S2811B-2011 Actions

• Mar 31, 2011: SIGNED CHAP.61
• Mar 30, 2011: DELIVERED TO GOVERNOR
• Mar 30, 2011: returned to senate
• Mar 30, 2011: passed assembly
• Mar 30, 2011: message of necessity - 3 day message
• Mar 30, 2011: ordered to third reading rules cal.15
• Mar 30, 2011: substituted for a4011c
• Mar 30, 2011: referred to ways and means
• Mar 30, 2011: DELIVERED TO ASSEMBLY
• Mar 30, 2011: PASSED SENATE
• Mar 30, 2011: MESSAGE OF NECESSITY
• Mar 30, 2011: ORDERED TO THIRD READING CAL.285
• Mar 30, 2011: PRINT NUMBER 2811C
• Mar 30, 2011: AMEND (T) AND RECOMMIT TO FINANCE
• Mar 12, 2011: PRINT NUMBER 2811B
• Mar 12, 2011: AMEND (T) AND RECOMMIT TO FINANCE
• Feb 25, 2011: PRINT NUMBER 2811A
• Feb 25, 2011: AMEND (T) AND RECOMMIT TO FINANCE
• Feb 1, 2011: REFERRED TO FINANCE

S2811B-2011 Votes

S2811B-2011 Memo

BILL NUMBER:S2811B

TITLE OF BILL:
An act
to amend the abandoned property law, in relation to the dormancy period
of miscellaneous unclaimed property,
payment of abandoned property,
publication of notices of abandoned property, and written reports
pertaining to payment of abandoned property; to amend the tax law, in
relation to reports by the commissioner regarding abandoned property;
and to repeal certain provisions of the abandoned property law
and the tax law
relating thereto
(Part A);
to amend part N of chapter 61 of the laws of 2005 amending the tax law
relating to certain transactions and related information and relating to
the voluntary compliance initiative, in relation to
the effectiveness of certain
provisions
(Part B);
Intentionally omitted
(Part C);
to amend the tax law, in relation to directing the crediting of lottery
prizes of more than six hundred dollars against liability for any tax
administered by the commissioner of taxation and finance (Part D);
to amend chapter 56 of the laws of 1998, amending the tax law and other
laws relating to extending the dates of application of the investment
tax credit under articles 9-A, 22 and 32 of the tax law and to amend
chapter 63 of the laws of 2000, amending the tax law and other laws
relating to extending the dates of application of the investment tax
credit under article 33 of the tax law, in relation to the
effectiveness
of certain provisions
(Part E);
to amend the public housing law, in relation to providing a credit
against income tax for persons or entities investing in low-income
housing (Part F); Intentionally omitted (Part G);
Intentionally omitted (Part H);
to amend the insurance law and the tax law,
in relation to excess line insurance
(Part I);
to amend chapter 298 of the laws of 1985, amending the tax law relating
to the franchise tax on banking corporations imposed by the tax law,
authorized to be imposed by any city having a population of one million
or more by chapter 772 of the laws of 1966 and imposed by the
administrative code of the city of New York and relating to other
provisions of the tax law, chapter 883 of the laws of 1975 and the
administrative code of the city of New York which relates to such
franchise tax, to amend chapter 817 of the laws of 1987, amending the
tax law and the environmental conservation law, constituting the
business tax reform and rate reduction act of 1987, and to amend
chapter 525 of the laws of 1988, amending the tax law and the
administrative code of the city of New York relating to the imposition
of taxes in the city of New York, in relation to the effectiveness of
certain provisions of such chapters; and to amend the tax law and the
administrative code of the city of New York, in relation to
making


transitional provisions relating to the federal Gramm-Leach-Bliley act
permanent
(Part J);
to amend the tax law and the criminal procedure law, in relation to
updating the tax classification of diesel motor fuel to be consistent
with federal laws and make the diesel tax structure consistent with this
new tax treatment; and to repeal certain provisions of the tax law and
the administrative code of the city of New York relating thereto
(Part K);
to amend the tax law, in relation
to making a technical correction to
the E85 definition; and to
amend
chapter 109 of the laws of 2006, amending the tax law relating to
providing exemptions, reimbursements and credits from various taxes for
certain alternative fuels,
in
relation to extending the
alternative fuels tax exemptions
for one year (Part L);
to amend section 11 of part EE of chapter 63 of the laws of 2000,
amending the tax law and other laws relating to modifying the
distribution of funds from the motor vehicle fuel excise tax, in
relation to the distribution of motor vehicle fees (Part M);
to amend the tax law, in relation to restrictions on certain keno style
lottery games (Part N);
to amend the tax law, in relation to video lottery
free play allowance program (Part O);
to amend the tax law, in relation
to prize payout of certain instant lottery
games (Part P);
to amend the tax law, in relation to prize payout in certain
multi-jurisdictional lottery games (Part Q);
to amend the tax law, in relation to multi-jurisdictional video lottery
gaming (Part R);
to amend the racing, pari-mutuel wagering and breeding law, in relation
to licenses for simulcast facilities, sums relating to track simulcast,
simulcast of out-of-state thoroughbred races, simulcasting of races run
by out-of-state harness tracks and distributions of wagers; to amend
chapter 281 of the laws of 1994 amending the racing, pari-mutuel
wagering and breeding law and other laws relating to simulcasting and
chapter 346 of the laws of 1990 amending the racing, pari-mutuel
wagering and breeding law and other laws relating to simulcasting and
the imposition of certain taxes, in relation to extending certain
provisions thereof;
and to amend the racing, pari-mutuel wagering and breeding law, in
relation to extending certain provisions thereof (Part S);
to repeal paragraph (h) of subdivision 12-G of section 210 of the tax
law relating to the applicability of the qualified emerging technology
company facilities, operations and training credit (Part T);
to amend the tax law and the state finance law, in relation to
application fees owed by retail dealers of businesses that sell tobacco
products and owners of cigarette vending machines (Part U);
to amend the tax law, in relation to sales tax for transportation
service (Part V);
to amend the tax law, in relation to the tax on certain tobacco products;
and to amend the public health law, in relation to regulation of tobacco


products (Part W);
to amend the tax law, in relation to temporary deferral payout credits
(Part X);
to amend part A of chapter 57 of the laws of 2010 amending the tax law
relating to the statutory limitation on the biofuel production credit
and the qualified emerging technology company facilities, operations and
training credits, in relation to the effectiveness thereof (Part Y);
to amend the tax law, in relation to an investment tax credit (Part Z);
to amend the public service law, in relation to a temporary annual
assessment and to amend part NN of chapter 59 of the laws of 2009
amending the public service law relating to financing operations of the
department of public service, in relation to the effectiveness thereof
(Part AA);
to amend the tax law, in relation to the metropolitan commuter
transportation mobility tax (Part BB);
to amend the tax law, in relation to removing the credit for
rehabilitation of historic properties from the temporary deferral of
certain tax credits (Part CC);
to amend chapter 912 of the laws of 1920 relating to the regulation of
boxing, sparring and wrestling, in relation to establishing protocols
for combative sports and authorizing mixed martial arts events in this
state; to amend the tax law, in relation to the imposition of a
tax on the gross receipts of any person holding any
professional or amateur boxing, sparring or wrestling match or
exhibition, or
professional
combative sports match or exhibition; and providing for the repeal of
such provisions upon expiration thereof (Part DD);
to amend the insurance law and the tax law, in relation to
establishing the
surplus lines insurance multi-state compliance compact with respect to
surplus lines
insurance and premium tax allocation (Part EE);
to amend the tax law, in relation to establishing a community
transformation program credit (Part FF); and
to amend the racing, pari-mutuel wagering and breeding law and the state
finance law, in relation to the New York city off-track betting
corporation and establishing the New York city off-track betting
corporation fund; to amend the racing, pari-mutuel wagering
and breeding law, in relation
to use and expenditure of funds of the capital acquisition fund;
to repeal certain provisions of the racing,
pari-mutuel wagering and breeding law relating thereto; and providing
for the repeal of certain provisions upon the expiration thereof
(Part GG)

SUMMARY:
Part A - Abandoned Property Spin Up

Amends the Executive proposal by eliminating additional administrative
money for the Comptroller.
Changes from five to three years the amount of time it takes for a
condemnation award, credit balances arising from loans, bank
accounts, lost cash, money on deposits to secure funds, court bail,
certain trusts, escrow accounts and child or spousal support to be
deemed abandoned property and collected by the state. Also changes


from six years to three years the amount of time a surplus from the
sale of pledged property will become abandoned property.

Part B - Tax Shelter Reporting

The Senate amends the Executive proposal by extending the provisions
of the tax law relating to tax shelter disclosure and penalties by
four years. First enacted in 2005, these provisions require the
disclosure of information necessary to detect the use of tax shelters
by taxpayers.

Part C - Empire Zone Program Compliance

The Senate denies the Executive's proposal to clarify that the Tax
Department would have the power to deny Empire Zone credits to those
businesses decertified by Department of Economic Development (DED).
Under the Empire Zone Program, certified businesses were allowed
certain tax benefits for a period of ten years. However, the Empire
Zone Program expired on June 30,2010. Upon expiration of the program,
those businesses that had not exhausted their tax benefits were
authorized to retain those benefits for the full ten year period
unless the business was subsequently decertified for not meeting its
performance objectives. Since there are still 7,500 businesses
receiving tax benefits under the Program, DED is still required to
monitor these businesses.

Part D - Offset of Lottery Winnings

The Senate concurs with the Executive proposal to intercept lottery
prizes for the payment of outstanding tax liabilities. Currently, the
Tax Department is authorized to intercept a taxpayer's refund in
order to pay outstanding tax liabilities, child support payments,
education loans, or debts to state agencies. In addition, the
Division of Lottery is authorized to intercept a lottery winner's
awards for the payment of outstanding child support and the repayment
of public assistance benefits.

Part E - Financial Services Investment Tax Credit

The Senate amends the Executive proposal by making the financial
services investment tax credit permanent. The current credit is
scheduled to sunset on October 1, 2011. The credit is extended for
the corporation franchise tax, personal income tax, bank tax and
insurance tax.

Part F - Low-Income Housing Credit

The Senate concurs with the Executive to authorize an additional $4
million in low-income housing credits for ten years, allowing the
Commissioner of Housing and Community Renewal to allocate a total of
$32 million in these credits per year.

Part G - Excelsior Jobs Program Amendments

The Senate denies the Executives proposal to extend and modify the
Excelsior Jobs program and will explore a more comprehensive, less
restrictive economic development package to vastly increase the


number of New York businesses that can participate in and benefit
from such a program. Under the Excelsior Jobs program, four
refundable tax credits were created for selected firms in targeted
industries that create and maintain new jobs in New York. A business'
initial application to the program requires a plan that the business
will create a minimum number of new jobs, dependent on the specific
industry.
For example, a manufacturing business is required to create at least
ten jobs. The changes made by the Executive Budget do not address the
overall weakness of the program. The program is still too inflexible
and too exclusive. Each phase of the program is estimated to include
only 40 companies. In addition, if a company performs and grows
beyond plans and expectations the company gains no additional
benefits from the program.

Part H - Limit the Exemption Provided for Town or County Cooperative
Insurance Corporations Under the Insurance Franchise Tax

The Senate denies the Executive proposal limiting the exemption for
town or county cooperative insurance companies that existed before
1937 on the insurance franchise tax

Parts I & EE - Conform the New York State Insurance and Bank Laws to
the Federal Dodd-Frank Excess Lines Tax Provisions and Authorize New
York State to Participate in a National Compact that Collects and
Remits Excess Lines Taxes to the States

The Senate amends the Executive proposal conforming the Article 33-A
insurance tax on independently procured insurers to the new rules
established in the Federal Dodd-Frank Wall Street Reform and Consumer
Protection Act and the Non-admitted and Reinsurance Reform Act of
2010 by conforming tax provisions and also enacting an interstate
compact effectuating such federal changes.

The new Federal law no longer allows any State to tax excess line
premiums if the insured resides outside of the taxing state. This
will conform New York State with this Dodd-Frank provision allowing
New York State to participate in the NCOIL compact (SLIMPACT), which
is a multi-state agreement for the purpose of collecting, allocating
and disbursing taxes to participating states.

Part J - 1985 Bank Tax Extension and Gramm Leach Bliley Extender

The Senate concurs with the Executive proposal making permanent the
major provisions of the 1985 and 1987 bank tax reforms and amends the
proposal to extend the transitional provisions in New York's bank tax
enacted in response to the Federal Gramm-Leach-Bliley Act by making
them permanent while adding language to allow a one-time tax change
for those companies that no longer qualify as a bank and would like
to be taxed as a corporate franchise.

Part K - Modernize Fuel Definitions

The Senate concurs with the Executive proposal changing the
definitions of fuels in the tax law to match the definitions in
Federal law. This will change the current assignment of taxation from
the fuel's level


of "enhancement" to the federal basis of whether the fuel is dyed.
Changes at the federal level regarding the use of low sulfur diesel
and the changes enacted by New York State in 2010 requiring all home
heating fuel to be low sulfur fuel has created a situation in New
York that could force hundreds of thousands of New York taxpayers to
pay taxes up front on exempt fuel products. A homeowner that heats
with oil could end up paying hundreds of dollars extra at the time of
purchase and then have to apply for a refund from the state. This
part will rectify that situation and will continue to allow up front
exemptions for exempt products. This part does not change any tax
rates. Additionally, the definition for E85 is changed to match
federal standards to allow the alternative fuels exemption for all
seasonal mixes of E85.

Part L - Alternative Fuels Exemption

The Senate concurs with the Executive proposal extending the sunset
date of the exemption for alternative fuels from September 1, 2011 to
September 1, 2012. This provision of law allows E85, compressed
natural gas, and hydrogen a full exemption and B20 a partial
exemption from the motor fuel tax, the petroleum business tax, the
fuel use tax and state and local sales taxes. The definition for E85
is changed to match federal standards to allow the alternative fuels
exemption for all seasonal mixes of E85.

Part M - Streamline the Distribution of Motor Vehicle Fees

The Senate concurs with the Executive proposal to streamline the
disposition of revenues from motor vehicle taxes and fees. Currently,
some motor vehicle fees are counted as miscellaneous receipts and
flow directly into the General Fund while motor vehicle taxes and
other fees flow to the Dedicated Funds Pool. Any excess over $169.4
million then flows into the General Fund.

The proposed method would deposit all motor vehicle taxes and fees
into the Dedicated Funds Pool with any excess above $169.4 million
flowing to the General Fund. No motor vehicle fees will be reported
as miscellaneous receipts.

This new method will not result in any General Fund or Dedicated Funds
Pool receipt increase or decrease; the method will streamline the way
the state accounts for Motor Vehicle Fee collections and disbursements.

Part N - Quick Draw

The Senate concurs with the Executive proposal to eliminate the Quick
Draw restrictions relating to food sales, hours of operation and the
size of the facility.

Part 0 - Authorizes a Free Play Allowance Program

The Senate concurs with the Executive proposal to give the Division of
Lottery the ability to authorize a free play allowance program for
all nine video lottery gaming (VLG) facilities. The free play
allowance program will allow VLG facilities to offer free play
credits up to an amount equal to 10 percent of net machine income


without having to include them in the calculation of net machine
income (NMI) distributions.

The Division of Lottery would have to certify that each VLG facilities
free play proposal would increase revenues for education before
allowing the VLG facility to operate a free play program. The
Division of
Lottery and the Director of Budget may suspend the free play program
of any VLG facility if they determine that the program is "not
effective" in increasing the revenues in order to support education.

Part P - Additional 75 percent Instant Lottery Games

The Senate concurs with the Executive proposal to expand from three
games to five new games annually the number of instant scratch off
games that may offer a 75 percent payout

Part Q - Multi-Jurisdictional Lottery Game Higher Prize Payouts

The Senate concurs with the Executive proposal allowing the Division
of Lottery to increase the prize payouts to above 50 percent on
multi-jurisdictional lottery games if two-thirds of the participating
states agree to prize payout levels above 50 percent. Currently, New
York State only participates in the Mega millions and Powerball
multi-jurisdictional lottery games. New York is the only state that
has a prize payout limit

Part R - Multi-Jurisdictional Video Lottery Gaming

The Senate concurs with the Executive proposal to allow the Division
of Lottery to enter into VLG agreements with other states for the
purpose of creating multi-state progressive jackpot games.
Currently, VLG facilities within the state have worked together in
administering progressive jackpots.

Part S - Pari-Mutual Tax

The Senate concurs with the Executive proposal extending lower
pari-mutuel tax rates and rules governing simulcasting of out-of-state
races for one year.

The Senate amends the Executive proposal to include the following:

Part T - QETC Training Credit Eliminate the Sunset on the QETC training
credit. It currently expires at the end of the year.

Part U - Cigarette Retailer Registration Fee Reduce the Cigarette
Registration Fee from the current levels of $1,000, $2,500 and $5,000
down to $200 retro actively to 2010.

Part V - Transportation Sales Tax Loophole Fix a loophole in the sales
tax on Transportation Services so that a NYC Livery which does the
same business as a Black Car on a non-cash basis it has to pay the
sales tax just as a Black Car currently does (Livery outside of NYC
already have to pay the tax on all its business).


Part W - Cap Tobacco Tax on Cigars; Close Loophole on Blunt Wraps Cap
the Tobacco tax on cigars at $1 and, as an enforcement/loophole
closer, amends the law so that "blunt wraps" are considered the same
and taxed as any other tobacco product. Also specifies that, as with
cigarettes, the wraps must be sold in packs of 20 to make it more
difficult for young smokers to acquire such products.

Part X - Recoupment of Deferred Credits Allow companies who were
earning new tax credits during the period when credits were being
deferred to recoup a larger portion of the credits that were deferred
when the payout period begins.

Part Y - Biofuel Production Credit Postponement

Amend the Biofuel Production Credit to postpone for one year the
change that applied the $2.5 million credit maximum to the entity
level of the business instead of for each shareholder.

Part Z - Investment Advisory Activities ITC
Expand the securities
investment tax credit (ITC) definition of investment advisory
activity so that investment advisory services beyond those provided
to Regulated Investment Companies (i.e., mutual funds) will qualify
for the securities ITC. The expanded definition reflects changes in
the business model that have occurred since the ITC was originally
enacted.

Part AA - Rollback 18-A Assessments
Eliminate the increased 18-A
assessments enacted in 2009. These assessments are added on to
residents' utility bills and are scheduled to sunset at the end of
the 2013-14 state fiscal year. These provisions are not intended to
have any fiscal impact in the 2011-12 state fiscal year.

Part BB - MTA Payroll Tax Exemption For Schools
Exempt elementary and
secondary schools from the Metropolitan Transportation District
payroll mobility tax.

Part CC - Historic Properties Tax Credit Undeferral
Exclude the
historic properties tax credit from the list of deferred tax credits.
The deferral of tax credits above $2 million was enacted in 2010
deferring credits in 2010, 2011 and 2012 until the payout period
which begins in 2013.

Part DD - Mixed Martial Arts
Allow Mixed Martial Arts in New York
under the regulatory framework established by the New York State
Athletic Commission. The State would implement an 8.5 percent tax on
gross receipts from ticket sales and 3 percent gross receipts tax on
broadcasting rights related to professional MMA events held in the
State.

Part FF - Redevelopment Communities
Provide an economic development
incentive package for the redevelopment of communities impacted by


prison and youth facility closures. This package includes tax
incentives for job creation and capital investments.

Part GG - Vendor For New York City OTB
Allow a private vendor operator
to run one or more profitable off-track betting branches in New York
City. The legislation would also enact statutory changes to reform
outdated and inequitable statutory formulas. Further, the legislation
addresses an emergent situation at Suffolk Regional Off-Track Betting
Corporation, which would ease cash-flow concerns, but sunset the
legislation in 2014.

JUSTIFICATION:
This bill enacts into law major
components of
legislation which are necessary to implement the state fiscal plan
for the 2011-2012 state fiscal year.

EFFECTIVE DATE:
As laid out in the component parts.

S2811B-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 2811--B
 I N  SENATE
 February 1, 2011
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
 the Constitution -- read twice and ordered printed, and  when  printed
 to  be  committed to the Committee on Finance -- committee discharged,
 bill amended, ordered reprinted as amended  and  recommitted  to  said
 committee  -- committee discharged, bill amended, ordered reprinted as
 amended and recommitted to said committee
 

AN ACT to amend the abandoned property law, in relation to the  dormancy
 period of miscellaneous unclaimed property, payment of abandoned prop
 erty,  publication  of  notices  of  abandoned  property,  and written
 reports pertaining to payment of abandoned property; to amend the  tax
 law,  in  relation  to reports by the commissioner regarding abandoned
 property; and to repeal certain provisions of the  abandoned  property
 law  and  the  tax  law  relating thereto (Part A); to amend part N of
 chapter 61 of the laws of  2005  amending  the  tax  law  relating  to
 certain  transactions  and  related  information  and  relating to the
 voluntary compliance initiative, in relation to the  effectiveness  of
 certain  provisions (Part B); Intentionally omitted (Part C); to amend
 the tax law, in relation to directing the crediting of lottery  prizes
 of  more than six hundred dollars against liability for any tax admin
 istered by the commissioner of taxation and finance (Part D); to amend
 chapter 56 of the laws of 1998, amending the tax law  and  other  laws
 relating  to  extending the dates of application of the investment tax
 credit under articles 9-A, 22 and 32 of the tax law and to amend chap
 ter 63 of the laws of 2000, amending the tax law and other laws relat
 ing to extending the dates of application of the investment tax credit
 under article 33 of the tax law, in relation to the  effectiveness  of
 certain  provisions  (Part  E);  to  amend  the public housing law, in
 relation to providing a credit against income tax for persons or enti
 ties investing in low-income housing (Part F);  Intentionally  omitted
 (Part  G);  Intentionally omitted (Part H); to amend the insurance law
 and the tax law, in relation to excess line  insurance  (Part  I);  to
 amend  chapter  298 of the laws of 1985, amending the tax law relating
 to the franchise tax on banking corporations imposed by the  tax  law,
 authorized  to  be  imposed  by  any  city  having a population of one
 million or more by chapter 772 of the laws of 1966 and imposed by  the
 administrative  code  of  the  city  of New York and relating to other
 provisions of the tax law, chapter 883 of the laws  of  1975  and  the
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD12574-04-1
 
       S. 2811--B                          2
 administrative  code  of  the  city  of New York which relates to such
 franchise tax, to amend chapter 817 of the laws of 1987, amending  the
 tax law and the environmental conservation law, constituting the busi
 ness  tax  reform and rate reduction act of 1987, and to amend chapter
 of the laws of 1988, amending the tax law and  the  administrative
 code  of  the  city of New York relating to the imposition of taxes in
 the city of New York, in relation  to  the  effectiveness  of  certain
 provisions of such chapters; and to amend the tax law and the adminis
 trative  code  of  the city of New York, in relation to making transi
 tional provisions  relating  to  the  federal  Gramm-Leach-Bliley  act
 permanent  (Part  J);  to amend the tax law and the criminal procedure
 law, in relation to updating the tax classification  of  diesel  motor
 fuel to be consistent with federal laws and make the diesel tax struc
 ture  consistent  with  this  new tax treatment; and to repeal certain
 provisions of the tax law and the administrative code of the  city  of
 New  York relating thereto (Part K); to amend the tax law, in relation
 to making a technical correction to the E85 definition; and  to  amend
 chapter  109  of  the  laws  of 2006, amending the tax law relating to
 providing exemptions, reimbursements and credits  from  various  taxes
 for  certain  alternative fuels, in relation to extending the alterna
 tive fuels tax exemptions for one year (Part L); to amend  section  11
 of part EE of chapter 63 of the laws of 2000, amending the tax law and
 other  laws  relating  to modifying the distribution of funds from the
 motor vehicle fuel excise tax, in  relation  to  the  distribution  of
 motor  vehicle  fees  (Part  M);  to amend the tax law, in relation to
 restrictions on certain keno style lottery games (Part  N);  to  amend
 the  tax law, in relation to video lottery free play allowance program
 (Part O); to amend the tax law, in relation to prize payout of certain
 instant lottery games (Part P); to amend the tax law, in  relation  to
 prize  payout  in certain multi-jurisdictional lottery games (Part Q);
 to amend the  tax  law,  in  relation  to  multi-jurisdictional  video
 lottery gaming (Part R); to amend the racing, pari-mutuel wagering and
 breeding  law,  in relation to licenses for simulcast facilities, sums
 relating to track simulcast, simulcast  of  out-of-state  thoroughbred
 races,  simulcasting  of  races run by out-of-state harness tracks and
 distributions of wagers; to amend chapter 281  of  the  laws  of  1994
 amending  the  racing, pari-mutuel wagering and breeding law and other
 laws relating to simulcasting and chapter 346  of  the  laws  of  1990
 amending  the  racing, pari-mutuel wagering and breeding law and other
 laws relating to simulcasting and the imposition of certain taxes,  in
 relation  to  extending  certain  provisions thereof; and to amend the
 racing, pari-mutuel wagering and breeding law, in relation to  extend
 ing  certain  provisions  thereof (Part S); to repeal paragraph (h) of
 subdivision 12-G of section 210 of the tax law relating to the  appli
 cability  of  the  qualified  emerging  technology company facilities,
 operations and training credit (Part T); to amend the tax law and  the
 state  finance  law,  in  relation  to application fees owed by retail
 dealers of businesses that sell tobacco products and owners  of  ciga
 rette  vending machines (Part U); to amend the tax law, in relation to
 sales tax for transportation service (Part V); to amend the  tax  law,
 in  relation  to the tax on certain tobacco products; and to amend the
 public health law, in relation to regulation of tobacco products (Part
 W); to amend the tax law, in relation  to  temporary  deferral  payout
 credits  (Part  X);  to amend part A of chapter 57 of the laws of 2010
 amending the tax law relating  to  the  statutory  limitation  on  the
 biofuel production credit and the qualified emerging technology compa
 
       S. 2811--B                          3
 ny  facilities,  operations  and  training credits, in relation to the
 effectiveness thereof (Part Y); to amend the tax law, in  relation  to
 an investment tax credit (Part Z); to amend the public service law, in
 relation  to  a  temporary  annual  assessment and to amend part NN of
 chapter 59 of the laws of 2009 amending the public service law  relat
 ing  to  financing  operations of the department of public service, in
 relation to the effectiveness thereof (Part AA); to amend the tax law,
 in relation to the metropolitan commuter transportation  mobility  tax
 (Part  BB);  to  amend the tax law, in relation to removing the credit
 for rehabilitation of historic properties from the temporary  deferral
 of  certain tax credits (Part CC); to amend chapter 912 of the laws of
 relating to the regulation of boxing, sparring and wrestling,  in
 relation  to establishing protocols for combative sports and authoriz
 ing mixed martial arts events in this state; to amend the tax law,  in
 relation  to  the  imposition  of  a  tax on the gross receipts of any
 person holding any professional or amateur boxing, sparring or wrestl
 ing match or exhibition, or professional  combative  sports  match  or
 exhibition; and providing for the repeal of such provisions upon expi
 ration  thereof (Part DD); to amend the insurance law and the tax law,
 in relation to establishing the surplus  lines  insurance  multi-state
 compliance compact with respect to surplus lines insurance and premium
 tax  allocation (Part EE); to amend the tax law, in relation to estab
 lishing a community transformation program credit (Part  FF);  and  to
 amend  the racing, pari-mutuel wagering and breeding law and the state
 finance law, in relation to the New York city off-track betting corpo
 ration and establishing the New York  city  off-track  betting  corpo
 ration  fund;  to  amend the racing, pari-mutuel wagering and breeding
 law, in relation to use and expenditure of funds of the capital acqui
 sition fund; to repeal certain provisions of the  racing,  pari-mutuel
 wagering  and  breeding  law  relating  thereto; and providing for the
 repeal of certain provisions upon the expiration thereof (Part GG)
 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 2011-2012
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified as Parts A through GG. 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. Paragraphs (a), (b) and (k) of subdivision 1 of section 300
 of the abandoned property law, paragraph (a) as  amended  and  paragraph
 (k)  as  relettered by chapter 15 of the laws of 1983, subparagraph (iv)
 of paragraph (a) as amended and subparagraph (v)  of  paragraph  (a)  as
 added  by  chapter  409  of  the laws of 1994, paragraphs (b) and (k) as
 
       S. 2811--B                          4
 amended by chapter 78 of the laws  of  1976,  are  amended  to  read  as
 follows:

 (a)  Any amounts due on deposits or any amounts to which a shareholder
 of a savings and loan association or a credit union is entitled, held or
 owing by a banking organization, which shall have remained unclaimed for
 [five] THREE years by the person or persons  appearing  to  be  entitled
 thereto, including any interest or dividends credited thereon, excepting
 (i)  any such amount which has been reduced or increased, exclusive of
 dividend or interest payment, within [five] THREE years, or
 (ii) any such amount which is represented by a  passbook  not  in  the
 possession  of  the  banking  organization, which has been presented for
 entry of dividend or interest credit within [five] THREE years, or
 (iii) any such amount with respect to which the  banking  organization
 has on file written evidence received within [five] THREE years that the
 person or persons appearing to be entitled to such amounts had knowledge
 thereof, or
 (iv)  any such amount payable only at or by a branch office located in
 a foreign country, or payable  in  currency  other  than  United  States
 currency, or
 (v)  any  such amount that is separately identifiable and has been set
 aside to meet the burial and related expenses of an individual, provided
 however that said amount shall be deemed  abandoned  property  where  it
 remains  unclaimed for [five] THREE years subsequent to the death of the
 individual for whom the amount was deposited.
 (b) Any amounts, together with all accumulations of interest or  other
 increment  thereon,  held  or  owing  by  a banking organization for the
 payment of an interest in a bond and mortgage apportioned or transferred
 by it pursuant to subdivision seven of former section one hundred eight
 y-eight of the banking law as it existed prior to July  first,  nineteen
 hundred  thirty-seven, which shall have remained unclaimed by the person
 or persons appearing to be entitled thereto for [five] THREE years after
 the full and final liquidation of such mortgage, excepting
 (i) any such amount which has been reduced by payment to the person or
 persons appearing to be entitled thereto within [five] THREE years, or
 (ii) any such amount which is represented by a  certificate  of  share
 ownership  not  in  the  possession  of  the banking organization, which
 certificate has been presented for transfer within [five]  THREE  years,
 or
 (iii)  any  such amount with respect to which the banking organization
 has on file written evidence received within [five] THREE years that the
 person or persons appearing to be entitled to such amount had  knowledge
 thereof.
 (k)  Lost  property  or  instruments as defined in section two hundred
 fifty-one of the personal property law which shall have been held  by  a
 safe  deposit  company  or  bank  for [five] THREE years pursuant to the
 provisions of section two hundred fifty-six  of  the  personal  property
 law.
 

S  2.  Paragraphs  (a)  and (c) of subdivision 1 of section 600 of the
 abandoned property law, paragraph (a) as amended by chapter 655  of  the
 laws  of 1978 and paragraph (c) as amended by chapter 281 of the laws of
 1980, are amended  to read as follows:

 (a) Any moneys including the monetary proceeds from the sale of tangi
 ble personal property and securities or other intangible  property  paid
 into  court,  which,  except  as provided in section ten hundred OF THIS
 CHAPTER, shall have remained in the hands of any  county  treasurer,  or
 the  commissioner  of  finance of the city of New York, for [five] THREE
 
       S. 2811--B                          5
 years, together with all accumulations of interest  or  other  increment
 thereon, less such legal fees as he may be entitled to.
 (c)  Any  moneys  paid  to a support bureau of a family court, for the
 support of a spouse or child, which shall have remained in  the  custody
 of a county treasurer, or the commissioner of finance of the city of New
 York,  for  [five]  THREE years, together with any interest due thereon,
 less such legal fees as he may be entitled  to.  For  purposes  of  this
 section,  "family  court"  includes  the domestic relations court of the
 city of New York prior to the first day of September,  nineteen  hundred
 sixty-two.
 

