conservation law, as added by section 4 of part SS of chapter 59 of the laws of 2009, are amended to read as follows: 2. A dealer shall post a conspicuous sign, at the point of sale, that states: "NEW YORK BOTTLE BILL OF RIGHTS STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE CONTAINERS OF THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE YOU HAVE CERTAIN RIGHTS UNDER THE NEW YORK STATE RETURNABLE CONTAINER ACT: THE RIGHT to return your empties for refund to any dealer who sells the same brand, type and size, whether you bought the beverage from the dealer or not. It is illegal to return containers for refund [that you did not pay] ON WHICH a deposit WAS NEVER PAID in New York state. THE RIGHT to get your deposit refund in cash, without proof of purchase. THE RIGHT to return your empties any day, any hour, except for the first and last hour of the dealer's business day (empty containers may be redeemed at any time in 24-hour stores). THE RIGHT to return your containers if they are REASONABLY CLEAN, empty and intact. [Washing containers is not required by law, but is strongly recommended to maintain sanitary conditions.] The New York state returnable container act can be enforced by the New York state department of environmental conservation, the New York state department of agriculture and markets, the New York state department of taxation and finance, the New York state attorney general and/or by your local government." Such sign must be no less than eight inches by ten inches in size and have lettering a minimum of one quarter inch high, and of a color which contrasts with the background. The department shall maintain a toll free telephone number for a "bottle bill complaint line" that shall be avail- able from 9:00 a.m. to 5:00 p.m. each business day to receive reports of violations of this title. The telephone number shall be listed on any sign required by this section. 3. [On or after June first, two thousand nine, a] A dealer WHOSE PLACE OF BUSINESS IS LESS THAN TEN THOUSAND SQUARE FEET IN SIZE may limit the number of empty beverage containers to be accepted for redemption at the
dealer's place of business to no less than seventy-two containers per visit, per redeemer, per day, provided that: (a) The dealer has a written agreement with a redemption center, be it either at a fixed physical location within the same county and within ONE AND one-half mile of the dealer's place of business, or a mobile redemption center, operated by a redemption center, that is located within [one-quarter] ONE mile of the dealer's place of business. The redemption center must have a written agreement with the dealer to accept containers on behalf of the dealer; and the redemption center's hours of operation must cover at least 9:00 a.m. through 7:00 p.m. daily or in the case of a mobile redemption center, the hours of operation must cover at least four consecutive hours between 8:00 a.m. and 8:00 p.m. daily. The dealer must post a conspicuous, permanent sign, meeting the size and color specifications set forth in subdivision two of this section, open to public view, identifying the location and hours of operation of the affiliated redemption center or mobile redemption center; [and] OR (b) The dealer provides, at a minimum, a consecutive two hour period between 7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept up to two hundred forty containers, per redeemer, per day, and posts a conspicuous, permanent sign, meeting the size and color specifications set forth in subdivision two of this section, open to public view, iden- tifying those hours. The dealer may not change the hours of redemption without first posting a thirty day notice[; and (c) The dealer's primary business is the sale of food or beverages for consumption off-premises, and the dealer's place of business is less than ten thousand square feet in size]. 4. A deposit initiator shall accept from a dealer or operator of a redemption center any empty beverage container of the design, shape, size, color, composition and brand sold or offered for sale by the deposit initiator, PROVIDED SUCH CONTAINERS ARE PROPERLY SORTED AS DETERMINED IN RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER and shall pay the dealer or operator of a redemption center the refund value of each such beverage container as established by section 27-1005 of this title. A deposit initiator shall accept and redeem all such empty beverage containers from a dealer or redemption center without limita- tion on quantity. 5. A deposit initiator's or distributor's failure to pick up empty beverage containers[, including containers processed in a reverse vend- ing machine,] from a redemption center, dealer or the operator of a reverse vending machine, shall be a violation of this title. 7. A deposit initiator [on a brand] WHO INITIATES A DEPOSIT ON A BEVERAGE CONTAINER shall accept SUCH EMPTY BEVERAGE CONTAINER from [a] AND REIMBURSE ANY distributor who [does not initiate deposits on that brand any] ACCEPTED AND REDEEMED SUCH empty beverage [containers of that brand accepted by the distributor] CONTAINER from a dealer or operator of a redemption center [and shall reimburse the distributor] FOR the [refund value of each such beverage container, as established by section 27-1005 of this title] DEPOSIT AND HANDLING FEE PAID BY THE DISTRIBUTOR. [In addition, the deposit initiator shall reimburse such distributor for each such beverage container the handling fee established under subdivi- sion six of this section.] Without limiting the rights of the department or any person, firm or corporation under this subdivision or any other provision of this [section] TITLE, a distributor shall have a civil right of action to enforce this subdivision, including, upon three days notice, the right to apply for temporary and preliminary injunctive
relief against continuing violations, and until arrangements for collection and return of empty containers or reimbursement of [such] THE REDEEMING distributor for such deposits and handling fees are made. 8. It shall be the responsibility of the deposit initiator or distrib- utor to provide to a dealer or redemption center a sufficient number of bags, cartons, or other suitable containers, at no cost, for the packag- ing, handling and pickup of empty beverage containers that are not redeemed through a reverse vending machine. The bags, cartons, or containers must be provided by the deposit initiator or distributor on a schedule that allows the dealer or redemption center sufficient time to sort the empty beverage containers prior to pick up by the deposit initiator or distributor. In addition: (a) When picking up empty beverage containers, a deposit initiator or distributor shall not require a dealer or redemption center to load their own bags, cartons or containers onto or into the deposit initi- ator's or distributor's vehicle or vehicles or provide the staff or equipment needed to do so. HOWEVER, WHERE PALLETS OR SKIDS, BAGS, CARTONS OR CONTAINERS ARE READILY MOVABLE ONLY BY MEANS OF A FORKLIFT OR SIMILAR EQUIPMENT, A DEPOSIT INITIATOR OR DISTRIBUTOR MAY REQUIRE A DEALER OR REDEMPTION CENTER TO MOVE OR LOAD SUCH ITEMS AT NO COST USING A FORKLIFT OR SIMILAR EQUIPMENT BELONGING TO THE DEALER OR REDEMPTION CENTER. (b) A deposit initiator or distributor [shall not] MAY require empty containers to be counted at a location other than the redemption center or dealer's place of business. The dealer or redemption center shall have the right to be present at the count. (c) A deposit initiator or distributor shall pick up empty beverage containers from the dealer or redemption center at reasonable times and intervals THAT SHALL ALSO TAKE INTO ACCOUNT A MINIMUM VOLUME OF CONTAIN- ERS NECESSARY FOR SUCH A PICK UP as determined in rules or regulations promulgated by the department OR ON A SCHEDULE MEETING THE MINIMUM REQUIREMENTS OF SUCH REGULATIONS AND AGREED TO IN WRITING BY THE DEPOSIT INITIATOR OR DISTRIBUTOR AND THE REDEMPTION CENTER. 11. [Notwithstanding the provisions of subdivision two of section 27-1009 of this title, a deposit initiator or distributor shall accept and redeem beverage containers as provided in this title, if the dealer or operator of a redemption center shall have accepted and paid the refund value of such beverage containers.] NO PERSON SHALL PROGRAM, TAMPER WITH, MISUSE, RENDER INACCURATE, OR CIRCUMVENT THE PROPER OPERA- TION OF A REVERSE VENDING MACHINE TO ELICIT DEPOSIT MONIES WHEN NO VALID, REDEEMABLE BEVERAGE CONTAINER HAS BEEN PLACED IN THE REVERSE VENDING MACHINE. S 4. Section 27-1009 of the environmental conservation law, as amended by section 5 of part SS of chapter 59 of the laws of 2009, is amended to read as follows: S 27-1009. Refusal of acceptance. 1. A dealer or operator of a redemption center [may] SHALL refuse to accept from a redeemer, and a deposit initiator or distributor [may] SHALL refuse to accept from a dealer or operator of a redemption center any empty beverage container which does not state thereon a refund value as established by section 27-1005 and provided by section 27-1011 of this title. 2. A dealer [or], operator of a redemption center, DISTRIBUTOR, OR DEPOSIT INITIATOR may also refuse to accept any BEVERAGE CONTAINER WHICH IS NOT REASONABLY CLEAN OR CONTAINS A SIGNIFICANT AMOUNT OF FOREIGN MATERIAL, ANY broken bottle, ANY corroded, CRUSHED or dismembered [can]
CONTAINER, or any beverage container which [contains a significant amount of foreign material,] IS OTHERWISE ALTERED SO THAT IT IS RENDERED UNREDEEMABLE as determined in rules and regulations to be promulgated by the commissioner. SUCH REFUSAL MUST OCCUR AT THE TIME THE BEVERAGE CONTAINER IS TENDERED FOR REDEMPTION. NOTWITHSTANDING THE FOREGOING, CONTAINERS PROCESSED THROUGH REVERSE VENDING MACHINES AUTHORIZED BY A DISTRIBUTOR OR DEPOSIT INITIATOR, AS DOCUMENTED THROUGH REVERSE VENDING MACHINE RECONCILIATION STATEMENTS OR OTHER REASONABLE DOCUMENTATION, SHALL BE ACCEPTED BY A DISTRIBUTOR OR DEPOSIT INITIATOR. S 5. Subdivision 1 of section 27-1011 of the environmental conserva- tion law, as amended by chapter 149 of the laws of 1983, is amended to read as follows: 1. a. Every beverage container sold or offered for sale in this state [by a distributor or dealer] shall clearly indicate by permanently mark- ing or embossing the container or by printing as part of the product label the refund value of the container and the words "New York" or the letters "NY"[; provided, however, in the case of private label beverages such information may be embossed or printed on a label which is securely or permanently affixed to the beverage container. Private label beverag- es shall be defined as beverages purchased from a beverage manufacturer in beverage containers bearing a brand name or trademark for sale at retail directly by the owner or licensee of such brand name or trade- mark; or through retail dealers affiliated with such owner or licensee by a cooperative or franchise agreement]. b. Such embossing or permanent imprinting on the beverage container shall be the responsibility of the person, firm or corporation which bottles, cans or otherwise fills or packages a beverage container or a brand owner for whose exclusive account private label beverages are bottled, canned or otherwise packaged; provided, however, that the duly authorized agent of any such person, firm or corporation may indicate such refund value by a label securely affixed on any beverage container containing beverages imported into the United States. PRIVATE LABEL BEVERAGES SHALL BE DEFINED AS BEVERAGES PURCHASED FROM A BOTTLER IN BEVERAGE CONTAINERS BEARING A BRAND NAME OR TRADEMARK FOR SALE AT RETAIL DIRECTLY BY THE OWNER OR LICENSEE OF SUCH BRAND NAME OR TRADEMARK; OR THROUGH RETAIL DEALERS AFFILIATED WITH SUCH OWNER OR LICENSEE BY A COOP- ERATIVE OR FRANCHISE AGREEMENT. S 6. Subdivision 5, paragraph b of subdivision 9 and subdivision 12 of section 27-1012 of the environmental conservation law, as added by section 8 of part SS of chapter 59 of the laws of 2009, are amended to read as follows: 5. All monies collected or received by the department of taxation and finance pursuant to this title shall be deposited to the credit of the comptroller with such responsible banks, banking houses or trust compa- nies as may be designated by the comptroller. Such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected, the comptroller shall retain the amount determined by the commissioner of taxation and finance to be necessary for refunds out of which the comptroller must pay any refunds to which a deposit initiator may be entitled. After reserving the amount to pay refunds, the comptroller must, by the tenth day of each month, pay into the state treasury to the credit of the general fund the revenue deposited under this subdivision during the preceding calendar month and remaining to the comptroller's credit on the last day of that preceding month[.]; PROVIDED, HOWEVER, THAT, BEGINNING APRIL
FIRST, TWO THOUSAND THIRTEEN, AND ALL FISCAL YEARS THEREAFTER, FIFTEEN MILLION DOLLARS PLUS ALL FUNDS RECEIVED FROM THE PAYMENTS DUE EACH FISCAL YEAR PURSUANT TO SUBDIVISION FOUR OF THIS SECTION IN EXCESS OF THE AMOUNT RECEIVED FROM APRIL FIRST, TWO THOUSAND TWELVE THROUGH MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN, SHALL BE DEPOSITED TO THE CREDIT OF THE ENVIRONMENTAL PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINE- TY-TWO-S OF THE STATE FINANCE LAW. b. Any deposit initiator who fails to FILE REPORTS, MAKE QUARTERLY PAYMENTS OR maintain accounts or records pursuant to this section, unless it is shown that such failure was due to reasonable cause and not due to negligence or willful neglect, in addition to any other penalty imposed by this title, shall be subject to a penalty to be assessed by the commissioner of taxation and finance of not more than one thousand dollars for each quarter during which such failure occurred, and an additional penalty of not more than one thousand dollars for each quar- ter such failure continues. 12. [Beginning on June first, two thousand nine each deposit initiator shall register the container label of any beverage offered for sale in the state on which it initiates a deposit. Any such registered container label shall bear a universal product code. Such universal product code shall be New York state specific, in order to identify the beverage container as offered for sale exclusively in New York state, and as a means of preventing illegal redemption of beverage containers purchased out-of-state. Registration must be on forms as prescribed by the depart- ment and must include the universal product code for each combination of beverage and container manufactured. The commissioner may require that such forms be filed electronically. The deposit initiator shall renew a label registration whenever that label is revised by altering the universal product code or whenever the container on which it appears is changed in size, composition or glass color.] A. EACH DEPOSIT INITIATOR SHALL PROVIDE A REPORT TO THE DEPARTMENT DESCRIBING ALL THE TYPES OF BEVERAGE CONTAINERS ON WHICH IT INITIATES DEPOSITS. THE REPORT SHALL INCLUDE THE PRODUCT NAME, TYPE OF BEVERAGE, SIZE AND COMPOSITION OF THE BEVERAGE CONTAINER, UNIVERSAL PRODUCT CODE, AND ANY OTHER INFORMATION THE DEPARTMENT MAY REQUIRE. UPON REQUEST, A DEPOSIT INITIATOR SHALL ALSO PROVIDE TO THE DEPARTMENT A COPY OF THE CONTAINER LABEL OR A PICTURE OF ANY BEVERAGE CONTAINER SOLD OR OFFERED FOR SALE IN THIS STATE ON WHICH IT INITIATES A DEPOSIT. SUCH INFORMATION SHALL BE PROVIDED IN A FORM AS PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT MAY REQUIRE THAT SUCH FORMS BE FILED ELECTRONICALLY. B. A BOTTLER MAY PLACE ON A BEVERAGE CONTAINER A UNIVERSAL PRODUCT CODE OR OTHER DISTINCTIVE MARKING THAT IS SPECIFIC TO THE STATE OR USED ONLY IN THE STATE AND ANY OTHER STATES WITH LAWS SUBSTANTIALLY SIMILAR TO THIS TITLE AS A MEANS OF PREVENTING REDEMPTION OF BEVERAGE CONTAINERS ON WHICH A DEPOSIT WAS NOT PAID. C. A BOTTLER OR DEPOSIT INITIATOR SHALL NOTIFY THE DEPARTMENT, IN A FORM PRESCRIBED BY THE DEPARTMENT, WHENEVER A BEVERAGE CONTAINER OR BEVERAGE CONTAINER LABEL IS REVISED BY ALTERING THE UNIVERSAL PRODUCT CODE, OR WHENEVER THE CONTAINER ON WHICH A UNIVERSAL PRODUCT CODE APPEARS IS CHANGED IN SIZE, COMPOSITION OR GLASS COLOR, OR WHENEVER THE CONTAINER OR CONTAINER LABEL ON WHICH A UNIVERSAL PRODUCT CODE APPEARS IS CHANGED TO INCLUDE A UNIVERSAL PRODUCT CODE THAT IS UNIQUE TO THE STATE OR USED ONLY IN THE STATE AND ANY OTHER STATES WITH LAWS SUBSTAN- TIALLY SIMILAR TO THIS TITLE.
S 7. Section 27-1013 of the environmental conservation law, as amended by section 9 of part SS of chapter 59 of the laws of 2009, is amended to read as follows: S 27-1013. Redemption centers AND DEALERS. The commissioner is hereby empowered to promulgate rules and regu- lations governing (1) THE REGISTRATION OR PERMITTING OF REDEMPTION CENTERS INCLUDING BUT NOT LIMITED TO CONDITIONS FOR GRANTING A REGISTRA- TION OR PERMIT, GROUNDS FOR REVOCATION OF A REGISTRATION OR PERMIT AND THE PROCESS FOR THE REVOCATION OF A REGISTRATION OR PERMIT; (2) the circumstances in which DEPOSIT INITIATORS, dealers and distributors, individually or collectively, are required to accept the return of empty beverage containers, and make payment therefor; [(2)] (3) the sorting of the containers which a deposit initiator or distributor may require of dealers and redemption centers; [(3)] (4) the collection of returned beverage containers by deposit initiators or distributors, including the party to whom such expense is to be charged, the frequency of such pick ups THAT SHALL ALSO ALLOW A SCHEDULE MEETING THE MINIMUM REQUIREMENTS OF SUCH REGULATIONS AND AGREED TO IN WRITING BY THE DEPOSIT INITIATOR OR DISTRIBUTOR AND THE REDEMPTION CENTER AND THAT SHALL ALSO TAKE INTO ACCOUNT A MINIMUM VOLUME OF CONTAINERS NECESSARY FOR SUCH A PICK UP and the payment for refunds and handling fees thereon; [(4)] (5) the right of dealers to restrict or limit the number of containers redeemed, the rules for redemption at the dealers' place of business, and the redemp- tion of containers from a beverage for which sales have been discontin- ued, and to issue REGISTRATIONS OR permits to persons, firms or corpo- rations which establish redemption centers, subject to applicable provisions of local and state laws, at which redeemers and dealers may return empty beverage containers and receive payment of the refund value of such beverage containers; (6) THE ASSIGNMENT OF A SPECIFIC REGISTRA- TION OR PERMIT IDENTIFICATION NUMBER TO EACH REDEMPTION CENTER; SUCH REGISTRATION OR PERMIT NUMBER, ALONG WITH THE NUMBER OF CONTAINERS CONTAINED THEREIN, SHALL BE AFFIXED TO ANY BOX OR BAG PROFFERED BY A REDEMPTION CENTER TO A DEPOSIT INITIATOR OR DISTRIBUTOR FOR REDEMPTION IN A MANNER MANDATED BY THE COMMISSIONER; AND (7) THE OPERATION OF MOBILE REDEMPTION CENTERS IN ORDER TO ENSURE THAT TO THE BEST EXTENT PRACTICABLE CONTAINERS ARE NOT PROFFERED FOR REDEMPTION TO A DEPOSIT INITIATOR OR DISTRIBUTOR OUTSIDE OF THE GEOGRAPHIC AREA WHERE SUCH DEPOSIT INITIATOR SELLS CONTAINERS AND INITIATES DEPOSITS. No dealer or distributor, as defined in section 27-1003 of this title, shall be required to obtain a permit to operate a redemption center at the same location as the dealer's or distributor's place of business. Operators of such redemption centers shall receive payment of the refund value of each beverage container from the appropriate deposit initiator or distributor as provided under section 27-1007 of this title. S 8. Section 27-1014 of the environmental conservation law, as amended by section 10 of part SS of chapter 59 of the laws of 2009, is amended to read as follows: S 27-1014. Authority to promulgate rules and regulations. In addition to the authority of the commissioner, under sections 27-1007, 27-1009 and 27-1013 of this title, the commissioner shall have the power to promulgate rules and regulations necessary and appropriate for the administration of this title AND TO PREVENT FRAUD. S 9. Section 27-1015 of the environmental conservation law, as amended by section 11 of part SS of chapter 59 of the laws of 2009, is amended to read as follows: S 27-1015. Violations.