S  3.  Subdivision 1 of section 1000 of the abandoned property law, as
 amended by chapter 670 of the laws  of  1989,  is  amended  to  read  as
 follows:

 1.  (a) Any moneys held or owing for the payment of an award made by a
 court in any condemnation proceeding and payable by a public corporation
 or other corporation possessing powers of condemnation, which shall have
 remained unclaimed by the person or persons  appearing  to  be  entitled
 thereto for [five] THREE years after confirmation by the court, together
 with  any  interest  due  thereon,  less,  when an award is payable by a
 public corporation, any amount due such public corporation at  the  time
 of  title  vesting  for tax, water or any other liens on the same parcel
 the award was for, with any interest due thereon,  and  any  amount  due
 such  public  corporation at the time of title vesting or at the time of
 confirmation, whichever is later, for an assessment on the  same  parcel
 the  award was for, with any interest due thereon, shall be deemed aban
 doned property. In any condemnation proceedings in which the court shall
 have not made an award, any moneys paid into court,  including  interest
 thereon, shall be subject to the provisions of article six of this chap
 ter and this section shall have no application thereto.
 (b)  The  issuance of a warrant for such an award shall not prevent an
 award from being deemed abandoned property if such warrant is  unclaimed
 [five] THREE years after confirmation of such award by the court.
 

S  4.  Subdivision  1 of section 1300 of the abandoned property law is
 amended to read as follows:

 1. Any unclaimed moneys arising from the sale of any personal property
 which shall have been pledged or mortgaged as security for the  loan  of
 money  with  a  corporation, except a banking organization or a licensed
 lender, heretofore or hereafter organized by or pursuant  to  a  special
 statute  for  the  purpose of, and principally engaged in, giving aid to
 individuals by loans of money at interest upon the pledge or mortgage of
 personal property, and which has subjected itself to special  provisions
 of the banking law, after deducting the amount of the loan, the interest
 then  due  on  the  same  and any other lawful charges, which shall have
 remained in its possession for [six] THREE years from the date  of  such
 sale, shall be deemed abandoned property.
 

S  5.  Subdivision 2 of section 1315 of the abandoned property law, as
 amended by section 2 of part II of chapter 57 of the laws  of  2010,  is
 amended to read as follows:

 2.  Except  as  otherwise  provided  by  law,  any amount representing
 unclaimed money or securities and held in escrow  or  otherwise  by  any
 corporation  (other  than  a  public  corporation), joint stock company,
 individual, association of two or more individuals, committee  or  busi
 ness  trust,  to ensure the performance of any duty or obligation, shall
 be deemed abandoned property when:

 a. such amount is held or owing in this state, and
 
       S. 2811--B                          6
 b. such amount has remained unclaimed by the person or  persons  enti
 tled thereto for [five] THREE years, except
 c.  where  the  duty or obligation for which such amount was deposited
 has not been performed and such  performance  is  still  required,  such
 amounts shall not be deemed abandoned property.
 

S  6.  Paragraph (a) of subdivision 1 of section 1002 of the abandoned
 property law is amended to read as follows:

 (a) That a report of all awards in condemnation proceedings  unclaimed
 for  more than [five] THREE years has been made to the state comptroller
 and that a copy thereof is on file and open to public inspection,  if  a
 public corporation at the office of the chief fiscal officer thereof; or
 if not a public corporation at the principal office or place of business
 of such corporation;
 

S 7. Sections 301, 401, 701 and 1001 of the abandoned property law are
 REPEALED.
 

S  8.  Subdivision  1  of section 302 of the abandoned property law is
 amended to read as follows:

 1. [Within thirty days after making a  report  of  abandoned  property
 pursuant  to  the provisions of section three hundred one, such banking]
 EVERY BANKING organization shall cause to be published, ON OR BEFORE THE
 FIRST DAY OF SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF NAMES
 OF PERSONS APPEARING AS OWNERS OF CERTAIN  UNCLAIMED  PROPERTY  HELD  BY
 (name of banking organization)."
 

S  9.  The  opening  paragraph  of subdivision 3 of section 302 of the
 abandoned property law, as amended by chapter 315 of the laws  of  1954,
 is amended to read as follows:

 Such  notice  shall[, in accordance with the classification prescribed
 by the state comptroller for the report pursuant to  the  provisions  of
 section three hundred one,] set forth:

 

S  10.

Section 303 of the abandoned property law is amended to read as
 follows:

 

S 303. Payment of abandoned property.  1. In such succeeding month  of
 November,  and  on or before the tenth day thereof, every banking organ
 ization shall pay or deliver to the state  comptroller  all  [abandoned]
 property [specified in such report, excepting such abandoned property as
 since  the date of such report shall have ceased to be abandoned] WHICH,
 AS OF THE THIRTIETH DAY OF JUNE NEXT  PRECEDING,  WAS  DEEMED  ABANDONED
 PURSUANT TO SECTION THREE HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH
 BANKING ORGANIZATION.
 2.  Such  payment shall be accompanied by a [statement] TRUE AND ACCU
 RATE REPORT setting forth such information as the state comptroller  may
 require  relative to such abandoned property [as shall have ceased to be
 abandoned].  SUCH REPORT SHALL INCLUDE:

 (A) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (A) OF  SUBDIVISION
 ONE OF SECTION THREE HUNDRED WHICH ARE ABANDONED PROPERTY:

 (I) THE NAME AND LAST KNOWN ADDRESS OF THE PERSON OR PERSONS APPEARING
 FROM  THE  RECORDS  OF  SUCH BANKING ORGANIZATION TO BE THE OWNER OF ANY
 SUCH ABANDONED PROPERTY;
 (II) THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH  PERSON  OR
 PERSONS;
 (III)  THE DATE OF THE LAST TRANSACTION WITH RESPECT TO SUCH ABANDONED
 PROPERTY;
 (IV) THE NATURE AND IDENTIFYING NUMBER,  IF  ANY,  OF  SUCH  ABANDONED
 PROPERTY; AND
 (V)  SUCH  OTHER  IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
 REQUIRE.
 
       S. 2811--B                          7
 (B) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (B) OF  SUBDIVISION
 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER
 TY:

 (I)  THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO  BE  ENTITLED
 TO RECEIVE SUCH ABANDONED PROPERTY;
 (II)  THE  AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE SUCH PERSON OR
 PERSONS;
 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
 (IV) THE DATE OF THE LAST TRANSACTION WITH RESPECT TO  SUCH  ABANDONED
 PROPERTY; AND
 (V)  SUCH  OTHER  IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
 REQUIRE.
 (C) WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (C) OF  SUBDIVISION
 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER
 TY:

 (I)  THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR PERSONS
 APPEARING FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO  BE  ENTITLED
 TO RECEIVE SUCH ABANDONED PROPERTY;
 (II)  A  DESCRIPTION  OF SUCH ABANDONED PROPERTY INCLUDING IDENTIFYING
 NUMBERS, IF ANY, AND THE AMOUNT APPEARING FROM SUCH RECORDS TO BE DUE OR
 PAYABLE;
 (III) THE AMOUNT OF ANY INTEREST OR OTHER INCREMENT DUE THEREON;
 (IV) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE OR DEMANDABLE;
 (V) THE AMOUNT AND IDENTIFYING NUMBER OF ANY SUCH INSTRUMENT WHERE THE
 PAYEE THEREOF IS UNKNOWN TO THE BANKING ORGANIZATION; AND
 (VI) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE  COMPTROLLER  MAY
 REQUIRE.
 (D)  WITH RESPECT TO AMOUNTS SPECIFIED IN PARAGRAPH (D) OF SUBDIVISION
 ONE OF SECTION THREE HUNDRED OF THIS ARTICLE WHICH ARE ABANDONED PROPER
 TY:

 (I) THE NAME AND LAST KNOWN ADDRESS, IF ANY, OF THE PERSON OR  PERSONS
 APPEARING  FROM THE RECORDS OF SUCH BANKING ORGANIZATION TO BE THE OWNER
 OF ANY SUCH ABANDONED PROPERTY; AND
 (II) SUCH OTHER INFORMATION AS THE STATE  COMPTROLLER  MAY  REASONABLY
 REQUIRE.
 3.  SUCH  REPORT  SHALL  BE  IN SUCH FORM AS THE STATE COMPTROLLER MAY
 PRESCRIBE. ALL NAMES OF PERSONS APPEARING IN THE SECTION OF SUCH  REPORT
 RELATING TO DEPOSITS, APPEARING TO BE THE OWNERS THEREOF, SHALL BE LIST
 ED  IN ALPHABETICAL ORDER. ABANDONED PROPERTY OTHER THAN DEPOSITS LISTED
 IN SUCH REPORT SHALL BE CLASSIFIED IN SUCH MANNER  AS  THE  STATE  COMP
 TROLLER  MAY PRESCRIBE, AND NAMES OF PERSONS APPEARING TO BE ENTITLED TO
 SUCH ABANDONED PROPERTY APPEARING IN SUCH REPORT SHALL BE LISTED  ALPHA
 BETICALLY WITHIN EACH SUCH CLASSIFICATION.
 4.  NO  BANKING ORGANIZATION IN THIS STATE, ORGANIZED UNDER OR SUBJECT
 TO THE PROVISIONS OF SECTION SIX HUNDRED ELEVEN OF TITLE TWELVE  OF  THE
 UNITED STATES CODE, SHALL BE REQUIRED TO FILE REPORTS OF ABANDONED PROP
 ERTY  RELATING TO ANY AMOUNTS RECEIVED ON OR BEFORE THE THIRTIETH DAY OF
 JUNE, NINETEEN HUNDRED SEVENTY-SEVEN, UNLESS, AS OF THE  EFFECTIVE  DATE
 OF THIS SUBDIVISION, SUCH AMOUNTS REMAIN RECORDED AND SHOWN IN THE BOOKS
 AND  RECORDS  OF  SUCH BANKING ORGANIZATION AS AN OUTSTANDING OBLIGATION
 THEREOF.
 

S 11. Subdivision 1 of section 402 of the abandoned  property  law  is
 amended to read as follows:

 1.  [Within  thirty  days  after making a report of abandoned property
 pursuant to the provisions of section  four  hundred  one,]  EVERY  such
 
       S. 2811--B                          8
 corporation  shall  cause to be published, ON OR BEFORE THE FIRST DAY OF
 SEPTEMBER IN EACH YEAR, a notice entitled: "NOTICE OF CERTAIN  UNCLAIMED
 PROPERTY HELD BY (name of corporation)."
 

S  12.

Section 403 of the abandoned property law is amended to read as
 follows:

 

S 403. Payment of abandoned property.  1. In such succeeding month  of
 October,  and on or before the tenth day thereof, every such corporation
 shall pay to the state comptroller all [abandoned]  property  [specified
 in  the  last preceding report made to the state comptroller pursuant to
 section four hundred one, excepting such abandoned property as since the
 date of such report shall have ceased to be abandoned] WHICH, AS OF  THE
 FIRST  DAY  OF  JULY  NEXT  PRECEDING,  WAS DEEMED ABANDONED PURSUANT TO
 SECTION FOUR HUNDRED OF THIS ARTICLE, HELD OR OWING BY SUCH CORPORATION.
 2. Such payment shall be accompanied by a [statement] TRUE  AND  ACCU
 RATE  REPORT setting forth such information as the state comptroller may
 require relating to such abandoned property [as shall have ceased to  be
 abandoned] INCLUDING:

 (A)  AS  TO  ABANDONED PROPERTY SPECIFIED IN PARAGRAPHS (A) AND (B) OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:

 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH  DEPOSITOR  OR  SUBSCRIBER
 APPEARING FROM THE RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE
 ANY SUCH ABANDONED PROPERTY;
 (II) THE DATE WHEN THE DEPOSIT WAS MADE OR AMOUNT PAID;
 (III) THE AMOUNT OF SUCH DEPOSIT OR PAYMENT;
 (IV)  THE  DATE  WHEN  UTILITY  SERVICES FURNISHED TO SUCH CONSUMER OR
 SUBSCRIBER CEASED;
 (V) ANY SUMS DUE AND UNPAID TO THE CORPORATION  BY  SUCH  CONSUMER  OR
 SUBSCRIBER,  WITH  INTEREST  THEREON  FROM  THE  DATE  OF TERMINATION OF
 SERVICE;
 (VI) THE AMOUNT OF INTEREST DUE UPON SUCH DEPOSIT OR  PAYMENT  ON  ANY
 BALANCE  THEREOF  THAT  HAS  REMAINED WITH SUCH CORPORATION AND NOT BEEN
 CREDITED TO SUCH CONSUMER'S OR SUBSCRIBER'S ACCOUNT;
 (VII) THE AMOUNT OF SUCH ABANDONED PROPERTY; AND
 (VIII) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY
 REQUIRE.
 (B) AS TO ABANDONED PROPERTY SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED OF THIS ARTICLE:

 (I) THE NAME AND LAST KNOWN ADDRESS OF EACH PERSON APPEARING FROM  THE
 RECORDS OF SUCH CORPORATION TO BE ENTITLED TO RECEIVE THE SAME;
 (II)  THE  AMOUNT  APPEARING  FROM  SUCH  RECORDS  TO BE DUE EACH SUCH
 PERSON;
 (III) THE DATE PAYMENT BECAME DUE; AND
 (IV) SUCH OTHER IDENTIFYING INFORMATION AS THE STATE  COMPTROLLER  MAY
 REQUIRE.
 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
 SHALL  BE  CLASSIFIED  IN  SUCH  MANNER  AS  THE  STATE  COMPTROLLER MAY
 PRESCRIBE. NAMES OF PERSONS ENTITLED TO SUCH ABANDONED PROPERTY  APPEAR
 ING  IN  SUCH  REPORT  SHALL BE LISTED IN ALPHABETICAL ORDER WITHIN EACH
 SUCH CLASSIFICATION.
 

S 13. Paragraph (b) of subdivision 1 of section 700 of  the  abandoned
 property  law,  as amended by chapter 78 of the laws of 1976, is amended
 to read as follows:

 (b) Any moneys held or owing by any life insurance  corporation  which
 are  payable  under other kinds of life insurance policies to any person
 whose last-known address, according to the records of  the  corporation,
 is within this state, where the insured, if living, would[, prior to the
 
       S. 2811--B                          9
 thirty-first  day  of  December  next  preceding  the report required by
 section seven hundred one,] have attained the  limiting  age  under  the
 mortality table on which the reserves are based, exclusive of
 (i) any policy which has within three years been assigned, readjusted,
 kept in force by payment of premium, reinstated or subjected to loan, or
 (ii)  any  policy  with  respect to which such corporation has on file
 written evidence received within three years that the person or  persons
 apparently entitled to claim thereunder have knowledge thereof.
 

S  14.  Subdivision 1 of section 702 of the abandoned property law, as
 amended by chapter 497 of the laws  of  1944,  is  amended  to  read  as
 follows:

 1.  [Within  thirty  days  after making a report of abandoned property
 pursuant to the provisions of section seven  hundred  one,]  EVERY  such
 life insurance corporation shall cause to be published, ON OR BEFORE THE
 FIRST  DAY  OF MAY IN EACH YEAR, a notice entitled:  "NOTICE OF NAMES OF
 PERSONS APPEARING AS OWNERS OF CERTAIN UNCLAIMED PROPERTY HELD BY  (name
 of life insurance corporation)."
 

S  15.  The  opening  paragraph of subdivision 3 of section 702 of the
 abandoned property law, as amended by chapter 315 of the laws  of  1954,
 is amended to read as follows:

 Such  notice  shall[, in accordance with the classification prescribed
 by the state comptroller for the report pursuant to  the  provisions  of
 section seven hundred one,] set forth:

 

S  16. 

Section  703  of  the abandoned property law, subdivision 1 as
 amended by chapter 497 of the laws  of  1944,  is  amended  to  read  as
 follows:

 

S  703. Payment of abandoned property.  1. In such succeeding month of
 September, and on or before the succeeding tenth day thereof, every such
 life insurance corporation shall pay to the state comptroller all [aban-
 doned] property [specified in  such  report,  excepting  such  abandoned
 property  as since the date of such report shall have ceased to be aban-
 doned] WHICH, AS OF THE FIRST DAY OF JANUARY NEXT PRECEDING, WAS  DEEMED
 ABANDONED  PURSUANT  TO  SECTION  SEVEN HUNDRED OF THIS ARTICLE, HELD OR
 OWING BY SUCH LIFE INSURANCE CORPORATION.
 2. Such payment shall be accompanied by a [statement] TRUE  AND  ACCU
 RATE  REPORT setting forth such information as the state comptroller may
 require relative to such abandoned property [as shall have ceased to  be
 abandoned] INCLUDING:

 (A) THE NAME AND LAST KNOWN ADDRESS OF ANY PERSON OR PERSONS APPEARING
 FROM  THE  RECORDS  OF SUCH LIFE INSURANCE CORPORATION TO BE ENTITLED TO
 RECEIVE ANY SUCH ABANDONED PROPERTY;
 (B) THE AMOUNT APPEARING FROM THE RECORDS OF SUCH  CORPORATION  TO  BE
 DUE;
 (C) THE POLICY NUMBER AND POLICY AGE OF THE INSURED;
 (D) THE DATE SUCH ABANDONED PROPERTY WAS PAYABLE;
 (E)  THE  NAMES AND LAST KNOWN ADDRESSES OF EACH BENEFICIARY APPEARING
 IN THE RECORDS OF THE INSURER; AND
 (F) SUCH OTHER IDENTIFYING INFORMATION AS THE  STATE  COMPTROLLER  MAY
 REQUIRE.
 3. SUCH REPORT SHALL BE IN SUCH FORM AND THE ABANDONED PROPERTY LISTED
 SHALL  BE  CLASSIFIED  IN  SUCH  MANNER  AS  THE  STATE  COMPTROLLER MAY
 PRESCRIBE. NAMES OF PERSONS APPEARING TO BE ENTITLED TO SUCH PROPERTY OR
 OF BENEFICIARIES APPEARING IN SUCH REPORT SHALL BE LISTED  IN  ALPHABET
 ICAL ORDER WITHIN EACH SUCH CLASSIFICATION.
 

S 17.

Section 1003 of the abandoned property law is amended to read as
 follows:

 
       S. 2811--B                         10
 

S 1003. Payment of abandoned property.  1. In such succeeding month of
 February,  and on or before the tenth day thereof, every such public and
 other corporation shall pay to the  state  comptroller  all  [abandoned]
 property [specified in such report, excepting such abandoned property as
 since  the date of such report shall have ceased to be abandoned] WHICH,
 AS OF THE FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED  PURSU
 ANT  TO  SECTION  ONE  THOUSAND  OF  THIS ARTICLE, HELD OR OWING BY SUCH
 CORPORATION.
 2. Such payment shall be accompanied by a [statement] TRUE  AND  ACCU
 RATE  REPORT setting forth such information as the state comptroller may
 require in relation to such abandoned property [as shall have ceased  to
 be  abandoned]  INCLUDING THE TITLE OF THE PROCEEDING, THE NAME AND LAST
 KNOWN ADDRESS OF THE AWARDEE IF SUCH AWARD IS MADE TO A KNOWN OWNER, THE
 DATE OF CONFIRMATION, THE DAMAGE PARCEL NUMBER, THE AMOUNT OF THE AWARD,
 AND THE AMOUNT OF ANY INTEREST  DUE  THEREON  AND,  IF  A  DEDUCTION  IS
 CLAIMED FOR LIENS BY A PUBLIC CORPORATION, THE NATURE AND AMOUNT OF SUCH
 LIENS AND ANY INTEREST CLAIMED THEREON.
 

S  18.  The  opening paragraph of subdivision 1 of section 1002 of the
 abandoned property law is amended to read as follows:

 [Within thirty days after making a report of abandoned property pursu-
 ant to the provisions of section ten hundred  one,]  EVERY  such  corpo
 ration shall cause to be published, ON OR BEFORE THE FIRST DAY OF NOVEM
 BER  IN  EACH  YEAR,  once in a newspaper of general circulation in each
 county where a damaged parcel included  in  such  report  is  located  a
 notice, approved as to form by the state comptroller, stating:

 

S  19. Paragraph (b) of subdivision 6 of section 1406 of the abandoned
 property law, as amended by chapter 643 of the laws of 1989, is  amended
 to read as follows:

 (b)  Notwithstanding any other provision of law, payment for any aban
 doned condemnation award heretofore or hereafter paid to the state comp
 troller pursuant to sections ten hundred and ten hundred three  of  this
 chapter  for the benefit of known persons may be made by the state comp
 troller on sworn application, where the name and last known  address  of
 the  person  or  persons  entitled  to payment and any other identifying
 information as appearing on the records of the court into which  payment
 was  made  is  included  in  the report required to be filed pursuant to
 section ten hundred [one] THREE of this chapter and when the identity of
 the claimant as the person entitled to payment  is  established  to  the
 satisfaction of the state comptroller. When, in the determination of the
 state comptroller, the identifying information included in the report is
 insufficient  to enable the state comptroller to make a determination of
 entitlement, such claim must be established only on order of  the  court
 as set forth in paragraph (a) of this subdivision.
 

S  20.  Subdivision 3 of section 1311 of the abandoned property law is
 REPEALED.
 

S 21. Subdivision 4 of section 1311 of the abandoned property law,  as
 added  by  chapter  778 of the laws of 1956, is renumbered subdivision 3
 and amended to read as follows:

 3. On or before the tenth day of October  in  each  year,  every  such
 corporation  shall pay to the state comptroller all [abandoned] property
 [specified in the last preceding report made to  the  state  comptroller
 pursuant to this section, excepting such abandoned property as since the
 date  of  the report shall have ceased to be abandoned] WHICH, AS OF THE
 FIRST DAY OF JULY NEXT PRECEDING, WAS DEEMED ABANDONED PURSUANT TO  THIS
 SECTION, HELD OR OWING BY SUCH CORPORATION. SUCH PAYMENT SHALL BE ACCOM
 
       S. 2811--B                         11
 PANIED  BY A TRUE AND ACCURATE REPORT CONTAINING SUCH IDENTIFYING INFOR
 MATION AS THE STATE COMPTROLLER MAY REQUIRE.
 

S  22.  Subdivision 2 of section 1316 of the abandoned property law is
 REPEALED.
 

S 23. Subdivisions 3 and 4 of section 1316 of the  abandoned  property
 law,  as  amended  by  chapter  166  of the laws of 1991, are renumbered
 subdivisions 2 and 3 and amended to read as follows:

 2. [Within thirty days following the filing of the report of abandoned
 property with the  comptroller  pursuant  to  subdivision  two  of  this
 section,  the]  EVERY  insurer shall cause to be published, ON OR BEFORE
 THE FIRST DAY OF MAY IN EACH YEAR, a list of such abandoned property  in
 the  same  manner  as  that  prescribed  for life insurance companies by
 section seven hundred two of this chapter.
 3. Such [abandoned] property WHICH WAS DEEMED  ABANDONED  PURSUANT  TO
 SUBDIVISION  ONE OF THIS SECTION shall be paid or delivered to the comp
 troller within the first ten days of  September  of  each  year.    SUCH
 PAYMENT SHALL BE ACCOMPANIED BY A TRUE AND ACCURATE REPORT THAT SHALL BE
 IN SUCH FORM AND MANNER AS THE STATE COMPTROLLER MAY PRESCRIBE.
 

S 24.

Section 1408 of the abandoned property law is REPEALED.
 

S  25.  The opening paragraph of section 503 of the abandoned property
 law, as amended by chapter 815 of the laws of 1963, is amended  to  read
 as follows:

 Each  payment  or  delivery  of abandoned property pursuant to section
 five hundred two shall be accompanied by a [verified] written report, in
 such form as the state comptroller shall prescribe, setting forth:

 

S 26. The opening paragraph of section 513 of the  abandoned  property
 law,  as  amended by chapter 815 of the laws of 1963, is amended to read
 as follows:

 A payment or delivery pursuant to section five hundred twelve shall be
 accompanied by a [verified] written report, in such form  as  the  state
 comptroller may prescribe, setting forth:

 

S  27.  Subdivision  4 of section 513 of the abandoned property law is
 REPEALED.
 

S 28. Subdivision 5 of section 513 of the abandoned property  law,  as
 added  by  chapter  617 of the laws of 1973, is renumbered subdivision 4
 and amended to read as follows:

 4. In case any broker or dealer determines the property which shall be
 deemed abandoned property pursuant to  subdivisions  one  and  three  of
 section five hundred eleven by the method provided in subdivision six of
 that  section,  the payment of such abandoned property shall be accompa
 nied by a [verified] written report, in such form  as  the  state  comp
 troller  may  prescribe,  which, among other things, shall set forth the
 computation of the average factor of such broker or dealer  pursuant  to
 subdivision  six of section five hundred eleven. Each [verified] written
 report accompanying the payment of abandoned property determined  pursu
 ant  to  subdivision six of section five hundred eleven shall contain an
 undertaking by the broker or dealer making such  payment  to  honor  all
 claims  to  the extent herein provided whenever made against such broker
 or dealer by any person determined by him or proved to  be  entitled  to
 receive  from him a stock or cash dividend received in this state during
 the calendar year covered by such report as the holder of  record  of  a
 security  or  an  interest  payment on a security received in this state
 during such year. Such undertaking shall obligate the broker  or  dealer
 to  honor any such claim provided that the payment of abandoned property
 relating to the year in question determined pursuant to subdivision  six
 of  section  five  hundred  eleven  made by such broker or dealer to the
 
       S. 2811--B                         12
 state comptroller has been exhausted as a result  of  reimbursements  by
 the state comptroller to the broker or dealer or to other persons claim
 ing  such  abandoned  property as provided in subdivision two of section
 five  hundred fourteen. To the extent related to any stock dividend, any
 such claim shall not exceed the fair market value of such stock dividend
 on the thirty-first day of December of the  year  in  which  such  stock
 dividend was deemed abandoned property.
 

S  29.  The opening paragraph of section 603 of the abandoned property
 law is amended to read as follows:

 Each such payment  of  abandoned  property  pursuant  to  section  six
 hundred two shall be accompanied by a [verified] written report, classi
 fied as the state comptroller shall prescribe, setting forth:

 

S  30. Subdivision 2 of section 1304 of the abandoned property law, as
 added by chapter 698 of the laws of 1943, is amended to read as follows:

 2. Any such abandoned property shall be paid or delivered forthwith to
 the state comptroller. Such payment shall be accompanied by a [verified]
 written report setting forth such identifying information as  the  state
 comptroller may require.
 

S  31.

Section 1305 of the abandoned property law, as amended by chap
 ter 149 of the laws of 1977, is amended to read as follows:

 

S 1305. Unclaimed surplus moneys after  recovery  of  cost  of  public
 assistance and care.
 Any amount comprising a balance credited to an estate or person pursu
 ant  to  sections  one hundred fifty-two-b or three hundred sixty of the
 social services law which, on June thirtieth in any year, has  for  four
 years  from  the date of such credit remained unclaimed by the estate or
 person entitled thereto shall be deemed abandoned property.
 On or before the tenth day of September  in  each  year  every  public
 welfare  official  shall  pay such abandoned property to the state comp
 troller. Such payment shall  be  accompanied  by  a  [verified]  written
 report in such form as the state comptroller may prescribe.
 

S  32. Subdivision 3 of section 1307 of the abandoned property law, as
 added by chapter 700 of the laws of 1943, is amended to read as follows:

 3. Any sheriff or county treasurer holding any such abandoned  proper
 ty,  shall  pay the same to the state comptroller immediately after such
 property shall have been deemed abandoned. Each such  payment  shall  be
 accompanied  by  a  [verified] written report which shall set forth such
 information as the state comptroller may require.
 

S 33. Subdivision 5 of section 1313 of the abandoned property  law  is
 REPEALED.
 

S  34. Subdivision 2 of section 1314 of the abandoned property law, as
 added by chapter 228 of the laws of 1977, is amended to read as follows:

 2. Such transfer of moneys shall be accompanied by a [verified]  writ
 ten report, in such form as the state comptroller may prescribe.
 

S 35.

Section 1402 of the abandoned property law is REPEALED and a new
 section 1402 is added to read as follows:

 

S 1402. PUBLICATION OF ABANDONED PROPERTY BY STATE COMPTROLLER. 1. (A)
 THE  COMPTROLLER  SHALL  MAINTAIN  ON  HIS  OR  HER WEBSITE IN A READILY
 SEARCHABLE FORMAT OR IN ANY OTHER MEDIUM AT LEAST EQUALLY ACCESSIBLE  TO
 THE PUBLIC, A LIST OF SUCH ABANDONED PROPERTY AS HAS BEEN PAID OR DELIV
 ERED  TO  THE COMPTROLLER IN THE PREVIOUS TWELVE MONTHS THAT HAS A VALUE
 EXCEEDING TWENTY DOLLARS.
 (B) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT  APPLY  TO  ABANDONED
 PROPERTY  PAID  PURSUANT  TO  SECTION ONE THOUSAND THREE HUNDRED OF THIS
 CHAPTER OR SECTION FOUR HUNDRED TWENTY-FOUR OF THE VEHICLE  AND  TRAFFIC
 LAW.
 
       S. 2811--B                         13
 2.  SUCH  LIST  SHALL BE IN SUCH FORM AND CLASSIFIED IN SUCH MANNER AS
 THE STATE COMPTROLLER SHALL DETERMINE AND SHALL INCLUDE:

 (A)  THE  NAMES AND LAST KNOWN ADDRESSES OF ALL PERSONS APPEARING FROM
 THE RECORDS IN THE COMPTROLLER'S OFFICE, AS  SET  FORTH  IN  THE  REPORT
 FILED  BY  THE HOLDER, TO BE ENTITLED TO RECEIVE SUCH ABANDONED PROPERTY
 EXCEEDING TWENTY DOLLARS IN VALUE; AND
 (B) SUCH OTHER INFORMATION AS THE STATE COMPTROLLER MAY DETERMINE.
 3. SUCH LISTING SHALL INCLUDE A STATEMENT THAT: (A) INFORMATION  ABOUT
 THE  PROPERTY  AND  ITS RETURN TO THE OWNER MAY BE AVAILABLE TO A PERSON
 HAVING A LEGAL OR BENEFICIAL INTEREST IN THE PROPERTY, UPON  REQUEST  TO
 THE COMPTROLLER; AND
 (B)  A  PUBLIC  RECORD  IS MAINTAINED IN THE OFFICE OF THE STATE COMP
 TROLLER OF ALL ABANDONED PROPERTY IN ACCORDANCE  WITH  SECTION  FOURTEEN
 HUNDRED  ONE  OF  THIS  ARTICLE; AND THAT A CLAIM FOR ANY SUCH ABANDONED
 PROPERTY SHOULD BE FILED WITH THE STATE COMPTROLLER AT HIS OR HER OFFICE
 IN THE CITY OF ALBANY.
 4. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, THE STATE
 COMPTROLLER MAY OMIT FROM SUCH LIST THE NAME AND LAST KNOWN  ADDRESS  OF
 ANY  PERSON  WHERE  SPECIAL  CIRCUMSTANCES  MAKE  IT DESIRABLE THAT SUCH
 INFORMATION BE WITHHELD.
 