1. [A violation of this title, except as otherwise provided in this section and section 27-1012 of this title, shall be a public nuisance. In addition, except] CIVIL AND ADMINISTRATIVE SANCTIONS. A. EXCEPT as otherwise provided in this section and section 27-1012 of this title, any person who [shall violate] VIOLATES any [provision] OF THE PROVISIONS of, OR FAILS TO PERFORM A DUTY IMPOSED BY, THIS TITLE OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDI- TION OF ANY REGISTRATION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO this title shall be liable [to the state of New York] for a civil penalty of not more than five hundred dollars FOR EACH VIOLATION, and an additional civil penalty of not more than five hundred dollars for each day during which each such violation continues. Any civil penalty may be assessed BY THE COMMISSIONER following a hearing or opportunity to be heard PURSUANT TO THE PROVISIONS OF SECTION 71-1709 OF THIS CHAPTER OR BY THE COURT IN ANY ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS CHAPTER. IN ADDITION, SUCH PERSON MAY BY SIMILAR PROCESS BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRATION ISSUED TO SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING RENEWAL APPLICATION DENIED. [2. Any] B. IN ADDITION TO ANY PENALTIES IMPOSED BY THE DEPARTMENT OF TAXATION AND FINANCE AS PROVIDED IN SECTION 27-1012 OF THIS TITLE, ANY distributor or deposit initiator who violates any provision of this title, [except as provided in section 27-1012 of this title,] OR FAILS TO PERFORM A DUTY IMPOSED BY THIS TITLE, OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDITION OF ANY REGISTRA- TION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE shall be liable [to the state of New York] for a civil penalty of not more than one thousand dollars FOR EACH VIOLATION, and an additional civil penalty of not more than one thousand dollars for each day during which each such violation continues. Any civil penalty may be assessed BY THE COMMIS- SIONER following a hearing or opportunity to be heard PURSUANT TO THE PROVISIONS OF SECTION 71-1709 OF THIS CHAPTER, OR BY THE COURT IN ANY ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS CHAPTER. IN ADDITION, SUCH DEPOSIT INITIATOR OR DISTRIBUTOR MAY BY SIMILAR PROCESS BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRA- TION ISSUED TO SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING RENEWAL APPLICATION DENIED. 2. CRIMINAL SANCTIONS. A. ANY PERSON WHO, HAVING ANY OF THE CULPABLE MENTAL STATES DEFINED IN SECTION 15.05 OF THE PENAL LAW, VIOLATES ANY PROVISION OF OR WHO FAILS TO PERFORM ANY DUTY IMPOSED BY THIS TITLE, OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETER- MINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF A VIOLATION AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION; EACH DAY ON WHICH SUCH VIOLATION OCCURS SHALL CONSTITUTE A SEPARATE VIOLATION; AND FOR EACH SUCH VIOLATION THE PERSON SHALL BE SUBJECT, UPON CONVICTION, TO IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS OR TO A FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS, OR TO BOTH IMPRISONMENT AND FINE. B. IN ADDITION TO ANY PENALTIES IMPOSED BY THE DEPARTMENT OF TAXATION AND FINANCE AS PROVIDED IN SECTION 27-1012 OF THIS TITLE, ANY DISTRIBU- TOR OR DEPOSIT INITIATOR WHO, HAVING ANY OF THE CULPABLE MENTAL STATES DEFINED IN SECTION 15.05 OF THE PENAL LAW, VIOLATES ANY PROVISION OF OR WHO FAILS TO PERFORM ANY DUTY IMPOSED BY THIS TITLE, OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR
ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF A VIOLATION AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH VIOLATION; EACH DAY ON WHICH SUCH VIOLATION OCCURS SHALL CONSTITUTE A SEPARATE VIOLATION; AND FOR EACH SUCH VIOLATION THE PERSON SHALL BE SUBJECT, UPON CONVICTION, TO IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS OR TO A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS, OR TO BOTH SUCH IMPRISONMENT AND SUCH FINE. [3.] C. It shall be unlawful for [a distributor or deposit initiator] ANY PERSON, acting alone or aided by another, to return any empty bever- age container to a dealer or redemption center for its refund value if [the] A distributor or deposit initiator had previously accepted such beverage container from any dealer or operator of a redemption center, OR IF SUCH CONTAINER WAS PREVIOUSLY ACCEPTED BY A REVERSE VENDING MACHINE. A violation of this [subdivision] PARAGRAPH shall be a misde- meanor punishable by a fine of not less than five hundred dollars nor more than one thousand dollars and an amount equal to two times the amount of money received as a result of such violation, OR IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR TO BOTH SUCH IMPRISONMENT AND SUCH FINES. D. IN ADDITION TO ANY OTHER PENALTY PROVIDED BY THIS TITLE, ANY PERSON WHO VIOLATES SUBDIVISION ELEVEN OF SECTION 27-1007 OF THIS TITLE, OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMI- NATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF A MISDEMEANOR AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS PER DAY OF VIOLATION, OR BY IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR BY BOTH SUCH FINE AND IMPRI- SONMENT. E. IN ADDITION TO ANY OTHER PENALTY PROVIDED BY THIS TITLE, ANY DEAL- ER, DISTRIBUTOR OR DEPOSIT INITIATOR, WHO KNOWINGLY OR INTENTIONALLY VIOLATES ANY PROVISION OF OR FAILS TO PERFORM ANY DUTY IMPOSED BY SECTION 27-1005 OR 27-1012 OF THIS TITLE, OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF A MISDEMEA- NOR AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS PER DAY OF VIOLATION, OR BY IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR BY BOTH SUCH FINE AND IMPRISONMENT. [4.] 3. Any person who [willfully] tenders to a dealer, distributor, redemption center or deposit initiator more than forty-eight empty beverage containers for which such person knows or should reasonably know that no deposit was paid in New York state may be assessed [by the department] a civil penalty of up to one hundred dollars for each container or up to twenty-five thousand dollars for each such tender of containers. At each location where a person tenders containers for redemption, dealers and redemption centers must conspicuously display a sign in letters that are at least one inch in height with the following information: "WARNING: Persons tendering for redemption containers on which a deposit was never paid in this state may be subject to a civil penalty of up to one hundred dollars per container or up to twenty-five thousand dollars for each such tender of containers." Any civil penalty may be assessed BY THE COMMISSIONER following a hearing or opportunity to be heard PURSUANT TO THE PROVISIONS OF SECTION 71-1709 OF THIS CHAP- TER, OR BY THE COURT IN ANY ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS CHAPTER. IN ADDITION, SUCH PERSON MAY BY SIMILAR PROCESS BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRA- TION ISSUED TO SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING RENEWAL APPLICATION DENIED.
[5.] 4. A. The department, the department of agriculture and markets, the department of taxation and finance and the attorney general are hereby authorized to enforce the provisions of this title AND ALL MONIES COLLECTED SHALL BE DEPOSITED TO THE CREDIT OF THE ENVIRONMENTAL PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-S OF THE STATE FINANCE LAW. In addition, the provisions of section 27-1005 of this title and subdivisions one, two, three, four, five, ten and eleven of section 27-1007 of this title may be enforced by a county, city, town or village, and the local legislative body thereof may adopt local laws, ordinances or regulations consistent with this title providing for the enforcement of such provisions AND ALL MONIES COLLECTED BY THE ENFORCING COUNTY, CITY, TOWN OR VILLAGE AS FINES OR PENALTIES PURSUANT TO THIS SECTION SHALL BE PAYABLE TO AND BE THE PROPERTY OF THE COUNTY, CITY, TOWN OR VILLAGE. B. IN ADDITION, A VIOLATION OF THIS TITLE, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, SHALL BE A PUBLIC NUISANCE, AND WITHOUT LIMIT- ING THE RIGHTS OF THE DEPARTMENT, OR ANY PERSON, FIRM OR CORPORATION UNDER THIS SUBDIVISION OR ANY OTHER PROVISION OF THIS SECTION, A DEALER, OWNER OR OPERATOR OF A REDEMPTION CENTER, DISTRIBUTOR, OR DEPOSIT INITI- ATOR SHALL HAVE A CIVIL RIGHT OF ACTION TO ENFORCE THE PROVISIONS OF SECTION 27-1009 OF THIS TITLE AND SUBDIVISIONS FOUR, FIVE, SIX, AND EIGHT OF SECTION 27-1007 OF THIS TITLE. S 10. Section 27-1017 of the environmental conservation law is REPEALED. S 11. Subdivision 3 of section 92-s of the state finance law, as amended by section 2 of part T of chapter 59 of the laws of 2009, is amended to read as follows: 3. Such fund shall consist of the amount of revenue collected within the state from the amount of revenue, interest and penalties deposited pursuant to section fourteen hundred twenty-one of the tax law, the amount of fees and penalties received from easements or leases pursuant to subdivision fourteen of section seventy-five of the public lands law and the money received as annual service charges pursuant to section four hundred four-l of the vehicle and traffic law, all moneys required to be deposited therein from the contingency reserve fund pursuant to section two hundred ninety-four of chapter fifty-seven of the laws of nineteen hundred ninety-three, all moneys required to be deposited pursuant to section thirteen of chapter six hundred ten of the laws of nineteen hundred ninety-three, repayments of loans made pursuant to section 54-0511 of the environmental conservation law, all moneys to be deposited from the Northville settlement pursuant to section one hundred twenty-four of chapter three hundred nine of the laws of nineteen hundred ninety-six, provided however, that such moneys shall only be used for the cost of the purchase of private lands in the core area of the central Suffolk pine barrens pursuant to a consent order with the Northville industries signed on October thirteenth, nineteen hundred ninety-four and the related resource restoration and replacement plan, the amount of penalties required to be deposited therein by section 71-2724 of the environmental conservation law, all moneys required to be deposited pursuant to article thirty-three of the environmental conser- vation law, all fees collected pursuant to subdivision eight of section 70-0117 of the environmental conservation law, [as added by a chapter of the laws of two thousand nine,] all moneys collected pursuant to title thirty-three of article fifteen of the environmental conservation law, [as added by a chapter of the laws of two thousand nine] BEGINNING WITH THE FISCAL YEAR COMMENCING ON APRIL FIRST, TWO THOUSAND THIRTEEN, AND
ALL FISCAL YEARS THEREAFTER, FIFTEEN MILLION DOLLARS PLUS ALL FUNDS RECEIVED BY THE STATE EACH FISCAL YEAR IN EXCESS OF THE AMOUNT RECEIVED FROM APRIL FIRST, TWO THOUSAND TWELVE THROUGH MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN, FROM THE PAYMENTS COLLECTED PURSUANT TO SUBDIVISION FOUR OF SECTION 27-1012 OF THE ENVIRONMENTAL CONSERVATION LAW, and all other moneys credited or transferred thereto from any other fund or source pursuant to law. All such revenue shall be initially deposited into the environmental protection fund, for application as provided in subdivision five of this section. S 12. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013. PART G Section 1. Subdivisions 1 and 2 of section 27-1905 of the environ- mental conservation law, as amended by section 1 of part DD of chapter 59 of the laws of 2010, are amended to read as follows: 1. [Until December thirty-first, two thousand thirteen, accept] ACCEPT from a customer, waste tires of approximately the same size and in a quantity equal to the number of new tires purchased or installed by the customer; and 2. [Until December thirty-first, two thousand thirteen, post] POST written notice in a prominent location, which must be at least eight and one-half inches by fourteen inches in size and contain the following language: "New York State law requires us to accept and manage waste tires from vehicles in exchange for an equal number of new tires that we sell or install. Tire retailers are required to charge a separate and distinct waste tire management and recycling fee of $2.50 for each new tire sold. The retailers in addition are authorized, at their sole discretion, to pass on waste tire management and recycling costs to tire purchasers. Such costs may be included as part of the advertised price of the new tire, or charged as a separate per-tire charge in an amount not to exceed $2.50 on each new tire sold." The written notice shall also contain one of the following statements at the end of the aforementioned language and as part of the notice, which shall accurately indicate the manner in which the tire service charges for waste tire management and recycling costs, and the amount of any charges that are separately invoiced for such costs: "Our waste tire management and recycling costs are included in the advertised price of each new tire.", or "We charge a separate per-tire charge of $____ on each new tire sold that will be listed on your invoice to cover our waste tire management and recycling costs." S 2. Subdivisions 1, 2 and 3 and paragraph (a) of subdivision 6 of section 27-1913 of the environmental conservation law, subdivisions 1, 2, the opening paragraph of subdivision 3 and paragraph (a) of subdivi- sion 6 as amended by section 4 of part DD of chapter 59 of the laws of 2010 and subdivision 3 as amended by section 2 of part E1 of chapter 63 of the laws of 2003, are amended to read as follows: 1. [Until December thirty-first, two thousand thirteen, a] A waste tire management and recycling fee of two dollars and fifty cents shall be charged on each new tire sold. The fee shall be paid by the purchaser to the tire service at the time the new tire or new motor vehicle is purchased. The waste tire management and recycling fee does not apply to:
(a) recapped or resold tires; (b) mail-order sales; or (c) the sale of new motor vehicle tires to a person solely for the purpose of resale provided the subsequent retail sale in this state is subject to such fee. 2. [Until December thirty-first, two thousand thirteen, the] THE tire service shall collect the waste tire management and recycling fee from the purchaser at the time of the sale and shall [remit] PAY such fee to the department of taxation and finance with the quarterly [report] RETURN filed pursuant to subdivision three of this section. THE COMMIS- SIONER OF TAXATION AND FINANCE MAY REQUIRE THAT THE TIRE SERVICE PAY THE FEE ELECTRONICALLY. (a) The fee imposed shall be stated as an invoice item separate and distinct from the selling price of the tire. (b) The tire service shall be entitled to retain an allowance of twen- ty-five cents per tire from fees collected. 3. [Until March thirty-first, two thousand fourteen, each] EACH tire service maintaining a place of business in this state shall make a return to the department of taxation and finance on a quarterly basis[, with the return for December, January, and February being due on or before the immediately following March thirty-first; the return for March, April, and May being due on or before the immediately following June thirtieth; the return for June, July, and August being due on or before the immediately following September thirtieth; and the return for September, October, and November being due on or before the immediately following December thirty-first] IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE. THE COMMISSIONER OF TAXATION AND FINANCE MAY REQUIRE SUCH RETURNS TO BE FILED ELECTRONICALLY. THE QUARTERLY RETURNS REQUIRED BY THIS SUBDIVISION SHALL BE FILED FOR THE QUARTERLY PERIODS ENDING ON THE LAST DAY OF FEBRUARY, MAY, AUGUST AND NOVEMBER OF EACH YEAR, AND EACH SUCH RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THEREBY. (a) Each return shall include: (i) the name of the tire service; (ii) the address of the tire service's principal place of business and the address of the principal place of business (if that is a different address) from which the tire service engages in the business of making retail sales of tires; (iii) the name and signature of the person preparing the return; (iv) the total number of new tires sold at retail for the preceding quarter and the total number of new tires placed on motor vehicles prior to original retail sale; (v) the amount of waste tire management and recycling fees due; and (vi) such other reasonable information as the department of taxation and finance may require. (b) Copies of each [report] RETURN shall be retained by the tire service for three years. If a tire service ceases business, it shall file a final return and [remit] PAY all fees due under this title [with] TO the department of taxation and finance not more than one month after discontinuing that business. (a) [Until December thirty-first, two thousand thirteen, any] ANY additional waste tire management and recycling costs of the tire service in excess of the amount authorized to be retained pursuant to paragraph (b) of subdivision two of this section may be included in the published selling price of the new tire, or charged as a separate per-tire charge
on each new tire sold. When such costs are charged as a separate per- tire charge: (i) such charge shall be stated as an invoice item separate and distinct from the selling price of the tire; (ii) the invoice shall state that the charge is imposed at the sole discretion of the tire service; and (iii) the amount of such charge shall reflect the actual cost to the tire service for the management and recycling of waste tires accepted by the tire service pursuant to section 27-1905 of this title, provided however, that in no event shall such charge exceed two dollars and fifty cents on each new tire sold. S 3. This act shall take effect immediately, and shall apply to the quarterly periods provided for in the opening paragraph of subdivision three of section 27-1913 of the environmental conservation law, as amended by section two of this act, beginning on or after the date this act shall have become a law. PART H Section 1. Section 2 of chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, as amended by section 1 of part R of chapter 58 of the laws of 2012, is amended to read as follows: S 2. This act shall take effect immediately [provided, however, that section one of this act shall expire on July 1, 2013, at which time the provisions of subdivision 26 of section 5 of the New York state urban development corporation act shall be deemed repealed; provided, however, that neither the expiration nor the repeal of such subdivision as provided for herein shall be deemed to affect or impair in any manner any loan made pursuant to the authority of such subdivision prior to such expiration and repeal]. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013. PART I Section 1. Section 2 of part BB of chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormito- ry authority to enter into certain design and construction management agreements is amended to read as follows: S 2. This act shall take effect immediately and shall expire and be deemed repealed April 1, [2013] 2015. S 2. This act shall take effect immediately and shall be deemed to have been in effect on and after April 1, 2013. PART J Section 1. Subdivisions 27, 28, 29 and 30 of section 5 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, subdivisions 28 and 29 as renumbered by chapter 686 of the laws of 1986, are renumbered subdivisions 28, 29, 30 and 31 and a new subdivision 27 is added to read as follows: (27) TO MAKE GRANTS USING FUNDS FROM ANY SOURCE ON SUCH TERMS AND CONDITIONS AS THE CORPORATION MAY DEEM ADVISABLE, IN FURTHERANCE OF THE LEGISLATIVE FINDINGS AND PURPOSES OF THIS ACT, TO ANY PERSON OR ENTITY, WHETHER PUBLIC OR PRIVATE, PROVIDED THAT SUCH GRANTS ARE MADE OR ISSUED IN COMPLIANCE WITH GUIDELINES ESTABLISHED BY THE CORPORATION.