S 36. Subdivision 12 of section 211 of the tax law is REPEALED  and  a
 new subdivision 12 is added to read as follows:

 12.  (A)  NOTWITHSTANDING  THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
 SECTION, THE COMMISSIONER AND THE COMPTROLLER SHALL ENTER INTO AN AGREE
 MENT PURSUANT TO WHICH THE COMMISSIONER SHALL, UPON REQUEST, PROVIDE THE
 COMPTROLLER WITH A REPORT,  NOT  MORE  FREQUENTLY  THAN  ANNUALLY,  WITH
 RESPECT  TO  CORPORATIONS  OR OTHER ENTITIES WHICH HAVE FILED A BUSINESS
 CORPORATION FRANCHISE TAX REPORT UNDER THIS ARTICLE FOR ANY TAXABLE YEAR
 WITHIN TEN CALENDAR YEARS PRIOR TO THE REPORT TO  THE  COMPTROLLER  MADE
 PURSUANT  TO  THIS  SUBDIVISION, PROVIDING THE FOLLOWING INFORMATION, TO
 THE EXTENT THAT SUCH INFORMATION IS READILY AVAILABLE FROM  THE  DEPART
 MENT'S SYSTEM FOR IDENTIFYING TAXPAYER INDICATIVE DATA:

 (1) BUSINESS NAME AND LEGAL NAME, IF DIFFERENT;
 (2) BUSINESS ADDRESS AND MAILING ADDRESS;
 (3) FEDERAL EMPLOYER IDENTIFICATION NUMBER;
 (4) DATE ENTERED INTO BUSINESS.
 (B)  EACH  REPORT TO THE COMPTROLLER MADE PURSUANT TO THIS SUBDIVISION
 SHALL LIST EACH CORPORATION OR OTHER ENTITY WITH RESPECT TO  WHICH  SUCH
 REPORT IS MADE ACCORDING TO THE TOTAL ASSETS REPORTED FOR THE END OF THE
 YEAR  ON  ITS  MOST  RECENT AVAILABLE BUSINESS CORPORATION FRANCHISE TAX
 REPORT, IN DESCENDING ORDER. SUCH REPORTS TO THE COMPTROLLER  SHALL  NOT
 DISCLOSE  THE  ACTUAL  AMOUNT  OF TOTAL ASSETS REPORTED ON SUCH BUSINESS
 CORPORATION FRANCHISE TAX REPORTS.
 (C) THE INFORMATION PROVIDED  TO  THE  COMPTROLLER  PURSUANT  TO  THIS
 SUBDIVISION SHALL BE USED ONLY FOR ADMINISTRATION AND ENFORCEMENT OF THE
 ABANDONED  PROPERTY  LAW. THE COMPTROLLER MAY REDISCLOSE THE INFORMATION
 PROVIDED UNDER  THIS  SUBDIVISION  ONLY  TO  THE  EXTENT  NECESSARY  FOR
 ENFORCEMENT OR ADMINISTRATION OF THE ABANDONED PROPERTY LAW.
 (D)  THE  REPORTS  TO  THE COMPTROLLER REQUIRED UNDER THIS SUBDIVISION
 SHALL BE SUBMITTED BY ELECTRONIC MEANS OR IN SOME OTHER FORMAT WHICH  IS
 MUTUALLY ACCEPTABLE TO THE COMPTROLLER AND THE COMMISSIONER. THE WRITTEN
 AGREEMENT  WITH  THE  COMPTROLLER  SHALL  SET  FORTH  THE PROCEDURES FOR
 PROVIDING THE INFORMATION THE COMMISSIONER IS ALLOWED TO DISCLOSE PURSU
 ANT TO THIS SUBDIVISION.
 (E) NOTWITHSTANDING ARTICLE SIX OF THE  PUBLIC  OFFICERS  LAW  OR  ANY
 OTHER  PROVISION  OF LAW, THE REPORTS TO BE FURNISHED TO THE COMPTROLLER
 
       S. 2811--B                         14
 PURSUANT TO THIS SUBDIVISION  SHALL  NOT  BE  OPEN  TO  THE  PUBLIC  FOR
 INSPECTION.
 

S 37. This act shall take effect immediately.
 PART B
 

Section  1. 

Section  12  of part N of chapter 61 of the laws of 2005,
 amending the tax law relating to certain transactions and related infor
 mation and relating to the voluntary compliance initiative,  subdivision
 (iii) as amended by section 16 of subpart J of part V-1 of chapter 57 of
 the laws of 2009, is amended to read as follows:

 

S  12. This act shall take effect immediately; provided, however, that
 (i) section one of this act shall apply  to  all  disclosure  statements
 described  in  paragraph  1  of subdivision (a) of section 25 of the tax
 law, as added by section one of this act, that were required to be filed
 with the internal revenue service at any time with  respect  to  "listed
 transactions"  as  described in such paragraph 1, and shall apply to all
 disclosure statements described in paragraph 1  of  subdivision  (a)  of
 section  25  of  the  tax law, as added by section one of this act, that
 were required to be filed with the internal revenue service with respect
 to "reportable transactions" as described in  such  paragraph  1,  other
 than  "listed transactions", in which a taxpayer participated during any
 taxable year for which the statute of limitations for assessment has not
 expired as of the date this act shall take effect, and  shall  apply  to
 returns or statements described in such paragraph 1 required to be filed
 by  taxpayers  (or  persons  as  described  in  such paragraph) with the
 commissioner of taxation and finance on or after the sixtieth day  after
 this act shall have become a law;
 (ii)  sections  two  through  four  and seven through nine of this act
 shall apply to any tax liability for which the statute of limitations on
 assessment has not expired as of the date this act  shall  take  effect;
 and
 (iii)  provided,  further,  that  the  provisions  of this act, except
 section five of this act, shall expire and be deemed  repealed  July  1,
 [2011.    The  commissioner  of  taxation  and finance shall cause to be
 prepared a written report on the tax shelter  law.  Notwithstanding  any
 other  provision  of law to the contrary, such report shall include, but
 not be limited to, statistical  information  regarding  the  listed  and
 reportable  transactions  and  avoidance  transactions under this act. A
 copy of such report shall be delivered to the  governor,  the  temporary
 president  of  the senate, and the speaker of the assembly no later than
 April 1, 2007] 2015; provided, that, such expiration  and  repeal  shall
 not affect any requirement imposed pursuant to this act.
 

S 2. This act shall take effect immediately.
 PART C
 Intentionally omitted.
 PART D
 

Section  1.  The  tax law is amended by adding a new section 1613-c to
 read as follows:

 

S 1613-C. CREDITING OF LOTTERY PRIZES AGAINST  LIABILITIES  FOR  TAXES
 ADMINISTERED  BY  THE  COMMISSIONER.  (1) THE DIRECTOR, ON BEHALF OF THE
 DIVISION, SHALL ENTER INTO A WRITTEN AGREEMENT WITH THE COMMISSIONER, ON
 
       S. 2811--B                         15
 BEHALF OF THE DEPARTMENT, WITHIN SIXTY DAYS OF  THE  EFFECTIVE  DATE  OF
 THIS  SECTION,  WHICH  WILL  SET  FORTH PROCEDURES FOR CREDITING LOTTERY
 PRIZES OF MORE THAN SIX HUNDRED DOLLARS AWARDED TO  HOLDERS  OF  WINNING
 LOTTERY TICKETS, WHETHER INDIVIDUALS, CORPORATIONS, ASSOCIATIONS, COMPA
 NIES,  PARTNERSHIPS,  LIMITED LIABILITY PARTNERSHIPS OR COMPANIES, PART
 NERS, MEMBERS, MANAGERS, ESTATES, TRUST FIDUCIARIES OR ENTITIES, AGAINST
 PAST DUE TAX LIABILITIES OWED BY SUCH HOLDERS FOR ANY  TAX  ADMINISTERED
 BY  THE  COMMISSIONER, ABOUT WHICH THE DIRECTOR HAS BEEN NOTIFIED BY THE
 COMMISSIONER PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.
 (2) SUCH AGREEMENT SHALL APPLY TO ANY PAST  DUE  TAX  LIABILITY  WHICH
 ARISES  FROM (I) AN ENFORCEABLE WARRANT OR JUDGMENT, (II) AN ENFORCEABLE
 DETERMINATION OF AN ADMINISTRATIVE BODY WHICH IS NO  LONGER  SUBJECT  TO
 ADMINISTRATIVE  OR  JUDICIAL  REVIEW, OR (III) AN ASSESSMENT OR DETERMI
 NATION (INCLUDING SELF-ASSESSMENT OR SELF-ASSESSED DETERMINATION)  WHICH
 HAS  BECOME FINAL OR FINALLY AND IRREVOCABLY FIXED AND NO LONGER SUBJECT
 TO ADMINISTRATIVE OR JUDICIAL REVIEW.
 (3) SUCH AGREEMENT SHALL INCLUDE:

 (A) THE PROCEDURE UNDER WHICH THE DEPARTMENT WILL NOTIFY THE  DIVISION
 OF TAX LIABILITIES, INCLUDING WHEN THE DIVISION WILL BE NOTIFIED AND THE
 CONTENT OF THAT NOTIFICATION;
 (B)  THE PROCEDURE FOR REIMBURSEMENT OF THE DIVISION BY THE DEPARTMENT
 FOR THE COST OF CARRYING OUT THE PROCEDURES AUTHORIZED BY THIS  SECTION;
 AND
 (C)  ANY  OTHER MATTERS THE PARTIES TO THE AGREEMENT DEEM NECESSARY TO
 CARRY OUT THE PROVISIONS OF THIS SECTION.
 (4) PRIOR TO AWARDING LOTTERY PRIZES OF MORE THAN SIX HUNDRED DOLLARS,
 THE DIVISION SHALL REVIEW THE MOST  RECENT  NOTICE  OF  TAX  LIABILITIES
 PROVIDED  BY  THE  COMMISSIONER.  FOR HOLDERS OF WINNING LOTTERY TICKETS
 IDENTIFIED ON THAT NOTICE, THE DIVISION SHALL CREDIT TO  THE  DEPARTMENT
 THE AMOUNT OF EACH HOLDER'S PRIZE NECESSARY TO SATISFY THAT HOLDER'S TAX
 LIABILITY, AND THE REMAINDER OF THE PRIZE SHALL BE AWARDED TO THE HOLDER
 OF THE WINNING TICKET.
 (5) IF THE DIVISION HAS ALSO RECEIVED A NOTICE OF LIABILITY OF A PRIZE
 WINNER  FOR  PAST-DUE  SUPPORT OR PUBLIC ASSISTANCE BENEFITS PURSUANT TO
 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
 ARTICLE, THEN THE AMOUNT OF ANY PRIZE SHALL BE FIRST CREDITED OR APPLIED
 TO THE INCOME TAX REQUIRED TO BE WITHHELD BY LAW, THEN  AS  REQUIRED  BY
 SECTION SIXTEEN HUNDRED THIRTEEN-A OR SIXTEEN HUNDRED THIRTEEN-B OF THIS
 ARTICLE, THEN TO THE PAST DUE TAX LIABILITY AS REQUIRED BY THIS SECTION.
 THE BALANCE WILL THEN BE PAID TO THE HOLDER OF THE WINNING LOTTERY TICK
 ET.
 (6)  THE DIVISION SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF
 THE LOTTERY PRIZE TO BE CREDITED AGAINST PAST DUE  TAX  LIABILITIES  AND
 THE  REMAINDER  OF  THE PRIZE TO BE AWARDED TO THE HOLDER OF THE WINNING
 LOTTERY TICKET.
 (7) THE DIVISION SHALL NOTIFY THE HOLDER OF THE WINNING LOTTERY  TICK
 ET,  IN  WRITING,  OF  THE  TOTAL  AMOUNT  OF THE LOTTERY PRIZE CREDITED
 AGAINST PAST DUE TAX LIABILITIES AND THE REMAINDER OF THE  PRIZE  TO  BE
 AWARDED  TO THE HOLDER. THAT NOTICE MUST ALSO ADVISE THE HOLDER THAT THE
 DEPARTMENT WILL PROVIDE SEPARATE NOTICE, IN WRITING,  OF  THE  PROCEDURE
 FOR AND TIME FRAME BY WHICH THE HOLDER MAY CONTEST SUCH CREDITING.
 (8)  THE  DEPARTMENT  SHALL  NOTIFY  THE HOLDER OF THE WINNING LOTTERY
 TICKET, IN WRITING, OF THE AMOUNT OF A PRIZE TO BE CREDITED AGAINST PAST
 DUE TAX LIABILITIES AND THE PROCEDURE FOR AND TIME FRAME  BY  WHICH  THE
 HOLDER MAY CONTEST THE CREDITING OF THE PRIZE.
 
       S. 2811--B                         16
 (9) FROM THE TIME THE DIVISION IS NOTIFIED BY THE DEPARTMENT OF A PAST
 DUE  TAX LIABILITY OF A HOLDER OF A WINNING LOTTERY TICKET, THE DIVISION
 SHALL BE RELIEVED FROM ALL LIABILITY TO THE  HOLDER,  AND  THE  HOLDER'S
 HEIRS,  REPRESENTATIVES, ESTATE, SUCCESSORS OR ASSIGNS FOR THE AMOUNT OF
 A PRIZE CERTIFIED TO THE COMPTROLLER TO BE CREDITED AGAINST PAST DUE TAX
 LIABILITIES  AND  THE  HOLDER  AND  THE HOLDER'S HEIRS, REPRESENTATIVES,
 ESTATE, SUCCESSOR OR ASSIGNS SHALL HAVE NO RIGHT  TO  COMMENCE  A  COURT
 ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE DIVISION
 TO  RECOVER  ANY  AMOUNT  CERTIFIED  TO  THE  COMPTROLLER TO BE CREDITED
 AGAINST PAST DUE TAX LIABILITIES. PROVIDED HOWEVER, NOTHING HEREIN SHALL
 BE CONSTRUED TO PROHIBIT A HOLDER OF A WINNING LOTTERY  TICKET  AND  THE
 HOLDER'S  HEIRS,  REPRESENTATIVES,  ESTATE,  SUCCESSORS  OR ASSIGNS FROM
 PROCEEDING AGAINST THE DEPARTMENT TO  RECOVER  THE  PART  OF  THE  PRIZE
 CERTIFIED  TO  THE  COMPTROLLER AND CREDITED TO PAST DUE TAX LIABILITIES
 WHICH IS GREATER THAN THE AMOUNT OF PAST DUE  TAX  LIABILITIES  OWED  BY
 THAT HOLDER ON THE DATE OF CERTIFICATION.
 (10)  NOTWITHSTANDING  ANY LAW TO THE CONTRARY, THE DEPARTMENT AND ITS
 OFFICERS AND EMPLOYEES MAY FURNISH TO THE DIVISION ANY ABSTRACT  OF  ANY
 TAX RETURN OR REPORT, OR ANY INFORMATION CONCERNING AN ITEM CONTAINED IN
 ANY  SUCH  RETURN  OR  REPORT  OR  DISCLOSED BY ANY INVESTIGATION OF TAX
 LIABILITY UNDER THIS CHAPTER, BUT ONLY  FOR  THE  PURPOSE  OF  CREDITING
 LOTTERY PRIZES AGAINST PAST DUE TAX LIABILITIES DESCRIBED IN SUBDIVISION
 TWO OF THIS SECTION.
 

S 2. This act shall take effect on the first of August next succeeding
 the  date on which it shall have become a law, provided that the depart
 ment of taxation and finance and the division of the  lottery  may  take
 steps  to  effectuate  the written agreement between the director of the
 division of the lottery and the commissioner  of  taxation  and  finance
 prior to such effective date.
 PART E
 

Section  1.  Paragraph  c of subdivision 2 of section 124 of part A of
 chapter 56 of the laws of 1998, amending the  tax  law  and  other  laws
 relating  to  extending  the  dates of application of the investment tax
 credit under articles 9-A, 22 and 32 of  the  tax  law,  as  amended  by
 section  1 of part YY-1 of chapter 57 of the laws of 2008, is amended to
 read as follows:

 c. Sections fifteen through twenty-seven of this act  shall  apply  to
 property placed in service on or after October 1, 1998 [and before Octo-
 ber 1, 2011].
 

S  2. 

Section 2 of part L of chapter 63 of the laws of 2000, amending
 the tax law and other laws relating to extending the dates  of  applica
 tion  of  the  investment tax credit under article 33 of the tax law, as
 amended by section 2 of part YY-1 of chapter 57 of the laws of 2008,  is
 amended to read as follows:

 

S 2. This act shall take effect immediately and shall apply to proper
 ty  placed in service on or after January 1, 2002 [and before October 1,
 2011].
 

S 3. This act shall take effect immediately.
 PART F
 

Section 1. Subdivision 4 of section 22 of the public housing  law,  as
 amended  by  section  1  of part P of chapter 57 of the laws of 2010, is
 amended to read as follows:

 
       S. 2811--B                         17
 4. Statewide limitation. The aggregate dollar amount of  credit  which
 the  commissioner  may  allocate  to eligible low-income buildings under
 this article shall be [twenty-eight]  THIRTY-TWO  million  dollars.  The
 limitation  provided  by  this subdivision applies only to allocation of
 the  aggregate dollar amount of credit by the commissioner, and does not
 apply to allowance to a taxpayer of the credit with respect to an eligi
 ble low-income building for each year of the credit period.
 

S 2. This act shall take effect immediately.
 PART G
 Intentionally omitted.
 PART H
 Intentionally omitted.
 PART I
 

Section 1. Paragraphs 4, 16 and 39 of subsection (a) of section 107 of
 the insurance law are amended to read as follows:

 (4) "Affiliate" means a corporation, a majority  of  whose  shares  is
 owned  or  controlled  by shareholders, directors or officers of another
 corporation, who own or control a majority of the shares  of  the  other
 corporation  EXCEPT  FOR  PURPOSES  OF INSURANCE PROCURED BY EXCESS LINE
 BROKERS LICENSED PURSUANT TO SECTION TWO THOUSAND ONE  HUNDRED  FIVE  OF
 THIS CHAPTER.
 (16)  "Control".  Except  for  the purposes of article fifteen of this
 chapter AND INSURANCE PROCURED BY EXCESS LINE BROKERS LICENSED  PURSUANT
 TO  SECTION  TWO  THOUSAND  ONE HUNDRED FIVE OF THIS CHAPTER, "control",
 including the terms "controlling", "controlled  by"  and  "under  common
 control with", means the possession, direct or indirect, of the power to
 direct  or  cause  the  direction  of  the management and policies of an
 institution, whether through the  ownership  of  voting  securities,  by
 contract or otherwise.
 (39) "State" means any state of the United States, the commonwealth of
 Puerto  Rico [and], the District of Columbia, GUAM, THE NORTHERN MARIANA
 ISLANDS, THE VIRGIN ISLANDS AND AMERICAN SAMOA.
 

S 2. Subsection (l) of section 2101 of the insurance law, as added  by
 chapter  687  of  the  laws of 2003, is amended and five new subsections
 (w), (x), (y), (z) and (aa) are added to read as follows:

 (l) In this article, WITH RESPECT TO AN  INSURANCE  PRODUCER,  "[home]
 RESIDENT state" means the District of Columbia or any state or territory
 of  the  United States in which an insurance producer maintains his, her
 or its principal place of residence or principal place of  business  and
 is licensed to act as an insurance producer.
 (W) IN THIS ARTICLE, FOR PURPOSES OF INSURANCE PROCURED BY EXCESS LINE
 BROKERS  LICENSED  PURSUANT  TO SECTION TWO THOUSAND ONE HUNDRED FIVE OF
 THIS CHAPTER, THE TERM "AFFILIATE" MEANS, WITH RESPECT  TO  AN  INSURED,
 ANY  ENTITY  THAT CONTROLS, IS CONTROLLED BY, OR IS UNDER COMMON CONTROL
 WITH, THE INSURED. THE TERM "AFFILIATED GROUP" MEANS ANY GROUP OF  ENTI
 TIES THAT ARE ALL AFFILIATED.
 (X) IN THIS ARTICLE, FOR PURPOSES OF INSURANCE PROCURED BY EXCESS LINE
 BROKERS  LICENSED  PURSUANT  TO SECTION TWO THOUSAND ONE HUNDRED FIVE OF
 THIS CHAPTER, AN ENTITY HAS "CONTROL" OVER ANOTHER ENTITY IF:

 
       S. 2811--B                         18
 (1) THE ENTITY DIRECTLY OR INDIRECTLY OR ACTING THROUGH  ONE  OR  MORE
 OTHER  PERSONS  OWNS,  CONTROLS,  OR  HAS  THE POWER TO VOTE TWENTY-FIVE
 PERCENT OR MORE OF ANY CLASS OF VOTING SECURITIES OF THE  OTHER  ENTITY;
 OR
 (2)  THE  ENTITY  CONTROLS IN ANY MANNER THE ELECTION OF A MAJORITY OF
 THE DIRECTORS OR TRUSTEES OF THE OTHER ENTITY.
 (Y)(1) IN THIS ARTICLE, FOR PURPOSES OF INSURANCE PROCURED  BY  EXCESS
 LINE  BROKERS LICENSED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIVE
 OF THIS CHAPTER, THE TERM "HOME STATE" WITH RESPECT TO AN INSURED MEANS:

 (A) THE STATE IN WHICH AN INSURED MAINTAINS  ITS  PRINCIPAL  PLACE  OF
 BUSINESS  OR,  IN  THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
 RESIDENCE; OR
 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUT  OF  THE
 STATE  REFERRED  TO  IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE STATE TO
 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR  THAT
 INSURANCE CONTRACT IS ALLOCATED.
 (2) IF MORE THAN ONE INSURED FROM AN AFFILIATED GROUP ARE INSURED BY A
 SINGLE  INSURANCE  CONTRACT  PROCURED BY AN EXCESS LINE BROKER, THE TERM
 "HOME STATE" MEANS THE HOME STATE, AS DETERMINED PURSUANT  TO  PARAGRAPH
 (1)  OF  THIS SUBSECTION, OF THE MEMBER OF THE AFFILIATED GROUP THAT HAS
 THE LARGEST PERCENTAGE OF PREMIUM ATTRIBUTED TO IT UNDER SUCH  INSURANCE
 CONTRACT.
 (Z) IN THIS ARTICLE, FOR PURPOSES OF INSURANCE PROCURED BY EXCESS LINE
 BROKERS  LICENSED  PURSUANT  TO SECTION TWO THOUSAND ONE HUNDRED FIVE OF
 THIS CHAPTER, THE TERM "EXEMPT COMMERCIAL PURCHASER"  MEANS  ANY  PERSON
 PURCHASING  COMMERCIAL  INSURANCE  THAT, AT THE TIME OF PLACEMENT, MEETS
 THE FOLLOWING REQUIREMENTS:

 (1) THE PERSON EMPLOYS OR RETAINS A QUALIFIED RISK MANAGER TO  NEGOTI
 ATE INSURANCE COVERAGE;
 (2)  THE  PERSON HAS PAID AGGREGATE NATIONWIDE COMMERCIAL PROPERTY AND
 CASUALTY INSURANCE PREMIUMS IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS IN
 THE IMMEDIATELY PRECEDING TWELVE MONTHS; AND
 (3) THE PERSON MEETS AT LEAST ONE OF THE FOLLOWING CRITERIA:

 (A) THE PERSON POSSESSES A NET  WORTH  IN  EXCESS  OF  TWENTY  MILLION
 DOLLARS,  AS  SUCH  AMOUNT IS ADJUSTED PURSUANT TO PARAGRAPH (2) OF THIS
 SUBSECTION;
 (B) THE PERSON GENERATES ANNUAL REVENUES IN EXCESS  OF  FIFTY  MILLION
 DOLLARS,  AS  SUCH  AMOUNT IS ADJUSTED PURSUANT TO PARAGRAPH (2) OF THIS
 SUBSECTION;
 (C) THE PERSON EMPLOYS MORE THAN FIVE HUNDRED FULL-TIME  OR  FULL-TIME
 EQUIVALENT  EMPLOYEES PER INDIVIDUAL INSURED OR IS A MEMBER OF AN AFFIL
 IATED GROUP EMPLOYING MORE THAN ONE THOUSAND EMPLOYEES IN THE AGGREGATE;
 (D) THE PERSON IS  A  NOT-FOR-PROFIT  ORGANIZATION  OR  PUBLIC  ENTITY
 GENERATING  ANNUAL  BUDGETED  EXPENDITURES  OF  AT  LEAST THIRTY MILLION
 DOLLARS, AS SUCH AMOUNT IS ADJUSTED PURSUANT TO PARAGRAPH  (2)  OF  THIS
 SUBSECTION;
 (E)  THE PERSON IS A MUNICIPALITY WITH A POPULATION IN EXCESS OF FIFTY
 THOUSAND PERSONS.
 (4) EFFECTIVE ON THE FIFTH JANUARY FIRST OCCURRING AFTER THE  DATE  OF
 THE  ENACTMENT  OF  THIS  ARTICLE AND EACH FIFTH JANUARY FIRST OCCURRING
 THEREAFTER, THE AMOUNTS IN SUBPARAGRAPHS (A), (B), AND (D) OF  PARAGRAPH
 (3)  OF  THIS  SUBSECTION  SHALL  BE  ADJUSTED TO REFLECT THE PERCENTAGE
 CHANGE FOR SUCH FIVE-YEAR PERIOD IN THE CONSUMER  PRICE  INDEX  FOR  ALL
 URBAN  CONSUMERS  PUBLISHED  BY  THE  BUREAU  OF LABOR STATISTICS OF THE
 DEPARTMENT OF LABOR.
 
       S. 2811--B                         19
 (AA) FOR  PURPOSES  OF  INSURANCE  PROCURED  BY  EXCESS  LINE  BROKERS
 LICENSED PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIVE OF THIS CHAP
 TER,  THE TERM "QUALIFIED RISK MANAGER" MEANS, WITH RESPECT TO A POLICY
 HOLDER OF COMMERCIAL INSURANCE, A PERSON WHO MEETS ALL OF THE  FOLLOWING
 REQUIREMENTS:

 (1)  THE  PERSON IS AN EMPLOYEE OF, OR THIRD-PARTY CONSULTANT RETAINED
 BY, THE COMMERCIAL POLICYHOLDER;
 (2) THE PERSON PROVIDES SKILLED  SERVICES  IN  LOSS  PREVENTION,  LOSS
 REDUCTION,  OR  RISK  AND  INSURANCE  COVERAGE ANALYSIS, AND PURCHASE OF
 INSURANCE;
 (3) THE PERSON:

 (A) HAS, AT A MINIMUM, A BACHELOR'S DEGREE FROM AN ACCREDITED  COLLEGE
 OR  UNIVERSITY  IN  RISK  MANAGEMENT,  BUSINESS ADMINISTRATION, FINANCE,
 ECONOMICS, OR ANY OTHER FIELD DETERMINED BY THE SUPERINTENDENT OR  OTHER
 STATE REGULATORY OFFICIAL OR ENTITY TO DEMONSTRATE MINIMUM COMPETENCE IN
 RISK MANAGEMENT; AND
 (B)  HAS  THREE YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS ADMINIS
 TRATION, LOSS PREVENTION, RISK AND  INSURANCE  ANALYSIS,  OR  PURCHASING
 COMMERCIAL LINES OF INSURANCE; OR
 (C) HAS A DESIGNATION AS A CHARTERED PROPERTY AND CASUALTY UNDERWRITER
 ("CPCU")  ISSUED  BY THE AMERICAN INSTITUTE FOR CPCU/INSURANCE INSTITUTE
 OF AMERICA;
 (D) HAS A DESIGNATION AS  AN  ASSOCIATE  IN  RISK  MANAGEMENT  ("ARM")
 ISSUED  BY THE AMERICAN INSTITUTE FOR CPCU/INSURANCE INSTITUTE OF AMERI
 CA;
 (E) HAS A DESIGNATION AS CERTIFIED RISK MANAGER ("CRM") ISSUED BY  THE
 NATIONAL ALLIANCE FOR INSURANCE EDUCATION & RESEARCH;
 (F)  HAS  A  DESIGNATION  AS A RIMS FELLOW ("RF") ISSUED BY THE GLOBAL
 RISK MANAGEMENT INSTITUTE; OR
 (G) HAS ANY OTHER DESIGNATION, CERTIFICATION, OR LICENSE DETERMINED BY
 THE SUPERINTENDENT OR OTHER STATE INSURANCE REGULATORY OFFICIAL OR ENTI
 TY TO DEMONSTRATE MINIMUM COMPETENCY IN RISK MANAGEMENT;
 (4) HAS AT LEAST SEVEN YEARS OF EXPERIENCE IN RISK  FINANCING,  CLAIMS
 ADMINISTRATION,  LOSS  PREVENTION, RISK AND INSURANCE COVERAGE ANALYSIS,
 OR PURCHASING COMMERCIAL LINES OF INSURANCE; AND
 (A) HAS ANY ONE OF THE DESIGNATIONS  SPECIFIED  IN  SUBPARAGRAPHS  (A)
 THROUGH (G) OF PARAGRAPH (3) OF SUBSECTION (AA) OF THIS SECTION;
 (B)  HAS  AT  LEAST  TEN YEARS OF EXPERIENCE IN RISK FINANCING, CLAIMS
 ADMINISTRATION, LOSS PREVENTION, RISK AND INSURANCE  COVERAGE  ANALYSIS,
 OR PURCHASING COMMERCIAL LINES OF INSURANCE; OR
 (C)  HAS A GRADUATE DEGREE FROM AN ACCREDITED COLLEGE OR UNIVERSITY IN
 RISK MANAGEMENT, BUSINESS ADMINISTRATION,  FINANCE,  ECONOMICS,  OR  ANY
 OTHER  FIELD  DETERMINED BY THE SUPERINTENDENT OR OTHER STATE REGULATORY
 OFFICIAL OR ENTITY TO DEMONSTRATE MINIMUM COMPETENCE IN RISK MANAGEMENT.
 

S 3. Paragraph 11 of subsection (g) of section 2103 of  the  insurance
 law,  as added by chapter 687 of the laws of 2003, is amended to read as
 follows:

 (11) of any individual who applies for an insurance agent  license  in
 this  state  who  was  previously licensed for the same line or lines of
 authority in another state,  provided,  however,  that  the  applicant's
 [home]  RESIDENT state grants non-resident licenses to residents of this
 state on the same basis. Such individual shall also not be  required  to
 complete any prelicensing education. This exemption is only available if
 the  person is currently licensed in that state or if the application is
 received within ninety days of the date of cancellation  of  the  appli
 cant's  previous  license  and if the prior state issues a certification
 
       S. 2811--B                         20
 that, at the time of cancellation, the applicant was in good standing in
 that state or the state's producer database records, maintained  by  the
 National  Association  of  Insurance  Commissioners,  its  affiliates or
 subsidiaries,  indicate  that  the  producer  is or was licensed in good
 standing for the line of authority requested. An  individual  or  entity
 licensed in another state who moves to this state shall make an applica
 tion  within  ninety  days  of  establishing legal residence to become a
 resident licensee. No prelicensing education  or  examination  shall  be
 required  of that person to obtain any line of authority previously held
 in the prior state except where the superintendent determines  otherwise
 by regulation.
 

S 4. Subparagraph (G) of paragraph 3 of subsection (e) of section 2104
 of  the insurance law, as amended by chapter 687 of the laws of 2003, is
 amended to read as follows:

 (G) was previously licensed for the same line or lines of authority in
 another state, provided, however, that the applicant's  [home]  RESIDENT
 state  grants  non-resident  licenses  to residents of this state on the
 same basis. Such individual shall also not be required to  complete  any
 prelicensing  education.  This exemption is only available if the person
 is currently licensed in that state or if the  application  is  received
 within ninety days of the date of cancellation of the applicant's previ
 ous  license  and if the prior state issues a certification that, at the
 time of cancellation, the applicant was in good standing in  that  state
 or  the  state's  producer  database records, maintained by the National
 Association of Insurance Commissioners, its affiliates or  subsidiaries,
 indicate  that  the producer is or was licensed in good standing for the
 line of authority requested. An individual or entity licensed in another
 state who moves to this state shall make an  application  within  ninety
 days  of  establishing legal residence to become a resident licensee. No
 prelicensing education or examination shall be required of  that  person
 to  obtain  any  line  of  authority  previously held in the prior state
 except where the superintendent determines otherwise by regulation.
 

S 5. Subsections (a) and (b) of section 2105  of  the  insurance  law,
 subsection  (a)  as  amended  by  chapter  626  of  the laws of 2006 and
 subsection (b) as amended by chapter  687  of  the  laws  of  2003,  are
 amended and a new subsection (i) is added to read as follows:

 (a)  The  superintendent  may issue an excess line broker's license to
 any person, firm, association or corporation who or which  is  domiciled
 or  maintains  an  office  in this state and is licensed as an insurance
 broker under section two thousand one hundred four of this  article,  or
 who  or  which  is  licensed  as an excess line broker in the licensee's
 [home] RESIDENT state, provided, however, that  the  applicant's  [home]
 RESIDENT  state  grants non-resident licenses to residents of this state
 on the same basis, except that reciprocity is not required in regard  to
 the  placement of liability insurance on behalf of a purchasing group or
 any of its members; authorizing such person, firm, association or corpo
 ration to procure, subject to the restrictions herein provided, policies
 of insurance from insurers which are not authorized to transact business
 in this state of the kind or kinds of insurance specified in  paragraphs
 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two,
 twenty-seven,  twenty-eight  and thirty-one of subsection (a) of section
 one thousand one hundred thirteen of this chapter and in subsection  (h)
 of  this section, provided, however, that the provisions of this section
 and section two thousand one hundred eighteen of this article shall  not
 apply to ocean marine insurance and other contracts of insurance enumer
 ated  in  subsections  (b)  and  (c) of section two thousand one hundred
 
       S. 2811--B                         21
 seventeen of this article. Such license may be suspended or  revoked  by
 the  superintendent  whenever  in his OR HER judgment such suspension or
 revocation will best promote the interests of the people of this  state.
 NOTWITHSTANDING  ANYTHING  IN  THIS  CHAPTER TO THE CONTRARY, NO PERSON,
 FIRM, ASSOCIATION OR CORPORATION IS REQUIRED TO OBTAIN  AN  EXCESS  LINE
 BROKER'S LICENSE TO PROCURE INSURANCE FOR AN INSURED WHOSE HOME STATE IS
 A STATE OTHER THAN NEW YORK.
 (b)  Before  the  superintendent  issues  any such license or renewal,
 there shall be filed in the superintendent's office  an  application  by
 the  person,  firm, association or corporation desiring such license, in
 such form or forms, and supplements thereto, and containing  information
 the  superintendent prescribes. For each business entity, the sub-licen
 see or sub-licensees  named  in  the  application  shall  be  designated
 responsible  for  the  business  entity's  compliance with the insurance
 laws, rules and regulations of this state. A person or  entity  licensed
 as  an  excess  line broker in his, her or its [home] RESIDENT state may
 receive a non-resident excess line broker license pursuant to subsection
 (a) of this section with the submission of the application.
 (I) ON AND AFTER JULY 21, 2012, NO FEES RELATING TO THE  LICENSING  OF
 AN  INDIVIDUAL  OR  ENTITY  AS AN EXCESS LINE BROKER ARE PERMITTED TO BE
 CHARGED UNLESS THE STATE HAS IN EFFECT AT SUCH TIME LAWS OR  REGULATIONS
 THAT  PROVIDE  FOR  PARTICIPATION BY THE STATE IN THE NATIONAL INSURANCE
 PRODUCER DATABASE OF THE NATIONAL ASSOCIATION OF  INSURANCE  COMMISSION
 ERS,  OR  ANY OTHER EQUIVALENT UNIFORM NATIONAL DATABASE, FOR THE LICEN
 SURE OF EXCESS LINE BROKERS AND THE RENEWAL OF SUCH LICENSES.
 

S 6. Subparagraph (B) of paragraph 1 of subsection (f) of section 2106
 of the insurance law, as amended by chapter 687 of the laws of 2003,  is
 amended to read as follows:

 (B)  A "non-resident reinsurance intermediary" means a person who is a
 non-resident of this state and who is licensed to act as  a  reinsurance
 intermediary in their [home] RESIDENT state.
 

S  7.  Paragraphs  2  and  4  of subsection (f) of section 2110 of the
 insurance law, as amended by chapter  687  of  the  laws  of  2003,  are
 amended to read as follows:

 (2)  A non-resident insurance producer's license or sub-license may be
 summarily revoked in the event that the licensee's license as an  agent,
 broker, adjuster or in any other capacity under the insurance law of the
 licensee's [home] RESIDENT state of domicile or such license of the firm
 or association of which the licensee is a member, employee or sub-licen
 see,  or  such  license  of  the corporation of which the licensee is an
 officer, director,  employee  or  sub-licensee  has  been  suspended  or
 revoked  or  renewal  thereof  denied  in the licensee's [home] RESIDENT
 state of domicile by a procedure affording to the licensee or it a stat
 utory right to a hearing, for action or conduct which, if  it  had  been
 established upon a hearing before the superintendent, would have consti
 tuted  grounds  for revocation of a license under subsection (a) of this
 section.
 (4) Upon submission to the superintendent of satisfactory proof that a
 suspension or revocation of a license issued by a [home] RESIDENT  state
 to  act  as an insurance agent, insurance broker, adjuster or in another
 licensed capacity under the insurance law  of  such  other  state  or  a
 denial  of  renewal thereof has been duly withdrawn, set aside, reversed
 or voided, the superintendent shall thereupon reinstate and restore  any
 and  all  licenses  revoked  in  accordance  with the provisions of this
 subsection.
 
       S. 2811--B                         22
 

S 8. Subsection (a) of section 2118 of the insurance law,  as  amended
 by  chapter 220 of the laws of 1986, and paragraph 2 as amended by chap
 ter 663 of the laws of 1993, is amended to read as follows:

 (a) (1) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY,
 THE  PLACEMENT  OF EXCESS LINE INSURANCE SHALL BE EXCLUSIVELY SUBJECT TO
 THE LAWS OF THE INSURED'S HOME STATE AS DEFINED  IN  SUBSECTION  (Y)  OF
 SECTION  TWO  THOUSAND  ONE  HUNDRED ONE OF THIS ARTICLE. ANY LAW, REGU
 LATION, PROVISION OR ACTION OF ANY  STATE  THAT  PURPORTS  TO  APPLY  TO
 EXCESS  LINE  INSURANCE  SOLD  TO,  SOLICITED  BY, OR NEGOTIATED WITH AN
 INSURED WHOSE HOME STATE  IS  ANOTHER  STATE  SHALL  BE  PREEMPTED  WITH
 RESPECT TO SUCH APPLICATION.
 (2)  Every  licensee  licensed  pursuant  to  section two thousand one
 hundred five of this article shall  be  required  to  use  due  care  in
 selecting the unauthorized insurer from whom policies are procured under
 his OR HER license.
 [(2) (A) No policy of insurance may be procured by a licensee from any
 foreign or alien insurer which is controlled, by a foreign government or
 by  a  political  subdivision thereof, or which is an agency of any such
 government or subdivision if the  superintendent  determines  that:  (i)
 such  insurer  receives  a  subsidy or other competitive advantage, as a
 result of such control or  status,  that  would  enable  it  to  compete
 unfairly with similarly situated insurers which are not so controlled or
 constituted;  (ii)  such insurer is entitled to claim sovereign immunity
 as a result of such control and the insurer has not waived the sovereign
 immunity; or (iii) the use of such insurer would be detrimental  to  the
 interests of the people of this state.
 (B)  No  licensee  shall  be  deemed  to be in noncompliance with this
 subsection unless: (i) the superintendent has made a prior determination
 that the foreign or alien insurer from which  the  licensee  procured  a
 policy of insurance should not be used as an excess line insurer in this
 state  in accordance with the provisions of this subsection; or (ii) the
 licensee knew or should have known that such insurer should not be  used
 as  an  excess  line  insurer  in accordance with the provisions of this
 subsection. The superintendent may  promulgate  regulations  to  provide
 guidance to the licensee.
 (C)]  (3)(A) THE SUPERINTENDENT MAY NOT PROHIBIT AN UNAUTHORIZED ALIEN
 INSURER FROM INSURING ANY RISK OF THE KINDS OF INSURANCE  SET  FORTH  IN
 SUBSECTION  (A) OF SECTION TWO THOUSAND ONE HUNDRED FIVE OF THIS CHAPTER
 PLACED BY EXCESS LINE BROKERS LICENSED UNDER THIS ARTICLE IF SUCH INSUR
 ER IS LISTED ON THE MOST CURRENT QUARTERLY  LISTING  OF  ALIEN  INSURERS
 MAINTAINED  BY  THE  INTERNATIONAL  INSURERS  DEPARTMENT OF THE NATIONAL
 ASSOCIATION OF INSURANCE COMMISSIONERS.
 (B) AN UNAUTHORIZED FOREIGN INSURER IS ELIGIBLE TO INSURE RISKS PLACED
 BY EXCESS LINE BROKERS LICENSED UNDER THIS ARTICLE PROVIDED SUCH INSURER
 FURNISHES SATISFACTORY PROOF AS DETERMINED BY THE  SUPERINTENDENT  IN  A
 REGULATION THAT IT IS PERMITTED TO WRITE THE TYPE OF INSURANCE REQUESTED
 IN  ITS  DOMICILIARY  JURISDICTION,  AND  HAS CAPITAL AND SURPLUS OR ITS
 EQUIVALENT UNDER THE LAWS OF ITS DOMICILIARY JURISDICTION EQUAL  TO  THE
 GREATER OF FIFTEEN MILLION DOLLARS OR AN AMOUNT SET FORTH AND DETERMINED
 BY THE SUPERINTENDENT IN A REGULATION.
 (4) Every such insurer shall otherwise satisfy all applicable require
 ments for placement by an excess line broker.
 

S  9.  Paragraph  3 of subsection (b) of section 2118 of the insurance
 law is amended by adding a new subparagraph (F) to read as follows:

 (F) AN EXCESS LINE BROKER SEEKING TO PROCURE OR PLACE  INSURANCE  WITH
 AN  UNAUTHORIZED INSURER FOR AN EXEMPT COMMERCIAL PURCHASER SHALL NOT BE
 
       S. 2811--B                         23
 REQUIRED TO SATISFY ANY REQUIREMENT TO MAKE A DILIGENT EFFORT TO  DETER
 MINE  WHETHER THE FULL AMOUNT OR TYPE OF INSURANCE SOUGHT BY SUCH EXEMPT
 COMMERCIAL PURCHASER CAN BE OBTAINED FROM AUTHORIZED INSURERS IF:

 (I)  THE  BROKER  PROCURING  OR  PLACING THE EXCESS LINE INSURANCE HAS
 DISCLOSED TO THE EXEMPT COMMERCIAL PURCHASER THAT SUCH INSURANCE MAY  OR
 MAY  NOT  BE AVAILABLE FROM AUTHORIZED INSURERS THAT MAY PROVIDE GREATER
 PROTECTION WITH MORE REGULATORY OVERSIGHT; AND
 (II) THE EXEMPT COMMERCIAL PURCHASER HAS  SUBSEQUENTLY  REQUESTED,  IN
 WRITING, THE BROKER TO PROCURE OR PLACE SUCH INSURANCE FROM AN UNAUTHOR
 IZED INSURER.
 

S  10.  Paragraphs 5, 8 and 9 of subsection (b) of section 2118 of the
 insurance law, paragraph 5 as amended by chapter 630 of the laws of 1988
 and paragraphs 8 and 9 as added by chapter 687 of the laws of 2003,  are
 amended to read as follows:

 (5)  Before placing business with an unauthorized insurer, each licen
 see shall ascertain and verify the fact that such insurer is  authorized
 in  its  domiciliary jurisdiction to write the insurance policy proposed
 to be procured from it by the licensee. No unauthorized insurer shall be
 deemed unacceptable for placement of business solely on the ground  that
 it  has  been  so  authorized  to write such business in its domiciliary
 jurisdiction for a period of less than three years preceding the  place
 ment  of such risk by the licensee. [In determining whether business may
 be placed with  such  unauthorized  insurer,  the  superintendent  shall
 consider such factors as: the interests of the public and policyholders,
 the  length  of time such insurer has been authorized in its domiciliary
 jurisdiction and elsewhere, its financial condition, and  unavailability
 of  particular  coverages  from authorized insurers.] IF AN UNAUTHORIZED
 INSURER DOES NOT MEET THE ELIGIBILITY REQUIREMENTS OF PARAGRAPH  (2)  OF
 SUBSECTION  (A)  OF  SECTION  TWO  THOUSAND ONE HUNDRED EIGHTEEN OF THIS
 CHAPTER, AN EXCESS LINE BROKER MAY NONETHELESS PLACE A RISK WITH SUCH AN
 INSURER UPON AN AFFIRMATIVE FINDING OF ACCEPTABILITY BY THE  SUPERINTEN
 DENT. THE FINDING SHALL BE BASED UPON SUCH FACTORS AS QUALITY OF MANAGE
 MENT,  CAPITAL  AND  SURPLUS OF ANY PARENT COMPANY, COMPANY UNDERWRITING
 PROFIT AND INVESTMENT INCOME TRENDS,  MARKET  AVAILABILITY  AND  COMPANY
 RECORD  AND REPUTATION WITHIN THE INDUSTRY. IN NO EVENT SHALL THE SUPER
 INTENDENT MAKE AN AFFIRMATIVE FINDING OF ACCEPTABILITY  WHEN  THE  UNAU
 THORIZED  INSURER'S  CAPITAL  AND SURPLUS IS LESS THAN FOUR MILLION FIVE
 HUNDRED THOUSAND DOLLARS.
 (8) For purposes of this article, unless exempt under  the  provisions
 of  section two thousand one hundred seventeen of this article, a policy
 of insurance obtained from an insurer not authorized to  transact  busi
 ness  in  this state must be procured pursuant to an excess line license
 when [the entire property or risk exposure insured or any part  thereof,
 is  located  in  this  state  and:] THE HOME STATE OF THE INSURED IS NEW
 YORK.
 [(A) the insured negotiated to acquire the coverage from  within  this
 state; or
 (B) the policy was delivered to the insured in this state.]
 (9)  Nothing  in  this  article shall prohibit an excess line licensee
 from placing risks under the excess or surplus line law of another state
 provided that the excess line licensee[:
 (A)] is licensed under the [applicable state law]  LAWS  OF  THE  HOME
 STATE  OF THE INSURED as an excess or surplus line broker or places such
 risk through a licensed excess or surplus line broker  in  such  state[;
 and
 
       S. 2811--B                         24
 (B)  either  no  portion  of  the property or risk exposure is in this
 state, or the insured has property or risk exposure both in  this  state
 and in another state where the insured maintains a bona fide office from
 which  it  negotiated to acquire the coverage and to which the policy is
 delivered].
 

S 10-a. Paragraph 1 of subsection (d) of section 2118 of the insurance
 law,  as  amended by chapter 190 of the laws of 1990, is amended to read
 as follows:

 (1) Every person, firm, association or corporation  licensed  pursuant
 to the provisions of section two thousand one hundred five of this arti
 cle  shall  pay  A  PREMIUM  TAX to the superintendent IN a sum equal to
 three and six-tenths percent of the gross premiums charged the  insureds
 by the insurers for insurance procured by such licensee pursuant to such
 license,  less  the  amount  of such premiums returned to such insureds.
 Where the insurance covers property or risks located or resident both in
 and out of this state, AND THE COVERAGE INCEPTS ON OR PRIOR TO JULY  20,
 2011,  the  sum  payable  shall be computed on that portion of the gross
 premiums allocated to this state pursuant to subsection (b)  of  section
 nine  thousand  one hundred two of this chapter less the amount of gross
 premiums allocated to this state and returned to the insured;  PROVIDED,
 HOWEVER,  THAT  FOR  SUCH POLICIES IN WHICH COVERAGE INCEPTS ON OR AFTER
 JULY 21, 2011, THIS TAX SHALL ONLY APPLY TO EXCESS LINE TRANSACTIONS  IN
 WHICH  THE  INSURED'S  HOME STATE IS NEW YORK AS THAT TERM IS DEFINED IN
 SUBSECTION (Y) OF SECTION TWO THOUSAND ONE HUNDRED ONE OF THIS  ARTICLE,
 AND  SUCH  TAX  SHALL  NOT  BE  ALLOCATED  PURSUANT TO SUBSECTION (B) OF
 SECTION NINE THOUSAND ONE HUNDRED TWO OF THIS CHAPTER. FOR  PURPOSES  OF
 THIS  SECTION, THE TERM "PREMIUM TAX" MEANS, WITH RESPECT TO EXCESS LINE
 INSURANCE, ANY TAX, FEE, ASSESSMENT OR ANY OTHER CHARGE IMPOSED  BY  THE
 STATE  DIRECTLY OR INDIRECTLY BASED ON ANY PAYMENT MADE AS CONSIDERATION
 FOR SUCH POLICY OF INSURANCE, INCLUDING PREMIUM  DEPOSITS,  ASSESSMENTS,
 REGISTRATION  FEES AND ANY OTHER COMPENSATION GIVEN IN CONSIDERATION FOR
 SUCH POLICY OF INSURANCE.
 

S 11. Subsection (b) of section 2134 of the insurance law, as added by
 chapter 687 of the laws of 2003, is amended to read as follows:

 (b) In addition to the requirements of subsection (a) of this section,
 a nonresident insurance producer who changes  his,  her  or  its  [home]
 RESIDENT state, or a resident insurance producer who changes his, her or
 its  [home]  RESIDENT  state to another state, within thirty days of the
 date of change, shall provide certification of such change from the  new
 [home]  RESIDENT  state. No fee or license application shall be required
 therefor.
 

S 12. Subsections (a), (b) and (d) of section 2136  of  the  insurance
 law, as added by chapter 687 of the laws of 2003, are amended to read as
 follows:

 (a) the applicant has a current and valid license in his or her [home]
 RESIDENT  state  and  is  in good standing in his or her [home] RESIDENT
 state;
 (b) the applicant has submitted a completed application  in  the  form
 prescribed by the superintendent or submitted the application for licen
 sure submitted to his or her [home] RESIDENT state;
 (d) the applicant's [home] RESIDENT state awards nonresident insurance
 producer  licenses  to  residents  of  this  state  on the same basis as
 provided in this subsection.
 

S 13. Subparagraph (E) of paragraph 1 of  subsection  (f)  of  section
 2137  of the insurance law, as added by chapter 499 of the laws of 2009,
 is amended to read as follows:

 
       S. 2811--B                         25
 (E) any individual seeking to be named a licensee or sub-licensee, who
 is a nonresident and a life settlement broker or who is licensed  as  an
 insurance  producer  with  a  life line of authority in the individual's
 [home] RESIDENT state for at least one year; provided, however, that the
 individual's  [home] RESIDENT state grants nonresident licenses to resi
 dents of this state on the same basis.
 

S 14. Subsection (a) and paragraph 1 of subsection (b) of section 9102
 of the insurance law, as amended by chapter 190 of the laws of 1990, are
 amended to read as follows:

 (a) In determining the amount  of  direct  premiums  taxable  in  this
 state,  all  such  premiums written, procured, or received in this state
 shall be deemed written on property or risks located or resident in this
 state except such premiums properly allocated and  reported  as  taxable
 premiums  of  any  other  state or states, PROVIDED THAT FOR PURPOSES OF
 INSURANCE PROCURED BY EXCESS LINE BROKERS PURSUANT TO SECTION TWO  THOU
 SAND  ONE HUNDRED FIVE OF THIS CHAPTER, NO SUCH ALLOCATION SHALL BE MADE
 WHERE THE EXCESS LINE TRANSACTION INVOLVES AN INSURED WHOSE  HOME  STATE
 IS  NEW  YORK  AS  THAT TERM IS DEFINED IN SUBSECTION (Y) OF SECTION TWO
 THOUSAND ONE HUNDRED ONE OF THIS CHAPTER WITH  RESPECT  TO  EXCESS  LINE
 PLACEMENTS IN WHICH COVERAGE INCEPTS ON OR AFTER JULY 21, 2011.
 (1)  In determining the amount of gross premiums taxable in this state
 pursuant to paragraph one of subsection (d) of section two thousand  one
 hundred  eighteen  of  this  chapter,  where  a placement of excess line
 insurance INCEPTS ON OR PRIOR TO JULY 20, 2011 AND  covers  property  or
 risks located or resident both in and out of this state, the sum paid to
 the  superintendent  shall  be  computed  on  that portion of the policy
 premium that is attributable to property or risks located or resident in
 this state,  as  determined  by  reference  to  an  allocation  schedule
 prescribed by the superintendent in a regulation. WITH RESPECT TO EXCESS
 LINE PLACEMENTS IN WHICH COVERAGE INCEPTS ON OR AFTER JULY 21, 2011, ONE
 HUNDRED PERCENT OF THE PREMIUM CHARGED SHALL BE SUBJECT TO THE TAX WITH
 OUT  ALLOCATION,  BUT  ONLY  TO  PLACEMENTS  WHERE THE HOME STATE OF THE
 INSURED, AS THAT TERM IS DEFINED IN SUBSECTION (Y) OF SECTION TWO  THOU
 SAND ONE HUNDRED ONE OF THIS CHAPTER, IS NEW YORK.
 

S 15. Subsection (b) of section 1550 of the tax law, as added by chap
 ter  190 of the laws of 1990, is amended and two new subsections (d) and
 (e) are added to read as follows:

 (b) The term "premium" includes all amounts paid as consideration  for
 insurance  contracts  and  shall  include premium deposits, assessments,
 policy fees, membership fees, REGISTRATION FEES and every other  compen
 sation  for  such contract. The term "premium" includes all such amounts
 paid irrespective of whether such amounts  are  deductible  for  federal
 income tax purposes.
 (D)  THE  TERM  "INDEPENDENTLY  PROCURED  INSURANCE"  MEANS  INSURANCE
 OBTAINED DIRECTLY BY AN INSURED FROM AN INSURER NOT AUTHORIZED TO TRANS
 ACT BUSINESS IN THIS STATE UNDER A CERTIFICATE  OF  AUTHORITY  FROM  THE
 SUPERINTENDENT OF INSURANCE.
 (E)  THE  TERM  "PREMIUM  TAX"  MEANS,  WITH  RESPECT TO INDEPENDENTLY
 PROCURED INSURANCE, ANY TAX, FEE, ASSESSMENT OR OTHER CHARGE IMPOSED  BY
 THIS STATE DIRECTLY OR INDIRECTLY BASED ON ANY PAYMENT MADE AS CONSIDER
 ATION  FOR  SUCH  INSURANCE,  INCLUDING  PREMIUM  DEPOSITS, ASSESSMENTS,
 REGISTRATION FEES AND ANY OTHER COMPENSATION GIVEN IN CONSIDERATION  FOR
 SUCH A POLICY OF INSURANCE.
 

S  16. 

Section  1551  of the tax law, as amended by chapter 73 of the
 laws of 1991, is amended to read as follows:

 
       S. 2811--B                         26
 

S 1551. Imposition of tax. There is hereby imposed on any  person  who
 [purchases  or  renews  a taxable insurance contract from an insurer not
 authorized to transact business in this state  under  a  certificate  of
 authority  from  the superintendent of insurance] INDEPENDENTLY PROCURES
 INSURANCE,  a PREMIUM tax at the rate of three and six-tenths percent of
 the premiums paid or to be paid, less returns thereon, for  such  insur
 ance. Nothing in this article modifies or abrogates any provision of the
 insurance  law.    THIS  TAX  SHALL ONLY APPLY TO INDEPENDENTLY PROCURED
 INSURANCE TRANSACTIONS FOR INSUREDS WHOSE HOME STATE IS NEW YORK AS THAT
 TERM IS DEFINED IN SUBSECTION (Y) OF SECTION TWO  THOUSAND  ONE  HUNDRED
 ONE  OF THE INSURANCE LAW ON COVERAGE WHICH INCEPTS ON OR AFTER JULY 21,
 2011.
 

S 17.

Section 1552 of the tax law, as added by chapter 190 of the laws
 of 1990, is amended to read as follows:

 

S 1552. Allocation. Where the taxable insurance contract covers  risks
 located  or resident both within and without this state, WITH RESPECT TO
 INDEPENDENTLY PROCURED INSURANCE IN WHICH COVERAGE INCEPTS ON  OR  PRIOR
 TO  JULY TWENTIETH, TWO THOUSAND ELEVEN the amount of premiums allocable
 to risks resident or located  within  this  state  shall  be  determined
 pursuant  to  rules  and regulations of the commissioner of taxation and
 finance. In promulgating such rules and regulations, the commissioner of
 taxation and finance shall give due consideration to the rules and regu
 lations promulgated by  the  superintendent  of  insurance  pursuant  to
 subsection (b) of section nine thousand one hundred two of the insurance
 law.    INDEPENDENTLY PROCURED INSURANCE POLICIES INCEPTING ON AND AFTER
 JULY TWENTY-FIRST, TWO THOUSAND ELEVEN SHALL BE SUBJECT TO  TAX  ON  ONE
 HUNDRED PERCENT OF THE PREMIUM CHARGED WITHOUT ALLOCATION.
 

S  18.  This act shall take effect on July 21, 2011 and applies to all
 insurance policies procured by excess line licensees with  an  effective
 date  on  or after July 21, 2011, provided, however, that the amendments
 to subsection (b) of section 2118 of the insurance law made by  sections
 nine  and  ten of this act shall not affect the expiration and reversion
 of such subsection and shall be deemed to expire therewith.
 PART J
 

Section 1.

Section 51 of chapter 298 of the laws of 1985, amending the
 tax law relating to the franchise tax on banking corporations imposed by
 the tax law, authorized to be imposed by any city having a population of
 one million or more by chapter 772 of the laws of 1966  and  imposed  by
 the  administrative  code  of the city of New York and relating to other
 provisions of the tax law, chapter 883 of  the  laws  of  1975  and  the
 administrative  code of the city of New York which relates to such fran
 chise tax, as amended by chapter 67 of the laws of 2010, is  amended  to
 read as follows:

 

S  51. This act shall take effect immediately and shall apply to taxa
 ble years beginning on or after January 1, 1985[, except that:
 (a) sections one through eight shall not apply to taxable years begin-
 ning on or after January 1, 2011;
 (b) sections nine, twelve,  the  amendment  made  to  paragraph  9  of
 subsection  (a)  of  section  1452  of  the tax law by section thirteen,
 sections fifteen, sixteen,  eighteen,  nineteen,  twenty,  twenty-three,
 twenty-seven,  thirty  and thirty-two, the amendment made to paragraph 9
 of subdivision (a) of section 11-640 of the administrative code  of  the
 city  of New York by section thirty-three, sections thirty-five, thirty-
 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
 
       S. 2811--B                         27
 corporations other than savings banks and savings and loan  associations
 for taxable years beginning on or after January 1, 2011.
 (c)   sections  twenty-one,  twenty-two,  twenty-four,  forty-one  and
 forty-two shall not apply to corporations other than savings  banks  and
 savings  and  loan  associations for taxable years beginning on or after
 January 1, 2011, provided, however, that the provisions of such sections
 which relate to the alternative minimum tax measured by  taxable  assets
 shall  continue to apply to all taxpayers for taxable years beginning on
 or after January 1, 2011;
 (d) the amendment to the section heading and the opening paragraph  of
 section 11-643.3 of the administrative code of the city of New York made
 by  section  forty-three  shall  not  apply  to  corporations other than
 savings banks and savings and loan associations for taxable years begin-
 ning on or after January 1, 2011 with respect  to  those  provisions  of
 such  section  11-643.3 which relate to the basic tax measured by entire
 net income; and
 (e) section twenty-eight, and the addition of new section 11-643.5  of
 the  administrative  code of the city of New York made by section forty-
 four shall not apply  to  corporations  other  than  savings  banks  and
 savings  and  loan  associations for taxable years beginning on or after
 January 1, 2011, provided, however, that the provisions of such sections
 which relate to the alternative minimum taxes measured by assets, issued
 capital stock and one hundred  twenty-five  dollars  shall  continue  to
 apply  to  all taxpayers for taxable years beginning on or after January
 1, 2011].
 

S 2. Subdivisions (d) and (f) of section 110 of  chapter  817  of  the
 laws  of  1987,  amending the tax law and the environmental conservation
 law, constituting the business tax reform  and  rate  reduction  act  of
 1987,  as amended by chapter 67 of the laws of 2010, are amended to read
 as follows:

 (d) The provisions of section sixty-seven of this act  except  insofar
 as  it  amends paragraph 10 of subsection (b) of section 1453 of the tax
 law, seventy-one and seventy-four shall apply to taxable years beginning
 after December 31, 1986[, provided, however, that new paragraphs 11  and
 12  of subsection (b) of section 1453 of the tax law as added by section
 sixty-seven of this act, the amendments made by section  seventy-one  of
 this act, and new subsection (i) of section 1453 of the tax law as added
 by  section  seventy-four  of  this act shall not apply to taxable years
 beginning on or after January 1, 2011];
 (f) The provisions of section one hundred four of this act shall apply
 to taxable years beginning after December 31, 1986[, and shall not apply
 to corporations other than savings banks and savings  and  loan  associ-
 ations  for  taxable  years  beginning  on  or  after  January  1, 2011,
 provided, however, that the provisions of such section which  relate  to
 the alternative minimum tax measured by taxable assets shall continue to
 apply  to  all taxpayers for taxable years beginning on or after January
 1, 2011].
 