S 2. This act shall take effect immediately. PART K Section 1. Notwithstanding any law to the contrary, the comptroller is hereby authorized and directed to receive for deposit to the credit of the general fund the amount of up to $913,000 from the New York state energy research and development authority. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013. PART L Section 1. Expenditures of moneys appropriated in a chapter of the laws of 2013 to the energy research and development authority, under the research, development and demonstration program, from the special reven- ue funds - other/state operations, miscellaneous special revenue fund - 339, energy research and planning account, and special revenue funds - other/aid to localities, miscellaneous special revenue fund - 339, ener- gy research and planning account shall be subject to the provisions of this section. Notwithstanding the provisions of subdivision 4-a of section 18-a of the public service law, all moneys committed or expended shall be reimbursed by assessment against gas corporations and electric corporations as defined in section 2 of the public service law, and the total amount which may be charged to any gas corporation and any elec- tric corporation shall not exceed one cent per one thousand cubic feet of gas sold and .010 cent per kilowatt-hour of electricity sold by such corporations in their intrastate utility operations in calendar year 2011. Such amounts shall be excluded from the general assessment provisions of subdivision 2 of section 18-a of the public service law, but shall be billed and paid in the manner set forth in such subdivision and upon receipt shall be paid to the state comptroller for deposit in the state treasury for credit to the miscellaneous special revenue fund. The director of the budget shall not issue a certificate of approval with respect to the commitment and expenditure of moneys hereby appro- priated until the chair of such authority shall have submitted, and the director of the budget shall have approved, a comprehensive financial plan encompassing all moneys available to and all anticipated commit- ments and expenditures by such authority from any source for the oper- ations of such authority. Copies of the approved comprehensive financial plan shall be immediately submitted by the director of the budget to the chairs and secretaries of the legislative fiscal committees. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013. PART M Section 1. Notwithstanding any other law, rule or regulation to the contrary, expenses of the department of health public service education program incurred pursuant to appropriations from the cable television account of the state miscellaneous special revenue funds shall be deemed expenses of the department of public service. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013. PART N
Section 1. Paragraph (a) of subdivision 6 of section 18-a of the public service law, as added by section 4 of part NN of chapter 59 of the laws of 2009, is amended to read as follows: (a) Notwithstanding any provision of law to the contrary, and subject to the exceptions provided for in paragraph (b) of this subdivision, for the state fiscal year beginning on April first, two thousand nine and [four] NINE state fiscal years thereafter, a temporary annual assessment (hereinafter "temporary state energy and utility service conservation assessment") is hereby imposed on public utility companies (including for the purposes of this subdivision municipalities other than munici- palities as defined in section eighty-nine-l of this chapter), corpo- rations (including for purposes of this subdivision the Long Island power authority), and persons subject to the commission's regulation (hereinafter such public utility companies, corporations, and persons are referred to collectively as the "utility entities") to encourage the conservation of energy and other resources provided through utility entities, to be assessed in the manner provided in this subdivision; provided, however, that such assessment shall not be imposed upon tele- phone corporations as defined in subdivision seventeen of section two of this article. S 2. Section 6 of part NN of chapter 59 of the laws of 2009, amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, increasing the utility assessment cap and the minimum threshold for collection thereunder, and establishing a temporary state energy and utility service conservation assessment and providing for the collection thereof, is amended to read as follows: S 6. This act shall take effect immediately; provided, however, that subdivision 6 of section 18-a of the public service law, as added by section four of this act shall take effect April 1, 2009 and shall expire and be deemed repealed March 31, [2014] 2019; and provided, further, that if section four of this act shall become law after April 1, 2009, it shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2009. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013; provided, however, that the amendments to subdivision 6 of section 18-a of the public service law made by section one of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith. PART O Section 1. Sections 24 and 25 of the public service law are REPEALED and a new section 24 is added to read as follows: S 24. ADMINISTRATIVE SANCTIONS; RECOVERY OF PENALTIES. 1. EVERY PUBLIC UTILITY COMPANY, CORPORATION OR PERSON AND THE OFFICERS, AGENTS AND EMPLOYEES THEREOF SHALL ADHERE TO EVERY PROVISION OF THIS CHAPTER AND EVERY ORDER OR REGULATION ADOPTED UNDER AUTHORITY OF THIS CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE. 2. (A) THE COMMISSION SHALL HAVE THE AUTHORITY TO ASSESS A CIVIL PENALTY AGAINST A PUBLIC UTILITY COMPANY, CORPORATION, OR PERSON AND THE OFFICERS, AGENTS AND EMPLOYEES THEREOF SUBJECT TO THE JURISDICTION, SUPERVISION, OR REGULATION PURSUANT TO THIS CHAPTER IN AN AMOUNT AS SET FORTH IN THIS SECTION. IN DETERMINING THE AMOUNT OF ANY PENALTY TO BE ASSESSED PURSUANT TO THIS SECTION, THE COMMISSION SHALL CONSIDER: (I)
THE SERIOUSNESS OF THE VIOLATION FOR WHICH A PENALTY IS SOUGHT; (II) THE NATURE AND EXTENT OF ANY PREVIOUS VIOLATIONS FOR WHICH PENALTIES HAVE BEEN ASSESSED AGAINST THE PUBLIC UTILITY COMPANY, CORPORATION OR PERSON; (III) THE GROSS REVENUES AND FINANCIAL STATUS OF THE PUBLIC UTILITY COMPANY, CORPORATION OR PERSON; AND (IV) SUCH OTHER FACTORS AS THE COMMISSION MAY DEEM APPROPRIATE AND RELEVANT. THE REMEDIES PROVIDED BY THIS SUBDIVISION ARE IN ADDITION TO ANY OTHER REMEDIES PROVIDED IN LAW. (B) WHENEVER THE COMMISSION HAS REASON TO BELIEVE THAT A PUBLIC UTILI- TY COMPANY, CORPORATION OR PERSON AND SUCH OFFICERS, AGENTS AND EMPLOY- EES THEREOF MAY BE SUBJECT TO IMPOSITION OF A CIVIL PENALTY AS SET FORTH IN THIS SUBDIVISION, IT SHALL NOTIFY SUCH PUBLIC UTILITY COMPANY, CORPO- RATION OR PERSON. SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO (I) THE DATE AND A BRIEF DESCRIPTION OF THE FACTS AND NATURE OF EACH ACT OR FAILURE TO ACT FOR WHICH SUCH PENALTY IS PROPOSED; (II) A LIST OF EACH STATUTE, REGULATION OR ORDER THAT THE COMMISSION ALLEGES HAS BEEN VIOLATED; (III) THE AMOUNT OF EACH PENALTY THAT THE COMMISSION PROPOSES TO ASSESS; AND (IV) THE OPTION TO REQUEST A HEARING TO DEMONSTRATE WHY THE PROPOSED PENALTY OR PENALTIES SHOULD NOT BE ASSESSED AGAINST SUCH PUBLIC UTILITY COMPANY, CORPORATION, OR SUCH PERSON. 3. ANY PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A PROVISION OF THIS CHAPTER, REGULATION OR AN ORDER ADOPTED UNDER AUTHORITY OF THIS CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE, OR WHO FAILS TO PROVIDE SAFE AND ADEQUATE SERVICE SHALL FORFEIT A SUM NOT EXCEEDING THE GREATER OF ONE HUNDRED THOUSAND DOLLARS OR TWO ONE-HUNDREDTHS OF ONE PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, CONSTITUT- ING A CIVIL PENALTY FOR EACH AND EVERY OFFENSE AND, IN THE CASE OF A CONTINUING VIOLATION, EACH DAY SHALL BE DEEMED A SEPARATE AND DISTINCT OFFENSE. 4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION, ANY SUCH PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A PROVISION OF THIS CHAPTER, OR AN ORDER OR REGULATION ADOPTED UNDER THE AUTHORITY OF THIS CHAPTER SPECIFICALLY FOR THE PROTECTION OF HUMAN SAFE- TY OR PREVENTION OF SIGNIFICANT DAMAGE TO REAL PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE COMMISSION'S CODE OF GAS SAFETY REGULATIONS SHALL, IF IT IS DETERMINED BY THE COMMISSION THAT SUCH SAFETY VIOLATION CAUSED OR CONSTITUTED A CONTRIBUTING FACTOR IN BRINGING ABOUT: (A) A DEATH OR PERSONAL INJURY; OR (B) DAMAGE TO REAL PROPERTY IN EXCESS OF FIFTY THOU- SAND DOLLARS, FORFEIT A SUM NOT TO EXCEED THE GREATER OF: (I) TWO HUNDRED FIFTY THOUSAND DOLLARS OR THREE ONE-HUNDREDTHS OF ONE PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, WHICHEVER IS GREATER, CONSTITUTING A CIVIL PENALTY FOR EACH SEPARATE AND DISTINCT OFFENSE; PROVIDED, HOWEVER, THAT FOR PURPOSES OF THIS PARA- GRAPH, EACH DAY OF A CONTINUING VIOLATION SHALL NOT BE DEEMED A SEPARATE AND DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTINUING VIOLATION, AS WELL AS EVERY DISTINCT VIOLATION, SHALL BE SIMILARLY TREATED AS A SEPA- RATE AND DISTINCT OFFENSE FOR PURPOSES OF THIS PARAGRAPH; OR (II) THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE WITH SUBDIVISION THREE OF THIS SECTION. 5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OR FOUR OF THIS SECTION, A PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A PROVISION OF THIS CHAPTER, OR AN ORDER OR REGULATION ADOPTED UNDER AUTHORITY OF THIS CHAPTER, DESIGNED TO PROTECT THE OVERALL RELIABILITY AND CONTINUITY OF ELECTRIC SERVICE, INCLUDING BUT NOT LIMITED TO THE RESTORATION OF ELECTRIC SERVICE FOLLOWING A MAJOR OUTAGE EVENT OR EMER- GENCY, SHALL FORFEIT A SUM NOT TO EXCEED THE GREATER OF:
(A) FIVE HUNDRED THOUSAND DOLLARS OR FOUR ONE-HUNDREDTHS OF ONE PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, WHICHEVER IS GREATER, CONSTITUTING A CIVIL PENALTY FOR EACH SEPARATE AND DISTINCT OFFENSE; PROVIDED, HOWEVER, THAT FOR PURPOSES OF THIS PARAGRAPH EACH DAY OF A CONTINUING VIOLATION SHALL NOT BE DEEMED A SEPARATE AND DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTINUING VIOLATION, AS WELL AS EVERY DISTINCT VIOLATION SHALL BE SIMILARLY TREATED AS A SEPARATE AND DISTINCT OFFENSE FOR PURPOSES OF THIS PARAGRAPH; OR (B) THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE WITH SUBDIVISION THREE OF THIS SECTION. 6. ANY OFFICER, AGENT, OR EMPLOYEE OF ANY CORPORATION DETERMINED BY THE COMMISSION TO HAVE VIOLATED THE PROVISIONS OF SUBDIVISION THREE, FOUR, OR FIVE OF THIS SECTION, AND WHO KNOWINGLY VIOLATES A PROVISION OF THIS CHAPTER, REGULATION OR AN ORDER ADOPTED UNDER AUTHORITY OF THIS CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE, INCLUDING A FAILURE TO PROVIDE SAFE AND ADEQUATE SERVICE, SHALL FORFEIT A SUM NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS CONSTITUTING A CIVIL PENALTY FOR EACH AND EVERY OFFENSE AND, IN THE CASE OF A CONTINUING VIOLATION, EACH DAY SHALL BE DEEMED A SEPARATE AND DISTINCT OFFENSE. 7. ANY SUCH ASSESSMENT MAY BE COMPROMISED OR DISCONTINUED BY THE COMMISSION. ALL MONEYS RECOVERED PURSUANT TO THIS SECTION, TOGETHER WITH THE COSTS THEREOF, SHALL BE REMITTED TO, OR FOR THE BENEFIT OF, THE RATEPAYERS IN A MANNER TO BE DETERMINED BY THE COMMISSION. 8. UPON A FAILURE BY A PUBLIC UTILITY COMPANY, CORPORATION, OR PERSON TO REMIT ANY PENALTY ASSESSED BY THE COMMISSION PURSUANT TO THIS SECTION, THE COMMISSION, THROUGH ITS COUNSEL, MAY INSTITUTE AN ACTION OR SPECIAL PROCEEDING TO COLLECT THE PENALTY IN A COURT OF COMPETENT JURIS- DICTION. 9. ANY PAYMENT MADE BY A PUBLIC UTILITY COMPANY, CORPORATION OR PERSON AND THE OFFICERS, AGENTS AND EMPLOYEES THEREOF AS A RESULT OF AN ASSESS- MENT AS PROVIDED IN THIS SECTION, AND THE COST OF LITIGATION AND INVES- TIGATION RELATED TO ANY SUCH ASSESSMENT, SHALL NOT BE RECOVERABLE FROM RATEPAYERS. 10. IN CONSTRUING AND ENFORCING THE PROVISIONS OF THIS CHAPTER RELAT- ING TO PENALTIES, THE ACT OF ANY DIRECTOR, OFFICER, AGENT OR EMPLOYEE OF A PUBLIC UTILITY COMPANY, CORPORATION OR PERSON ACTING WITHIN THE SCOPE OF HIS OR HER OFFICIAL DUTIES OR EMPLOYMENT SHALL BE DEEMED TO BE THE ACT OF SUCH PUBLIC UTILITY COMPANY OR CORPORATION. S 2. Section 26 of the public service law is renumbered section 25. S 3. Section 65 of the public service law is amended by adding two new subdivisions 14 and 15 to read as follows: 14. IN CONJUNCTION WITH A MANAGEMENT AND OPERATIONS AUDIT UNDERTAKEN PURSUANT TO SUBDIVISION NINETEEN OF SECTION SIXTY-SIX OF THIS ARTICLE OR UPON ITS OWN MOTION, THE COMMISSION SHALL REVIEW THE CAPABILITY, INCLUD- ING BUT NOT LIMITED TO, THE CAPABILITY TO IMPLEMENT EMERGENCY RESPONSE PLANS AND RESTORATION, OF EACH GAS CORPORATION AND ELECTRIC CORPORATION TO PROVIDE SAFE, ADEQUATE, AND RELIABLE SERVICE. UPON GOOD CAUSE SHOWN, THE COMMISSION MAY DIRECT SUCH CORPORATION TO COMPLY WITH ADDITIONAL AND MORE STRINGENT TERMS AND CONDITIONS OF SERVICE THAN EXISTED PRIOR TO THE COMMENCEMENT OF THE MANAGEMENT AND OPERATIONS AUDIT, OR CAUSE SUCH CORPORATION TO DIVEST SOME OR ALL OF ITS STATE-BASED UTILITY ASSETS, INCLUDING FRANCHISE TERRITORIES, BASED UPON STANDARDS AND PROCEDURES ESTABLISHED BY THE COMMISSION TO ENSURE CONTINUITY OF SAFE AND ADEQUATE SERVICE, DUE PROCESS, AND FAIR AND JUST COMPENSATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS SUBDIVISION LIMITS THE COMMISSION'S AUTHORITY TO UNDERTAKE THE ACTIONS SET FORTH PURSUANT TO SECTIONS TWENTY-FOUR AND
TWENTY-FIVE OF THIS CHAPTER. IN THE CASE WHERE THE COMMISSION DIRECTS A FULL OR PARTIAL DIVESTMENT OF A CORPORATION'S ASSETS, THE COMMISSION SHALL FIRST PROCEED IN SUCH MANNER AS TO FACILITATE THE VOLUNTARY TRANS- FER OF SUCH ASSETS. 15. THE CHIEF EXECUTIVE OFFICER OF EACH GAS CORPORATION AND ELECTRIC CORPORATION SHALL CERTIFY TO THE COMMISSION ON OR BEFORE MARCH FIFTEENTH OF EACH YEAR THAT SUCH CORPORATION IS IN COMPLIANCE WITH THE REQUIRE- MENTS OF THIS CHAPTER AND ANY RULES, REGULATIONS, ORDERS AND PROCEDURES ADOPTED THERETO, INCLUDING THE OBLIGATION THAT SUCH CORPORATION PROVIDE SAFE AND ADEQUATE SERVICE. S 4. Subdivisions 19 and 21 of section 66 of the public service law, subdivision 19 as added by chapter 556 of the laws of 1976 and the clos- ing paragraph as added by chapter 586 of the laws of 1986 and subdivi- sion 21 as added by chapter 718 of the laws of 1980, are amended and a new subdivision 1-a is added to read as follows: 1-A. REVIEW THE ANNUAL CAPITAL EXPENDITURE OF EACH GAS OR ELECTRIC CORPORATION AND MAY ORDER SUCH IMPROVEMENT IN THE MANUFACTURE, CONVEY- ING, TRANSPORTATION, DISTRIBUTION OR SUPPLY OF GAS, IN THE MANUFACTURE, TRANSMISSION OR SUPPLY OF ELECTRICITY, OR IN THE METHODS EMPLOYED BY SUCH CORPORATION AS IN THE COMMISSION'S JUDGMENT IS ADEQUATE, JUST AND REASONABLE. 19. (A) The commission shall have power to provide for management and operations audits of gas corporations and electric corporations. Such audits shall be performed at least once every five years for combination gas and electric companies, as well as for straight gas corporations having annual gross revenues in excess of two hundred million dollars. The audit shall include, but not be limited to, an investigation of the company's construction program planning in relation to the needs of its customers for reliable service [and], an evaluation of the efficiency of the company's operations, RECOMMENDATIONS WITH RESPECT TO SAME, AND THE TIMING WITH RESPECT TO THE IMPLEMENTATION OF SUCH RECOMMENDATIONS. The commission shall have discretion to have such audits performed by its staff, or by independent auditors. In every case in which the commission chooses to have the audit provided for in this subdivision OR PURSUANT TO SUBDIVISION FOURTEEN OF SECTION SIXTY-FIVE OF THIS ARTICLE performed by independent auditors, it shall have authority to select the auditors, and to require the company being audited to enter into a contract with the auditors providing for their payment by the company. Such contract shall provide further that the auditors shall work for and under the direction of the commission according to such terms as the commission may determine are necessary and reasonable. [The commission shall have authority to direct the company to imple- ment any recommendations resulting from such audits that it finds to be necessary and reasonable.] (B) EACH GAS AND ELECTRIC CORPORATION SUBJECT TO AN AUDIT UNDER THIS SUBDIVISION SHALL FILE A REPORT WITH THE COMMISSION WITHIN THIRTY DAYS AFTER ISSUANCE OF SUCH AUDIT DETAILING ITS PLAN TO IMPLEMENT THE RECOM- MENDATIONS MADE IN THE AUDIT. AFTER REVIEW OF SUCH PLAN, THE COMMISSION MAY REQUIRE THAT SUCH CORPORATION AMEND THE PLAN IN A PARTICULAR MANNER. SUCH PLAN SHALL THEREAFTER BECOME ENFORCEABLE UPON APPROVAL BY THE COMMISSION. THE COMMISSION SHALL HAVE POWER TO COMMENCE A PROCEEDING TO EXAMINE ANY SUCH CORPORATION'S COMPLIANCE WITH THE RECOMMENDATIONS OF SUCH AUDIT. (C) Upon the application of a gas or electric corporation for a major change in rates as defined in subdivision twelve of this section, the
commission shall review that corporation's compliance with the directions and recommendations made previously by the commission, as a result of the most recently completed management and operations audit. The commission shall incorporate the findings of such review in its opinion or order, AND SUCH FINDINGS SHALL BE ENFORCEABLE BY THE COMMIS- SION. 21. [The commission shall require every electric corporation to submit storm plans to the commission for review and approval at such times and in such detail and form as the commission shall require, provided, however, that the same shall be filed at least annually.] (A) EACH ELEC- TRIC CORPORATION SHALL ANNUALLY, ON OR BEFORE DECEMBER FIFTEENTH, SUBMIT TO THE COMMISSION AN EMERGENCY RESPONSE PLAN FOR REVIEW AND APPROVAL. THE EMERGENCY RESPONSE PLAN SHALL BE DESIGNED FOR THE REASONABLY PROMPT RESTORATION OF SERVICE IN THE CASE OF AN EMERGENCY EVENT, DEFINED FOR PURPOSES OF THIS SUBDIVISION AS AN EVENT WHERE WIDESPREAD OUTAGES HAVE OCCURRED IN THE SERVICE TERRITORY OF THE COMPANY DUE TO STORMS OR OTHER CAUSES BEYOND THE CONTROL OF THE COMPANY. THE EMERGENCY RESPONSE PLAN SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING: (I) THE IDEN- TIFICATION OF MANAGEMENT STAFF RESPONSIBLE FOR COMPANY OPERATIONS DURING AN EMERGENCY; (II) A COMMUNICATIONS SYSTEM WITH CUSTOMERS DURING AN EMERGENCY THAT EXTENDS BEYOND NORMAL BUSINESS HOURS AND BUSINESS CONDI- TIONS; (III) IDENTIFICATION OF AND OUTREACH PLANS TO CUSTOMERS WHO HAD DOCUMENTED THEIR NEED FOR ESSENTIAL ELECTRICITY FOR MEDICAL NEEDS; (IV) IDENTIFICATION OF AND OUTREACH PLANS TO CUSTOMERS WHO HAD DOCUMENTED THEIR NEED FOR ESSENTIAL ELECTRICITY TO PROVIDE CRITICAL TELECOMMUNI- CATIONS, CRITICAL TRANSPORTATION AND CRITICAL FUEL DISTRIBUTION SERVICES; (V) DESIGNATION OF COMPANY STAFF TO COMMUNICATE WITH LOCAL OFFICIALS AND APPROPRIATE REGULATORY AGENCIES; (VI) PROVISIONS REGARDING HOW THE COMPANY WILL ASSURE THE SAFETY OF ITS EMPLOYEES AND CONTRACTORS; (VII) PROCEDURES FOR DEPLOYING COMPANY AND MUTUAL AID CREWS TO WORK ASSIGNMENT AREAS; (VIII) IDENTIFICATION OF ADDITIONAL SUPPLIES AND EQUIPMENT NEEDED DURING AN EMERGENCY; (IX) THE MEANS OF OBTAINING ADDI- TIONAL SUPPLIES AND EQUIPMENT; (X) PROCEDURES TO PRACTICE THE EMERGENCY RESPONSE PLAN; AND (XI) SUCH OTHER ADDITIONAL INFORMATION AS THE COMMIS- SION MAY REQUIRE. THE FILING WITH THE COMMISSION SHALL ALSO INCLUDE A COPY OF ALL WRITTEN MUTUAL ASSISTANCE AGREEMENTS AMONG UTILITIES. THE COMMISSION SHALL ACCORD PROTECTED TREATMENT OF CONFIDENTIAL, COMPETI- TIVELY SENSITIVE OR OTHER PROPRIETARY INFORMATION CONTAINED IN ANY EMER- GENCY RESPONSE PLAN. EACH SUCH CORPORATION SHALL, ON AN ANNUAL BASIS, UNDERTAKE DRILLS IMPLEMENTING PROCEDURES TO PRACTICE ITS EMERGENCY MANAGEMENT PLAN. THE DEPARTMENT MAY ADOPT ADDITIONAL REQUIREMENTS CONSISTENT WITH ENSURING THE REASONABLY PROMPT RESTORATION OF SERVICE IN THE CASE OF AN EMERGENCY EVENT. (B) AFTER REVIEW OF A CORPORATION'S EMERGENCY RESPONSE PLAN, THE COMMISSION MAY REQUIRE SUCH CORPORATION TO AMEND THE PLAN. THE COMMIS- SION MAY ALSO OPEN AN INVESTIGATION OF THE CORPORATION'S PLAN TO DETER- MINE ITS SUFFICIENCY TO RESPOND ADEQUATELY TO AN EMERGENCY EVENT. IF, AFTER HEARINGS, THE COMMISSION FINDS A MATERIAL DEFICIENCY IN THE PLAN, IT MAY ORDER THE COMPANY TO MAKE SUCH MODIFICATIONS THAT IT DEEMS REASONABLY NECESSARY TO REMEDY THE DEFICIENCY. (C) THE COMMISSION IS AUTHORIZED TO OPEN AN INVESTIGATION TO REVIEW THE PERFORMANCE OF ANY CORPORATION IN RESTORING SERVICE OR OTHERWISE MEETING THE REQUIREMENTS OF THE EMERGENCY RESPONSE PLAN DURING AN EMER- GENCY EVENT. IF, AFTER EVIDENTIARY HEARINGS OR OTHER INVESTIGATORY PROCEEDINGS, THE COMMISSION FINDS THAT THE CORPORATION FAILED TO REASON- ABLY IMPLEMENT ITS EMERGENCY RESPONSE PLAN OR THE LENGTH OF SUCH CORPO-
RATION'S OUTAGES WERE MATERIALLY LONGER THAN THEY WOULD HAVE BEEN BUT FOR SUCH FAILURE TO REASONABLY IMPLEMENT ITS EMERGENCY RESPONSE PLAN, THE COMMISSION MAY DENY THE RECOVERY OF ALL, OR ANY PART OF, THE SERVICE RESTORATION COSTS, COMMENSURATE WITH THE DEGREE AND IMPACT OF THE SERVICE OUTAGE; PROVIDED, HOWEVER, THAT NOTHING HEREIN LIMITS THE COMMISSION'S AUTHORITY TO OTHERWISE COMMENCE A PROCEEDING PURSUANT TO SECTIONS TWENTY-FOUR AND TWENTY-FIVE OF THIS CHAPTER. (D) THE COMMISSION SHALL CERTIFY TO THE DEPARTMENT OF HOMELAND SECURI- TY AND EMERGENCY SERVICES THAT EACH SUCH CORPORATION'S EMERGENCY RESPONSE PLAN IS SUFFICIENT TO ENSURE TO THE GREATEST EXTENT FEASIBLE THE TIMELY AND SAFE RESTORATION OF ENERGY SERVICES AFTER AN EMERGENCY. S 5. Section 68 of the public service law, as amended by chapter 52 of the laws of 1940, is amended to read as follows: S 68. [Approval of incorporation and franchises; certificate] CERTIF- ICATE OF PUBLIC CONVENIENCE AND NECESSITY. 1. CERTIFICATE REQUIRED. No gas corporation or electric corporation shall begin construction of a gas plant or electric plant without first having obtained the permission and approval of the commission. No such corporation shall exercise any right or privilege under any franchise hereafter granted, or under any franchise heretofore granted but not heretofore actually exercised, or the exercise of which shall have been suspended for more than one year, without first having obtained [the permission and approval of] A CERTIF- ICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY the commission. Before such certificate shall be issued a certified copy of the charter of such corporation shall be filed in the office of the commission, together with a verified statement of the president and secretary of the corporation, showing that it has received the required consent of the proper municipal authorities. The commission shall have power to grant the permission and approval herein specified whenever it shall after due hearing determine that such construction or such exercise of the right, privilege or franchise is [necessary or] convenient AND NECESSARY for the public service. IN MAKING SUCH A DETERMINATION, THE COMMISSION SHALL CONSIDER THE ECONOMIC FEASIBILITY OF THE CORPORATION, THE CORPORATION'S ABILITY TO FINANCE IMPROVEMENTS OF A GAS PLANT OR ELECTRIC PLANT, RENDER SAFE, ADEQUATE AND RELIABLE SERVICE, AND PROVIDE JUST AND REASONABLE RATES, AND WHETHER ISSUANCE OF A CERTIFICATE IS IN THE PUBLIC INTEREST. Except as provided in article [fourteen-a] FOURTEEN-A of the general municipal law, no municipality shall build, maintain and operate for other than municipal purposes any works or systems for the manufacture and supplying of gas or electricity for lighting purposes without a certificate of authority granted by the commission. If the certificate of authority is refused, no further proceedings shall be taken by such municipality before the commission, but a new application may be made therefor after one year from the date of such refusal. 2. REVOCATION OR MODIFICATION OF CERTIFICATE. THE COMMISSION MAY COMMENCE A PROCEEDING TO REVOKE OR MODIFY SUCH CERTIFICATE AS IT RELATES TO SUCH CORPORATION'S SERVICE TERRITORY OR ANY PORTION THEREOF BASED ON GOOD CAUSE SHOWN, WITH THE INQUIRY INFORMED BY CONSIDERATION OF THE FOLLOWING FACTORS: (A) THE FACTORS IDENTIFIED IN SUBDIVISION ONE OF THIS SECTION FOR ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; (B) WHETHER ANOTHER PERSON, FIRM OR CORPORATION IS QUALIFIED, AVAIL- ABLE, AND PREPARED TO PROVIDE ALTERNATIVE SERVICE THAT IS ADEQUATE TO SERVE THE PUBLIC CONVENIENCE AND NECESSITY, AND THAT THE TRANSITION TO SUCH ALTERNATIVE PERSON, FIRM OR CORPORATION IS IN THE PUBLIC INTEREST; AND
(C) UPON ANY OTHER STANDARDS AND PROCEDURES DEEMED NECESSARY BY THE COMMISSION TO ENSURE CONTINUITY OF SAFE AND ADEQUATE SERVICE, AND DUE PROCESS. S 6. Paragraph d of subdivision 1 of section 119-b of the public service law, as amended by chapter 445 of the laws of 1995, is amended to read as follows: d. "Underground facilities" means pipelines, conduits, ducts, cables, wires, GAS PRODUCTION AND GATHERING PIPELINE SYSTEMS DESIGNED TO OPERATE AT THREE HUNDRED POUNDS PER SQUARE INCH GAUGE OR HIGHER, manholes, vaults or other such facilities or their attachments[, which have been] installed underground by an operator to provide services or materials. Such term shall not include oil [and gas] production and gathering pipe- line systems used primarily to collect oil [or gas] production from wells. S 7. Subdivision 4 of section 760 of the general business law, as amended by chapter 685 of the laws of 1994, is amended to read as follows: 4. "Underground facilities" means pipelines, conduits, ducts, cables, wires, GAS PRODUCTION AND GATHERING PIPELINE SYSTEMS DESIGNED TO OPERATE AT THREE HUNDRED POUNDS PER SQUARE INCH GAUGE OR HIGHER, manholes, vaults or other such facilities or their attachments[, which have been] installed underground by an operator to provide services or materials. Such term shall not include oil [and gas] production and gathering pipe- line systems used primarily to collect oil [or gas] production from wells. S 8. Paragraphs a and b of subdivision 1 of section 765 of the general business law, as amended by chapter 685 of the laws of 1994, are amended to read as follows: a. Failure to comply with any provision of this article shall subject an excavator or an operator to a civil penalty of up to [one] TWO thou- sand FIVE HUNDRED dollars for the first violation and up to an addi- tional [seven] TEN thousand [five hundred] dollars for each succeeding violation [which] THAT occurs [in connection with the entire self-same excavation or demolition activity] within a [two] TWELVE month period. b. The penalties provided for by this article shall not apply to an excavator who damages an underground facility due to the failure of the operator to comply with any of the provisions of this article nor shall in such instance the excavator be liable for repairs as prescribed in subdivision [five] FOUR of this section. S 9. This act shall take effect immediately. PART P Section 1. Section 2 of chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, as amended by section 1 of part L of chapter 60 of the laws of 2011, is amended to read as follows: S 2. This act shall take effect immediately, provided however, that section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003 and shall expire March 31, [2013] 2014. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after March 31, 2013.
PART Q Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2013-2014 state fiscal year. Each component is wholly contained within a Subpart identified as Subparts A through F. The effective date for each partic- ular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Section 579 of the banking law, as amended by chapter 629 of the laws of 2002, is amended to read as follows: S 579. Doing business without license prohibited. Only a [type B] not-for-profit corporation [as defined in section two hundred one of the not-for-profit corporation law of this state,] or an entity incorporated in another state and having a similar not-for-profit status, shall engage in the business of budget planning as defined in subdivision one of section four hundred fifty-five of the general business law [of this state] except as authorized by this article and without first obtaining a license from the superintendent. S 2. The opening paragraph of paragraph 1 of section 5 of the cooper- ative corporations law, as amended by chapter 158 of the laws of 1978, is amended to read as follows: The business corporation law applies to every corporation heretofore or hereafter formed under this chapter, or under any other statute or special act of this state, or under laws other than the statutes of this state, [which] THAT has as its purpose or among its purposes the cooper- ative rendering of mutual help and service to its members and which, if formed under laws other than the statutes of this state, would, if it were to be formed currently under the laws of this state, be formed under this chapter except a membership cooperative as defined in section three of this chapter, to which the not-for-profit corporation law shall apply. Any corporation to which the business corporation law is made applicable by this section shall be treated as a "corporation," "domes- tic corporation," or "foreign corporation," as such terms are used in the business corporation law; provided, however, that neither the purposes for which any such corporation may be formed under this chapter nor its classification as a non-profit corporation shall thereby be extended or affected. Any corporation to which the not-for-profit corpo- ration law is made applicable by this section shall be [a type D not- for-profit corporation] SUBJECT TO PROVISIONS GOVERNING CORPORATIONS FORMED UNDER SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THE NOT-FOR-PROFIT CORPORATION LAW. S 3. Subdivision 4 of section 455 of the general business law, as amended by chapter 456 of the laws of 2006, is amended to read as follows: 4. Person or entity as used in this article shall not include a [type B] not-for-profit corporation as defined in section two hundred one of the not-for-profit corporation law of this state, or an entity incorpo- rated in another state and having a similar not-for-profit status,
licensed by the superintendent OF FINANCIAL SERVICES, to engage in the business of budget planning as defined in this section. S 4. Paragraphs (a) and (c) of section 103 of the not-for-profit corporation law, paragraph (a) as amended by chapter 807 of the laws of 1973 and paragraph (c) as amended by chapter 961 of the laws of 1972, are amended to read as follows: (a) Except as otherwise provided in this section, this chapter applies to every domestic corporation as herein defined, and to every foreign corporation as herein defined which is authorized to conduct or which conducts any activities in this state. This chapter also applies to any other domestic corporation or foreign corporation of any type or kind to the extent, if any, provided under this chapter or any law governing such corporation and, if no such provision for application is made, to the extent, if any, that the membership corporations law applied to such corporation as of the effective date of this chapter. A corporation formed by a special act of this state which has as its prin- cipal purpose an education purpose and which is a member of the univer- sity of the state of New York, is an "education corporation" under section two hundred sixteen-a of the education law. To the extent that the membership corporations law or the general corporation law applied to it as of the effective date of this chapter, the corresponding provisions of this chapter apply to a corporation heretofore formed by or pursuant to a special act of this state other than a religious corporation or an "education corporation" under clause (b) of subdivision one of section two hundred sixteen-a of the education law, if (1) its principal purpose is a religious, charitable or educa- tion purpose, and (2) it is operated, supervised or controlled by or in connection with a religious organization. Any such corporation may elect hereunder at any time after the effective date of this chapter to file a RESTATED certificate of [type] INCORPORATION under section [one] EIGHT hundred [thirteen (Certificate of type of not-for-profit corpo- ration)] FIVE (RESTATED CERTIFICATE OF INCORPORATION). SUCH RESTATED CERTIFICATE OF INCORPORATION SHALL MEET THE REQUIREMENTS OF SECTION 402 (CERTIFICATE OF INCORPORATION; CONTENTS). Upon the filing of such certificate by the department of state, this chapter shall apply in all respects to such corporation. This chapter also applies to any other corporation of any type or kind, formed not for profit under any other chapter of the laws of this state except a chapter of the consolidated laws, to the extent that provisions of this chapter do not conflict with the provisions of such unconsolidated law. If an applicable provision of such unconsolidated law relates to a matter embraced in this chapter but is not in conflict therewith, both provisions shall apply. Any corporation to which this chapter is made applicable by this paragraph shall be treated as a "corporation" or "domestic corporation" as such terms are used in this chapter, except that the purposes of any such corporation formed or formable under such unconsolidated law shall not thereby be extended. For the purpose of this paragraph, the effective date of this chapter as to corporations to which this chapter is made applicable by this para- graph shall be September one, nineteen hundred seventy-three. (c) If any provision in articles one to thirteen inclusive of this chapter conflicts with a provision of any subsequent articles or of any special act under which a corporation to which this chapter applies is formed, the provision in such subsequent article or special act prevails. A provision of any such subsequent article or special act relating to a matter referred to in articles one to thirteen inclusive
and not in conflict therewith is supplemental and both shall apply. Whenever the board of a [Type B] corporation FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, formed under a special act, reasonably makes an interpretation as to whether a provision of the special act or this chapter prevails, or both apply, such interpretation shall govern unless and until a court determines otherwise, if such board has acted in good faith for a purpose which it reasonably believes to be in the best interests of the corporation, provided however, that such interpretation shall not bind any governmental body or officer. S 5. Paragraph (e) of section 104 of the not-for-profit corporation law, as amended by chapter 833 of the laws of 1982, is amended to read as follows: (e) If an instrument which is delivered to the department of state for filing complies as to form with the requirements of law [and there has been attached to it the consent or approval of the supreme court justice, governmental body or officer, or, other person or body, if any, whose consent to or approval of such instrument or the filing thereof is required by any statute of this state] and the filing fee and tax, if any, required by any statute of this state in connection therewith have been paid, the instrument shall be filed and indexed by the department of state. No certificate of authentication or conformity or other proof shall be required with respect to any verification, oath or acknowledg- ment of any instrument delivered to the department of state under this chapter, if such verification, oath or acknowledgment purports to have been made before a notary public, or person performing the equivalent function, of one of the states, or any subdivision thereof, of the United States or the District of Columbia. Without limiting the effect of section four hundred three of this chapter, filing and indexing by the department of state shall not be deemed a finding that a certificate conforms to law, nor shall it be deemed to constitute an approval by the department of state of the name of the corporation or the contents of the certificate, nor shall it be deemed to prevent any person with appropriate standing from contesting the legality thereof in an appro- priate forum. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF STATE BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A DOMESTIC CORPORATION OR FOREIGN AUTHORIZED CORPORATION HAS FAILED TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE CORPORATION'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT ACTIVITIES IN THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR APPROVAL ANNEXED THERETO. S 6. Subparagraph 7 of paragraph (a) of section 112 of the not-for- profit corporation law, as amended by chapter 1058 of the laws of 1971, is amended to read as follows: (7) To enforce any right given under this chapter to members, a director or an officer of a [Type B or Type C] corporation FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER. The attorney-general shall have the same status as such members, director or officer. S 7. Section 113 of the not-for-profit corporation law is REPEALED. S 8. Section 114 of the not-for-profit corporation law, as added by chapter 847 of the laws of 1970, is amended to read as follows: S 114. Visitation of supreme court.