S 3.  Subdivisions (c) and (d) of section 68 of  chapter  525  of  the
 laws  of  1988,  amending the tax law and the administrative code of the
 city of New York relating to the imposition of taxes in the city of  New
 York,  as amended by chapter 67 of the laws of 2010, are amended to read
 as follows:

 (c) The provisions of sections one,  thirty-one,  thirty-two,  thirty
 three,  thirty-six,  thirty-seven, forty through forty-five, forty-seven
 and forty-eight of this act shall apply to taxable years beginning after
 December 31, 1986[, provided,  however,  that  the  amendments  made  by
 
       S. 2811--B                         28
 sections  thirty-six  and forty-one of this act, and new subdivision (i)
 of section 11-641 of the administrative code of the city of New York  as
 added by section forty-four of this act shall not apply to taxable years
 beginning on or after January 1, 2011];
 (d)  The  provisions  of  section forty-six of this act shall apply to
 taxable years beginning after December 31, 1986[, and shall not apply to
 corporations other than savings banks and savings and loan  associations
 for  taxable  years  beginning  on  or  after January 1, 2011, provided,
 however, that the provisions of such section which relate to the  alter-
 native minimum tax measured by taxable assets shall continue to apply to
 all taxpayers for taxable years beginning on or after January 1, 2011];
 

S  4.  Paragraphs 1 and 2 of subsection (m) of section 1452 of the tax
 law, as amended by chapter 24 of the laws of 2010, are amended  to  read
 as follows:

 (1) Notwithstanding anything to the contrary contained in this section
 other  than  subsection  (n) of this section, a corporation [that was in
 existence before January first, two thousand ten and was] subject to tax
 under article nine-A of this chapter [for its last taxable  year  begin-
 ning before January first, two thousand ten], shall continue to be taxa
 ble  under  such  article  [for  all taxable years beginning on or after
 January first, two thousand ten and before January first,  two  thousand
 eleven].    The  preceding  sentence shall not apply to any taxable year
 during which such corporation is  a  banking  corporation  described  in
 paragraphs one through eight of subsection (a) of this section. Notwith
 standing  anything  to the contrary contained in this section other than
 subsection (n) of this section, a banking corporation  [or  corporation]
 that  [was  in existence before January first, two thousand ten and] was
 subject to tax under this article [for its last taxable  year  beginning
 before  January  first,  two thousand ten], shall continue to be taxable
 under this article [for all taxable years beginning on or after  January
 first, two thousand ten and before January first, two thousand eleven or
 in which the corporation satisfies the requirements for a corporation to
 elect  to  be  taxable under this article]. ONLY IF THE CORPORATION IS A
 BANKING CORPORATION AS DEFINED IN SUBSECTION (A) OF THIS SECTION  AS  OF
 JANUARY  FIRST,  TWO  THOUSAND ELEVEN. Provided further, that nothing in
 this subsection shall prohibit a corporation that  elected  pursuant  to
 subsection  (d)  of  this  section to be taxable under article nine-A of
 this chapter  from  revoking  that  election  in  accordance  with  such
 subsection (d).
 For  purposes  of this paragraph, a corporation shall be considered to
 be subject to tax under article nine-A of this  chapter  for  a  taxable
 year if such corporation was not a taxpayer but was properly included in
 a  combined  report filed pursuant to section two hundred eleven of this
 chapter for such taxable year and a corporation shall be  considered  to
 be  subject  to tax under this article for a taxable year if such corpo
 ration was not a taxpayer but was properly included in a combined return
 filed pursuant to subsection (f) or  (g)  of  section  fourteen  hundred
 sixty-two of this article for such taxable year. A corporation [that was
 in  existence before January first, two thousand ten but first becomes a
 taxpayer in a taxable year beginning on  or  after  January  first,  two
 thousand  ten  and  before January first, two thousand eleven,] shall be
 considered for purposes of this paragraph to have been  subject  to  tax
 under  article  nine-A of this chapter for its last taxable year [begin-
 ning before January first, two thousand ten] if such  corporation  would
 have  been subject to tax under such article for such taxable year if it
 had been a taxpayer during such taxable year. A corporation [that was in
 
       S. 2811--B                         29
 existence before January first, two thousand ten  but  first  becomes  a
 taxpayer  in  a  taxable  year  beginning on or after January first, two
 thousand ten and before January first, two thousand  eleven,]  shall  be
 considered,  for purposes of this paragraph, to have been subject to tax
 under this article [for its last taxable year beginning  before  January
 first,  two thousand ten] if such corporation would have been subject to
 tax under this article for such taxable year if it had been  a  taxpayer
 during such taxable year.
 (2) Notwithstanding anything to the contrary contained in this section
 other  than  subsection (n) of this section, a corporation [formed on or
 after January first, two thousand ten  and  before  January  first,  two
 thousand  eleven]  may  elect to be subject to tax under this article or
 under article nine-A of this chapter [for its first taxable year  begin-
 ning  on  or  after  January  first, two thousand ten and before January
 first, two thousand eleven in which] IF either (i) sixty-five percent or
 more of its voting stock is owned or controlled, directly or  indirectly
 by  a  financial  holding company, provided the corporation whose voting
 stock is so owned or controlled is  principally  engaged  in  activities
 that  are  described  in  section 4(k)(4) or 4(k)(5) of the federal bank
 holding company act of nineteen hundred fifty-six, as  amended  and  the
 regulations  promulgated  pursuant  to the authority of such section, or
 (ii) it is a financial subsidiary. An election under this paragraph  may
 not  be  made by a corporation described in paragraphs one through eight
 of subsection (a) of this section or in subsection (e) of this  section.
 In  addition,  an  election  under  this  paragraph may not be made by a
 corporation  that  is  a  party  to  a  reorganization,  as  defined  in
 subsection  (a)  of section 368 of the internal revenue code of 1986, as
 amended, of a corporation described in paragraph one of this  subsection
 if   both   corporations  were  sixty-five  percent  or  more  owned  or
 controlled, directly or indirectly, by the same interests at the time of
 the reorganization.
 An election under this paragraph must be made by the  taxpayer  on  or
 before  the  due  date  for filing its return (determined with regard to
 extensions of time for filing) for  the  applicable  taxable  year.  The
 election  to be taxed under article nine-A of this chapter shall be made
 by the taxpayer by filing the report required pursuant  to  section  two
 hundred  eleven  of this chapter and the election to be taxed under this
 article shall be made by the taxpayer  by  filing  the  return  required
 pursuant  to  section  fourteen  hundred  sixty-two of this article. Any
 election made pursuant to this paragraph shall be irrevocable and  shall
 apply  to  each  subsequent  taxable year [beginning on or after January
 first, two thousand ten and before January first, two thousand  eleven],
 provided  that the stock ownership and activities requirements described
 in subparagraph (i) of  this  paragraph  are  met  or  such  corporation
 described  in  subparagraph (ii) of this paragraph continues as a finan
 cial subsidiary.
 

S 5. Paragraphs 1 and 2 of subdivision (l) of section  11-640  of  the
 administrative code of the city of New York, as amended by chapter 24 of
 the laws of 2010, are amended to read as follows:

 (1) Notwithstanding anything to the contrary contained in this section
 other  than  subdivision (m) of this section, a corporation [that was in
 existence before January first, two thousand ten and was] subject to tax
 under subchapter two of this chapter [for its last taxable  year  begin-
 ning before January first, two thousand ten,] shall continue to be taxa
 ble  under  such subchapter for all taxable years [beginning on or after
 January first, two thousand ten and before January first,  two  thousand
 
       S. 2811--B                         30
 eleven].    The  preceding  sentence shall not apply to any taxable year
 during which such corporation is  a  banking  corporation  described  in
 paragraphs  one  through  eight  of  subdivision  (a)  of  this section.
 Notwithstanding anything to the contrary contained in this section other
 than  subdivision  (m) of this section, a banking corporation [or corpo-
 ration that was in existence before January first, two thousand ten  and
 was  subject  to  tax  under  this  subchapter for its last taxable year
 beginning before January first, two thousand ten,] shall continue to  be
 taxable  under  this  subchapter  for all taxable years [beginning on or
 after January first, two thousand ten  and  before  January  first,  two
 thousand  eleven or] ONLY IF THE CORPORATION IS A BANKING CORPORATION AS
 DEFINED IN SUBDIVISION (A) OF THIS SECTION  AS  OF  JANUARY  FIRST,  TWO
 THOSUAND  ELEVEN in which the corporation satisfies the requirements for
 a corporation to elect to be taxable  under  this  subchapter.  Provided
 further,  that  nothing in this subdivision shall prohibit a corporation
 that elected pursuant to subdivision (d) of this section to  be  taxable
 under  subchapter  two  of  this  chapter from revoking that election in
 accordance with subdivision (d) of this section. For  purposes  of  this
 paragraph,  a corporation shall be considered to be subject to tax under
 subchapter two of this chapter for a taxable year  if  such  corporation
 was  not a taxpayer but was properly included in a combined report filed
 pursuant to subdivision four of section 11-605 of this chapter for  such
 taxable  year and a corporation shall be considered to be subject to tax
 under this subchapter for a taxable year if such corporation was  not  a
 taxpayer  but  was properly included in a combined report filed pursuant
 to subdivision (f) or (g) of section 11-646 of this part for such  taxa
 ble year. A corporation [that was in existence before January first, two
 thousand ten but first becomes a taxpayer in a taxable year beginning on
 or  after  January first, two thousand ten and before January first, two
 thousand eleven,] shall be considered for purposes of this paragraph  to
 have  been  subject  to tax under subchapter two of this chapter for its
 last taxable year [beginning before January first, two thousand ten]  if
 such  corporation  would  have been subject to tax under such subchapter
 for such taxable year if it had been  a  taxpayer  during  such  taxable
 year.  A  corporation  [that  was in existence before January first, two
 thousand ten but first becomes a taxpayer in a taxable year beginning on
 or after January first, two thousand ten and before January  first,  two
 thousand  eleven,] shall be considered for purposes of this paragraph to
 have been subject to tax under this subchapter for its last taxable year
 [beginning before January first, two thousand ten] if  such  corporation
 would  have  been  subject to tax under this subchapter for such taxable
 year if it had been a taxpayer during such taxable year.
 (2) Notwithstanding anything to the contrary contained in this section
 other than subdivision (m) of this section, a corporation [formed on  or
 after  January  first,  two  thousand  ten and before January first, two
 thousand eleven] may elect to be subject to tax under this subchapter or
 under subchapter two of this chapter for its first taxable year  [begin-
 ning  on  or  after  January  first, two thousand ten and before January
 first, two thousand eleven in which] IF either (i) sixty-five percent or
 more of its voting stock is owned or controlled, directly or  indirectly
 by  a  financial  holding company, provided the corporation whose voting
 stock is so owned or controlled is  principally  engaged  in  activities
 that  are  described  in  section 4(k)(4) or 4(k)(5) of the federal bank
 holding company act of nineteen hundred fifty-six, as  amended  and  the
 regulations  promulgated  pursuant  to  the authority of such section or
 (ii) it is a financial subsidiary. An election under this paragraph  may
 
       S. 2811--B                         31
 not  be  made by a corporation described in paragraphs one through eight
 of subdivision (a) of  this  section  or  in  subdivision  (e)  of  this
 section.  In  addition, an election under this paragraph may not be made
 by  a  corporation  that  is  a party to a reorganization, as defined in
 subsection (a) of section 368 of the internal revenue code of  1986,  as
 amended, of a corporation described in paragraph one of this subdivision
 if   both   corporations  were  sixty-five  percent  or  more  owned  or
 controlled, directly or indirectly by the same interests at the time  of
 the reorganization.
 An  election  under  this paragraph must be made by the taxpayer on or
 before the due date for filing its return  (determined  with  regard  to
 extensions  of  time  for  filing)  for the applicable taxable year. The
 election to be taxed under subchapter two of this chapter shall be  made
 by  the  taxpayer  by filing the return required pursuant to subdivision
 one of section 11-605 of this chapter and the election to be taxed under
 this subchapter shall be made by  the  taxpayer  by  filing  the  return
 required pursuant to subdivision (a) of section 11-646 of this part. Any
 election  made pursuant to this paragraph shall be irrevocable and shall
 apply to each subsequent taxable year [beginning  on  or  after  January
 first,  two thousand ten and before January first, two thousand eleven],
 provided that the stock ownership and activities requirements  described
 in  subparagraph  (i)  of  this  paragraph  are  met or such corporation
 described in subparagraph (ii) of this paragraph continues as  a  finan
 cial subsidiary.
 

S  6.  Subparagraph  (iv) of paragraph 2 of subdivision (f) of section
 1462 of the tax law, as amended by chapter 24 of the laws  of  2010,  is
 amended to read as follows:

 (iv)  (A)  Notwithstanding  any  provision of this paragraph, any bank
 holding company exercising its corporate franchise or doing business  in
 the  state  may  make  a  return on a combined basis without seeking the
 permission of the commissioner with any banking  corporation  exercising
 its corporate franchise or doing business in the state in a corporate or
 organized  capacity  sixty-five percent or more of whose voting stock is
 owned or controlled, directly or indirectly, by such bank holding compa
 ny, for the first taxable year [beginning on or after January first, two
 thousand and before January first, two  thousand  eleven]  during  which
 such bank holding company registers for the first time under the federal
 bank  holding company act, as amended, and also elects to be a financial
 holding company. In addition, for each subsequent taxable  year  [begin-
 ning  after  January  first,  two thousand and before January first, two
 thousand eleven], any such bank holding company may file on  a  combined
 basis  without seeking the permission of the commissioner with any bank
 ing corporation that is exercising  its  corporate  franchise  or  doing
 business  in  the  state  and sixty-five percent or more of whose voting
 stock is owned or controlled, directly or indirectly, by such bank hold
 ing company if either such banking corporation is exercising its  corpo
 rate  franchise  or doing business in the state in a corporate or organ
 ized capacity for the first time during such subsequent taxable year, or
 sixty-five percent or more of the voting stock of  such  banking  corpo
 ration  is  owned  or  controlled,  directly or indirectly, by such bank
 holding company for the first time during such subsequent taxable  year.
 Provided  however,  for  each  subsequent  taxable year [beginning after
 January first, two thousand and before January first, two thousand elev-
 en], a banking corporation described in  either  of  the  two  preceding
 sentences  which  filed  on  a combined basis with any such bank holding
 company in a previous taxable year, must continue to file on a  combined
 
       S. 2811--B                         32
 basis with such bank holding company if such banking corporation, during
 such  subsequent taxable year, continues to exercise its corporate fran
 chise or do business in the state in a corporate or  organized  capacity
 and  sixty-five  percent  or  more  of such banking corporation's voting
 stock continues to be owned or controlled, directly  or  indirectly,  by
 such bank holding company, unless the permission of the commissioner has
 been  obtained  to  file on a separate basis for such subsequent taxable
 year. Provided  further,  however,  for  each  subsequent  taxable  year
 [beginning  after  January first, two thousand and before January first,
 two thousand eleven], a banking corporation described in either  of  the
 first  two  sentences  of  this  clause which did not file on a combined
 basis with any such bank holding company in a previous taxable year, may
 not file on a combined basis with such bank holding company  during  any
 such  subsequent  taxable year unless the permission of the commissioner
 has been obtained to file on a combined basis for such subsequent  taxa
 ble year.
 (B)  Notwithstanding any provision of this paragraph other than clause
 (A) of this subparagraph, the commissioner may not require a bank  hold
 ing  company which, during a taxable year [beginning on or after January
 first, two thousand and before  January  first,  two  thousand  eleven],
 registers  for the first time during such taxable year under the federal
 bank holding company act, as amended, and also elects to be a  financial
 holding  company,  to  make a return on a combined basis for any taxable
 year [beginning on or after January first, two thousand and before Janu-
 ary first, two thousand eleven] with a  banking  corporation  sixty-five
 percent  or  more of whose voting stock is owned or controlled, directly
 or indirectly, by such bank holding company.
 

S 7. Subparagraph (iv) of paragraph 2 of subdivision  (f)  of  section
 11-646 of the administrative code of the city of New York, as amended by
 chapter 24 of the laws of 2010, is amended to read as follows:

 (iv)  (A)  Notwithstanding  any  provision of this paragraph, any bank
 holding company exercising its corporate franchise or doing business  in
 the  city  may  make  a  return  on a combined basis without seeking the
 permission of the commissioner with any banking  corporation  exercising
 its  corporate franchise or doing business in the city in a corporate or
 organized capacity sixty-five percent or more of whose voting  stock  is
 owned or controlled, directly or indirectly, by such bank holding compa
 ny, for the first taxable year [beginning on or after January first, two
 thousand  and  before  January  first, two thousand eleven] during which
 such bank holding company registers for the first time under the federal
 bank holding company act, as amended, and also elects to be a  financial
 holding  company.  In addition, for each subsequent taxable year [begin-
 ning after January first, two thousand and  before  January  first,  two
 thousand  eleven],  any such bank holding company may file on a combined
 basis without seeking the permission of the commissioner with any  bank
 ing  corporation  that  is  exercising  its corporate franchise or doing
 business in the city and sixty-five percent  or  more  of  whose  voting
 stock is owned or controlled, directly or indirectly, by such bank hold
 ing  company if either such banking corporation is exercising its corpo
 rate franchise or doing business in the city in a corporate or organized
 capacity for the first time during  such  subsequent  taxable  year,  or
 sixty-five  percent  or  more of the voting stock of such banking corpo
 ration is owned or controlled, directly  or  indirectly,  by  such  bank
 holding  company for the first time during such subsequent taxable year.
 Provided however, for each  subsequent  taxable  year  [beginning  after
 January first, two thousand and before January first, two thousand elev-
 
       S. 2811--B                         33
 en],  a  banking  corporation  described  in either of the two preceding
 sentences which filed on a combined basis with  any  such  bank  holding
 company  in a previous taxable year, must continue to file on a combined
 basis with such bank holding company if such banking corporation, during
 such  subsequent taxable year, continues to exercise its corporate fran
 chise or do business in the city in a corporate  or  organized  capacity
 and  sixty-five  percent  or  more  of such banking corporation's voting
 stock continues to be owned or controlled, directly  or  indirectly,  by
 such bank holding company, unless the permission of the commissioner has
 been  obtained  to  file on a separate basis for such subsequent taxable
 year. Provided  further,  however,  for  each  subsequent  taxable  year
 [beginning  after  January first, two thousand and before January first,
 two thousand eleven], a banking corporation described in either  of  the
 first  two  sentences  of  this  clause which did not file on a combined
 basis with any such bank holding company in a previous taxable year, may
 not file on a combined basis with such bank holding company  during  any
 such  subsequent  taxable year unless the permission of the commissioner
 has been obtained to file on a combined basis for such subsequent  taxa
 ble year.
 (B)  Notwithstanding any provision of this paragraph other than clause
 (A) of this subparagraph, the commissioner may not require a bank  hold
 ing  company which, during a taxable year [beginning on or after January
 first, two thousand and before  January  first,  two  thousand  eleven],
 registers  for the first time during such taxable year under the federal
 bank holding company act, as amended, and also elects to be a  financial
 holding  company,  to  make a return on a combined basis for any taxable
 year [beginning on or after January first, two thousand and before Janu-
 ary first, two thousand eleven] with a  banking  corporation  sixty-five
 percent  or  more of whose voting stock is owned or controlled, directly
 or indirectly, by such bank holding company.
 

S 8. This act shall take effect immediately.
 PART K
 

Section 1. Paragraph b of subdivision 1, subdivisions 2, 6, 14, 22 and
 23 of section 282 of the tax law,  paragraph  b  of  subdivision  1  and
 subdivision  14  as amended by chapter 245 of the laws of 1989, subdivi
 sion 2 as amended by chapter 509 of the laws of 1937, subdivision  6  as
 amended by chapter 261 of the laws of 1988 and subdivisions 22 and 23 as
 added  by  section 1 of part W-1 of chapter 109 of the laws of 2006, are
 amended to read as follows:

 b. With respect to Diesel motor fuel, "distributor" means any  person,
 firm,  association  or corporation (i) who or which imports or causes to
 be imported into the state, for use, distribution, storage or sale with
 in the state, any  Diesel  motor  fuel;  (ii)  who  or  which  produces,
 refines,  manufactures  or compounds Diesel motor fuel within the state;
 (iii) [who or which engages in the enhancement of Diesel motor  fuel  in
 this  state; (iv)] who or which makes a sale or use of Diesel motor fuel
 in this state other than: (A) a retail sale not in bulk or (B) the self
 use of Diesel motor fuel which has been the subject of a retail sale  to
 such person; [(v)] (IV) who or which is registered by the department [of
 taxation  and finance] as a distributor of kero-jet fuel pursuant to the
 provisions of subdivision two of section  two  hundred  eighty-two-a  of
 this article. For the purposes of this article when used with respect to
 Diesel  motor  fuel,  a  "retail  sale  not in bulk" means the making or
 offering to make any sale of Diesel motor fuel to  a  consumer  of  such
 
       S. 2811--B                         34
 fuel  which  is  delivered  directly into a motor vehicle for use in the
 operation of such vehicle. A "retail sale in bulk" means the  making  or
 offering  to  make  any sale of Diesel motor fuel to a consumer which is
 other  than a "retail sale not in bulk". Motor fuel or Diesel motor fuel
 brought into the state in the ordinary fuel  tank  connecting  with  the
 engine  of  a  motor  vehicle, aeroplane, motor boat or other conveyance
 propelled by the use of such motor fuel or Diesel motor fuel, and to  be
 used  only in the operation thereof, shall not be deemed imported within
 the meaning of this article, if not removed from  such  tank  except  as
 used in the propulsion of such engine.
 2.  "Motor  fuel" means gasoline, benzol, REFORMULATED BLEND STOCK FOR
 OXYGENATE BLENDING, CONVENTIONAL BLEND  STOCK  FOR  OXYGENATE  BLENDING,
 E85,  FUEL GRADE ETHANOL THAT MEETS THE ASTM INTERNATIONAL ACTIVE STAND
 ARDS SPECIFICATIONS D4806 OR D4814 or other  product[,  except  kerosene
 and  crude oil,] which is suitable for use in operation of a motor vehi
 cle engine[, but if kerosene or crude oil is compounded  or  mixed  with
 any  other product or products, and the resulting compound or mixture is
 suitable for use in the operation of any such motor vehicle engine, such
 resulting compound or mixture in its entirety shall be a "motor fuel."].
 6. "Filling station" shall include  any  place,  location  or  station
 where motor fuel [or], HIGHWAY Diesel motor fuel OR WATER-WHITE KEROSENE
 (EXCLUSIVELY  FOR  HEATING PURPOSES IN CONTAINERS OF NO MORE THAN TWENTY
 GALLONS), is offered for sale at retail.
 14. "Diesel motor fuel" shall mean NO. 1 DIESEL  FUEL,  NO.  2  DIESEL
 FUEL,  BIODIESEL,  kerosene, crude oil, fuel oil or other middle distil
 late and also motor fuel suitable for use in the operation of an  engine
 of  the diesel type, excluding, however, any product specifically desig
 nated "No. 4 Diesel fuel" and not suitable as a fuel used in the  opera
 tion of a motor vehicle engine.
 22.  "E85"  means  a  [mixture  consisting  by  volume  of eighty-five
 percent] FUEL BLEND CONSISTING OF ethanol and [the  remainder  of  which
 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
 FOR FUEL ETHANOL.
 23. "B20" means a mixture consisting by volume of twenty percent biod
 iesel  and the remainder of which is diesel motor fuel. [For purposes of
 this subdivision "biodiesel"] "BIODIESEL" shall mean  EITHER  "QUALIFIED
 BIODIESEL"  OR  "UNQUALIFIED  BIODIESEL."  "QUALIFIED BIODIESEL" MEANS a
 diesel  motor  fuel  substitute  produced  from  nonpetroleum  renewable
 resources  that  meets  the registration requirements for fuels and fuel
 additives established  by  the  Environmental  Protection  Agency  under
 section  211  of  the  Clean Air Act (42 U.S.C. 7545) and that meets the
 [American Society for Testing and Materials D6751-02a Standard  Specifi-
 cation  for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels] ASTM
 INTERNATIONAL ACTIVE STANDARD D6751 FOR BIODIESEL  FUEL.    "UNQUALIFIED
 BIODIESEL"  MEANS A DIESEL MOTOR FUEL SUBSTITUTE PRODUCED FROM NONPETRO
 LEUM RENEWABLE RESOURCES THAT  DOES  NOT  MEET  THE  ASTM  INTERNATIONAL
 ACTIVE STANDARD D6751 FOR BIODIESEL FUEL.
 

S 1-a. Subdivision 15 of section 282 of the tax law is REPEALED.
 

S  2. Subdivision 16 of section 282 of the tax law is REPEALED and two
 new subdivisions 16 and 16-a are added to read as follows:

 16. "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR  FUEL  THAT
 IS DESIGNATED FOR USE OTHER THAN ON A PUBLIC HIGHWAY (EXCEPT FOR THE USE
 OF  THE  PUBLIC HIGHWAY BY FARMERS TO REACH ADJACENT LANDS), AND IS DYED
 DIESEL MOTOR FUEL AS DEFINED IN SUBDIVISION EIGHTEEN-A OF THIS SECTION.
 16-A. "HIGHWAY DIESEL MOTOR FUEL" MEANS ANY DIESEL MOTOR FUEL WHICH IS
 NOT NON-HIGHWAY DIESEL MOTOR FUEL.
 
       S. 2811--B                         35
 

S 3. Subdivision 18 of section 282 of the tax law, as added by chapter
 302 of the laws of 2006, is renumbered subdivision 18-a and  is  amended
 to read as follows:

 18-a.  "Dyed  Diesel  motor  fuel"  means  Diesel motor fuel which [is
 enhanced Diesel motor fuel and which] has been dyed in  accordance  with
 and  for the purpose of complying with the provisions of 26 USC S4082(a)
 and the regulations thereunder, as may be amended from time to time.
 

S 4.

Section 282 of the tax law is amended by adding a new subdivision
 26 to read as follows:

 26. "PUBLIC HIGHWAY" MEANS PUBLIC HIGHWAY AS  DEFINED  IN  SUBDIVISION
 SIX OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
 

S  5.  Subdivisions    2,  3, 4 and 5 of section 282-a of the tax law,
 subdivision 2 and paragraph (b) of subdivision 3 as amended  by  chapter
 245 of the laws of 1989, subdivisions 3, 4 and 5 as added by chapter 261
 of the laws of 1988 and paragraph (c) of subdivision 3 as added by chap
 ter 302 of the laws of 2006, are amended to read as follows:

 2.  No person shall [engage] SELL OR USE DIESEL MOTOR FUEL within this
 state [in the enhancement of Diesel motor fuel, make a sale  or  use  of
 Diesel  motor fuel] (other than a retail sale not in bulk or self-use of
 Diesel motor fuel which has been the subject of a retail  sale),  import
 or cause the importation of Diesel motor fuel into the state or produce,
 refine,  manufacture  or  compound  Diesel  motor  fuel within the state
 unless such person shall be registered by the  department  [of  taxation
 and  finance]  as  a  distributor  of  Diesel  motor fuel. Provided, the
 commissioner [of taxation and finance] shall not register as a distribu
 tor of Diesel motor fuel any person who is engaged solely in one or both
 of the following: (i) any person who makes or offers to  make  a  retail
 sale  not  in  bulk of such fuel or (ii) any person who purchases Diesel
 motor fuel in bulk in this state for the sole purpose of  self-use.  The
 commissioner  may,  however,  register as a distributor of kero-jet fuel
 only a fixed base operator who makes no sales  of  kero-jet  fuel  other
 than  retail  sales not in bulk delivered directly into the fuel tank of
 an airplane for use in the operation of such airplane and who  makes  no
 other  sales of diesel motor fuel. Such registration shall apply only to
 the wholesale purchase of kero-jet fuel and the retail sale of such fuel
 not in bulk for delivery directly into the fuel tank of an airplane  for
 use in the operation thereof. Provided, further, that if the commission
 er  is  satisfied  that  full  registration is not necessary in order to
 protect tax revenues, the commissioner may limit or modify the  require
 ment  of registration as a distributor with respect to any person other
 wise required to register solely because such person engages in the sale
 of NON-HIGHWAY Diesel motor  fuel  where  such  person  makes  sales  of
 NON-HIGHWAY  Diesel  motor  fuel to the consumer solely for the purposes
 described in subparagraph (i) of paragraph (b) of subdivision  three  of
 this  section,  provided  that if the commissioner so limits or modifies
 such registration requirement with respect to  such  person,  then  such
 registration  shall apply only to the importation, sale and distribution
 of SUCH NON-HIGHWAY Diesel motor fuel [for  the  purposes  described  in
 such  subparagraph  (i)]. The commissioner [of taxation and finance] may
 also waive any other requirement imposed  by  this  article  on  such  a
 distributor.  All  the provisions of section two hundred eighty-three of
 this article shall apply to applicants for registration and  registrants
 with  respect  to Diesel motor fuel, and, in addition, distributors with
 respect to Diesel motor fuel shall be subject to all other provisions of
 this article relating to distributors of motor fuel, including  but  not
 limited  to,  the  keeping  of  records,  the  fixing, determination and
 
       S. 2811--B                         36
 payment of tax and filing of returns. PROVIDED, FURTHER, THE COMMISSION
 ER MAY LIMIT OR MODIFY THE REQUIREMENT OF REGISTRATION AS A  DISTRIBUTOR
 WITH  RESPECT TO ANY PERSON WHO PRODUCES FOR SELF USE "UNQUALIFIED BIOD
 IESEL."
 3.  (a) The tax imposed by this section shall not apply to the sale of
 untaxed Diesel motor fuel to or the use of such fuel by an  organization
 described  in  paragraph one or two of subdivision (a) of section eleven
 hundred sixteen of this chapter where such Diesel motor fuel is used  by
 such organization for its own use or consumption.
 (b)  The  tax  on  the  [incident] INCIDENCE of sale or use imposed by
 subdivision one of this section shall not apply to: (i) the sale [to] or
 use [by the consumer of previously untaxed Diesel motor  fuel  which  is
 not enhanced Diesel motor fuel and which is used exclusively for heating
 purposes  or  for  the purpose of use or consumption directly and exclu-
 sively in the production of tangible personal property,  gas,  electric-
 ity,  refrigeration  or  steam,  for  sale,] OF NON-HIGHWAY DIESEL MOTOR
 FUEL, but only if all of such fuel is consumed other than on the  PUBLIC
 highways  of  this  state  (EXCEPT  FOR THE USE OF THE PUBLIC HIGHWAY BY
 FARMERS TO REACH ADJACENT FARMLANDS); provided, however, this  exemption
 shall in no event apply to a sale of NON-HIGHWAY Diesel motor fuel which
 involves  a  delivery at a filling station or into a repository which is
 equipped with a hose or other  apparatus  by  which  such  fuel  can  be
 dispensed  into the fuel tank of a motor vehicle (EXCEPT FOR DELIVERY AT
 A FARM SITE WHICH QUALIFIES FOR THE EXEMPTION UNDER SUBDIVISION  (G)  OF
 SECTION  THREE  HUNDRED  ONE-B  OF  THIS  CHAPTER); or (ii) [the sale of
 previously untaxed Diesel motor fuel which is not enhanced Diesel  motor
 fuel  to  a  person  registered  under  this article as a distributor of
 Diesel motor fuel other than (A) a retail sale to such person or  (B)  a
 sale  to  such  person which involves a delivery at a filling station or
 into a repository which is equipped with a hose or  other  apparatus  by
 which  such fuel can be dispensed into the fuel tank of a motor vehicle;
 or (iii) a sale or use of enhanced Diesel motor fuel to or by a consumer
 exclusively for the purposes of heating specified in subparagraph (i) of
 this paragraph but only if such enhanced Diesel motor fuel is  delivered
 into a storage tank which is not equipped with a hose or other apparatus
 by  which such fuel can be dispensed into the fuel tank of a motor vehi-
 cle and such storage tank is attached to the heating unit  burning  such
 fuel,  provided  that  each  delivery of such fuel of over four thousand
 five hundred gallons shall be evidenced by a certificate signed  by  the
 purchaser  stating that the product will be used exclusively for heating
 purposes; or (iv) a sale or use consisting of no more than four thousand
 five hundred gallons of Diesel motor fuel in a thirty-day period  to  or
 by  a  consumer  who  purchases or uses such fuel for use or consumption
 directly and exclusively in the production for sale of tangible personal
 property by farming but only if all of such fuel  is  delivered  on  the
 farm  site  and  is  consumed  other  than on the highways of this state
 (except for  the  use  of  the  highway  to  reach  adjacent  farmlands)
 provided,  however,  a  farmer may purchase more than four thousand five
 hundred gallons of Diesel motor fuel in a thirty-day period for such use
 or consumption exempt from the tax in accordance  with  prior  clearance
 given by the commissioner of taxation and finance; or (v)] a sale to the
 consumer consisting of not more than twenty gallons of water-white kero
 sene to be used and consumed exclusively for heating purposes; or [(vi)]
 (III)  the  sale  to  or  delivery  at a filling station or other retail
 vendor of water-white kerosene provided such filling  station  or  other
 retail vendor only sells such water-white kerosene exclusively for heat
 