[Type B and Type C corporations] CORPORATIONS FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, whether formed under general or special laws, with their books and vouchers, shall be subject to the visitation and inspection of a justice of the supreme court, or of any person appointed by the court for that purpose. If it appears by the verified petition of a member or creditor of any such corporation, that it, or its directors, officers or agents, have misappropriated any of the funds or property of the corporation, or diverted them from the purpose of its incorporation, or that the corporation has acquired property in excess of the amount which it is authorized by law to hold, or has engaged in any business other than that stated in its certificate of incorporation, the court may order that notice of at least eight days, with a copy of the petition, be served on the corporation and the persons charged with misconduct, requiring them to show cause at a time and place specified, why they should not be required to make and file an inventory and account of the property, effects and liabilities of such corporation with a detailed statement of its transactions during the twelve months next preceding the granting of such order. On the hearing of such application, the court may make an order requiring such inventory, account and statement to be filed, and proceed to take and state an account of the property and liabilities of the corporation, or may appoint a referee for that purpose. When such account is taken and stated, after hearing all the parties to the application, the court may enter a final order determining the amount of property so held by the corporation, its annual income, whether any of the property or funds of the corporation have been misappropriated or diverted to any other purpose than that for which such corporation was incorporated, and whether such corporation has been engaged in any activity not covered by its certificate of incorporation. An appeal may be taken from the order by any party aggrieved to the appellate division of the supreme court, and to the court of appeals, as in a civil action. No corporation shall be required to make and file more than one inventory and account in any one year, nor to make a second account and inventory, while proceedings are pending for the statement of an account under this section. S 9. Paragraph (b) of section 201 of the not-for-profit corporation law, as amended by chapter 847 of the laws of 1970, is amended to read as follows: (b) A corporation, [of a type and] for a purpose or purposes as follows, may be formed under this chapter, provided consents required under any other statute of this state have been obtained: [Type A - A not-for-profit corporation of this type may be formed] (1) for any lawful non-business purpose or purposes including, but not limited to, any one or more of the following non-pecuniary purposes: civic, patriotic, political, social, fraternal, athletic, agricultural, horticultural, animal husbandry, and for a professional, commercial, industrial, trade or service association. [Type B - A not-for-profit corporation of this type may be formed] (2) for any one or more of the following non-business purposes: charitable, educational, religious, scientific, literary, cultural or for the prevention of cruelty to children or animals. [Type C - A not-for-profit corporation of this type may be formed] (3) for any lawful business purpose to achieve a lawful public or quasi- public objective. [Type D - A not-for-profit corporation of this type may be formed under this chapter] (4) when such formation is authorized by any other
corporate law of this state for any business or non-business, or pecuni- ary or non-pecuniary, purpose or purposes specified by such other law, whether such purpose or purposes are also within [types A, B, C] SUBPAR- AGRAPHS ONE, TWO OR THREE above or otherwise. S 10. Paragraph (c) of section 201 of the not-for-profit corporation law, as amended by chapter 1058 of the laws of 1971, is amended to read as follows: (c) If a corporation is formed for purposes which are [within both type A and type B above, it is a type B corporation] SPECIFIED IN SUBPARAGRAPHS ONE AND TWO OF PARAGRAPH (B) OF THIS SECTION, ALL PROVISIONS GOVERNING CORPORATIONS FORMED FOR PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OF PARAGRAPH (B) OF THIS SECTION SHALL APPLY TO SUCH CORPORATION. [If a corporation has among its purposes any purpose which is within type C, such corporation is a type C corporation.] A [type D] corporation [is subject to all provisions of this chapter which are applicable to a type B corporation under this chapter] FORMED PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF THIS SECTION SHALL BE GOVERNED BY ALL PROVISIONS GOVERNING CORPORATIONS FORMED FOR PURPOSES SPECIFIED IN PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION unless provided to the contrary in, and subject to the contrary provisions of, the other corporate law authorizing formation under this chapter of [the type D] SUCH corporation. S 11. Subparagraph 3 of paragraph (a) of section 301 of the not-for- profit corporation law is amended to read as follows: (3) Shall not contain any word or phrase, or any abbreviation or derivative thereof, the use of which is prohibited or restricted by [section 404 (Approvals and consents) or] any other statute of this state, [unless in the latter case the] EXCEPT IN COMPLIANCE WITH SUCH restrictions [have been complied with]. S 12. Subparagraphs 2 and 4 of paragraph (a) of section 402 of the not-for-profit corporation law, subparagraph 2 as amended by chapter 847 of the laws of 1970 and subparagraph 4 as amended by chapter 679 of the laws of 1985, are amended to read as follows: (2) That the corporation is a corporation as defined in subparagraph (a) (5) of section 102 (Definitions); the purpose or purposes for which it is formed [and the type of corporation it shall be under section 201 (Purposes)]; and in the case of a [Type C] corporation FORMED FOR PURPOSES SPECIFIED IN SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SECTION 201 (PURPOSES), the lawful public or quasi-public objective [which] each business purpose will achieve. (4) [In the case of a Type A, Type B, or Type C corporation, the] THE names and addresses of the initial directors. In the case of a [Type D] corporation FORMED UNDER SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF SECTION 201, the names and addresses of the initial directors, if any, may but need not be set forth. S 13. Paragraph (d) of section 502 of the not-for-profit corporation law is amended to read as follows: (d) A member's capital contribution shall be evidenced by a capital certificate which shall be non-transferable, except that the certificate of incorporation of a [Type A] corporation FORMED FOR THE PURPOSES SPEC- IFIED IN SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER may provide that its capital certificates, or some of them, may be transferable to other members with the consent of the corporation upon specified terms and conditions.
S 14. Paragraph (b) of section 503 of the not-for-profit corporation law, subparagraph 1 as amended by chapter 847 of the laws of 1970, is amended to read as follows: (b) Each capital certificate shall when issued state upon the face thereof: [(1) That the corporation is a Type ..... corporation under section 113 or section 402 of the New York Not-for-Profit Corporation Law. (2)] (1) The name of the member to whom issued. [(3)] (2) The amount of the member's capital contribution evidenced by such certificate. [(4)] (3) If appropriate, [that the corporation is a Type A corpo- ration, and] IN THE CASE OF A CORPORATION FORMED FOR THE PURPOSES OF SUBPARAGRAPH (1) OF PARAGRAPH (B) OF SECTION 201 (PURPOSES), that its certificate of incorporation provides that the capital certificate is transferable to other members with the consent of the corporation. S 15. Subparagraph 1 of paragraph (b) of section 505 of the not-for- profit corporation law, as amended by chapter 847 of the laws of 1970, is REPEALED, and subparagraphs 2, 3, 4, 5 and 6 are renumbered subpara- graphs 1, 2, 3, 4, and 5. S 16. Subparagraph 3 of paragraph (a) of section 510 of the not-for- profit corporation law, as amended by chapter 847 of the laws of 1970, is amended to read as follows: (3) If the corporation is, or would be if formed under this chapter[, classified as a Type B or Type C corporation under] FOR PURPOSES SPECI- FIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF section 201, (Purposes) such A sale, lease, exchange or other disposition shall in addition require leave of the supreme court in the judicial district or of the county court of the county in which the corporation has its office or principal place of carrying out the purposes for which it was formed. S 17. Paragraph (a) of section 513 of the not-for-profit corporation law, as amended by chapter 690 of the laws of 1978, is amended to read as follows: (a) [A] UNLESS OTHERWISE PROVIDED BY LAW OR IN THE CERTIFICATE OF INCORPORATION, A corporation [which is, or would be if formed under this chapter, classified as a Type B corporation shall] MAY hold full owner- ship rights in any assets consisting of funds or other real or personal property of any kind, that may be given, granted, bequeathed or devised to or otherwise vested in such corporation in trust for, or with a direction to apply the same to, any purpose specified in its certificate of incorporation, and shall not be deemed a trustee of an express trust of such assets, EXCEPT FOR CORPORATIONS FORMED FOR PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION 201 (PURPOSES). [Any other corporation subject to this chapter may similarly hold assets so received, unless otherwise provided by law or in the certificate of incorporation.] S 18. Paragraph (a) of section 601 of the not-for-profit corporation law, as amended by chapter 1058 of the laws of 1971, is amended to read as follows: (a) A corporation [shall] MAY have one or more classes of members, or, [in the case of a Type B corporation,] may have no members[, in which case any such provision for classes of members or for no members]. A CORPORATION WHICH HAS ONE OR MORE CLASSES OF MEMBERS shall [be] set forth in the certificate of incorporation or the by-laws PROVISIONS FOR SUCH CLASSES OF MEMBERS. Corporations, joint-stock associations, unin-
corporated associations and partnerships, as well as any other person without limitation, may be members. S 19. Subparagraph 3 of paragraph (a) of section 803 of the not-for- profit corporation law, as added by chapter 168 of the laws of 1982, is amended to read as follows: (3) That the corporation is a corporation as defined in subparagraph (a) (5) of section 102 (Definitions)[; the type of corporation it is under section 201 (Purposes); and if the corporate purposes are enlarged, limited or otherwise changed, the type of corporation it shall thereafter be under section 201]. S 20. Subparagraph (ii) of paragraph (a) of section 804 of the not- for-profit corporation law, as amended by chapter 139 of the laws of 1993, is amended to read as follows: (ii) Every certificate of amendment of a corporation [classified as type B or type C under section 201 (Purposes)] FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF SECTION 201 which seeks to change or eliminate a purpose or power enumerated in the corporation's certificate of incorporation, or to add a power or purpose not enumerated therein, shall have endorsed thereon or annexed thereto the approval of a justice of the supreme court of the judicial district in which the office of the corporation is located. Ten days' written notice of the application for such approval shall be given to the attor- ney-general. S 21. Paragraphs (a) and (c) of section 907 of the not-for-profit corporation law are amended to read as follows: (a) [Where any constituent corporation or the consolidated corporation is, or would be if formed under this chapter, a Type B or a Type C corporation under section 201 (Purposes) of this chapter, no] NO certif- icate shall be filed pursuant to section 904 (Certificate of merger or consolidation; contents) or section 906 BY CORPORATIONS (Merger or consolidation of domestic and foreign corporations) FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF SECTION 201 until an order approving the plan of merger or consolidation and authorizing the filing of the certificate has been made by the supreme court, as provided in this section. A certified copy of such order shall be annexed to the certificate of merger or consolidation. Application for the order may be made in the judicial district in which the principal office of the surviving or consolidated corporation is to be located, or in which the office of one of the domestic constituent corporations is located. The application shall be made by all the constituent corporations jointly and shall set forth by affidavit (1) the plan of merger or consolidation, (2) the approval required by section 903 (Approval of plan) or paragraph (b) of section 906 (Merger or consolidation of domestic and foreign corporations) for each constit- uent corporation, (3) the objects and purposes of each such corporation to be promoted by the consolidation, (4) a statement of all property, and the manner in which it is held, and of all liabilities and of the amount and sources of the annual income of each such corporation, (5) whether any votes against adoption of the resolution approving the plan of merger or consolidation were cast at the meeting at which the resol- ution as adopted by each constituent corporation, and (6) facts showing that the consolidation is authorized by the laws of the jurisdictions under which each of the constituent corporations is incorporated. (c) If the court shall find that any of the assets of any of the constituent corporations are held for [a] ANY purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF paragraph (b) of section 201
(PURPOSES) or are legally required to be used for a particular purpose, but not upon a condition requiring return, transfer or conveyance by reason of the merger or consolidation, the court may, in its discretion, direct that such assets be transferred or conveyed to the surviving or consolidated corporation subject to such purpose or use, or that such assets be transferred or conveyed to the surviving or consolidated corporation or to one or more other domestic or foreign corporations or organizations engaged in substantially similar activities, upon an express trust the terms of which shall be approved by the court. S 22. Paragraphs (a) and (f) of section 908 of the not-for-profit corporation law are amended to read as follows: (a) One or more domestic or foreign corporations [which is, or would be if formed under this chapter, a type A or type C corporation under section 201 (Purposes)] may be merged or consolidated into a domestic or foreign corporation which is, or would be if formed under the laws of this state, a corporation formed under the business corporation law of this state if such merger or consolidation is not contrary to the law of the state of incorporation of any constituent corporation. With respect to such merger or consolidation, any reference in paragraph (b) of section 901 [of this article] (POWER OF MERGER OR CONSOLIDATION) or paragraph (b) of section 901 of the business corporation law to a corpo- ration shall, unless the context otherwise requires, include both domes- tic and foreign corporations. (f) [Where any constituent corporation is, or would be if formed under this chapter, a Type C corporation under section 201 (Purposes), no] NO certificate shall be filed pursuant to this section BY CORPORATIONS FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARA- GRAPH (B) OF SECTION 201 until an order approving the plan of merger or consolidation and authorizing the filing of the certificate has been made by the supreme court, as provided in section 907 (Approval by the supreme court). S 23. Paragraphs (b) and (c) and subparagraph 3 of paragraph (d) of section 1001 of the not-for-profit corporation law, as amended by chap- ter 434 of the laws of 2006, are amended to read as follows: (b) If [the] A corporation [is a Type B, C or D corporation and] FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER has no assets to distribute and no liabilities at the time of dissolution, the plan of dissolution shall include a statement to that effect. (c) If [the] A corporation [is a Type B, C or D corporation and] FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER has no assets to distribute, other than a reserve not to exceed twenty-five thousand dollars for the purpose of paying ordinary and necessary expenses of winding up its affairs including attorney and accountant fees, and liabilities not in excess of ten thousand dollars at the time of adoption of the plan of dissolution, the plan of dissolution shall include a statement to that effect. (3) if there are assets received and held by the corporation [either] for a purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF paragraph (b) of section 201 (Purposes) or [which] THAT are legally required to be used for a particular purpose, a statement that the assets owned by the corporation, subject to any unpaid liabilities of the corporation, shall be distributed as required by any gift instrument or to a charitable organization or organizations exempt from taxation pursuant to federal and state laws and engaged in activities substan-
tially similar to those of the dissolved corporation. Each such recipi- ent organization shall be identified and the governing instrument and amendments thereto of each of the proposed recipient organizations shall be annexed to such statement, along with the financial reports of each recipient organization for the last three years and a sworn affidavit from a director and officer of each recipient organization stating the purposes of the organization, and that it is currently exempt from federal income taxation. S 24. Paragraphs (a) and (d) of section 1002 of the not-for-profit corporation law, as amended by chapter 434 of the laws of 2006, are amended to read as follows: (a) Upon adopting a plan of dissolution and distribution of assets, the board shall submit it to a vote of the members, if any, and such plan shall be approved at a meeting of members by two-thirds vote as provided in paragraph (c) of section 613 (Vote of members); provided, however, that if the corporation is [a Type B, C or D corporation] FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, other than a corporation incorporated pursuant to article 15 (Public cemetery corpo- rations), [and] has no assets to distribute, other than a reserve not to exceed twenty-five thousand dollars for the purpose of paying ordinary and necessary expenses of winding up its affairs including attorney and accountant fees, and liabilities not in excess of ten thousand dollars at the time of adoption of the plan of dissolution, the vote required by the corporation's board of directors for adoption of the plan of dissol- ution of such a corporation or by the corporation's members for the authorization thereof shall be: (1) In the case of a vote by the board of directors: (i) the number of directors required under the certificate of incorporation, by-laws, this chapter and any other applicable law; or (ii) if the number of directors actually holding office as such at the time of the vote to adopt the plan is less than the number required to constitute a quorum of directors under the certificate of incorporation, the by-laws, this chapter or any other applicable law, the remaining directors unanimously; (2) In the case of a vote by the members, (i) the number of members required under the certificate of incorporation, by-laws, this chapter and any other applicable law; or (ii) by the vote of members authorized by an order of the supreme court pursuant to section 608 [of this chap- ter] (QUORUM AT MEETING OF MEMBERS) permitting the corporation to dispense with the applicable quorum requirement. Notice of a special or regular meeting of the board of directors or of the members entitled to vote on adoption and authorization or approval of the plan of dissolution shall be sent to all the directors and members of record entitled to vote. Unless otherwise directed by order of the supreme court pursuant to section 608 [of this chapter] (QUORUM AT MEETING OF MEMBERS), the notice shall be sent by certified mail, return receipt requested, to the last known address of record of each director and member not fewer than thirty, and not more than sixty days before the date of each meeting provided, however, that if the last known address of record of any director or member is not within the United States, the notice to such director shall be sent by any other reasonable means. (d) The plan of dissolution and distribution of assets shall have annexed thereto the approval of a justice of the supreme court in the judicial district in which the office of the corporation is located in
the case of a [Type B, C or D]corporation FORMED FOR THE PURPOSES SPECI- FIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, and in the case of any other corporation which holds assets at the time of dissolution legally required to be used for a particular purpose, except that no such approval shall be required with respect to the plan of dissolution of a corporation, other than a corporation incorporated pursuant to article 15 (Public cemetery corporations), which has no assets to distribute at the time of dissol- ution, other than a reserve not to exceed twenty-five thousand dollars for the purpose of paying ordinary and necessary expenses of winding up its affairs including attorney and accountant fees, and liabilities not in excess of ten thousand dollars, and which has complied with the requirements of section 1001 (Plan of dissolution and distribution of assets) and this section applicable to such a corporation. Application to the supreme court for an order for such approval shall be by verified petition, with the plan of dissolution and distribution of assets and certified copies of the consents prescribed by this section annexed thereto, and upon ten days written notice to the attorney general accom- panied by copies of such petition, plan and consents. In such case where approval of a justice of the supreme court is not required for a [Type B, C or D] corporation FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, a copy of such plan certified under penalties of perjury shall be filed with the attorney general within ten days after its authori- zation. S 25. Subparagraph 1 of paragraph (c) of section 1002-a of the not- for-profit corporation law, as amended by chapter 434 of the laws of 2006, is amended to read as follows: (1) assets received and held by the corporation [either] for a purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF paragraph (b) of section 201 (Purposes) or which are legally required to be used for a particular purpose, shall be distributed to one or more domestic or foreign corporations or other organizations engaged in activities substantially similar to those of the dissolved corporation pursuant to the plan of dissolution and distribution or, if applicable, as ordered by the court to which such plan is submitted for approval under section 1002 (Authorization of plan). Any disposition of assets contained in a will or other instrument, in trust or otherwise, made before or after the dissolution, to or for the benefit of any corporation so dissolved shall inure to or for the benefit of the corporation or organization acquiring such assets of the dissolved corporation as provided in this section, and so far as is necessary for that purpose the corporation or organization acquiring such disposition shall be deemed a successor to the dissolved corporation with respect to such assets; provided, howev- er, that such disposition shall be devoted by the acquiring corporation or organization to the purposes intended by the testator, donor or gran- tor. S 26. Subparagraph 4 of paragraph (a) of section 1003 of the not-for- profit corporation law is REPEALED and subparagraphs 5, 6, 7 and 8 are renumbered subparagraphs 4, 5, 6 and 7. S 27. Subparagraph 2 of paragraph (b) of section 1003 of the not-for- profit corporation law, as amended by chapter 434 of the laws of 2006, is amended to read as follows: (2) By the attorney general in the case of a [Type B, C or D] corpo- ration FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, or any
other corporation that holds assets at the time of dissolution legally required to be used for a particular purpose. S 28. Subparagraph 15 of paragraph (a) of section 1008 of the not-for- profit corporation law, as amended by chapter 434 of the laws of 2006, is amended to read as follows: (15) Where assets were received and held by the corporation either for a purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF para- graph (b) of section 201 (Purposes), or were legally required to be used for a particular purpose, the distribution of such assets to one or more domestic or foreign corporations or other organizations engaged in activities substantially similar to those of the dissolved corporation, on notice to the attorney general and to such other persons, and in such manner, as the court may deem proper. S 29. Subparagraph 6 of paragraph (a) of section 1012 of the not-for- profit corporation law is REPEALED. S 30. Section 1302 of the not-for-profit corporation law, as amended by chapter 847 of the laws of 1970, is amended to read as follows: S 1302. Application to existing authorized foreign corporations. Every foreign corporation which on the effective date of this chapter is authorized to conduct activities in this state under a certificate of authority heretofore issued to it by the secretary of state shall continue to have such authority. Such foreign corporation, its members, directors, and officers shall have the same rights, franchises, and privileges and shall be subject to the same limitations, restrictions, liabilities, and penalties as a foreign corporation authorized under this chapter, its members, directors, and officers respectively. A foreign corporation [may by amendment to its certificate of authority set forth the type of corporation it is under section 201 (Purposes); and in the absence of such amendment an authorized foreign corporation shall be a Type B corporation] SHALL BE SUBJECT TO PROVISIONS GOVERNING CORPORATIONS FORMED UNDER SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION 201, UNLESS OTHERWISE REQUIRED BY LAW. Reference in this chapter to an application for authority shall, unless the context otherwise requires, include the statement and designation and any amendment thereof required to be filed by the secretary of state under prior statutes to obtain a certificate of authority. S 31. Subparagraph 4 of paragraph (a) of section 1304 of the not-for- profit corporation law, as amended by chapter 847 of the laws of 1970 and as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (4) That the corporation is a foreign corporation as defined in subparagraph (a) (7) of section 102 (Definitions); [the type of corpo- ration it shall be under section 201 (Purposes);] a statement of its purposes to be pursued in this state and of the activities which it proposes to conduct in this state; a statement that it is authorized to conduct those activities in the jurisdiction of its incorporation; and in the case of a [Type C] corporation FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SECTION 201, the lawful public or quasi-public objective which each business purpose will achieve. S 32. Paragraph (a) of section 1321 of the not-for-profit corporation law, subparagraphs 1, 2 and 3 as amended by chapter 847 of the laws of 1970, are amended to read as follows: (a) Notwithstanding any other provision of this chapter, a foreign corporation conducting activities in this state which is authorized under this article, its directors, officers and members, shall be exempt from the provisions of paragraph (e) of section 1317 (Voting trust
records), subparagraph (a) (1) of section 1318 (Liabilities of directors and officers of foreign corporations), and subparagraph (a) (2) of section 1320 (Applicability of other provisions) if when such provision would otherwise apply[: (1) The corporation is a Type A corporation under this chapter; its] THE CORPORATION'S principal activities are conducted outside this state; the greater part of its property is located outside this state; and (1) less than one third of its members are residents of this state; or (2) [The corporation is a Type B corporation under this chapter; its principal activities are conducted outside this state; the greater part of its property is located outside this state; and] less than ten per cent of its annual revenues is derived from solicitation of funds within this state; or (3) [The corporation is a Type C corporation under this chapter; its principal activities are conducted outside this state; the greater part of its property is located outside this state; and] less than one half of its revenues for the preceding three fiscal years, or such portion thereof as the foreign corporation was in existence, was derived from sources within this state. S 33. Paragraph (d) of section 1401 of the not-for-profit corporation law is REPEALED and paragraph (e) is relettered paragraph (d). S 34. Paragraph (b) of section 1402 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h) and (i) are relettered paragraphs (b), (c), (d), (e), (f), (g) and (h). S 35. Paragraph (c) of section 1403 of the not-for-profit corporation law is REPEALED. S 36. Paragraph (b) of section 1404 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d) and (e) are relettered para- graphs (b), (c) and (d). S 37. Paragraph (b) of section 1405 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d), (e) and (f) are relettered paragraphs (b), (c) (d) and (e). S 38. Paragraph (b) of section 1406 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d), (e) and (f) are relettered paragraphs (b), (c), (d) and (e). S 39. Paragraph (b) of section 1407 of the not-for-profit corporation law is REPEALED and paragraphs (c) and (d) are relettered paragraphs (b) and (c). S 40. Paragraph (b) of section 1408 of the not-for-profit corporation law is REPEALED and paragraph (c) is relettered paragraph (b). S 41. Paragraph (b) of section 1409 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h), (i), (j) and (k) are relettered paragraphs (b), (c), (d), (e), (f), (g), (h), (i) and (j). S 42. Paragraph (b) of section 1410 of the not-for-profit corporation law is REPEALED and paragraph (c) is relettered paragraph (b). S 43. Paragraph (b) of section 1411 of the not-for-profit corporation law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h) and (i) are relettered paragraphs (b), (c), (d), (e), (f), (g) and (h). S 44. Paragraph (d) of section 1412 of the not-for-profit corporation law is REPEALED and paragraphs (e), (f) and (g) are relettered para- graphs (d), (e) and (f), respectively. S 45. Paragraph (c) of section 1505 of the not-for-profit corporation law is REPEALED and paragraph (d) is relettered paragraph (c).
S 46. Subdivision 2 of section 2-b of the religious corporations law is REPEALED and subdivisions 3 and 4 are renumbered subdivisions 2 and 3. S 47. This act shall take effect on the sixtieth day after it shall have become a law. SUBPART B Section 1. Paragraph (e) of section 104 of the business corporation law, as amended by chapter 832 of the laws of 1982, is amended to read as follows: (e) If an instrument which is delivered to the department of state for filing complies as to form with the requirements of law and WHERE REQUIRED BY STATUTE there has been attached to it the consent or approval of the state official, [department, board,] agency or other body, if any, whose consent to or approval of such instrument or the filing thereof is required by any statute of this state and the filing fee and tax, if any, required by any statute of this state in connection therewith have been paid, the instrument shall be filed and indexed by the department of state. No certificate of authentication or conformity or other proof shall be required with respect to any verification, oath or acknowledgment of any instrument delivered to the department of state under this chapter, if such verification, oath or acknowledgment purports to have been made before a notary public, or person performing the equivalent function, of one of the states, or any subdivision there- of, of the United States or the District of Columbia. Without limiting the effect of section four hundred three of this chapter, filing and indexing by the department of state shall not be deemed a finding that a certificate conforms to law, nor shall it be deemed to constitute an approval by the department of state of the name of the corporation or the contents of the certificate, nor shall it be deemed to prevent any person with appropriate standing from contesting the legality thereof in an appropriate forum. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF STATE BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A DOMESTIC CORPORATION OR FOREIGN AUTHORIZED CORPORATION HAS FAILED TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE CORPORATION'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT BUSINESS IN THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR APPROVAL ANNEXED THERETO. S 2. Paragraphs (b) and (e) of section 201 of the business corporation law, paragraph (b) as amended by chapter 182 of the laws of 1981, and paragraph (e) as amended by section 71 of part A of chapter 58 of the laws of 2010, are amended to read as follows: (b) [The] CERTIFICATION THAT approval of the industrial board of appeals HAS BEEN OBTAINED is required for the filing with the department of state of any certificate of incorporation, certificate of merger or consolidation or application of a foreign corporation for authority to do business in this state which states as the purpose or one of the purposes of the corporation the formation of an organization of groups of working men or women or wage earners, or the performance, rendition or sale of services as labor consultant or as advisor on labor-manage- ment relations or as arbitrator or negotiator in labor-management disputes.
(e) A corporation may not include as its purpose or among its purposes the establishment or maintenance of a hospital or facility providing health related services, as those terms are defined in article twenty- eight of the public health law unless its certificate of incorporation shall so state and such certificate [shall have annexed thereto the] INCLUDES A CERTIFICATION THAT approval of the public health and health planning council OF SUCH PURPOSE HAS BEEN OBTAINED. S 3. Clause (B) of subparagraph 5 of paragraph (a) of section 301 of the business corporation law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (B) Shall not contain any of the following words, or any abbreviation or derivative thereof: acceptance endowment loan annuity fidelity mortgage assurance finance savings bank guaranty surety benefit indemnity title bond insurance trust casualty investment underwriter doctor lawyer unless the [approval of the superintendent of financial services is attached to the] certificate of incorporation, or application for authority or amendment thereof INCLUDES A CERTIFICATION THAT APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED; or [that] UNLESS the word "doctor" or "lawyer" or an abbreviation or derivation thereof is used in the name of a university faculty practice corporation formed pursuant to section fourteen hundred twelve of the not-for-profit corporation law or a professional service corporation formed pursuant to article fifteen of this chapter, or a foreign professional service corporation authorized to do business in this state pursuant to article fifteen-A of this chapter, the members or shareholders of which are composed exclusively of doctors or lawyers, respectively, or are used in a context which clearly denotes a purpose other than the practice of law or medicine. S 4. Subparagraphs 6, 7 and 11 of paragraph (a) of section 301 of the business corporation law, subparagraph 7 as amended by chapter 555 of the laws of 1978 and subparagraph 11 as added by chapter 316 of the laws of 2005, are amended to read as follows: (6) Shall not, unless [the approval of the state board of standards and appeals is attached to] the certificate of incorporation, or appli- cation for authority or amendment thereof INCLUDES A CERTIFICATION THAT THE APPROVAL OF THE STATE BOARD OF STANDARDS AND APPEALS HAS BEEN OBTAINED, contain any of the following words or phrases, or any abbrevi- ation or derivative thereof: union, labor, council, industrial organ- ization, in a context which indicates or implies that the domestic corporation is formed or the foreign corporation authorized as an organ- ization of working men or women or wage earners or for the performance, rendition or sale of services as labor or management consultant, adviser or specialist, or as negotiator or arbitrator in labor-management disputes. (7) Shall not, unless [the approval of the state department of social services is attached to] the certificate of incorporation, or applica- tion for authority or amendment thereof INCLUDES A CERTIFICATION THAT THE APPROVAL OF THE STATE DEPARTMENT OF SOCIAL SERVICES HAS BEEN OBTAINED, contain the word "blind" or "handicapped". Such approval shall be granted by the state department of social services, if in its opinion
the word "blind" or "handicapped" as used in the corporate name proposed will not tend to mislead or confuse the public into believing that the corporation is organized for charitable or non-profit purposes related to the blind or the handicapped. (11) Shall not, unless [the consent of the commissioner of education is endorsed on or annexed to] the certificate of incorporation INCLUDES A CERTIFICATION THAT THE CONSENT OF THE COMMISSIONER OF EDUCATION HAS BEEN OBTAINED, contain the words "school;" "education;" "elementary;" "secondary;" "kindergarten;" "prekindergarten;" "preschool;" "nursery school;" "museum;" "history;" "historical;" "historical society;" "arboretum;" "library;" "college;" "university" or other term restricted by section two hundred twenty-four of the education law; "conservatory," "academy," or "institute," or any abbreviation or derivative of such terms. Such consent shall not be granted by the commissioner of educa- tion, if in the commissioner's opinion, the use of such terms in the corporate name is likely to mislead or confuse the public into believing that the corporation is organized for non-profit educational purposes or for educational business purposes that are not specified in the corpo- rate purposes and powers contained in its certificate of incorporation. S 5. Section 406 of the business corporation law, as amended by chap- ter 558 of the laws of 1999, is amended to read as follows: S 406. Filing of a certificate of incorporation; facility for alcoholism or alcohol abuse, substance abuse, substance dependence, or chemical abuse or dependence. Every certificate of incorporation which includes among its corporate purposes the establishment or operation of a program of services for alcoholism or alcohol abuse, substance abuse, substance dependence, or chemical abuse or dependence shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the commissioner of the state office of alcoholism and substance abuse services OF THE PURPOSES HAS BEEN OBTAINED. S 6. Paragraph (a) of section 806 of the business corporation law is amended to read as follows: (a) The department of state shall not file a certificate of amendment reviving the existence of a corporation unless THE CERTIFICATE OF AMEND- MENT INCLUDES A CERTIFICATION THAT the consent of the state tax commis- sion to the revival [is delivered to the department] HAS BEEN OBTAINED. If the name of the corporation being revived is not available under section 301 (Corporate name; general) for use by a corporation then being formed under this chapter, the certificate of amendment shall change the name to one which is available for such use. S 7. Paragraph (a) of section 1003 of the business corporation law is amended by adding two new subparagraphs 6 and 7 to read as follows: (6) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND FINANCE TO THE DISSOLUTION HAS BEEN OBTAINED. (7) WITH RESPECT TO ANY CORPORATION THAT HAS DONE BUSINESS IN THE CITY OF NEW YORK AND INCURRED LIABILITY FOR ANY TAX OR CHARGE UNDER CHAPTER SIX, SEVEN, EIGHT, TEN, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, TWENTY-ONE, TWENTY-FOUR, TWENTY-FIVE OR TWENTY-SEVEN OF TITLE ELEVEN OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, A CERTIFICATION THAT CONSENT OF THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK TO THE DISSOLUTION HAS BEEN OBTAINED. S 8. Paragraph (a) of section 1004 of the business corporation law, as amended by chapter 201 of the laws of 2009, is amended to read as follows:
(a) [The department shall not file such certificate unless the consent of the state department of taxation and finance to the dissolution is attached thereto.] Upon [such] filing SUCH CERTIFICATE, the corporation is dissolved. S 9. Paragraph (b) of section 1004 of the business corporation law is REPEALED. S 10. Subparagraph 8 of paragraph (a) of section 1304 of the business corporation law, as amended by chapter 684 of the laws of 1963 and as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (8) A statement that the foreign corporation has not since its incor- poration or since the date its authority to do business in this state was last surrendered, engaged in any activity in this state, except as set forth in paragraph (b) of section 1301 (Authorization of foreign corporations), or in lieu thereof A CERTIFICATION THAT the consent of the state tax commission to the filing of the application[, which consent shall be attached thereto] HAS BEEN OBTAINED. S 11. Paragraph (a) of section 1310 of the business corporation law is amended by adding a new subparagraph 7 to read as follows: (7) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND FINANCE TO THE SURRENDER OF AUTHORITY HAS BEEN OBTAINED. S 12. Paragraph (b) of section 1310 of the business corporation law is REPEALED, and paragraphs (c) and (d) are relettered (b) and (c). S 13. Section 216 of the education law, as amended by chapter 901 of the laws of 1972, and the closing paragraph as added by chapter 316 of the laws of 2005, is amended to read as follows: S 216. Charters. Under such name, with such number of trustees or other managers, and with such powers, privileges and duties, and subject to such limitations and restrictions in all respects as the regents may prescribe in conformity to law, they may, by an instrument under their seal and recorded in their office, incorporate any university, college, academy, library, museum, or other institution or association for the promotion of science, literature, art, history or other department of knowledge, or of education in any way, associations of teachers, students, graduates of educational institutions, and other associations whose approved purposes are, in whole or in part, of educational or cultural value deemed worthy of recognition and encouragement by the university. No institution or association which might be incorporated by the regents under this chapter shall, without their consent, be incorpo- rated under any other general law. An institution or association which might be incorporated by the regents under this chapter may, with the consent of the commissioner of education, be formed under the business corporation law or pursuant to the not-for-profit corporation law if [such consent of the commissioner of education is attached to] its certificate of incorporation INCLUDES A CERTIFICATION THAT CONSENT OF THE COMMISSIONER OF EDUCATION TO THE INCORPORATION OF SUCH INSTITUTION OR ASSOCIATION HAS BEEN OBTAINED. No individual, association, partner- ship, company or corporation not authorized by special charter from the legislature of this state or by charter from the regents to operate a museum, or arboretum shall knowingly use, advertise or transact business under the names "museum," or "arboretum," or any name, title or descrip- tive material indicating or tending to imply that said individual, asso- ciation, partnership, company or corporation conducts, carries on, or is such a business when it is not, or that it is authorized to operate as such, unless the right to do so has been granted by the regents or the commissioner in writing. Any violation of this paragraph shall be a
misdemeanor. Notwithstanding any other provision of this section, an individual, association, partnership, company or corporation doing busi- ness under any of such names on the effective date of this paragraph may come into compliance with this paragraph by obtaining consent of the regents or the commissioner within one year of such effective date. S 14. Paragraph (c) of subdivision 2 of section 130 of the general business law, as amended by chapter 316 of the laws of 2005, is amended to read as follows: (c) No corporation, limited partnership or limited liability company shall use or file a certificate for the use of any name or designation to carry on or conduct or transact business in this state which consists of or includes a word or words the use of which is prohibited or restricted by subparagraphs three through eleven of paragraph (a) of section three hundred one of the business corporation law or subpara- graphs three through nine of paragraph (a) of section three hundred one and paragraph (w) of section four hundred four of the not-for-profit corporation law, or paragraph three of subdivision (a) of section 121-102 of the partnership law, or subdivisions (d) through (i) of section two hundred four of the limited liability company law, respec- tively, [without having obtained any necessary] UNLESS SUCH CERTIFICATE INCLUDES A CERTIFICATION THAT SUCH consents or approvals which would permit the use of the word or words pursuant to such laws HAS BEEN OBTAINED, OR WHERE REQUIRED BY STATUTE, SUCH CERTIFICATE HAS CONSENTS OR APPROVALS ENDORSED THEREON OR ARE ANNEXED THERETO. S 15. Subdivision 11 of section 130 of the general business law, as added by chapter 316 of the laws of 2005, is amended to read as follows: 11. Notwithstanding any other provision of this section, an education corporation may not file a certificate under this section with the secretary of state, unless SUCH CERTIFICATE INCLUDES A CERTIFICATION THAT the consent of the board of regents [is endorsed on or annexed thereto] HAS BEEN OBTAINED. Nothing in this subdivision shall invali- date a certificate lawfully filed by an education corporation pursuant to this section prior to the effective date of this subdivision. S 16. Subdivision (f) of section 204 of the limited liability company law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (f) shall not contain the following words, or any abbreviation or derivative thereof: acceptance guaranty annuity indemnity assurance insurance attorney investment bank lawyer benefit loan bond mortgage casualty savings doctor surety endowment title fidelity trust finance underwriter unless the [approval of the superintendent of financial services is attached to the] articles of organization INCLUDE A CERTIFICATION THAT APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED or unless the word "doctor" or "lawyer" or an abbreviation or derivative thereof is used in a context that clearly denotes a purpose other than the practice of law or medicine;
S 17. Subdivisions (g) and (i) of section 204 of the limited liability company law, subdivision (i) as added by chapter 316 of the laws of 2005, are amended to read as follows: (g) shall not, unless [the approval of the state department of social services is attached to] the articles of organization or application for authority INCLUDE A CERTIFICATION THAT THE APPROVAL OF THE STATE DEPART- MENT OF SOCIAL SERVICES HAS BEEN OBTAINED, contain the word "blind" or "handicapped." Such approval shall be granted by the state department of social services if in its opinion the word "blind" or "handicapped" as used in the limited liability company's proposed name will not tend to mislead or confuse the public into believing that the limited liability company is organized for charitable or nonprofit purposes related to the blind or the handicapped; and (i) shall not, UNLESS THE ARTICLES OF ORGANIZATION OR APPLICATION FOR AUTHORITY INCLUDE A CERTIFICATION THAT THE CONSENT OF THE COMMISSIONER OF EDUCATION HAS BEEN OBTAINED, contain the following terms: "school," "education," "elementary," "secondary," "kindergarten," "prekindergar- ten," "preschool," "nursery school," "museum," "history," "historical," "historical society," "arboretum," "library," "college," "university" or other term restricted by section two hundred twenty-four of the educa- tion law; "conservatory," "academy," or "institute" or any abbreviation or derivative of such terms[, shall have endorsed thereon or annexed thereto the consent of the commissioner of education]. S 18. Section 209 of the limited liability company law is amended to read as follows: S 209. Filing with the department of state. A signed articles of organization and any signed certificate of amendment or other certif- icates filed pursuant to this chapter or of any judicial decree of amendment or cancellation shall be delivered to the department of state. If the instrument that is delivered to the department of state for filing complies as to form with the requirements of law and the filing fee required by any statute of this state in connection therewith has been paid, the instrument shall be filed and indexed by the department of state. The department of state shall not review such articles or certificates for legal sufficiency; its review shall be limited to determining that the form has been completed. UPON THE WRITTEN NOTIFICA- TION TO THE DEPARTMENT OF STATE BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN AUTHORIZED LIMITED LIABILITY COMPANY HAS FAILED TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE LIMITED LIABILITY COMPANY'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT BUSINESS IN THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR APPROVAL ANNEXED THERETO. S 19. Clause (B) of subparagraph 5 of paragraph (a) of section 301 of the not-for-profit corporation law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (B) Shall not contain any of the following words, or any abbreviation or derivative thereof: acceptance fidelity mortgage annuity finance savings assurance guaranty surety
bank indemnity title bond insurance trust casualty investment underwriter doctor lawyer endowment loan unless [the approval of the superintendent of financial services is attached to] the certificate of incorporation, or application for authority or amendment thereof[;] INCLUDES A CERTIFICATION THAT THE APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED, or [that] UNLESS the word "doctor", OR "lawyer", or the phrase "state police" or "state trooper" or an abbreviation or derivation thereof, [may be] IS used ONLY in the name of a corporation the membership of which is composed exclusively of doctors, lawyers, state policemen or state troopers, respectively. S 20. Section 404 of the not-for-profit corporation law, as amended by chapter 139 of the laws of 1993, paragraph (b) as amended by section 4 of part D of chapter 58 of the laws of 2006, paragraphs (c), (k) and (l) as further amended by section 104 of part A of chapter 62 of the laws of 2011, paragraphs (a), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n) and (r) as relettered by chapter 431 of the laws of 1993, para- graph (g) as separately amended by chapter 201 of the laws of 1993, paragraphs (o), (p) and (t) as amended by section 79 of part A of chap- ter 58 of the laws of 2010, paragraph (q) as amended by chapter 198 of the laws of 2010, paragraph (u) as amended by chapter 558 of the laws of 1999, paragraph (v) as added by chapter 598 of the laws of 2000 and as further amended by section 104 of part A of chapter 62 of the laws of 2011, paragraph (w) as amended by chapter 316 of the laws of 2005, is amended to read as follows: S 404. Approvals and consents. (a) Every certificate of incorporation which includes among its purposes the formation of a trade or business association shall have endorsed thereon or annexed thereto the consent of the attorney-general. (b) (1) Every certificate of incorporation which includes among its purposes the care of destitute, delinquent, abandoned, neglected or dependent children; the establishment or operation of any adult care facility, or the establishment or operation of a residential program for victims of domestic violence as defined in subdivision four of section four hundred fifty-nine-a of the social services law, or the placing-out or boarding-out of children or a home or shelter for unmarried mothers, excepting the establishment or maintenance of a hospital or facility providing health-related services as those terms are defined in article twenty-eight of the public health law and a facility for which an oper- ating certificate is required by articles sixteen, nineteen, twenty-two and thirty-one of the mental hygiene law; or the solicitation of contributions for any such purpose or purposes, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the commissioner of the office of children and family services, or with respect to any adult care facility, the commissioner of health, OF SUCH PURPOSE HAS BEEN OBTAINED. (2) A corporation whose statement of purposes specifically includes the establishment or operation of a child day care center, as that term