       S. 2811--B                         37
 ing  purposes  in  containers of no more than twenty gallons; or [(vii)]
 (IV) a sale of kero-jet fuel to an airline for use in its airplanes or a
 use of kero-jet fuel by an airline in its airplanes; or [(viii)]  (V)  a
 sale  of  kero-jet fuel by a registered distributor of Diesel motor fuel
 to a fixed base operator registered under this article as a  distributor
 of  kero-jet  fuel only where such fixed base operator is engaged solely
 in making or offering to make retail sales not in bulk of kero-jet  fuel
 directly  into the fuel tank of an airplane for the purpose of operating
 such airplane; or [(ix)] (VI) a retail sale not in bulk of kero-jet fuel
 by a fixed base operator registered under this article as a  distributor
 of  kero-jet  fuel  only  where such fuel is delivered directly into the
 fuel tank of an airplane for use in the operation of such airplane.
 (c) [Limited exemptions for  dyed  Diesel  motor  fuel.  (i)  The  tax
 imposed  by this section shall not apply to: (A) the sale of dyed Diesel
 motor fuel by the importer to a purchaser under  the  circumstances  and
 subject  to  the  terms  and conditions as follows: (1) the importer and
 purchaser are each registered under this article as a full Diesel  motor
 fuel  distributor;  (2)  such  importer has imported the enhanced Diesel
 motor fuel, which is the subject of the sale, into  the  state  and  has
 dyed such fuel to comply with the provisions of 26 USC

S 4082(a) and the
 regulations  thereunder,  as  may  be amended from time to time; (3) the
 purchaser is a holder of a currently valid direct payment permit  issued
 pursuant  to section two hundred eighty-three-d of this article; and (4)
 such purchaser is primarily engaged in the retail heating  oil  business
 and  such  dyed  Diesel  motor  fuel will be sold by such purchaser in a
 retail sale to a consumer for use solely as  residential  or  commercial
 heating  oil;  (B)  a first sale of the dyed Diesel motor fuel, which as
 the subject of an exempt sale described in clause (A) of  this  subpara-
 graph,  by the purchaser described therein to a purchaser likewise hold-
 ing a currently valid direct pay  permit  under  the  circumstances  and
 subject  to  the  terms  and conditions as follows: (1) the sale of such
 second purchaser by such first purchaser is the first and only  sale  of
 such  dyed  Diesel  motor  fuel by such first purchaser; (2) such second
 purchaser is primarily engaged in the retail heating  oil  business  and
 such  dyed  Diesel motor fuel will be sold by such second purchaser in a
 retail sale to a consumer for use solely as  residential  or  commercial
 heating  oil;  (3)  on  the  sale  to  the  second purchaser, such first
 purchaser described in such clause (A) attaches to the invoice a copy of
 the invoice given by the importer on the exempt sale described  in  such
 clause  (A),  so as to identify the origin of the dyed Diesel fuel which
 is the subject of the sale to such second purchaser; and (4) such second
 purchaser certifies that such dyed Diesel motor fuel is to be sold by it
 only to a consumer for use solely as residential or  commercial  heating
 oil.  (ii)  Prior  to,  or at the time of, such sale of such dyed Diesel
 motor fuel described in clause (A) or (B) of subparagraph  (i)  of  this
 paragraph,  the purchaser shall give a certificate to the seller setting
 forth the intended use of the dyed Diesel motor fuel which is sought  to
 be  qualified for exemption under this paragraph, that the purchaser has
 been issued a direct payment permit which is currently valid, that  such
 permit  has  not been suspended or revoked and that the purchaser other-
 wise meets the qualifications  of  this  paragraph.  (iii)  The  limited
 exemptions  allowed  under this paragraph shall in no event apply to any
 dyed Diesel motor fuel which is delivered  into  a  repository  equipped
 with hose or other apparatus capable of being used to dispense fuel into
 the  fuel  tank  of  a  motor  vehicle,  or where the purchaser's direct
 payment permit has been suspended or revoked and  the  commissioner  has
 
       S. 2811--B                         38
 made  generally  available  the  identity  of those persons whose direct
 payment permits have been suspended or revoked.] NOTHING IN THIS ARTICLE
 SHALL EXEMPT NON-HIGHWAY DIESEL MOTOR FUEL FROM THE  IMPOSITION  OF  THE
 TAX  UNDER  THIS  SECTION,  IF  SUCH  NON-HIGHWAY  DIESEL  MOTOR FUEL IS
 INTENDED FOR USE ON THE WATERWAYS  OF  THE  STATE  INCLUDING  ANY  OTHER
 WATERWAYS BORDERING ON THE STATE, FOR OPERATING PLEASURE OR RECREATIONAL
 MOTOR BOATS THEREON.
 4.  The  tax  imposed  by  this  section on Diesel motor fuel shall be
 passed through by the seller and included as part of the  selling  price
 to each purchaser of such fuel. Provided, however, the amount of the tax
 imposed by this section may be excluded from the selling price of Diesel
 motor fuel where (i) a sale of Diesel motor fuel is made to an organiza
 tion  described  in  paragraph  (a) of subdivision three of this section
 solely for the  purpose  stated  therein;  (ii)  a  sale  of  [enhanced]
 NON-HIGHWAY Diesel motor fuel is made to a consumer [exclusively for the
 purposes  of  heating  specified in subparagraph (i) of paragraph (b) of
 subdivision three of this section] but only if such [enhanced] NON-HIGH
 WAY Diesel motor fuel is NOT DELIVERED TO A FILLING STATION, NOR  deliv
 ered  into  a  storage tank which is [not] equipped with a hose or other
 apparatus by which such fuel can be dispensed into the fuel  tank  of  a
 motor  vehicle  [and  such  storage tank is attached to the heating unit
 burning such fuel, provided that each delivery of such fuel of over four
 thousand five hundred gallons shall be evidenced by a certificate signed
 by the purchaser stating that the product will be used  exclusively  for
 heating  purposes;  (iii) a sale is made consisting of no more than four
 thousand five hundred gallons (or a greater amount which has been  given
 prior  clearance  by the commissioner of taxation and finance) of Diesel
 motor fuel in a thirty-day period to a consumer who purchases such  fuel
 for  use  or  consumption directly and exclusively in the production for
 sale of tangible personal property by farming but only if  all  of  such
 fuel is consumed other than on the highways or waterways of this state];
 or  [(iv)]  (III)  the sale to or delivery at a filling station or other
 retail vendor of water-white kerosene provided such filling  station  or
 other retail vendor only sells such water-white kerosene exclusively for
 heating  purposes in containers of no more than twenty gallons; or [(v)]
 (IV) a sale of kero-jet fuel is made  to  an  airline  for  use  in  its
 airplanes.
 5.  All  the provisions of this article relating to the administration
 and collection of the taxes on motor fuel, except sections  two  hundred
 eighty-three-a  and two hundred eighty-three-b of this article, shall be
 applicable to the tax imposed by this section with  such  limitation  as
 specifically  provided  for in this article with respect to Diesel motor
 fuel and with such  modification  as  may  be  necessary  to  adapt  the
 language  of  such  provisions  to the tax imposed by this section. With
 respect to the bond or other security required by subdivision  three  of
 section  two  hundred eighty-three of this article, the commissioner [of
 taxation and finance], in determining the amount of bond or other  secu
 rity  required for the purpose of securing tax payments, shall take into
 account the volume of [heating fuel] NON-HIGHWAY DIESEL MOTOR  FUEL  and
 other  Diesel  motor  fuel  sold for exempt purposes by a distributor of
 Diesel motor fuel during prior periods as a  factor  reducing  potential
 tax  liability  along with any other relevant factors in determining the
 amount of security required.  With respect to the bond  required  to  be
 filed  prior to registration as a Diesel motor fuel distributor, no bond
 shall be required of an applicant upon  a  finding  of  the  applicant's
 fiscal  responsibility,  as  reflected  by  such  factors  as net worth,
 
       S. 2811--B                         39
 current assets and liabilities, and tax reporting and  payment  history,
 and  the department shall not provide for a minimum bond of every appli
 cant.
 

S  6. Subdivision 7 of section 283 of the tax law, as amended by chap
 ter 261 of the laws of 1988, is amended to read as follows:

 7. Temporary restraining order and  permanent  [injuction]  INJUNCTION
 against  unlawful  importation  and forfeiture of unlawfully imported or
 produced [automotive] MOTOR FUEL OR  DIESEL  MOTOR  fuel.  (a)  Whenever
 evidence  is  furnished by the commissioner [of taxation and finance] to
 any justice of the supreme court, in court or at chambers, showing  that
 any  person  not registered as a distributor as required by this article
 has imported [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL into this
 state or caused [automotive] MOTOR FUEL  OR  DIESEL  MOTOR  fuel  to  be
 imported  into  this  state  or  has  produced, refined, manufactured or
 compounded [automotive fuel or has subjected diesel motor  fuel  to  the
 process  of  enhancement  within  this state] MOTOR FUEL OR DIESEL MOTOR
 FUEL, such justice may make a temporary order without notice prohibiting
 such person and his  agents  from  selling,  transferring  or  otherwise
 disposing  of  any  such fuel or any fuel and also prohibiting all other
 persons in possession of or having control over the same  from  selling,
 releasing,  transferring or otherwise disposing of any [automotive fuel]
 MOTOR FUEL OR DIESEL MOTOR FUEL imported,  produced,  refined,  manufac
 tured, compounded, [enhanced,] sold or transferred by such person not so
 registered pending a hearing for a preliminary injunction.
 (b)  Upon  granting  a  temporary order, the court shall direct that a
 hearing be held at the earliest  possible  time  upon  such  notice  and
 service  as  the court shall direct and at the same time, if such action
 has not yet been commenced, the commissioner [of taxation  and  finance]
 shall commence an action in supreme court for a permanent injunction and
 forfeiture of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL pursuant
 to  paragraph (c) of this subdivision. Where, after such opportunity for
 a hearing, the court determines that there is a substantial  probability
 that the commissioner will prevail in such action, the court shall grant
 a  preliminary  injunction  restraining  the  sale, release, transfer or
 other disposition of fuel subject to the temporary order.
 (c) (1) If it is established by clear  and  convincing  evidence  that
 [automotive  fuel]  MOTOR FUEL OR DIESEL MOTOR FUEL was imported, caused
 to be imported, produced, refined, manufactured or compounded [or diesel
 motor fuel was subjected to the process of enhancement]  by  any  person
 not  registered  as a distributor as required by this article, the court
 shall grant a judgment (i) permanently enjoining  such  person  and  his
 agents  from  selling,  transferring  or otherwise disposing of any such
 fuel or any fuel within this state and (ii) declaring the forfeiture  of
 any fuel that was so imported, caused to be imported, produced, refined,
 manufactured, OR compounded [or enhanced] by such person.
 (2)  With respect to [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL
 that was imported, caused to be imported,  produced,  refined,  manufac
 tured  or  compounded,  [or  diesel motor fuel that was subjected to the
 process of enhancement] by a person not registered as a  distributor  as
 required  by  this article or that was unlawfully sold or transferred by
 such person, if it is established by clear and convincing evidence  that
 any  other  person in possession of or having control over such fuel was
 not a purchaser or transferee in good faith of such fuel with respect to
 the fact that  such  fuel  was  so  imported,  caused  to  be  imported,
 produced, refined, manufactured, OR compounded [or enhanced] by a person
 not registered as a distributor as required by this article or that such
 
       S. 2811--B                         40
 fuel  was  so  unlawfully  sold or transferred by such person, the court
 shall grant a judgment (i) permanently enjoining such other  person  and
 his  OR  HER  agents  from selling, releasing, transferring or otherwise
 disposing  of  any  such  fuel and (ii) declaring the forfeiture of such
 fuel in the possession or under the control of such other person.
 (d) The commissioner may, at any time subsequent to  the  granting  of
 the  temporary  order  pursuant to paragraph (a) of this subdivision, in
 his OR HER sole discretion consent to a sale of [automotive fuel]  MOTOR
 FUEL  OR  DIESEL  MOTOR FUEL subject to such temporary order which is in
 the possession or under the control of a person other than the person or
 the agent of the person who imported, caused to be  imported,  produced,
 refined,  manufactured,  compounded  [or enhanced] or unlawfully sold or
 transferred such fuel. As a condition of granting permission to  a  sale
 of  [automotive  fuel]  MOTOR FUEL OR DIESEL MOTOR FUEL pursuant to this
 subdivision, the commissioner shall require the payment  of  all  taxes,
 penalties  and interest imposed by and pursuant to the authority of this
 chapter with respect to such fuel.
 (e) (1) At any time during  the  pendency  of  an  action  under  this
 section,  the  [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL subject
 to a temporary, preliminary or permanent order hereunder may be released
 from the scope of such order if there is given  an  undertaking,  in  an
 amount  equal  to  the  market  value of such fuel plus state excise and
 sales taxes and federal excise taxes, to the effect that there  will  be
 paid to the commissioner the amount of the market value of such fuel and
 such taxes in the event that such fuel is adjudged forfeited.
 (2)  Any person enjoined by a temporary order or a preliminary injunc
 tion issued pursuant to this  subdivision  may  move  at  any  time,  on
 notice, to vacate or modify it.
 (f)  The  procedures of the civil practice law and rules applicable to
 temporary restraining  orders,  preliminary  injunctions  and  permanent
 injunctions not inconsistent with this subdivision shall apply to tempo
 rary  orders,  preliminary  injunctions and permanent injunctions issued
 under this subdivision and any provision of this  subdivision  which  is
 not  in accord with the constitutional mandate of such procedures of the
 civil practice law and rules shall be deemed to be modified as necessary
 to accord with such a mandate. The procedural provisions  set  forth  in
 paragraph  three  of  subdivision  (d) and in subdivision (j) of section
 eighteen hundred forty-eight of this chapter shall apply to the  forfei
 ture proceedings under this subdivision and, in respect to a declaration
 of forfeiture under this subdivision, the court shall direct the commis
 sioner  to sell or otherwise dispose of such forfeited [automotive fuel]
 MOTOR FUEL OR DIESEL MOTOR FUEL  on  such  conditions  the  commissioner
 deems  most  advantageous  and just under the circumstances. The commis
 sioner shall not be required to file any undertaking in connection  with
 an action pursuant to this subdivision.
 

S 7. Sections 283-d and 284-b of the tax law are REPEALED.
 

S  8.  Subdivision  3  of  section 285-b of the tax law, as amended by
 chapter 245 of the laws of 1989, is amended to read as follows:

 3. (a) The claim for or exemption from tax provided  for  in  subpara
 graphs  (i),  (II),  (iii),  (iv),  [(v),] AND (vi)[, (vii) and (ix)] of
 paragraph (b) of subdivision three of section two  hundred  eighty-two-a
 of  this  article shall be established by means of an exempt transaction
 certificate. If any such exemption is applicable, such certificate shall
 be provided by the purchaser to the seller at the time of  or  prior  to
 delivery  of  the Diesel motor fuel. Such exempt transaction certificate
 shall set forth the name and address of the purchaser and the  basis  of
 
       S. 2811--B                         41
 the  exemption  and shall be signed by such purchaser and by the seller.
 Such certificate shall be in such form and contain such  other  informa
 tion  as the commissioner [of taxation and finance] shall require. Where
 a  proper and complete exempt transaction certificate has been furnished
 and accepted by the seller in good faith, such  certificate  under  such
 circumstance  shall relieve the seller of the burden of proving that the
 Diesel motor fuel covered by such certificate  is  exempt  from  tax  by
 reason of subparagraph (i), (II), (iii), (iv), [(v),] OR (vi)[, (vii) or
 (ix)]  of paragraph (b) of subdivision three of such section two hundred
 eighty-two-a. Any purchaser who furnishes to his seller a false or frau
 dulent exempt transaction certificate for the purpose of establishing an
 exemption from the tax imposed by section two  hundred  eighty-two-a  of
 this  article  shall be jointly and severally liable for the tax imposed
 by such section. In lieu  of  an  exempt  transaction  certificate,  the
 commissioner [of taxation and finance] may provide for the establishment
 of  such exemption by means of a procedure or other document which he OR
 SHE deems appropriate so as to secure the revenues from the  excise  tax
 on  Diesel  motor fuel.  Provided, further, in the case of the exemption
 provided by subparagraph (i) of paragraph (b) of  subdivision  three  of
 section two hundred eighty-two-a of this article, the commissioner shall
 provide  for  an  alternative procedure or other document signed only by
 the seller, such as a metered delivery ticket, for the establishment  of
 such  exemption in those cases where such commissioner is satisfied that
 the use of such alternative procedure or other document will  not  jeop
 ardize the revenues from the excise tax on Diesel motor fuel.
 (b)  A  claim  for the exemption from tax provided for in subparagraph
 [(ii) or (viii)] (V) of paragraph (b) of subdivision  three  of  section
 two  hundred  eighty-two-a of this article shall be established by means
 of an interdistributor sale certificate. If such exemption  is  applica
 ble,  such  certificate shall be provided by the purchaser to the seller
 at the time of or prior to delivery  of  the  Diesel  motor  fuel.  Such
 certificate  shall  set forth the name and address of the purchaser, the
 purchaser's registration number, an affirmation by such  purchaser  that
 the  purchaser is registered as a distributor and that such registration
 has not been suspended or cancelled and shall be signed by such purchas
 er and by the seller. Such certificate shall be in such form and contain
 such other information as the commissioner  [of  taxation  and  finance]
 shall require. Where a proper and complete interdistributor sale certif
 icate  has been furnished and accepted by the seller in good faith, such
 certificate under such circumstance shall  relieve  the  seller  of  the
 burden of proving that the Diesel motor fuel covered by such certificate
 is  exempt  from  tax  by reason of subparagraph [(ii) or (viii)] (V) of
 paragraph (b) of subdivision three of such section two  hundred  eighty
 two-a.  For purposes of this paragraph, a seller shall not have accepted
 such certificate in good faith if the purchaser's registration is inval
 id because it has been suspended or cancelled, or if  the  purchaser  is
 not  registered,  and  the  commissioner  [of  taxation and finance] has
 furnished registered distributors with information identifying all those
 persons then validly registered as distributors of Diesel motor fuel and
 those persons whose registrations have been suspended or cancelled.  Any
 purchaser  who  furnishes  to his seller a false or fraudulent interdis
 tributor sale certificate for the purpose of establishing  an  exemption
 from the tax imposed by section two hundred eighty-two-a of this article
 shall  be  jointly  and  severally  liable  for  the tax imposed by such
 section.
 
       S. 2811--B                         42
 

S 9. Subdivision 1 of section 286 of the tax law, as amended by  chap
 ter 302 of the laws of 2006, is amended to read as follows:

 1.  Every person who imports or causes to be imported into this state,
 or who produces, refines, manufactures or compounds within  this  state,
 or  who purchases or sells in this state motor fuel or diesel motor fuel
 or ingredients which may be manufactured or compounded into  motor  fuel
 or  diesel  motor  fuel,  [or engages in the enhancement of diesel motor
 fuel,] shall keep a complete and accurate record of  all  purchases  and
 sales,  uses  or  other dispositions thereof and a complete and accurate
 record of the number of gallons of motor fuel or diesel  motor  fuel  or
 such  ingredients  so  imported,  produced,  refined, manufactured[,] OR
 compounded [or enhanced]. Every person who stores motor fuel  or  diesel
 motor  fuel shall keep a complete and accurate record of the identity of
 the person for whom such fuel is stored, the quantity and type  of  fuel
 so stored, the identity of the person to whom such fuel is released from
 storage  and  the  quantity  and  type of fuel so released. Such records
 shall be in such form and contain such other information as the  commis
 sioner  shall  prescribe. Said commissioner, by rule or regulation, also
 may require the delivery of statements to purchasers  with  consignments
 of  motor  fuel  or diesel motor fuel or such ingredients, and prescribe
 the matters to be contained therein. Such records and statements, unless
 required by the commissioner to be preserved for a longer period,  shall
 be  preserved  for  a  period  of  three  years and shall be offered for
 inspection at any time upon oral or written demand by such  commissioner
 or the commissioner's duly authorized agents. The commissioner is hereby
 further  authorized to examine the equipment of any such person pertain
 ing to the storage, sale or delivery of such fuels, as well as the stock
 of such fuels in the possession or control of such person. To verify the
 amount of tax due  under  this  article,  each  such  person  is  hereby
 directed  and required to give to the commissioner or the commissioner's
 duly authorized representatives, the means, facilities  and  opportunity
 for  such examinations as are herein provided for and required.  Nothing
 CONTAINED in this section [contained] shall be construed to require  the
 keeping  for  purposes of this article of a record of purchases or sales
 of motor fuel or diesel motor fuel or  such  ingredients  at  retail  in
 small  quantities  (less than thirty gallons) or of motor fuel or diesel
 motor fuel imported into this state in the tank of a motor vehicle which
 supplies the fuel for its operation.
 

S 10.

Section 286-a of the tax law, as amended by chapter 261  of  the
 laws of 1988, is amended to read as follows:

 

S  286-a.  Records and reports of transportation of [automotive] MOTOR
 FUEL AND DIESEL MOTOR fuel. Every person transporting [automotive] MOTOR
 FUEL OR DIESEL MOTOR fuel within this state, whether such transportation
 originates within or without this  state,  when  required  by  the  [tax
 commission]  COMMISSIONER,  shall keep a true and accurate record of all
 [automotive] MOTOR FUEL AND DIESEL MOTOR fuel so transported,  including
 ingredients  which  may  be manufactured or compounded into [automotive]
 MOTOR FUEL OR DIESEL MOTOR fuel, showing such  facts  with  relation  to
 such  [automotive]  fuel and ingredients and their transportation as the
 [tax commission] COMMISSIONER may require. Such record shall be open  to
 inspection  by  the  representatives  of the department [of taxation and
 finance] at any time and the [tax commission] COMMISSIONER  may  require
 from any such person sworn returns of all or any part of the information
 shown by such records.
 

S  11. 

Section 286-b of the tax law, as amended by chapter 261 of the
 laws of 1988, is amended to read as follows:

 
       S. 2811--B                         43
 

S 286-b. Transportation of [automotive] MOTOR  FUEL  OR  DIESEL  MOTOR
 fuel;  manifest required. 1. The master or other person in charge of any
 barge, tanker or other vessel in which [automotive] MOTOR FUEL OR DIESEL
 MOTOR fuel is being transported over any of the navigable waters of this
 state,  the operator of a motor vehicle in which [automotive] MOTOR FUEL
 OR DIESEL MOTOR fuel is being transported in this state, or the operator
 of a pipeline through which [automotive] MOTOR FUEL OR DIESEL MOTOR fuel
 is being transported in this state, other than [automotive]  MOTOR  FUEL
 OR  DIESEL  MOTOR fuel being transported for use in operating the engine
 which propels such vessel or motor vehicle, as the  case  may  be,  must
 have  in  his  OR  HER  possession  a  manifest which shows the name and
 address of the person from whom such [automotive] fuel was  received  by
 him  OR  HER  and  the  place  of  receipt of such fuel and the name and
 address of every person to whom he OR SHE is to  make  delivery  of  the
 same  and  the place of delivery, together with the number of gallons to
 be delivered to each such person, and,  if  such  [automotive]  fuel  is
 being  imported into the state in such vessel, motor vehicle or pipeline
 for use, storage, distribution or sale in the state,  the  name  of  the
 distributor importing or causing such fuel to be imported into the state
 and  such  other  information  as  the [tax commission] COMMISSIONER may
 require pursuant to rule or regulation, and shall at the  request  of  a
 peace  officer,  acting  pursuant to his OR HER special duties, a police
 officer, any representative of the department [of taxation and  finance]
 or any other person authorized by law to inquire into or investigate the
 transportation  of  such  [automotive]  fuel,  produce such manifest for
 inspection. The person causing the operation of such vessel, motor vehi
 cle or pipeline shall be responsible  to  cause  the  operator  of  such
 vessel,  motor  vehicle  or pipeline to keep in his OR HER possession on
 such vessel, in such motor vehicle or in the main  control  building  of
 such  pipeline  in this state the manifest required by this section. The
 absence of the manifest required by this section shall give  rise  to  a
 presumption  that the [automotive] MOTOR FUEL OR DIESEL MOTOR fuel being
 transported is intended for sale, use, distribution or storage  in  this
 state  and  is  being  imported or caused to be imported by other than a
 registered distributor. Moreover, the absence of (1) the place of deliv
 ery of motor fuel OR DIESEL MOTOR FUEL on the manifest with  respect  to
 [automotive]  MOTOR  FUEL  OR  DIESEL MOTOR fuel being imported into the
 state shall give rise to a presumption that such fuel is being  imported
 into  the  state for use, distribution, storage or sale in the state and
 (2) the name of a registered distributor on the manifest with respect to
 [automotive] MOTOR FUEL OR DIESEL MOTOR fuel  being  imported  into  the
 state  for  use,  distribution,  storage or sale in the state shall give
 rise to a presumption that such fuel is being so imported or  caused  to
 be  imported by other than a registered distributor. Every barge, tanker
 or other vessel so used for the transportation of  motor  fuel  must  be
 plainly  and  visibly  marked  on both sides thereof and above the water
 line with the word "Gasoline," or other name of  the  motor  fuel  being
 transported,  in letters at least eight inches high and of corresponding
 appropriate width, or must be  identified  as  prescribed  by  the  [tax
 commission]  COMMISSIONER  pursuant to rule or regulation. The master or
 person in charge of such barge, tanker or other vessel, as well  as  the
 owners  thereof,  shall be guilty of a violation of this section if such
 barge, tanker or other vessel is not so marked.
 2. The commissioner may,  by  regulation  provide  for  the  form  and
 content of the manifest required for [automotive] MOTOR AND DIESEL MOTOR
 fuel  and  for the filing of monthly information returns by every person
 
       S. 2811--B                         44
 required to maintain records,  described  in  subdivision  one  of  this
 section,  which  shall  in all material respects reflect the information
 required to be contained in such records. Such returns shall be in  such
 form  and  contain  such  other  information  as  the commissioner shall
 require.
 

S 12. Subdivision 1 of section 287 of the tax law, as amended by chap
 ter 261 of the laws of 1988, is amended to read as follows:

 1. Every distributor shall, on or before the  twentieth  day  of  each
 month,   file with the department [of taxation and finance] a return, on
 forms to be prescribed by the commissioner and furnished by such depart
 ment, stating the number of gallons of motor fuel imported, manufactured
 or sold by such distributor in the state during the  preceding  calendar
 month  and  in  the  case of Diesel motor fuel, the number of gallons of
 [enhanced] Diesel motor fuel imported[, the number of gallons  enhanced]
 and the number of gallons which have been sold or used. Provided, howev
 er,  the  commissioner  may, if he OR SHE deems it necessary in order to
 [insure] ENSURE the payment  of  the  taxes  imposed  by  this  article,
 require returns to be made at such times and covering such periods as he
 OR  SHE may deem necessary, and, by regulation, may permit the filing of
 returns by distributors of Diesel motor fuel on a quarterly, semi-annual
 or annual basis, or may waive the filing of returns by a distributor  of
 Diesel  motor  fuel  for  such time and upon such terms as he OR SHE may
 deem proper if satisfied that  no  tax  imposed  by  this  article  with
 respect  to Diesel motor fuel is or will be payable by him OR HER during
 the time for which returns are waived. Such returns shall  contain  such
 further  information as the commissioner shall require.  The fact that a
 distributor's name is signed to a filed  return  shall  be  prima  facie
 evidence  for  all  purposes that the return was actually signed by such
 distributor.  Each such distributor shall, with respect to  motor  fuel,
 pay  to the department with the filing of such return, the taxes imposed
 by this article on each gallon of motor fuel imported,  manufactured  or
 sold by such distributor in the state, and so reported, during the peri
 od  covered  by  such  return.  Each  distributor shall, with respect to
 Diesel motor fuel, pay to the department with the filing of  the  return
 the  taxes  imposed  by  this article on the number of gallons of Diesel
 motor fuel sold or used or delivered to a filling station  or  delivered
 into  the fuel tank of a motor vehicle  during the period covered by the
 return. Provided, however, that where a distributor has purchased [auto-
 motive] MOTOR FUEL OR DIESEL MOTOR fuel upon which the taxes imposed  by
 this article have been paid or paid over and in each instance the tax is
 included  in the price, a credit shall be allowed for the amount of such
 taxes upon the subsequent sale of such fuel  to  the  extent  that  such
 taxes are so paid and included in the price.
 

S  13. Paragraphs (a) and (c) of subdivision 3 of section 289-c of the
 tax law, paragraph (a) as amended by chapter 558 of the laws of 1965 and
 paragraph (c) as amended by chapter 302 of the laws of 2006, are amended
 to read as follows:

 (a) Except as otherwise provided in paragraph (b) of this section, any
 person who shall buy any motor fuel or diesel motor fuel, on  which  the
 tax  imposed by this article shall have been paid, and shall consume the
 same in any manner except in the operation of a motor  vehicle  upon  or
 over  the PUBLIC highways of this state, or in the operation of a pleas
 ure or recreational motor boat upon or over the waterways of  the  state
 including  waterways  bordering  on  the  state, shall be reimbursed the
 amount of such tax in the manner and subject to  the  conditions  herein
 provided  except  that  there  shall  be no reimbursement of tax paid on
 
       S. 2811--B                         45
 motor fuel or diesel motor fuel taken out of this state in a  fuel  tank
 connected  with  the  engine  of a motor vehicle and consumed outside of
 this state.
 (c)  All  claims  for  reimbursement shall be in such form and contain
 such information as the commissioner shall prescribe and shall be  filed
 within three years from (i) the date of the purchase, in the case of the
 purchaser;  or  (ii) the date of the sale, in the case of the seller, of
 the motor fuel so subject  to  reimbursement.  Every  such  claim  shall
 include  a  certificate by or on behalf of the party presenting the same
 to the effect that it is just, true and correct, that  no  part  thereof
 has  been  paid,  except as stated therein, and that the balance therein
 stated is actually due and owing. The claimant shall satisfy the depart
 ment that the claimant has borne the tax and that  the  motor  fuel  has
 been  consumed by the claimant in a manner other than the operation of a
 motor vehicle upon or over the PUBLIC highways of this state, the opera
 tion of a pleasure or recreational motorboat upon or over the  waterways
 of  the state including waterways bordering on the state or, in the case
 of an omnibus carrier, taxicab licensee, nonpublic  school  operator  or
 volunteer  ambulance  service,  that  the claimant has borne the tax and
 that the amount claimed is the amount of  such  tax  reimbursable  under
 paragraph  (b),  (d),  (e)  or  (f)  of  THIS subdivision [three of this
 section]. The department may require such further information  or  proof
 as  it shall deem necessary for the administration of such claim. Claims
 for reimbursement approved by the department shall be paid from revenues
 collected under this article and deposited to the credit  of  the  comp
 troller as hereinafter provided; but no such claims shall be paid unless
 the  department  is  satisfied  that the amount of the tax for which the
 reimbursement is claimed has actually been collected by the state.   The
 amount  of  any  erroneous  or  excessive  payment  to  a  claimant  for
 reimbursement may be determined by the department and may  be  recovered
 from  such claimant in the same manner as a tax imposed by this article,
 provided, however, that any such  determination  shall  be  made  within
 three years after the date of such erroneous or excessive payment.
 

S 14. Subdivision 4 of sections 289-c of the tax law is REPEALED.
 

S  15.  Subdivision  1  of section 289-e of the tax law, as amended by
 section 5 of part EE of chapter 63 of the laws of 2000,  is  amended  to
 read as follows:

 1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner under the taxes imposed  by  this  article,  except  as
 provided  otherwise  in  subdivision  two  and subdivision three of this
 section and sections two hundred eighty-two-b, two hundred eighty-two-c,
 two hundred eighty-four-a and  two  hundred  eighty-four-c,  other  than
 [those imposed by section two hundred eighty-four-b and] the fee imposed
 by  section two hundred eighty-four-d and penalties and interest on such
 fee, shall be deposited and disposed of pursuant to  the  provisions  of
 section  one  hundred  seventy-one-a  of  this chapter; provided that an
 amount equal to thirty-seven and  one-half  per  centum  of  the  moneys
 collected under section two hundred eighty-four of this chapter shall be
 appropriated  and used for the acquisition of property necessary for the
 construction and reconstruction of highways and bridges or  culverts  on
 the  state  highway  system,  and  for the construction, maintenance and
 repair of such highways and bridges or culverts, all under the direction
 of the commissioner of transportation.
 

S 16.

Section 289-f of the tax law, as added by chapter 44 of the laws
 of 1985, is amended to read as follows:

 
       S. 2811--B                         46
 

S 289-f. Joint administration of taxes.  In  addition  to  the  powers
 granted  to  the  [tax  commission]  COMMISSIONER  in  this chapter, the
 [commission] COMMISSIONER is hereby authorized to make provisions pursu
 ant to rules and regulations for the joint administration, in  whole  or
 in  part,  of  the state and local taxes imposed by article twenty-eight
 and authorized to be imposed by article twenty-nine of this chapter upon
 the sale of [automotive] MOTOR FUEL OR DIESEL MOTOR fuel and  the  taxes
 imposed  and  authorized  to  be  imposed by this article, including the
 joint reporting, assessment, collection,  determination  and  refund  of
 such  taxes,  and for that purpose to prescribe that any of the [commis-
 sion's] COMMISSIONER'S functions under such articles, and  any  returns,
 forms,  statements,  documents  or  information  to  be submitted to the
 [commission] COMMISSIONER under such articles, any books and records  to
 be kept for purposes of the taxes imposed or authorized to be imposed by
 such articles, any schedules of amounts to be collected under such arti
 cles,  any registration required under such articles, and the payment of
 taxes under such articles shall be on a joint basis with respect to  the
 taxes imposed by such articles.
 

S  17.  Paragraph  2 of subdivision (b) and subdivisions (c), (k), (l)
 and (m) of section 300 of the tax law, paragraph 2 of subdivision (b) as
 amended by chapter 170 of the laws of 1994, subdivision (c) as added  by
 chapter 190 of the laws of 1990, subdivision (k) as amended by section 1
 of  part  H  of chapter 407 of the laws of 1999 and subdivisions (l) and
 (m) as added by chapter 309 of the laws of 1996, are amended to read  as
 follows:

 (2)  With respect to diesel motor fuel, every corporation and unincor
 porated business (i) importing diesel motor fuel or causing diesel motor
 fuel to be imported into the state for  use,  distribution,  storage  or
 sale  in the state, (ii) producing, refining, manufacturing or compound
 ing diesel motor fuel within the state, (iii) [engaging in the  enhance-
 ment  of  diesel motor fuel within the state, (iv)] making a sale or use
 of diesel motor fuel in the state, other than a retail sale not in  bulk
 or  self-use of diesel motor fuel which has been the subject of a retail
 sale to such corporation  or  unincorporated  business,  or  [(v)]  (IV)
 registered by the department [of taxation and finance] as a "distributor
 of  kero-jet fuel only" pursuant to the provisions of subdivision two of
 section two hundred eighty-two-a of  this  chapter.  Diesel  motor  fuel
 brought  into  this  state in the ordinary fuel tank connecting with the
 engine of a motor vehicle, airplane  or  other  conveyance,  but  not  a
 vessel  (other  than  a  recreational motor boat or a commercial fishing
 vessel as defined in subdivision (j) of this section if the diesel motor
 fuel imported into and consumed in this state is used  to  operate  such
 vessel  while  it  is  engaged  in  the  harvesting  of  fish for sale),
 propelled by the use of such diesel motor fuel and to be  used  only  in
 the  operation  thereof, shall not be deemed imported within the meaning
 of this article, if not removed from such tank except  as  used  in  the
 propulsion of such engine.
 (c) [(1)] The [term (A)] TERMS (1) "diesel motor fuel" means such term
 as  defined in subdivision fourteen of section two hundred eighty-two of
 this chapter  [and  regulations  thereunder  including  any  regulations
 relating  to product specifically designated "No. 4 diesel fuel" and not
 suitable as a fuel used in the operation of a motor vehicle engine], and
 [(B) "enhanced] (2) "HIGHWAY diesel motor fuel"  means  such  term  as
 defined in subdivision [sixteen] SIXTEEN-A of section two hundred eight
 y-two of this chapter, and
 
       S. 2811--B                         47
 [(C)(i)  "nonautomotive type diesel motor fuel" as used in relation to
 the rates of the tax imposed by section  three  hundred  one-a  of  this
 article means any diesel motor fuel, as described in subparagraph (A) of
 this  paragraph,  which  would  be  excluded  from the diesel motor fuel
 excise  tax  imposed by section two hundred eighty-two-a of this chapter
 solely by reason of the enumerated exclusions based on ultimate  use  of
 the  product  set  forth  in  paragraph (b) of subdivision three of such
 section, and  (ii)  "automotive-type  diesel  motor  fuel"  as  used  in
 relation to the rates of tax imposed by such section three hundred one-a
 means  diesel  motor  fuel  which is not nonautomotive-type diesel motor
 fuel.]
 (3) "NON-HIGHWAY DIESEL MOTOR FUEL" MEANS  SUCH  TERM  AS  DEFINED  IN
 SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
 [(2)]  (4) As used in this article, references to persons or petroleum
 businesses registered under article twelve-A of this chapter as distrib
 utors of diesel motor fuel shall include all such persons  or  petroleum
 businesses registered under such article as distributors of diesel motor
 fuel  and  persons or petroleum businesses operating under valid limited
 registrations relating to persons or petroleum businesses making  retail
 sales  of  diesel  motor  fuel  to  consumers  solely  for  the purposes
 described in subparagraph (i) of paragraph (b) of subdivision  three  of
 section  two  hundred  eighty-two-a of this chapter, but such references
 shall  not  include  persons  and  petroleum  businesses  registered  as
 "distributors  of  kero-jet  fuel  only"  pursuant  to the provisions of
 subdivision two of section two hundred eighty-two-a of this chapter.
 (k) "Commercial gallonage" means gallonage (1)  which  is  [nonautomo-
 tive-type]  NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
 motor fuel)] or residual petroleum product, (2) which is included in the
 full measure of the [nonautomotive-type] NON-HIGHWAY diesel  motor  fuel
 component or the residual petroleum product component of the tax imposed
 under  section three hundred one-a of this article, [and] (3) which does
 not (and will not) qualify (A) for the utility credit  or  reimbursement
 provided  for  in  section  three  hundred one-d of this article, (B) as
 "manufacturing gallonage", as such term is defined in subdivision (m) of
 this section, (C) for the not-for-profit organization exemption provided
 for in subdivision (h) of section three hundred one-b of  this  article,
 or (D) for the heating exemption provided for in paragraph two of subdi
 vision (d) of section three hundred one-b of this article or the heating
 reimbursement  provided  for  in  paragraph  two  of  subdivision (a) of
 section three hundred one-c of this article, AND (4) WHICH WILL  NOT  BE
 USED  NOR HAS BEEN USED IN THE FUEL TANK CONNECTING WITH THE ENGINE OF A
 VESSEL.  No gallonage shall qualify as "commercial gallonage" where such
 gallonage is eligible for the (i) utility credit or reimbursement  under
 such  section three hundred one-d of this article, (ii) [if before Janu-
 ary first, nineteen hundred ninety-eight, the manufacturing exemption or
 reimbursement under paragraph one of subdivision (b)  of  section  three
 hundred  one-j  of this article and, if on or after January first, nine-
 teen hundred ninety-eight, the] "manufacturing  exemption"  under  para
 graph  [four] THREE of subdivision (f) of section three hundred one-a of
 this article, (iii) [the] not-for-profit  organization  exemption  under
 subdivision  (h) of section three hundred one-b of this article, or (iv)
 heating exemption provided for in paragraph two of  subdivision  (d)  of
 section three hundred one-b of this article or the heating reimbursement
 provided  for  in  paragraph  two  of  subdivision  (a) of section three
 hundred one-c of this article. The commissioner shall require such docu
 
       S. 2811--B                         48
 mentary proof to substantiate the classification of product as  "commer
 cial gallonage" as the commissioner deems appropriate.
 (l)  "Railroad diesel" means NON-HIGHWAY diesel motor fuel for use and
 consumption directly and exclusively in the operation of a locomotive or
 a self-propelled vehicle run only on rails or tracks, but only if either
 (1) all such fuel is delivered into a  storage  facility  which  is  not
 equipped  with  a  hose  or  other  apparatus  by which such fuel can be
 dispensed into the fuel tank of a motor vehicle  and  such  facility  is
 used  only  to fuel such locomotives or such self-propelled vehicles, or
 (2) in accordance with the terms of sale, all  such  fuel  is  delivered
 directly  into  the  tank  of  a  locomotive  or self-propelled vehicle.
 Provided, however, that  a  sale  to  a  purchaser  who  will  use  such
 NON-HIGHWAY diesel motor fuel as "railroad diesel" shall be evidenced by
 a  certificate  signed  by  the purchaser stating that such diesel motor
 fuel will be used and consumed as prescribed in this subdivision and the
 commissioner may require such  other  information  as  the  commissioner
 deems appropriate.
 (m)  "Manufacturing  gallonage"  means  residual  petroleum product or
 NON-HIGHWAY diesel motor fuel  [(which  is  not  enhanced  diesel  motor
 fuel)]  used  and consumed directly and exclusively in the production of
 tangible personal property for  sale  by  manufacturing,  processing  or
 assembly,  but  only  if (I) all of such fuel or product is delivered on
 the manufacturing site [and is consumed other than on  the  highways  of
 this  state],  OR  (II)  THE PURCHASER CAUSES SUCH FUEL OR PRODUCT TO BE
 DELIVERED TO ITS MANUFACTURING SITE.  "Manufacturing gallonage" shall in
 no event [include diesel motor fuel] BE CONSUMED ON THE PUBLIC  HIGHWAYS
 OF  THIS  STATE  OR  delivered at a filling station or into a repository
 which is equipped with a hose or other apparatus by which such fuel  can
 be  dispensed  into  the  fuel tank of a motor vehicle. The commissioner
 shall require such documentary proof to substantiate the  classification
 of product as "manufacturing gallonage" as the commissioner deems appro
 priate.
 

S 18.

Section 301  of the tax law is REPEALED.
 

S 19. Subdivision (a), paragraph 1 of subdivision (b) and subdivisions
 (c),  (e),  (f) and (h) of section 301-a of the tax law, subdivision (a)
 as amended by section 1 of part U of chapter 63 of  the  laws  of  2000,
 paragraph  1  of  subdivision  (b) and paragraph 1 of subdivision (c) as
 amended by section 154 of part A of chapter 389 of  the  laws  of  1997,
 subdivisions  (c),  (e), (f) and (h) as added by chapter 190 of the laws
 of 1990, paragraph 3 of subdivision (e) and paragraph 3  of  subdivision
 (f)  as  amended  by  chapter 170 of the laws of 1994 and paragraph 4 of
 subdivision (e) and  paragraph 4 of subdivision (f) as added by  chapter
 309 of the laws of 1996, are amended to read as follows:

 (a)  General.  Notwithstanding any other provision of this chapter, or
 of any other law, [for taxable months commencing on or after  the  first
 day of September, nineteen hundred ninety,] there is hereby imposed upon
 every  petroleum  business  for  the  privilege of engaging in business,
 doing business, employing capital, owning or leasing property, or  main
 taining an office in this state, a monthly tax for each or any part of a
 taxable  month  equal  to the sum of the motor fuel component determined
 pursuant to subdivision (b) of this section, the [automotive-type] HIGH
 WAY diesel motor fuel component determined pursuant to paragraph one  of
 subdivision  (c)  of  this section, the [nonautomotive-type] NON-HIGHWAY
 diesel motor fuel component determined  pursuant  to  paragraph  two  of
 subdivision  (c)  of  this  section  and  the residual petroleum product
 component determined pursuant to subdivision (d) of this section.
 
       S. 2811--B                         49
 (1) The motor fuel component shall be determined  by  multiplying  the
 motor  fuel  and  [automotive-type] HIGHWAY diesel motor fuel rate times
 the number of gallons of  (1)  motor  fuel  imported  or  caused  to  be
 imported  into  this  state  by the petroleum business for use, distrib
 ution,  storage  or sale in the state or (2) produced, refined, manufac
 tured or compounded in the state by the petroleum  business  during  the
 month covered by the return under this article.  Provided, however, that
 no  motor  fuel  shall  be  included in the measure of the tax unless it
 shall have previously come to rest within the meaning of  federal  deci
 sional  law  interpreting  the United States constitution, nor shall any
 motor fuel be included in the measure of the tax imposed by this article
 more than once.
 (c) (1) [Automotive-type] HIGHWAY Diesel motor fuel component. (A) The
 [automotive-type] HIGHWAY diesel motor fuel component  shall  be  deter
 mined by multiplying the motor fuel and [automotive-type] HIGHWAY diesel
 motor  fuel  rate  times  (1) the number of gallons of [automotive-type]
 HIGHWAY diesel motor fuel sold or used by a petroleum business  in  this
 state  during the month covered by the return under this article and (2)
 with respect to any gallonage which prior thereto has not been  included
 in  the  measure of the tax imposed by this article, times the number of
 gallons of HIGHWAY diesel motor fuel delivered (i) to a filling  station
 or (ii) into the fuel tank connecting with the engine of a motor vehicle
 for  use  in  the  operation thereof, whichever of the latter two events
 shall be the first to occur.  Provided, however, that no HIGHWAY  diesel
 motor  fuel  shall be included in the measure of the tax unless it shall
 have previously come to rest within the meaning  of  federal  decisional
 law interpreting the United States constitution, nor decisional law, nor
 shall  any  HIGHWAY  diesel motor fuel be included in the measure of the
 tax imposed by this article more than once.
 (B) [Diesel] HIGHWAY DIESEL motor fuel brought into this state in  the
 fuel tank connecting with the engine of a vessel propelled by the use of
 such  diesel  motor  fuel shall be deemed to constitute a taxable use of
 diesel motor fuel for the purpose of this paragraph to the extent of the
 fuel that is consumed in the operation of  the  vessel  in  this  state.
 Provided,  however, this paragraph shall not apply to (i) a recreational
 motor boat or (ii) [subsequent to August thirty-first, nineteen  hundred
 ninety-four,] a commercial fishing vessel (as defined in subdivision (j)
 of  section  three  hundred of this article) if the HIGHWAY diesel motor
 fuel imported into and consumed in this state is used  to  operate  such
 commercial  fishing vessel while it is engaged in the harvesting of fish
 for sale. Provided, further, that tax liability  for  gallonage  that  a
 vessel consumes in this state shall be the tax liability with respect to
 the  positive  difference  between  the gallonage consumed in this state
 during the reporting period and the gallonage purchased  in  this  state
 (upon  which  the tax imposed by this section has been paid) during such
 period. A credit or refund shall be available  for  any  excess  of  tax
 liability  for  gallonage purchased in this state during the period over
 tax liability on gallonage so consumed in this state during such period,
 which excess shall be presumed to have been used outside this state.
 (2) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel component.  The
 [nonautomotive-type]  NON-HIGHWAY  diesel fuel component shall be deter
 mined by multiplying the [nonautomotive-type] NON-HIGHWAY  diesel  motor
 fuel  rate times the number of gallons of [nonautomotive-type] NON-HIGH
 WAY diesel motor fuel sold or used by a petroleum business in this state
 during the month covered by the return  under  this  section.  Provided,
 however,  that no NON-HIGHWAY diesel motor fuel shall be included in the
 
       S. 2811--B                         50
 measure of the tax unless it shall have previously come to  rest  within
 the  meaning  of  federal  decisional law interpreting the United States
 constitution, nor  shall  any  [nonautomotive-type]  NON-HIGHWAY  diesel
 motor fuel be included in the measure of the tax imposed by this article
 more than once.
 (e)  Motor  fuel and [automotive-type] HIGHWAY diesel motor fuel rate.
 (1) The basic motor fuel and HIGHWAY diesel [automotive-type] motor fuel
 rate shall be [five and one-half] TEN AND TWO-TENTHS cents per gallon.
 (2) [Commencing April first, nineteen hundred  ninety-one,  the  motor
 fuel  and automotive-type diesel motor fuel rate shall be the product of
 the basic rate set forth in paragraph one of this subdivision multiplied
 by a fraction, the numerator of which is the sum of the monthly producer
 price index (unadjusted) published by the bureau of labor statistics  of
 the  United  States  department of labor for the category of commodities
 designated "refined  petroleum  products"  for  the  twelve  consecutive
 months  ending  with the month of November, nineteen hundred ninety, and
 the denominator of which is the sum of the monthly producer price  index
 (unadjusted)  published  by the bureau of labor statistics of the United
 States department of labor for the category  of  commodities  designated
 "refined  petroleum  products"  for the twelve consecutive months ending
 with the month of November, nineteen hundred eighty-nine.
 (3) Commencing on the first day of January, nineteen  hundred  ninety-
 two,  the  motor fuel and automotive-type diesel motor fuel rate then in
 effect on the  immediately  preceding  December  thirty-first  shall  be
 adjusted  as  follows:  such  rate shall be multiplied by a fraction the
 numerator of which is the sum of the monthly producer price index (unad-
 justed) published by the bureau of labor statistics of the United States
 department of labor for the category of commodities designated  "refined
 petroleum  products"  for  the twelve consecutive months ending with the
 month of August, nineteen hundred  ninety-one  and  the  denominator  of
 which  is  the  sum  of  the  monthly  producer price index (unadjusted)
 published by the bureau of labor statistics of the United States depart-
 ment of labor for the category of commodities designated "refined petro-
 leum products" for the twelve consecutive months ending with  the  month
 of August, nineteen hundred ninety. Commencing on the first day of Janu-
 ary of nineteen hundred ninety-six and every] EVERY year [thereafter] AS
 OF  JANUARY  FIRST,  the motor fuel and [automotive-type] HIGHWAY diesel
 motor fuel rate then in effect on  the  immediately  preceding  December
 thirty-first shall be adjusted as follows: such rate shall be multiplied
 by  a fraction the numerator of which is the sum of the monthly producer
 price index (unadjusted) published by the bureau of labor statistics  of
 the  United  States  department of labor for the category of commodities
 designated "refined  petroleum  products"  for  the  twelve  consecutive
 months ending with the month of August of the immediately preceding year
 and  the  denominator  of which is the sum of the monthly producer price
 index (unadjusted) published by the bureau of labor  statistics  of  the
 United States department of labor for the category of commodities desig
 nated  "refined  petroleum  products"  for the twelve consecutive months
 ending with the month of August in the year prior  to  such  immediately
 preceding  year,  provided,  however,  that  the  adjusted rate [to take
 effect on January first, nineteen hundred ninety-six  and  each  January
 first thereafter] shall not increase above or decrease below the rate in
 effect  on  the immediately preceding December thirty-first by more than
 five percent.
 [(4)]  (3)  Notwithstanding  any  other  provision  of  this  article,
 [commencing  January  first,  nineteen  hundred  ninety-seven,]  the per
 
       S. 2811--B                         51
 gallon rate with respect to "railroad  diesel"  shall  be  the  adjusted
 motor  fuel  and  [automotive-type] HIGHWAY diesel motor fuel rate under
 paragraphs one [through three] AND TWO  of  this  subdivision  [for  the
 period  commencing  such  January first, nineteen hundred ninety-seven,]
 minus one and three tenths cents per gallon. [Commencing  on  the  first
 day of January each year thereafter, the per gallon rate with respect to
 "railroad  diesel" shall be determined by taking the then motor fuel and
 automotive-type diesel motor fuel  rate  under  paragraphs  one  through
 three  of  this subdivision which commences on such first day of January
 and subtracting one and three tenths cents per gallon.]
 (f) [Nonautomotive-type] NON-HIGHWAY diesel motor fuel rate.
 (1) The basic [nonautomotive-type] NON-HIGHWAY diesel motor fuel  rate
 shall be [five] NINE AND THREE-TENTHS cents per gallon.
 (2) [Commencing April first, nineteen hundred ninety-one, the nonauto-
 motive-type  diesel  motor  fuel  rate shall be the product of the basic
 rate set forth in paragraph one of  this  subdivision  multiplied  by  a
 fraction the numerator of which is the sum of the monthly producer price
 index  (unadjusted)  published  by the bureau of labor statistics of the
 United States department of labor for the category of commodities desig-
 nated "refined petroleum products" for  the  twelve  consecutive  months
 ending  with  the  month  of  November, nineteen hundred ninety, and the
 denominator of which is the sum of  the  monthly  producer  price  index
 (unadjusted)  published  by  the  bureau  of the labor statistics of the
 United States department of labor for the category of commodities desig-
 nated "refined petroleum products" for  the  twelve  consecutive  months
 ending with the month of November, nineteen hundred eighty-nine.
 (3)  Commencing  on the first day of January, nineteen hundred ninety-
 two, the nonautomotive-type diesel motor fuel rate then in effect on the
 immediately  preceding  December  thirty-first  shall  be  adjusted   as
 follows:  Such  rate  shall be multiplied by a fraction the numerator of
 which is the sum  of  the  monthly  producer  price  index  (unadjusted)
 published by the bureau of labor statistics of the United States depart-
 ment of labor for the category of commodities designated "refined petro-
 leum  products"  for the twelve consecutive months ending with the month
 of August, nineteen hundred ninety-one and the denominator of  which  is
 the  sum  of  the monthly producer price index (unadjusted) published by
 the bureau of labor statistics of the United States department of  labor
 for  the category of commodities designated "refined petroleum products"
 for the twelve consecutive months ending with the month of August, nine-
 teen hundred ninety. Commencing on the first day of January of  nineteen
 hundred  ninety-six  and  every]  EVERY year [thereafter,] AS OF JANUARY
 FIRST the [nonautomotive-type] NON-HIGHWAY diesel motor fuel  rate  then
 in  effect  on  the immediately preceding December thirty-first shall be
 adjusted as follows: Such rate shall be multiplied  by  a  fraction  the
 numerator of which is the sum of the monthly producer price index (unad
 justed) published by the bureau of labor statistics of the United States
 department  of labor for the category of commodities designated "refined
 petroleum products" for the twelve consecutive months  ending  with  the
 month of August of the immediately preceding year and the denominator of
 which  is  the  sum  of  the  monthly  producer price index (unadjusted)
 published by the bureau of labor statistics of the United States depart
 ment of labor for the category of commodities designated "refined petro
 leum products" for the twelve consecutive months ending with  the  month
 of  August  in  the  year  prior  to  such  immediately  preceding year,
 provided, however, that the adjusted rate [to  take  effect  on  January
 first,  nineteen  hundred  ninety-six and each January first thereafter]
 
       S. 2811--B                         52
 shall not increase above or decrease below the rate  in  effect  on  the
 immediately preceding December thirty-first by more than five percent.
 [(4)]  (3)  Notwithstanding  any  other  provision  of  this  article,
 [commencing January first,  nineteen  hundred  ninety-eight,  nonautomo-
 tive-type]  NON-HIGHWAY diesel motor fuel which is "manufacturing gallo
 nage," as such term is defined  in  subdivision  (m)  of  section  three
 hundred of this article, shall be exempt from the measure of the [nonau-
 tomotive-type]  NON-HIGHWAY  diesel  motor  fuel  component  of  the tax
 imposed under this section.
 (h) Publication and rounding of rate. (1) The commissioner  [of  taxa-
 tion and finance] shall cause to be published in the section for miscel
 laneous notices in the state register, and give other appropriate gener
 al  notice  of,  the rate adjustment calculation and the resulting motor
 fuel and [automotive-type] HIGHWAY diesel motor fuel  rate,  [nonautomo-
 tive-type]  NON-HIGHWAY  diesel  motor  fuel rate and residual petroleum
 product rate fixed by this section for the period commencing  on  [April
 first,  nineteen  hundred  ninety-one,  no  later  than  the immediately
 preceding first day of March] JANUARY FIRST, TWO  THOUSAND  TWELVE,  and
 for each calendar year thereafter, no later than the immediately preced
 ing  first day of December. The calculation and publication of the rates
 of tax so fixed by provisions of this  section  shall  not  be  included
 within  paragraph  (a)  of subdivision two of section one hundred two of
 the state administrative procedure act relating to the definition  of  a
 rule.
 (2)  The rates determined pursuant to this section shall be rounded to
 the nearest one-tenth of one cent.
 

S 19-a. Subdivision (k) of section 301-a of the tax law is REPEALED.
 

S 20.

Section 301-a of the tax law is amended by adding a new subdivi
 sion (m) to read as follows:

 (M) SPECIAL RATE ADJUSTMENT FOR CERTAIN VESSELS.  NOTWITHSTANDING  ANY
 PROVISION OF THIS SECTION TO THE CONTRARY, THE USE OF NON-HIGHWAY DIESEL
 MOTOR  FUEL  IN  THE  ENGINE  OF A VESSEL TO PROPEL SUCH VESSEL SHALL BE
 SUBJECT TO TAX AT THE MOTOR FUEL AND  HIGHWAY  DIESEL  MOTOR  FUEL  RATE
 PROVIDED  FOR IN THIS SECTION, AND SHALL BE SUBJECT TO THE PROVISIONS OF
 SECTION THREE HUNDRED ONE-J OF THIS ARTICLE,  INCLUDING  THE  ADJUSTMENT
 SET  FORTH  IN  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SUCH SECTION THREE
 HUNDRED ONE-J. A CREDIT OR REFUND SHALL BE AVAILABLE TO THE  EXTENT  TAX
 PAID  ON  GALLONAGE USED TO PROPEL ANY SUCH VESSEL EXCEEDS THE AMOUNT OF
 TAX DUE BASED ON THE TAX RATE SET FORTH HEREIN.  PROVIDED, HOWEVER, THAT
 THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY
 CREDIT OR REIMBURSEMENT PROVIDED HEREUNDER  AS  THE  COMMISSIONER  DEEMS
 APPROPRIATE.
 