is defined in section three hundred ninety of the social services law, shall provide a certified copy of the certificate of incorporation, each amendment thereto, and any certificate of merger, consolidation or dissolution involving such corporation to the office of children and family services within thirty days after the filing of such certificate, amendment, merger, consolidation or dissolution with the department of state. This requirement shall also apply to any foreign corporation filing an application for authority under section thirteen hundred four of this chapter, any amendments thereto, and any surrender of authority or termination of authority in this state of such corporation. (c) Every certificate of incorporation which includes among the purposes of the corporation, the establishment, maintenance and opera- tion of a hospital service or a health service or a medical expense indemnity plan or a dental expense indemnity plan as permitted in arti- cle forty-three of the insurance law, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the super- intendent of financial services and the commissioner of health OF SUCH PURPOSE HAS BEEN OBTAINED. (d) Every certificate of incorporation which includes a purpose for which a corporation might be chartered by the regents of the university of the State of New York shall [have endorsed thereon or annexed there- to] INCLUDE A CERTIFICATION THAT the consent of the commissioner of education TO SUCH PURPOSE HAS BEEN OBTAINED. (e) Every certificate of incorporation of a cemetery corporation, except those within the exclusionary provisions of section 1503 (Ceme- tery corporations) shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the cemetery board OF SUCH PURPOSE HAS BEEN OBTAINED. (f) Every certificate of incorporation of a fire corporation shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval, signed and acknowledged, of the authorities of each city, village, town or fire district in which the corporation proposes to act, OF SUCH PURPOSE HAS BEEN OBTAINED. Such authorities shall be: in a city, the mayor; in a village, a majority of the trustees; in a town, a major- ity of the members of the town board; in a fire district, a majority of the fire commissioners. The members of the town board of a town, or the trustees of a village, shall not consent to the formation of a fire corporation as hereinbefore provided, until such board shall have held a public hearing on the question of whether the fire company should be incorporated. The notice shall be published at least once in each week for two successive weeks in the official newspaper published in the county in which such fire corporation intends to locate, prior to the regular meeting of such board designated by the chairman of the board to consider the matter. Such notice shall contain the name of the proposed company, the names of the persons signing the certificate of incorpo- ration, a brief description of the territory to be protected by the fire company and that all persons interested shall be heard. If no newspaper is published in the county the publication of the notice shall be in a newspaper in an adjoining county selected by the chairman of such board. All expenses in connection with such publication shall be borne by the parties making the application and paid before the hearing. (g) Every certificate of incorporation of a corporation for prevention of cruelty to animals shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the American Society for the Prevention of Cruelty to Animals OF SUCH PURPOSE HAS BEEN OBTAINED, or, if such approval be withheld thirty days after application therefor,
a certified copy of an order of a justice of the supreme court of the judicial district in which the office of the corporation is to be located, dispensing with such approval, granted upon eight days' notice to such society. (h) Every certificate of incorporation of a Young Men's Christian Association shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the chairman of the national board of Young Men's Christian Associations OF SUCH PURPOSE HAS BEEN OBTAINED. (i) Every certificate of incorporation which indicates that the proposed corporation is to solicit funds for or otherwise benefit the armed forces of the United States or of any foreign country, or their auxiliaries, or of this or any other state or any territory, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the chief of staff OF SUCH PURPOSE HAS BEEN OBTAINED. (j) Every certificate of incorporation which includes among its purposes the organization of wage-earners for their mutual betterment, protection and advancement; the regulation of hours of labor, working conditions, or wages; or the performance, rendition or sale of services as labor consultant, labor-management advisor, negotiator, arbitrator, or specialist; and every certificate of incorporation in which the name of the proposed corporation includes "union", "labor", "council" or "industrial organization", or any abbreviation or derivative thereof in a context that indicates or implies that the corporation is formed for any of the above purposes, shall [have endorsed thereon or annexed ther- eto] INCLUDE A CERTIFICATION THAT the approval of the industrial board of appeals OF SUCH PURPOSE HAS BEEN OBTAINED. The board shall make such inquiry into the purposes of the proposed corporation as it shall deem advisable and shall order a hearing if necessary to determine whether or not such purposes are in all respects consistent with public policy and the labor law. Notice of the time and place of hearing shall be given to the applicants and such other persons as the board may determine. (k) Every certificate of incorporation for a corporation which has as its exclusive purpose the promotion of the interests of savings bank life insurance or the promotion of the interests of member banks may, if the CERTIFICATE INCLUDES A CERTIFICATION THAT approval of the super- intendent of financial services [is endorsed thereon or annexed thereto] HAS BEEN OBTAINED, use as a part of the corporate name any of the words or phrases, or any abbreviation or derivative thereof, set forth in subparagraph (5) of paragraph (a) of section 301 (Corporate name; gener- al). (l) Every certificate of incorporation for a corporation which has as its exclusive purpose the creation of an association of licensed insur- ance agents, licensed insurance brokers, or licensed insurance under- writers and every application for authority of a foreign corporation which is an independent laboratory engaged in testing for public safety, or which has as its purpose the advancement of corporate, governmental, and institutional risk and insurance management, or which has as its exclusive purpose the creation of an association of insurers, each of which is duly licensed in this state or, if it does no business or is not licensed in this state, is duly licensed in another state or foreign jurisdiction may, if the CERTIFICATE INCLUDES A CERTIFICATION THAT approval of the superintendent of financial services [is endorsed there- on or annexed thereto] HAS BEEN OBTAINED, use as a part of the corporate name any of the words or phrases, or any abbreviation or derivative thereof, set forth in subparagraph (5) of paragraph (a) of section 301 (Corporate name; general).
(m) Every certificate of incorporation in which the name of the proposed corporation includes the name of a political party shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the chairman of the county committee of such political party of the county in which the office of the corporation is to be located HAS BEEN OBTAINED, except in cases where the supreme court finds that the withholding of such consent of the county chairman is unreasonable. (n) Every certificate of incorporation in which the name of the proposed corporation includes the words "American Legion," shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the Department of New York, the American Legion, duly acknowledged by its commander or adjutant HAS BEEN OBTAINED. (o) Every certificate of incorporation which includes among its corpo- rate purposes or powers the establishment or maintenance of any hospi- tal, as defined in article twenty-eight of the public health law, or the solicitation of contributions for any such purpose, or purposes, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the public health and health planning council OF SUCH PURPOSE HAS BEEN OBTAINED. (p) Every certificate of incorporation of a medical corporation as defined in article forty-four of the public health law and organized pursuant thereto and pursuant to this chapter, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of health TO and the approval of the public health and health planning council OF SUCH PURPOSE HAS BEEN OBTAINED. (q) Every certificate of incorporation which includes among its corpo- rate purposes or powers the establishment, or operation of a facility for which an operating certificate from the commissioner of mental health is required by article thirty-one of the mental hygiene law, or the solicitation of contributions for any such purpose, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the commissioner of mental health OF SUCH PURPOSE HAS BEEN OBTAINED. (r) Every certificate of incorporation of a health maintenance organ- ization as defined in article forty-four of the public health law and organized pursuant thereto and pursuant to this chapter, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of health TO SUCH PURPOSE HAS BEEN OBTAINED. (t) Every certificate of incorporation which includes among its purposes and powers the establishment or maintenance of a hospital or facility providing health related services, as those terms are defined in article twenty-eight of the public health law, or the solicitation of contributions for any such purpose or two or more of such purposes, shall [have endorsed thereon] INCLUDE A CERTIFICATION THAT the approval of the public health and health planning council OF SUCH PURPOSE HAS BEEN OBTAINED. (u) Every certificate of incorporation which includes among the purposes of the corporation, the establishment or operation of a substance abuse, substance dependence, alcohol abuse, alcoholism, or chemical abuse or dependence program, or the solicitation of contrib- utions for any such purpose, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of the office of alcoholism and substance abuse services to its filing by the department of state TO SUCH PURPOSE HAS BEEN OBTAINED. (v) Every certificate of incorporation which includes among the purposes of the corporation, the establishment, maintenance and opera-
tion of a nonprofit property/casualty insurance company, pursuant to article sixty-seven of the insurance law, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the superintendent of financial services OF SUCH PURPOSE HAS BEEN OBTAINED. (w) Every certificate of incorporation in which the name of the proposed corporation includes the terms: "school," "education," "elemen- tary," "secondary," "kindergarten," "prekindergarten," "preschool," "nursery school," "museum," "history," "historical," "historical socie- ty," "arboretum," "library," "college," "university" or other term restricted by section two hundred twenty-four of the education law; "conservatory," "academy," or "institute," or any abbreviation or deriv- ative of such terms, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of educa- tion HAS BEEN OBTAINED. S 21. Paragraphs (a) and (b) of section 804 of the not-for-profit corporation law, as amended by chapter 139 of the laws of 1993, subpara- graph (i) of paragraph (a) as amended by chapter 198 of the laws of 2010, are amended to read as follows: (a) (i) A certificate of amendment shall not be filed if the amendment adds, changes or eliminates a purpose, power or provision the inclusion of which in a certificate of incorporation requires consent or approval of a governmental body or officer or any other person or body, or if the amendment changes the name of a corporation whose certificate of incor- poration had such consent or approval endorsed thereon or annexed there- to, unless such consent or approval is no longer required, or AS REQUIRED BY STATUTE, SUCH CONSENT OR APPROVAL is endorsed on or annexed to OR the certificate of amendment INCLUDES A CERTIFICATION THAT SUCH CONSENT OR APPROVAL HAS BEEN OBTAINED. (ii) Every certificate of amendment of a corporation [classified as type B or type C under section 201 (Purposes)] FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF SECTION 201 which seeks to change or eliminate a purpose or power enumerated in the corporation's certificate of incorporation, or to add a power or purpose not enumerated therein, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of a justice of the supreme court of the judicial district in which the office of the corporation is located HAS BEEN OBTAINED. Ten days' written notice of the application for such approval shall be given to the attorney-general. (b) The department of state shall not file a certificate of amendment reviving the existence of a corporation unless THE CERTIFICATE INCLUDES A CERTIFICATION THAT the REQUIRED consent or approval of a governmental body or officer or any other person or body [required to be endorsed on or annexed to the certificate of incorporation of a corporation formed for similar purposes, is attached thereto] HAS BEEN OBTAINED, or, if notice to the attorney-general was required prior to the filing of its certificate of incorporation, the certificate of amendment should indi- cate that such notice has been given as required by law. S 22. Section 909 of the not-for-profit corporation law, as amended by section 6 of part D of chapter 58 of the laws of 2006, is amended to read as follows: S 909. Consent to filing. If the purposes of any constituent or consolidated corporation would require the approval or consent of any governmental body or officer or any other person or body under section 404 (Approvals and consents) no certificate of merger or consolidation shall be filed pursuant to this article unless THE CERTIFICATE INCLUDES A CERTIFICATION THAT such
approval OF or consent [is endorsed thereon or annexed thereto] TO SUCH PURPOSE HAS BEEN OBTAINED OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR CONSENT IS ENDORSED THEREON OR ANNEXED THERETO. A corporation whose statement of purposes specifically includes the establishment or opera- tion of a child day care center, as that term is defined in section three hundred ninety of the social services law, shall provide a certi- fied copy of any certificate of merger or consolidation involving such corporation to the office of children and family services within thirty days after the filing of such merger or consolidation with the depart- ment of state. S 23. Paragraph (a) of section 1003 of the not-for-profit corporation law is amended by adding two new subparagraphs 8 and 9 to read as follows: (8) A CERTIFICATION THAT THE CONSENT OF THE DEPARTMENT OF TAXATION AND FINANCE TO THE DISSOLUTION HAS BEEN OBTAINED. (9) WITH RESPECT TO ANY CORPORATION THAT HAS DONE BUSINESS IN THE CITY OF NEW YORK AND INCURRED LIABILITY FOR ANY TAX OR CHARGE UNDER CHAPTER SIX, SEVEN, EIGHT, TEN, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, TWENTY-ONE, TWENTY-FOUR, TWENTY-FIVE OR TWENTY-SEVEN OF TITLE ELEVEN OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, A CERTIFICATION THAT CONSENT OF THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK TO THE DISSOLUTION HAS BEEN OBTAINED. S 24. Paragraph (a) of section 1004 of the not-for-profit corporation law, as amended by chapter 201 of the laws of 2009, is amended to read as follows: (a) [The department of state shall not file a certificate of dissol- ution unless the consent of the state department of taxation and finance to the dissolution is attached thereto.] Upon filing the certificate, the corporation is dissolved. S 25. Paragraph (b) of section 1004 of the not-for-profit corporation law is REPEALED. S 26. Subparagraph 8 of paragraph (a) and paragraph (c) of section 1304 of the not-for-profit corporation law, subparagraph 8 of paragraph (a) as renumbered by chapter 590 of the laws of 1982, are amended to read as follows: (8) A statement that the foreign corporation has not, since its incor- poration or since the date its authority to conduct activities in this state was last surrendered, done any act in this state, except as set forth in paragraph (b) of section 1301 (Authorization of foreign corpo- rations); or in lieu of such statement A CERTIFICATION THAT the consent of the state tax commission to the filing of the application [shall be attached thereto] HAS BEEN OBTAINED. (c) If the application for authority sets forth any purpose or activ- ity for which a domestic corporation could be formed only with the consent or approval of any governmental body or officer, or other person or body under section 404 (Approvals and consents), such APPLICATION SHALL INCLUDE A CERTIFICATION THAT THE consent TO or approval [shall be endorsed thereon or annexed thereto] OF SUCH PURPOSE HAS BEEN OBTAINED, OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR CONSENT IS ENDORSED THER- EON OR ANNEXED THERETO. S 27. Paragraph (c) of section 1309 of the not-for-profit corporation law, as added by chapter 961 of the laws of 1972, is amended to read as follows: (c) A certificate of amendment of application for authority shall not be filed, if the amendment adds, changes or eliminates a purpose, power or provision the inclusion of which in an application for authority
requires consent or approval of any governmental body or officer or other person or body, or if the amendment changes the name of a corpo- ration whose application for authority had such consent or approval endorsed thereon or annexed thereto, unless such AMENDMENT INCLUDES A CERTIFICATION THAT SUCH consent TO or approval [is endorsed on or annexed to the certificate of amendment] of application for authority HAS BEEN OBTAINED, OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR CONSENT IS ENDORSED THEREON OR ANNEXED THERETO. S 28. Paragraph (a) of section 1311 of the not-for-profit corporation law is amended by adding a new paragraph 7 to read as follows: (7) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND FINANCE TO THE SURRENDER OF AUTHORITY HAS BEEN OBTAINED. S 29. Paragraph (c) of section 1311 of the not-for-profit corporation law is REPEALED and paragraph (d) is relettered paragraph (c). S 30. Paragraph (b) of section 1505 of the not-for-profit law, as added by chapter 871 of the laws of 1977, is amended to read as follows: (b) Cemetery board endorsement. Every certificate of incorporation of a cemetery corporation, except those within the exclusionary provisions of section fifteen hundred three, shall [have endorsed there- on or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the cemetery board as required in subdivision (e) of section four hundred four of this chapter HAS BEEN OBTAINED. S 31. Subparagraphs (A) and (B) of paragraph 3 of subdivision (a) of section 121-102 of the partnership law, subparagraph (A) as amended by chapter 316 of the laws of 2005, subparagraph (B) as amended by chapter 155 of the laws of 2012, are amended to read as follows: (A) may not contain the following phrases or any abbreviation or derivative thereof: board of trade state trooper chamber of commerce tenant relocation community renewal urban development state police urban relocation Every certificate of limited partnership in which the name of the proposed limited partnership includes the terms: "school," "education," "elementary," "secondary," "kindergarten," "prekindergarten," "preschool," "nursery school," "museum," "history," "historical," "historical society," "arboretum," "library," "college," "university" or other term restricted by section two hundred twenty-four of the educa- tion law; "conservatory," "academy," or "institute," or any abbreviation or derivative of such terms, shall [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of education HAS BEEN OBTAINED. (B) may not contain the following words, or any abbreviation or deriv- ative thereof: acceptance indemnity annuity insurance assurance investment bank lawyer benefit loan bond mortgage casualty savings doctor surety endowment title fidelity trust finance underwriter guaranty
unless the [approval of the superintendent of financial services is attached to the] certificate of limited partnership INCLUDES A CERTIF- ICATION THAT THE APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED; or unless the word "doctor" or "lawyer" or an abbre- viation or derivative thereof is used in a context which clearly denotes a purpose other than the practice of law or medicine. S 32. Subparagraph (C) of paragraph 3 of subdivision (a) of section 121-102 of the partnership law, as added by chapter 264 of the laws of 1991, is amended to read as follows: (C) shall not, unless [the approval of the state department of social services is attached to] the certificate of limited partnership or application for authority or amendment thereof INCLUDES A CERTIFICATION THAT THE APPROVAL OF THE STATE DEPARTMENT OF SOCIAL SERVICES HAS BEEN OBTAINED, contain the word "blind" or "handicapped". Such approval shall be granted by the state department of social services if in its opinion the word "blind" or "handicapped" as used in the limited partnership name proposed will not tend to mislead or confuse the public into believing that the limited partnership is organized for charitable or nonprofit purposes related to the blind or the handicapped. S 33. Section 121-206 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: S 121-206. Filing with the department of state. A signed certificate of limited partnership and any signed certificates of amendment or other certificates filed pursuant to this article or of any judicial decree of amendment or cancellation shall be delivered to the department of state. If the instrument which is delivered to the department of state for filing complies as to form with the requirements of law and the filing fee required by any statute of this state in connection therewith has been paid, the instrument shall be filed and indexed by the department of state. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF STATE BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A DOMESTIC LIMITED PARTNERSHIP OR FOREIGN AUTHORIZED LIMITED PARTNERSHIP HAS FAILED TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRU- MENT, THE LIMITED PARTNERSHIP'S AUTHORITY TO CARRY ON, CONDUCT OR TRANS- ACT BUSINESS IN THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR APPROVAL ANNEXED THERETO. S 34. Section 14 of the private housing finance law, as amended by chapter 544 of the laws of 1961, is amended to read as follows: S 14. Consent of commissioner to incorporation. Whenever any such certificate shall be presented to the secretary of state, [he] THE SECRETARY shall not file such certificate unless [there shall accompany the same a] THE CERTIFICATE INCLUDES A CERTIFICATION THAT A certificate of the commissioner that he consents to the filing of such certificate HAS BEEN OBTAINED; nor shall any amendment to the certificate of incor- poration be filed unless it [is accompanied by] INCLUDES A CERTIFICATION THAT a certificate of the commissioner consenting thereto HAS BEEN OBTAINED. If a company has entered into a contract with a municipality for the construction of a municipally aided project, the commissioner shall not issue a certificate consenting to an amendment of the certif- icate of incorporation of such company, unless the supervising agency has given its written consent to such amendment. S 35. Subdivision 5 of section 573 of the private housing finance law, as amended by chapter 410 of the laws of 1984, is amended to read as follows:
5. The secretary of state shall not file the certificate of incorpo- ration of any such corporation or any amendment thereto unless THE CERTIFICATE INCLUDES A CERTIFICATION THAT the consent or approval of the commissioner or the supervising agency, as the case may be, [is affixed thereon or attached thereto] HAS BEEN OBTAINED. Consent to the filing of such certificate of incorporation shall be based upon findings by the commissioner or supervising agency as to the character and competence of the sponsor. S 36. Subdivision 1 of section 2801-a of the public health law, as amended by section 57 of part A of chapter 58 of the laws of 2010, is amended to read as follows: 1. No hospital, as defined in this article, shall be established except with the written approval of the public health and health plan- ning council. No certificate of incorporation of a business membership or not-for-profit corporation shall hereafter be filed which includes among its corporate purposes or powers the establishment or operation of any hospital, as defined in this article, or the solicitation of contributions for any such purpose, or two or more of such purposes, except with the written approval of the public health and health plan- ning council, and when otherwise required by law of a justice of the supreme court, [endorsed on or annexed to] the certificate of incorpo- ration INCLUDES A CERTIFICATION THAT SUCH WRITTEN APPROVAL HAS BEEN OBTAINED. No articles of organization of a limited liability company established pursuant to the New York limited liability company law which includes among its powers or purposes the establishment or operation of any hospital as defined in this article, shall be filed with the depart- ment of state except [upon] WHEN THE ARTICLES OF ORGANIZATION INCLUDE A CERTIFICATION THAT the approval of the public health and health planning council HAS BEEN OBTAINED. S 37. Section 41 of the transportation corporations law, as amended by chapter 782 of the laws of 1969, is amended to read as follows: S 41. Municipal consent to incorporation. No certificate of incorpo- ration of a water-works corporation shall be filed unless [there be annexed thereto a] THE CERTIFICATE INCLUDES A CERTIFICATION THAT consent to the formation of the corporation, signed and acknowledged by the local authorities of each municipality named in such certificate HAS BEEN OBTAINED. Such authorities shall be: in a city, a majority of the members of the board or body having charge of the water supply, or if there be no such board or body, a majority of the members of the local legislative body; in a village, a majority of the members of the board of trustees; in a town outside of a village, the town superintendent of highways and a majority of the members of the town board. Such consent to the formation of the corporation shall not be granted by said local authorities until ten days prior notice in writing of the application for such consent and until an engineering plan for proposed water system specifying location and size and type of wells, pumps, distribution mains and other facilities of the water supply and/or distribution system is furnished by the water works corporation to the local authori- ties and to the county water authority, and to the county water district if there be such authority or district where the proposed corporation seeks to operate; and until said authority or district has reported in writing to the municipality named in the certificate of incorporation its recommendations as to whether or not such consent should be granted, setting forth the reasons for such recommendation and a finding as to whether the proposed water supply and/or distribution system is reason- ably comparable to standards of a county-wide water system and suitable
for eventual integration with such county-wide water system. Said report shall be filed with such municipality on or before the tenth day after the giving of the notice aforesaid. S 38. Subdivision 1 of section 116 of the transportation corporations law, as amended by chapter 828 of the laws of 1970, is amended to read as follows: 1. No certificate of incorporation of a sewage-works corporation shall be filed unless [there be annexed thereto] THE CERTIFICATE INCLUDES A CERTIFICATION THAT a certificate or certificates duly executed in behalf of the local governing bodies of the city, town or village, as the case may be, in which any part of a sewer system provided by such corporation is situate and, in the county of Suffolk, an additional certificate duly executed in behalf of the county sewer agency, consenting to the forma- tion of the corporation for the area described in such certificate HAS BEEN OBTAINED. S 39. This act shall take effect immediately; provided however that section twenty-three of this act shall take effect on the sixtieth day after it shall have become a law. SUBPART C Section 1. Paragraph (a) of section 602 of the business corporation law is amended to read as follows: (a) Meetings of shareholders may be held at such place, within or without this state, as may be fixed by or under the by-laws, or if not so fixed, at the office of the corporation in this state. EXCEPT AS PROVIDED IN THE BY-LAWS, SHAREHOLDERS MAY PARTICIPATE IN A MEETING BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING CAN HEAR EACH OTHER. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING. S 2. Paragraph (b) of section 402 of the limited liability company law is amended to read as follows: (b) Except as provided in the operating agreement, any member may vote in person [or], by proxy, OR BY ELECTRONIC MEANS. S 3. Paragraphs (a) and (c) of section 603 of the not-for-profit corporation law, paragraph (c) as amended by chapter 961 of the laws of 1972, are amended to read as follows: (a) Meetings of members may be held at such place, within or without this state, as may be fixed by or under the by-laws or, if not so fixed, at the office of the corporation in this state. EXCEPT AS PROVIDED IN THE BY-LAWS, MEMBERS MAY PARTICIPATE IN A MEETING BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING CAN HEAR EACH OTHER. SUCH PARTIC- IPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING. (c) Special meetings of the members may be called by the board and by such person or persons as may be authorized by the certificate of incor- poration or the by-laws. In any case, such meetings may be convened by the members entitled to cast ten per cent of the total number of votes entitled to be cast at such meeting, who may, in writing, demand the call of a special meeting specifying the date and month thereof, which shall not be less than two nor more than three months from the date of such written demand. The secretary of the corporation upon receiving the written demand shall promptly give notice of such meeting, or if he fails to do so within five business days thereafter, any member signing such demand may give such notice. The meeting shall be held at the place
fixed in the by-laws or, if not so fixed, at the office of the corpo- ration. EXCEPT AS PROVIDED IN THE BY-LAWS, MEMBERS MAY PARTICIPATE IN A MEETING BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING CAN HEAR EACH OTHER. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING. S 4. Paragraph (b) of section 121-405 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (b) A partnership agreement may set forth provisions relating to notice of the time, place or purpose of any meeting at which any matter is to be voted on by any general partners, waiver of any such notice, action by consent without a meeting, the establishment of a record date, quorum requirements, voting in person [or], by proxy, OR BY ELECTRONIC MEANS or any other matter with respect to the exercise of any such right to vote. S 5. This act shall take effect immediately. SUBPART D Section 1. Section 401 of the business corporation law, as amended by chapter 900 of the laws of 1974, is amended to read as follows: S 401. Incorporators. One or more natural persons [of the age of] AT LEAST eighteen years [or over] OF AGE OR ANY PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION, SINGLY OR JOINTLY WITH OTHERS, may act as incorporators of a corporation to be formed under this chapter. S 2. Subdivisions (a) and (b) of section 203 of the limited liability company law, subdivision (a) as amended by chapter 470 of the laws of 1997, is amended to read as follows: (a) One or more NATURAL persons AT LEAST EIGHTEEN YEARS OF AGE OR ANY PARTNERSHIP, LIMITED LIABILITY COMPANY, SINGLY OR JOINTLY WITH OTHERS, may act as an organizer or organizers to form a limited liability compa- ny by (i) preparing the articles of organization of such limited liabil- ity company in accordance with subdivision (e) of this section, (ii) executing such articles of organization in accordance with section two hundred seven of this article and (iii) filing such articles, entitled "Articles of organization of... (name of limited liability company) under section two hundred three of the Limited Liability Company Law," in accordance with section two hundred nine of this article. (b) An organizer may, but need not be, a member of the limited liabil- ity company that he [or], she OR IT forms. S 3. Section 401 of the not-for-profit corporation law, as amended by chapter 901 of the laws of 1974, is amended to read as follows: S 401. Incorporators. One or more natural persons at least eighteen years of age OR ANY PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION, SINGLY OR JOINT- LY WITH OTHERS, may act as incorporators of a corporation to be formed under this chapter. S 4. This act shall take effect immediately. SUBPART E Section 1. Section 19 of the general associations law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: S 19. Service of process. Service of process against an association upon the secretary of state shall be made by personally delivering to
and leaving with [him] THE SECRETARY OF STATE or a deputy [secretary of state or an associate attorney, senior attorney or attorney in the corporation division of the department of state, duplicate copies of such process], OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE at the office of the department of state in the city of Albany, DUPLICATE COPIES OF SUCH PROCESS TOGETHER WITH THE STAT- UTORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. [At the time of such service the plaintiff shall pay a fee of forty dollars to the secretary of state which shall be a taxable disbursement. If the cost of registered mail for transmitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process.] The secretary of state shall [forthwith] PROMPTLY send by CERTIFIED registered mail one of such copies OF SUCH PROCESS to the association at the address fixed for that purpose, as herein provided. If the action or proceeding is instituted in a court of limited jurisdiction, service of process may be made in the manner provided in this section if the cause of action arose within the territorial jurisdiction of the court and the office of the defend- ant, as set forth in its statement filed pursuant to section eighteen of this chapter, is within such territorial jurisdiction. S 2. This act shall take effect immediately. SUBPART F Section 1. Subdivision 1 of section 180 of the tax law, as amended by section 42 of part A of chapter 389 of the laws of 1997, is amended to read as follows: 1. (a) Imposition. Every stock corporation incorporated under any law of this state and every corporation formed under the business corpo- ration law of this state shall pay a tax of [one-twentieth of one per centum] TEN DOLLARS upon [the amount of the par value of all] the shares [with a par value] which it is authorized to issue [and a tax of five cents on each share without a par value which it is authorized to issue], and a like tax upon any shares subsequently authorized[, except as hereinafter provided] OR CHANGED. (b) [Changes with respect to shares. (1) Every corporation which shall change shares with par value into shares without par value shall pay a tax of five cents for each share without par value resulting from such change, less one-twentieth of one per centum of the par value on the shares with par value so changed. (2) Every corporation which shall change shares without par value into shares with par value shall pay a tax of one-twentieth of one per centum upon the amount of the par value of the shares resulting from such change, less five cents with respect to each share without par value so changed. (3) Every corporation which shall change shares without par value into shares without par value shall pay a tax of five cents for each share without par value resulting from such change, less five cents with respect to each share without par value so changed, and less five cents with respect to each share without par value not authorized previous to such change but resulting from such change and issued pursuant to the terms upon which such change is made, provided such change is effected after the expiration of five years from the date of the filing of a certificate of incorporation pursuant to the stock corporation law or the business corporation law or a certificate of amendment to effect the change provided for in subparagraph five of paragraph c of subdivision
two of section thirty-five of the stock corporation law or in subpara- graph eleven of paragraph (b) of section eight hundred one of the busi- ness corporation law. (4) Every corporation which shall change shares with par value into both shares with par value and shares without par value shall pay a tax of one-twentieth of one per centum upon the amount of the par value of the shares with par value resulting from such change plus five cents for each share without par value resulting from such change, less one-twen- tieth of one per centum of the par value of the shares with par value so changed. (5) Every corporation which shall change shares without par value into both shares with par value and shares without par value shall pay a tax of one-twentieth of one per centum upon the amount of the par value of the shares with par value resulting from such change plus five cents for each share without par value resulting from such change, less five cents with respect to each share without par value so changed. (c) Minimum tax. Provided, that in no case shall a tax under this section be less than ten dollars. (d)]
Payment. Such tax shall be due and payable upon the incorporation of such corporation and upon any subsequent authorization, increase of par value or change of shares. [Except in the case of a railroad corpo- ration, neither the secretary of state nor county clerk shall file any certificate of incorporation, or of amendment increasing capital stock, or the number of par value of shares, or a certificate of merger or consolidation, or certificate of change or authorization of shares, or give any certificate to any such corporation until such tax has been paid, and no stock corporation or corporation formed under the business corporation law shall have or exercise any corporate franchise or powers, or carry on business in this state until such tax shall have been paid. (e)] (C) Mergers and consolidations. In case of the merger or the consolidation of existing corporations into a single corporation, a new corporation resulting from such consolidation or a constituent corpo- ration surviving such merger or consolidation shall be required to pay the tax hereinbefore provided for, only if it is incorporated under the laws of this state[, and then only upon the taxable amount of its capi- tal stock or shares in excess of the aggregate amount of capital stock or shares of such of the constituent corporations as were organized under the laws of this state]. [(f)] (D) Special corporations. This section shall not apply to state and national banks and trust companies or to building, mutual loan, accumulating fund and cooperative associations. [A railroad corporation need not pay such tax at the time of filing its certificate of incorpo- ration, but shall pay the same before the public service commission shall grant a certificate, as required by the railroad law, authorizing the construction of the road as proposed in its articles of association, and such certificate shall not be granted by the public service commis- sion until it is furnished with a receipt for such tax from the secre- tary of state. If the board of railroad commissioners or public service commission shall have heretofore granted, or the public service commis- sion shall hereafter grant, such certificate and upon an appeal from the determination of such board of railroad commissioners or public service commission, such certificate has been or may hereafter be denied, the state treasurer shall refund the amount of tax so paid to the railroad corporation or corporations by which such tax was paid, upon proof of payment being presented and appropriation being made therefor.]
S 2. Subdivision 2 of section 180 of the tax law, as amended by chap- ter 685 of the laws of 1938, is amended to read as follows: 2. The tax imposed by this section shall be collected by the state officer in whose office the original certificate of incorporation or [certificate of increase of amount of capital stock or certificate of increase of number or par value of shares or consolidation agreement, or] certificate changing or authorizing shares, as the case may be, is required by law to be filed, and such state officer shall[, except in the case of the certificate of incorporation of a railroad corporation,] collect such tax before filing such certificate and shall note the payment of such tax thereon and shall issue a receipt therefor. S 3. Subdivision 1 of section 181 of the tax law, as amended by section 43 of part A of chapter 389 of the laws of 1997, is amended to read as follows: 1. (a) Definition. As used in this section, the term "corporation" includes a joint-stock company or association and any business conducted by a trustee or trustees wherein interest or ownership is evidenced by certificate or other written instrument. (b) Imposition. Every foreign corporation, except banking corporations as defined in paragraph one, two, three, four, five, six, seven or eight of subsection (a) of section fourteen hundred fifty-two of this chapter, fire, marine, casualty and life insurance companies, co-operative fraternal insurance companies, and building and loan associations, doing business in this state, shall pay a license fee of [one-twentieth of one per centum] TEN DOLLARS on its issued [par value] capital stock employed within this state [and five cents on each share of its capital stock without par value employed within this state] AND A LIKE TAX UPON ANY CAPITAL STOCK SUBSEQUENTLY AUTHORIZED OR CHANGED for the privilege of exercising its corporate franchises or carrying on its business in such corporate or organized capacity in this state. [The first payment pursuant to this section shall not be less than ten dollars.] (c) [Recomputation based on changes. In any case where a change is made in the capital share structure of a corporation, or the amount of capital stock employed in this state is increased, the fee shall be recomputed on the basis of such change or increase, and there shall be credited against the fee, as recomputed, the amount of any fee that may have been previously paid pursuant to this section, but, if the fee previously paid exceeds the fee as recomputed, there shall be no refund. (d) Apportionment. The measure of the amount of capital stock employed in this state shall be such a portion of the issued capital stock as the gross assets, exclusive of obligations issued by the United States and cash on hand and on deposit, employed in business by such corporation within this state, bear to the gross assets, exclusive of obligations issued by the United States and cash on hand and on deposit, wherever employed in business by such corporation, except that the amount of capital stock employed in this state by a corporation subject to tax under article nine-A of this chapter shall be that proportion of its capital stock which is equal to the proportion of its business, invest- ment and subsidiary capital allocable within the state pursuant to the provisions of said article. The capital of a corporation invested in the stock of another corporation shall be deemed to be assets located where the assets of the issuing corporation, other than patents, copyrights, trade-marks, contracts and good will, are located. (e) Procedures and collection. The amount of capital upon which such license fees shall be paid shall be fixed by the commissioner, who shall have the same authority to examine the books and records in this state
of such foreign corporations, and the employees thereof as such commis- sioner has in the case of domestic corporations, and the commissioner shall have the same power to issue a warrant for the collection of such license fees, as now exists with regard to domestic corporations. (f)]
Article nine-A taxpayers. Notwithstanding any other provision of this section, every foreign corporation subject to tax under article nine-A of this chapter shall also be subject to the license fee imposed by this section for the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing property in this state in a corporate or organized capacity, or of main- taining an office in this state. S 4. This act shall take effect immediately. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this act shall be as specifically set forth in the last section of such Subparts. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through Q of this act shall be as specifically set forth in the last section of such Parts.

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