S  21.  Paragraph 2 of subdivision (b), paragraphs 2 and 3 of subdivi
 sion (c), subdivisions (d) and (e), paragraph 1 of subdivision  (f)  and
 subdivisions (g), (h) and (i) of section 301-b of the tax law, paragraph
 2  of  subdivision  (b)  and  paragraphs  2 and 3 of subdivision (c) and
 subdivision (e) as added by chapter 190 of the laws of 1990, the opening
 paragraph of paragraph 2 of subdivision (b) as amended by section 155 of
 part A of chapter 389 of the laws of 1997, subdivision (d) as amended by
 section 2 of part H of chapter 407 of the laws of 1999 and  subparagraph
 (C)  of paragraph 2 of subdivision (d) as amended by section 1 of part X
 of chapter 63 of the laws of 2000, paragraph 1  of  subdivision  (f)  as
 added  by  chapter  166 of the laws of 1991, subdivision (g) as added by
 chapter 170 of the laws of 1994, subdivision (h) as amended  by  chapter
 302  of  the laws of 2006 and subdivision (i) as added by chapter 468 of
 the laws of 2000, are amended to read as follows:

 
       S. 2811--B                         53
 (2) [Enhanced] HIGHWAY diesel motor fuel  imported  or  caused  to  be
 imported   into   this  state  or  produced,  refined,  manufactured  or
 compounded in this state by a petroleum business registered under  arti
 cle  twelve-A  of  this  chapter, as a distributor of diesel motor fuel,
 which is sold by such petroleum business to a purchaser who then exports
 such  HIGHWAY  diesel motor fuel from this state for sale or use outside
 the state where
 (A) such purchaser exporting such fuel  is  duly  registered  with  or
 licensed  by  the  taxing authorities of the state to which such fuel is
 exported as a distributor or a dealer in the product being so exported,
 (B) in connection with the  exportation,  such  fuel  was  immediately
 shipped  to  an  identified  facility in the state to which such fuel is
 exported, and
 (C) the rules and regulations of the  commissioner  [of  taxation  and
 finance] relating to evidentiary requirements are complied with.
 (2)  [Enhanced]  HIGHWAY  diesel  motor  fuel imported or caused to be
 imported  into  this  state  or  produced,  refined,   manufactured   or
 compounded  by a petroleum business registered under article twelve-A of
 this chapter, as a distributor of diesel motor fuel, and  then  sold  by
 such petroleum business to an organization described in paragraph one or
 two of subdivision (a) of section eleven hundred sixteen of this chapter
 where  such  HIGHWAY  DIESEL motor fuel is used by such organization for
 its own use or consumption.
 (3) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
 fuel,] sold by a petroleum business registered under article twelve-A of
 this chapter as a distributor of diesel motor fuel  to  an  organization
 described  in  paragraph one or two of subdivision (a) of section eleven
 hundred sixteen of this chapter where such NON-HIGHWAY diesel motor fuel
 is used by such organization for its own use or consumption.
 (d) Sales to consumers for heating  purposes.  (1)  Total  residential
 heating  exemption.  [(A) Unenhanced] NON-HIGHWAY diesel motor fuel sold
 by a petroleum business registered under article twelve-A of this  chap
 ter  as a distributor of diesel motor fuel or residual petroleum product
 sold by a petroleum business registered under this article as a residual
 petroleum product business to the consumer exclusively  for  residential
 heating purposes[.
 (B) Enhanced diesel motor fuel sold by a petroleum business registered
 under  article twelve-A of this chapter as a distributor of diesel motor
 fuel to the consumer exclusively for residential heating  purposes  but]
 only  if such [enhanced] NON-HIGHWAY diesel motor fuel is delivered into
 a storage tank which is not equipped with a hose or other  apparatus  by
 which  such  fuel can be dispensed into the fuel tank of a motor vehicle
 and such storage tank is attached  to  the  heating  unit  burning  such
 fuel[,  provided,  that  with respect to each delivery of such fuel over
 four thousand five hundred gallons, to obtain this exemption there shall
 be required a certificate signed by the purchaser stating that the prod-
 uct will be used exclusively for residential heating purposes].
 (2)  Partial  non-residential  heating  exemption.  (A)   [Unenhanced]
 NON-HIGHWAY  diesel  motor  fuel sold by a petroleum business registered
 under article twelve-A of this chapter as a distributor of diesel  motor
 fuel  or  residual petroleum product sold by a petroleum business regis
 tered under this article as a residual petroleum product business to the
 consumer  exclusively  for  heating,  other  than  residential   heating
 purposes[.
 (B) Enhanced diesel motor fuel sold by a petroleum business registered
 under  article twelve-A of this chapter as a distributor of diesel motor
 
       S. 2811--B                         54
 fuel to the consumer exclusively for  heating,  other  than  residential
 heating  purposes, but] only if such [enhanced] NON-HIGHWAY diesel motor
 fuel is delivered into a storage tank which is not equipped with a  hose
 or  other  apparatus  by  which such fuel can be dispensed into the fuel
 tank of a motor vehicle and such storage tank is attached to the heating
 unit burning such fuel[, provided, that with respect to each delivery of
 such fuel over four  thousand  five  hundred  gallons,  to  obtain  this
 exemption  there shall be required a certificate signed by the purchaser
 stating that the product will be used  exclusively  for  heating,  other
 than residential heating purposes.
 (C)]  (B) Calculation of partial exemption. [Notwithstanding any other
 provision of this article, commencing April first, two thousand one  and
 ending  August thirty-first, two thousand two, the amount of the partial
 exemption under this paragraph shall be determined  by  multiplying  the
 quantity  of  diesel  motor fuel and residual petroleum product eligible
 for the exemption times the sum of the then current rate of the  supple-
 mental  tax  imposed  by section three hundred one-j of this article and
 twenty percent of the then current rate of the tax  imposed  by  section
 three hundred one-a of this article, with respect to the specific diesel
 motor  fuel  or residual petroleum product rate, as the case may be, and
 commencing September first, two thousand two, the  amount  of  the]  THE
 partial  exemption under this paragraph shall be determined by multiply
 ing the quantity of NON-HIGHWAY diesel motor fuel and residual petroleum
 product eligible for the exemption times the sum  of  the  then  current
 rate  of  the supplemental tax imposed by section three hundred one-j of
 this article and forty-six percent of the then current rate of  the  tax
 imposed  by section three hundred one-a of this article, with respect to
 the specific NON-HIGHWAY diesel motor fuel or residual petroleum product
 rate, as the case may be.
 (e) Sales of NON-HIGHWAY diesel  motor  fuel  and  residual  petroleum
 product  to  registered distributors of diesel motor fuel and registered
 residual petroleum product businesses.
 (1) NON-HIGHWAY Diesel motor fuel[, which is not enhanced diesel motor
 fuel,] sold by a person registered under article twelve-A of this  chap
 ter  as  a distributor of diesel motor fuel to a person registered under
 such article twelve-A as a distributor of diesel motor fuel  where  such
 sale  is not a retail sale or a sale that involves a delivery at a fill
 ing station or into a repository equipped with a hose or other apparatus
 by which such NON-HIGHWAY DIESEL MOTOR fuel can be  dispensed  into  the
 fuel tank of a motor vehicle.
 (2)  Residual petroleum product sold by a person registered under this
 article as a residual petroleum product business to a person  registered
 under  this  article as a residual petroleum product business where such
 sale is not a retail sale. Provided, however, that the commissioner  [of
 taxation  and finance] may require such documentary proof to qualify for
 any exemption provided in this section as the commissioner deems  appro
 priate,  including the expansion of any certifications required pursuant
 to section two hundred eighty-five-a or  two  hundred  eighty-five-b  of
 this chapter to cover the taxes imposed by this article.
 (1)  Residual  petroleum  product  and  NON-HIGHWAY  diesel motor fuel
 [(which is not enhanced diesel motor fuel)] sold to an  electric  corpo
 ration,  as  described in subdivision (a) of section three hundred one-d
 of this article, which is registered with the  department  [of  taxation
 and  finance] as a petroleum business tax direct pay permittee, and used
 by such electric corporation to fuel generators for the purpose of manu
 facturing or  producing  electricity  where  such  electric  corporation
 
       S. 2811--B                         55
 provides  a  copy  of  a  direct pay permit authorized and issued by the
 commissioner [of taxation and finance], to the petroleum business making
 such sale. If so registered, such corporation shall be a taxpayer  under
 this  article  and  (i)  such  electric  corporation shall file a return
 monthly and pay the applicable tax under this article, after the  appli
 cation  of  allowable  credits,  on  all  such purchases directly to the
 commissioner, (ii) such electric corporation shall be subject to all  of
 the  provisions  of  this  article  relating to the responsibilities and
 liabilities of taxpayers under this article with respect to  such  resi
 dual petroleum product and NON-HIGHWAY diesel motor fuel.
 (g) Sales or uses of NON-HIGHWAY diesel motor fuel and residual petro
 leum product for farm production. NON-HIGHWAY Diesel motor fuel or resi
 dual  petroleum  product  sold to or used by a consumer who purchases or
 uses such NON-HIGHWAY DIESEL MOTOR fuel or product for use  or  consump
 tion  directly  and  exclusively  in the production for sale of tangible
 personal property by farming, but only if all  such  NON-HIGHWAY  DIESEL
 MOTOR  fuel  or  product  is  delivered on the farm site and is consumed
 other than on the PUBLIC highways of this state (except for the  use  of
 the  PUBLIC  highway  to  reach adjacent farmlands)[; provided, however,
 that a farmer may purchase no  more  than  four  thousand  five  hundred
 gallons  of  diesel  motor  fuel  in a thirty-day period for such use or
 consumption exempt from the measure of the tax imposed by section  three
 hundred one-a of this article, except in accordance with prior clearance
 given by the commissioner].
 (h) Exemption for certain not-for-profit organizations. There shall be
 exempt from the measure of the petroleum business tax imposed by section
 three  hundred one-a of this article a sale or use of residual petroleum
 product, OR NON-HIGHWAY diesel motor fuel [(which is not enhanced diesel
 motor fuel) or dyed diesel motor fuel,] to or by an  organization  which
 has qualified under paragraph four or five of subdivision (a) of section
 eleven  hundred  sixteen  of  this chapter where such NON-HIGHWAY diesel
 motor fuel or residual petroleum product  is  exclusively  for  use  and
 consumption  by  such  organization, but only if all of such NON-HIGHWAY
 diesel motor fuel or product is consumed other than on the PUBLIC  high
 ways  of this state. Provided, however, this exemption shall in no event
 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv
 ery at a filling station or into a repository which is equipped  with  a
 hose  or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel can
 be dispensed into the fuel tank of a motor vehicle  and  all  deliveries
 hereunder  shall  be  made  to  the  premises occupied by the qualifying
 organization and used by such organization in furtherance of the  exempt
 purposes  of such organization. Provided, however, that the commissioner
 shall require such  documentary  proof  to  qualify  for  any  exemption
 provided   herein  as  the  commissioner  deems  appropriate.  Provided,
 further, the distributor selling such NON-HIGHWAY DIESEL MOTOR fuel  and
 product  shall separately report on its return the gallonage sold during
 the reporting period exempt from tax under the provisions of this subdi
 vision and provide such other information with respect to such sales  as
 the  commissioner  deems appropriate to prevent evasion. [The term "dyed
 diesel motor fuel" as used in this subdivision shall have the same mean-
 ing it has in subdivision eighteen of section two hundred eighty-two  of
 this chapter.]
 (i)  Exemption  for  passenger  commuter ferries. A use by a passenger
 commuter ferry of NON-HIGHWAY diesel motor fuel  or  residual  petroleum
 product  where  such NON-HIGHWAY diesel motor fuel or residual petroleum
 product was used and consumed by a passenger commuter ferry  exclusively
 
       S. 2811--B                         56
 in providing mass transportation service. Provided, that the commission
 er  shall  require  such  documentary proof to qualify for any exemption
 provided hereunder as the commissioner deems appropriate.
 

S 22. Subdivision (j) of section 301-b of the tax law is REPEALED.
 

S  23.  Subdivisions (a), (e), (f), (h), (i), (j), (k), (l) and (m) of
 section 301-c of the tax law, subdivision (a) as amended  by  section  4
 and  subdivision  (l)  as added by section 5 of part H of chapter 407 of
 the laws of 1999, subparagraph (B) of paragraph 2 of subdivision (a)  as
 amended by section 2 of part X of chapter 63 of the laws of 2000, subdi
 visions  (e) and (f) as added by chapter 170 of the laws of 1994, subdi
 vision (h) as amended by chapter 302 of the laws of  2006,  subdivisions
 (i), (j) and (k) as added by chapter 309 of the laws of 1996, and subdi
 vision  (m)  as added by chapter 468 of the laws of 2000, are amended to
 read as follows:

 (a) NON-HIGHWAY Diesel motor fuel used for heating purposes. (1) Total
 residential  heating  reimbursement.  NON-HIGHWAY  Diesel   motor   fuel
 purchased in this state and sold by such purchaser to a consumer for use
 exclusively  for  residential  heating  purposes but only where (i) such
 NON-HIGHWAY diesel motor fuel is delivered into a storage tank which  is
 not  equipped  with  a hose or other apparatus by which such NON-HIGHWAY
 DIESEL MOTOR fuel can be dispensed into the fuel tank of a motor vehicle
 and such storage tank is attached to the heating unit burning such  NON
 HIGHWAY DIESEL MOTOR fuel, (ii) the tax imposed pursuant to this article
 has been paid with respect to such NON-HIGHWAY diesel motor fuel and the
 entire amount of such tax has been absorbed by such purchaser, and (iii)
 such  purchaser  possesses documentary proof satisfactory to the commis
 sioner evidencing the absorption by it of the entire amount of  the  tax
 imposed  pursuant  to  this article. Provided, however, that the commis
 sioner is authorized, in the event that the commissioner determines that
 it would not threaten the integrity of the administration  and  enforce
 ment of the tax imposed by this article, to provide a reimbursement with
 respect  to a retail sale to a consumer for residential heating purposes
 of less than ten gallons of NON-HIGHWAY diesel motor fuel provided  such
 fuel  is  not  dispensed  into  the  tank of a motor vehicle. [Provided,
 further, that with respect to each delivery  of  enhanced  diesel  motor
 fuel  of  over  four  thousand  five  hundred  gallons,  to  obtain this
 reimbursement there shall  be  required  a  certificate  signed  by  the
 consumer  stating that the product will be used exclusively for residen-
 tial heating purposes.]
 (2) Partial non-residential  heating  reimbursement.  (A)  NON-HIGHWAY
 Diesel  motor fuel purchased in this state and sold by such purchaser to
 a consumer for use exclusively for heating, other than  for  residential
 heating  purposes, but only where (i) such NON-HIGHWAY diesel motor fuel
 is delivered into a storage tank which is not equipped with  a  hose  or
 other  apparatus  by  which  such  NON-HIGHWAY  DIESEL MOTOR fuel can be
 dispensed into the fuel tank of a motor vehicle and such storage tank is
 attached to the heating unit burning such NON-HIGHWAY DIESEL MOTOR fuel,
 (ii) the tax imposed pursuant to this article has been paid with respect
 to such NON-HIGHWAY diesel motor fuel and the entire amount of such  tax
 has  been absorbed by such purchaser, and (iii) such purchaser possesses
 documentary  proof  satisfactory  to  the  commissioner  evidencing  the
 absorption  by  it  of  the entire amount of the tax imposed pursuant to
 this article. [Provided, however, that with respect to each delivery  of
 enhanced  diesel  motor fuel of over four thousand five hundred gallons,
 to obtain this reimbursement  there  shall  be  required  a  certificate
 
       S. 2811--B                         57
 signed by the consumer stating that the product will be used exclusively
 for heating, other than for residential heating purposes.]
 (B)  Calculation  of  partial reimbursement. Notwithstanding any other
 provision of this article, [commencing April first, two thousand one and
 ending  August  thirty-first,  two  thousand  two,  the  amount  of  the
 reimbursement  under  this  paragraph shall be determined by multiplying
 the quantity of diesel motor fuel eligible for the  reimbursement  times
 the  sum  of  the  then  current rate of the supplemental tax imposed by
 section three hundred one-j of this article and twenty  percent  of  the
 then  current  rate of the tax imposed by section three hundred one-a of
 this article, with respect to the specific diesel motor  fuel  rate,  as
 the  case may be, and commencing September first, two thousand two,] the
 amount of the reimbursement under this paragraph shall be determined  by
 multiplying  the  quantity of NON-HIGHWAY diesel motor fuel eligible for
 the reimbursement times the sum of the then current rate of the  supple
 mental  tax  imposed  by section three hundred one-j of this article and
 forty-six percent of the then current rate of the tax imposed by section
 three hundred one-a of this article,  with  respect  to  the  [specific]
 NON-HIGHWAY diesel motor fuel rate, as the case may be.
 (e)  NON-HIGHWAY Diesel motor fuel and residual petroleum product used
 for farm production. NON-HIGHWAY Diesel motor fuel or residual petroleum
 product purchased in this state and sold by such purchaser to a consumer
 for use or consumption directly and exclusively in  the  production  for
 sale  of  tangible personal property by farming, but only if all of such
 NON-HIGHWAY DIESEL MOTOR fuel or product is delivered on the  farm  site
 and  is consumed other than on the PUBLIC highways of this state (except
 for the use  of  the  PUBLIC  highway  to  reach  adjacent  farmlands)[;
 provided,  however,  that  a  subsequent purchaser shall be eligible for
 this reimbursement with respect to  no  more  than  four  thousand  five
 hundred  gallons of diesel motor fuel sold to a consumer in a thirty-day
 period for such use or consumption,  except  in  accordance  with  prior
 clearance  given by the commissioner]. This reimbursement may be claimed
 only where (i) the tax imposed pursuant to this article  has  been  paid
 with respect to such NON-HIGHWAY diesel motor fuel or residual petroleum
 product  and  the  entire  amount  of such tax has been absorbed by such
 purchaser, and (ii) such purchaser possesses documentary proof satisfac
 tory to the commissioner evidencing the absorption by it of  the  entire
 amount  of  the tax imposed pursuant to this article. Provided, however,
 that the commissioner shall require such documentary  proof  to  qualify
 for any reimbursement of tax provided by this section as the commission
 er  deems appropriate[, including any certification required pursuant to
 section two hundred eighty-five-b of this chapter  and  any  such  prior
 clearance described in the first sentence of this subdivision].
 (f)  Motor  fuel  used  for farm production. No more than one thousand
 five hundred gallons of motor fuel purchased in this state in a  thirty
 day  period  or a greater amount which has been given prior clearance by
 the commissioner, by a consumer for  use  or  consumption  directly  and
 exclusively  in the production for sale of tangible personal property by
 farming, but only if all of such fuel is delivered on the farm site  and
 is  consumed other than on the PUBLIC highways of this state (except for
 the use of  the  PUBLIC  highway  to  reach  adjacent  farmlands).  This
 reimbursement  to  such purchaser who used such motor fuel in the manner
 specified in this subdivision may be claimed only  where,  (i)  the  tax
 imposed  pursuant  to  this  article  has been paid with respect to such
 motor fuel and the entire amount of such tax has been absorbed  by  such
 purchaser, and (ii) such purchaser possesses documentary proof satisfac
 
       S. 2811--B                         58
 tory  to  the commissioner evidencing the absorption by it of the entire
 amount of the tax imposed pursuant to this article.  Provided,  however,
 that  the  commissioner  shall require such documentary proof to qualify
 for any reimbursement of tax provided by this subdivision as the commis
 sioner  deems  appropriate. The commissioner is hereby empowered to make
 such provisions as deemed necessary to define the procedures for  grant
 ing prior clearance for purchases of more than one thousand five hundred
 gallons in a thirty-day period.
 (h)  A  subsequent  purchaser  which is registered as a distributor of
 diesel motor fuel shall be eligible for reimbursement of the tax imposed
 by section three hundred one-a of this article with respect to gallonage
 of residual petroleum  product[,]  AND  NON-HIGHWAY  diesel  motor  fuel
 [(which  is not enhanced diesel motor fuel) and dyed diesel motor fuel,]
 subsequently sold by such purchaser to an organization which has  quali
 fied  under  paragraph four or five of subdivision (a) of section eleven
 hundred sixteen of this chapter for the exclusive use and consumption by
 such organization.  Provided, however, this exemption shall in no  event
 apply to a sale of NON-HIGHWAY diesel motor fuel which involves a deliv
 ery  at  a filling station or into a repository which is equipped with a
 hose or other apparatus by which such NON-HIGHWAY DIESEL MOTOR fuel  can
 be  dispensed  into  the fuel tank of a motor vehicle and all deliveries
 hereunder shall be made to  the  premises  occupied  by  the  qualifying
 organization  and used by such organization in furtherance of the exempt
 purposes of such organization. This reimbursement may  be  claimed  only
 where  (i)  the  tax imposed pursuant to this article has been paid with
 respect to such NON-HIGHWAY diesel  motor  fuel  or  residual  petroleum
 product  and  the  entire  amount  of such tax has been absorbed by such
 purchaser, and (ii) such purchaser possesses documentary proof satisfac
 tory to the commissioner evidencing the absorption by it of  the  entire
 amount  of  the tax imposed pursuant to this article. Provided, further,
 that the commissioner shall require  such  other  documentary  proof  to
 qualify  for  any  reimbursement  of tax provided by this section as the
 commissioner deems appropriate. [The term "dyed diesel  motor  fuel"  as
 used  in this subdivision shall have the same meaning it has in subdivi-
 sion eighteen of section two hundred eighty-two of this chapter.]
 (i) Reimbursement for  commercial  gallonage.  (1)  [Commencing  March
 first,  nineteen  hundred  ninety-seven,  a]  A  reimbursement  shall be
 allowed to a consumer with respect to gallonage of  [nonautomotive-type]
 NON-HIGHWAY  diesel  motor  fuel  [(which  is  not enhanced diesel motor
 fuel)] or residual petroleum product (i) which  was  purchased  by  such
 consumer and where the supplemental tax imposed by section three hundred
 one-j  of  this  article  with  respect  to such gallonage was paid by a
 petroleum business and  passed  through  to  such  consumer,  (ii)  such
 consumer absorbed the entirety of such tax in the purchase price of such
 gallonage,  and  (iii)  such  gallonage  was  used  and consumed by such
 consumer exclusively as "commercial gallonage". Provided, however,  that
 the commissioner shall require such documentary proof to qualify for any
 reimbursement  of  tax  provided by this subdivision as the commissioner
 deems appropriate, including a certification by the  consumer  that  the
 product  was  used and consumed exclusively as "commercial gallonage" by
 such consumer.
 (2) Calculation. The amount of the reimbursement shall  be  determined
 by  multiplying  the  quantity  of  "commercial  gallonage" eligible for
 reimbursement times the  then  current  rate  of  the  supplemental  tax
 imposed  by  section three hundred one-j of this article with respect to
 [nonautomotive-type] NON-HIGHWAY diesel motor fuel or residual petroleum
 
       S. 2811--B                         59
 product, as the case may be. Any reimbursement of tax may be applied for
 not more often than monthly.
 (j)  Reimbursement  for  manufacturing  gallonage. [Commencing January
 first, nineteen hundred ninety-eight, a] A subsequent purchaser shall be
 eligible for reimbursement of any taxes imposed under this article  with
 respect  to  gallonage  of  residual  petroleum  product and NON-HIGHWAY
 diesel motor fuel [(which is not enhanced diesel  motor  fuel),]  subse
 quently  sold  by  such purchaser to a consumer as "manufacturing gallo
 nage." This reimbursement may be claimed only where (1) any tax  imposed
 pursuant  to  this  article has been paid with respect to such gallonage
 and the entire amount of such tax has been absorbed by  such  purchaser,
 and  (2)  such purchaser possesses documentary proof satisfactory to the
 commissioner evidencing the absorption by it of  the  entire  amount  of
 such  tax.  Provided,  however, that the commissioner shall require such
 documentary proof to qualify for any reimbursement of  tax  provided  by
 this  subdivision  as  the  commissioner  deems  appropriate including a
 certificate by the consumer that such product is to be used and consumed
 exclusively as "manufacturing gallonage".
 (k) Reimbursement for  railroad  gallonage.  (1)  [Commencing  January
 first,  nineteen  hundred ninety-seven, a] A subsequent purchaser, which
 is registered as a distributor of diesel motor fuel, shall  be  eligible
 for  a reimbursement in accordance with this subdivision with respect to
 NON-HIGHWAY diesel motor fuel subsequently sold by such purchaser  to  a
 consumer as "railroad diesel".
 (2) The amount of the reimbursement with respect to such product shall
 be  equal to the difference between (i) the tax actually paid under this
 article by a petroleum business with respect to such product and  subse
 quently  passed  through to and absorbed by such purchaser, and (ii) the
 tax under this article that would have been paid with  respect  to  such
 product  had  an  importing  distributor sold such product directly to a
 purchaser as "railroad diesel". Provided  that  the  commissioner  shall
 require  such  documentary  proof as the commissioner deems necessary to
 substantiate  a  reimbursement  claim  under   this   subdivision.   Any
 reimbursement of tax may be applied for not more often than monthly.
 (l)  Reimbursement  for  mining  and  extraction. A purchaser shall be
 eligible for reimbursement of the tax imposed by section  three  hundred
 one-a  of  this  article with respect to gallonage of residual petroleum
 product and  NON-HIGHWAY  diesel  motor  fuel,  purchased  for  use  and
 consumption  directly  and  exclusively  in  the  production of tangible
 personal property for sale by mining or extracting, but only if  all  of
 such  fuel  or product is delivered at the mining or extracting site and
 is consumed other than on the PUBLIC highways of this  state;  provided,
 however,  this  reimbursement  shall  in  no  event  apply  to a sale of
 NON-HIGHWAY diesel motor fuel which involves a  delivery  at  a  filling
 station.  This  reimbursement  may  be  claimed  only  where (i) the tax
 imposed pursuant to this article has been  paid  with  respect  to  such
 NON-HIGHWAY  diesel  motor  fuel  or  residual petroleum product and the
 entire amount of such tax has been absorbed by such purchaser, and  (ii)
 such  purchaser  possesses documentary proof satisfactory to the commis
 sioner evidencing the absorption by it of the entire amount of  the  tax
 imposed  pursuant  to  this article. Provided, however, that the commis
 sioner  shall  require  such  documentary  proof  to  qualify  for   any
 reimbursement  of tax provided by this section as the commissioner deems
 appropriate.
 (m) Reimbursement for passenger commuter ferries. A use by a passenger
 commuter ferry of NON-HIGHWAY diesel motor fuel  or  residual  petroleum
 
       S. 2811--B                         60
 product  where  such NON-HIGHWAY diesel motor fuel or residual petroleum
 product was used and consumed by a passenger commuter ferry  exclusively
 in  providing  mass  transportation  service.  This reimbursement may be
 claimed only where (1) any tax imposed pursuant to this article has been
 paid  with  respect  to such gallonage and the entire amount of such tax
 has been absorbed by such purchaser, and (2) such ferry possesses  docu
 mentary proof satisfactory to the commissioner evidencing the absorption
 by  it of the entire amount of such tax. Provided, that the commissioner
 shall require such documentary proof to qualify  for  any  reimbursement
 provided hereunder as the commissioner deems appropriate.
 

S  24.  Paragraphs  1 and 2 of subdivision (a) of section 301-d of the
 tax law, as amended by chapter 410 of the laws of 1991, are  amended  to
 read as follows:

 (1) Credit. Residual  petroleum  product  and NON-HIGHWAY diesel motor
 fuel [(which is not enhanced diesel motor fuel)] (i) imported into  this
 state  by  such electric corporation which is a petroleum business where
 the tax liability under section three hundred one-a of this  article  is
 imposed on such electric corporation and where the residual petroleum or
 NON-HIGHWAY  diesel  product so imported is used by such electric corpo
 ration to fuel generators for the purpose of manufacturing or  producing
 electricity or (ii) purchased in this state by such electric corporation
 by the use of a valid direct payment permit whereby such electric corpo
 ration assumed full liability for tax with respect to such product where
 such  product  so purchased is used by such electric corporation to fuel
 generators for the purpose of manufacturing or producing electricity.
 (2) Reimbursement. Residual petroleum product and  NON-HIGHWAY  diesel
 motor fuel [(which is not enhanced diesel motor fuel)] purchased in this
 state  by  such  electric  corporation  where the tax imposed by section
 three hundred one-a of this article with respect to such residual petro
 leum or diesel product was paid and the utility absorbed such tax in the
 purchase price of such fuel and where such product is used by such elec
 tric corporation to fuel generators for the purpose of manufacturing  or
 producing electricity.
 

S  25.  Subdivision (c) of section 301-e of the tax law, as amended by
 chapter 2 of the laws of 1995, is amended to read as follows:

 (c) Kero-jet fuel component. The  kero-jet  fuel  component  shall  be
 determined  by  multiplying  the  kero-jet fuel rate times the number of
 gallons of (1) kero-jet fuel imported or caused to be imported into this
 state by an aviation fuel business and consumed in this  state  by  such
 business  in the operation of its aircraft; and (2) kero-jet fuel, which
 has not been previously included in the measure of the  tax  imposed  by
 this  section, (i) which is sold in this state by an aviation fuel busi
 ness to persons other  than  those  registered  under  this  article  as
 aviation  fuel  businesses or (ii) which is consumed in this state by an
 aviation fuel business in the operation of its aircraft.  Provided  that
 importation  of  kero-jet  fuel  in  the fuel tanks of aircraft shall be
 importation for the purposes of this section. The  basic  kero-jet  fuel
 rate  shall  be  [one  and  nine-tenths]  SIX AND EIGHT-TENTHS cents per
 gallon. The rate shall be adjusted at the same time as the rates of  the
 components  of  the  petroleum  business  tax  imposed  by section three
 hundred one-a of this article, and the method of making  adjustments  to
 the  kero-jet  fuel  rate  shall be the same as the method used for such
 rates. [Provided, however, that commencing July first, nineteen  hundred
 ninety-one,  the kero-jet fuel rate shall be equal to the motor fuel and
 automotive-type diesel motor fuel rate set by subdivision (e) of section
 three hundred one-a of this article as such  rate  may  be  adjusted  as
 
       S. 2811--B                         61
 provided in such subdivision. Provided, further, that commencing Septem-
 ber first, nineteen hundred ninety-five, the kero-jet fuel rate shall be
 five  and two-tenths cents per gallon. The rate shall be adjusted at the
 same  time  as the rates of the components of the petroleum business tax
 imposed by section three hundred one-a of this article, and  the  method
 of making adjustments to the kero-jet fuel rate shall be the same as the
 method used for such rates.]
 

S 26. Sections 301-f and 301-g of the tax law are REPEALED.
 

S  27. Paragraph 2 of subdivision (a) of section 301-h of the tax law,
 as amended by chapter 170 of the laws of 1994, is  amended  to  read  as
 follows:

 (2)  The rate of the tax imposed by this section shall be equal to the
 motor fuel and [automotive-type] HIGHWAY diesel motor fuel rate  set  by
 subdivision  (e)  of  section  three  hundred one-a plus the rate of the
 supplemental tax imposed by section three hundred one-j of this  article
 as  such  rates  are  specified  therein  and as they may be adjusted as
 provided in such provisions. [In addition, the tax surcharge imposed  by
 section  three  hundred-one-g  of  this  article  shall  be imposed with
 respect to the tax imposed by this section as if the tax  imposed  here-
 under were imposed by section three hundred-one-a of this article.]
 

S 28.

Section 301-i of the tax law is REPEALED.
 

S  29. Paragraphs 1, 2, 3 and 4 of subdivision (a) and subdivision (c)
 of section 301-j of the tax law,  paragraph  1  of  subdivision  (a)  as
 amended and paragraphs 2, 3 and 4 of subdivision (a) as added by chapter
 309 of the laws of 1996 and subdivision (c) as amended by chapter 410 of
 the laws of 1991, are amended to read as follows:

 (1)  In  addition to the taxes imposed by sections three hundred one-a
 and three hundred one-e of this article, [for taxable months  commencing
 on  or  after  July  first, nineteen hundred ninety-one] there is hereby
 imposed upon every petroleum  business  subject  to  tax  imposed  under
 section  three  hundred  one-a  of  this article and every aviation fuel
 business subject to the aviation gasoline component of the  tax  imposed
 under section three hundred one-e of this article, a supplemental month
 ly  tax  for  each or any part of a taxable month at a rate of [four and
 one-half] SIX AND EIGHT-TENTHS cents per  gallon  with  respect  to  the
 products  included  in  each  component  of  the  taxes  imposed by such
 [sections] SECTION three hundred one-a and the aviation gasoline  compo
 nent  of  the  tax  imposed  by such section three hundred one-e of this
 article.
 (2) Provided, however, [commencing March first, nineteen hundred nine-
 ty-seven,] "commercial gallonage," as such term is defined  in  subdivi
 sion  (k) of section three hundred of this article, shall be exempt from
 the measure of the tax imposed under this section.
 (3) Provided, further, [commencing  January  first,  nineteen  hundred
 ninety-seven,] "railroad diesel," as such term is defined in subdivision
 (l)  of  section three hundred of this article, shall be exempt from the
 measure of the tax imposed under this section.
 (4) Provided, further, [commencing  January  first,  nineteen  hundred
 ninety-eight,]  a  separate  per gallon rate shall apply with respect to
 [automotive-type] HIGHWAY diesel motor fuel. Such rate shall  be  deter
 mined  by taking the adjusted rate per gallon of tax imposed under para
 graph one of this subdivision as adjusted in accordance  with  paragraph
 five  of this subdivision [which commences on such date] and subtracting
 therefrom [three-quarters  of  one  cent.  On  January  first,  nineteen
 hundred ninety-nine, the automotive-type diesel motor fuel rate shall be
 determined  by  taking the adjusted rate per gallon of tax imposed under
 
       S. 2811--B                         62
 paragraph one of this subdivision, as adjusted in accordance with  para-
 graph  five  of  this  subdivision  which  commences  on  such  date and
 subtracting therefrom three-quarters of one cent. On April first,  nine-
 teen  hundred  ninety-nine, there shall be a new rate applicable to such
 fuel which shall be such adjusted rate of  tax  per  gallon  under  such
 paragraph  one of this subdivision, as adjusted in accordance with para-
 graph five of this subdivision then in effect,  minus]  one  and  three
 quarters  cents. Commencing January first, two thousand TWELVE, and each
 January thereafter, the per gallon rate applicable to  [automotive-type]
 HIGHWAY diesel motor fuel shall be the adjusted rate under paragraph one
 of  this  subdivision  as  adjusted in accordance with paragraph five of
 this subdivision which commences on such date minus one and  three-quar
 ters  cents.  The resulting rate under this paragraph shall be expressed
 in hundredths of a cent.
 (c) Rate adjustment [and surcharge]. [Commencing January first,  nine-
 teen hundred ninety-two and on the first day of January every year ther-
 eafter,  the]  THE rate of the supplemental tax shall be adjusted at the
 same time as the rates  of  the  components  of  the  taxes  imposed  by
 sections  three  hundred  one-a and three hundred one-e of this article,
 and the method of making adjustments to the rate of the supplemental tax
 shall be the same as the method used for such rates.
 

S 30. The opening paragraph and subdivisions (a) and  (c)  of  section
 301-1  of  the tax law, as added by chapter 170 of the laws of 1994, are
 amended to read as follows:

 There shall be allowed to a registered petroleum business or  aviation
 fuel  business  a  refund  under  this  section  for  the taxes [and tax
 surcharge] imposed by sections three hundred one-a, three hundred one-e,
 [three hundred one-g] and three hundred one-j of this  article  for  the
 tax  paid under such sections with respect to gallonage which is repres
 ented by a worthless debt as follows:

 (a) The refund shall be allowed to a registered petroleum business  or
 aviation fuel business for gallonage with respect to which tax liability
 for  the  taxes under this article is imposed on such petroleum business
 or aviation fuel business where (i) such gallonage has been included  in
 the  reports  filed by such petroleum business or aviation fuel business
 and all the taxes under this article with respect to such gallonage have
 been paid by such business, (ii) such gallonage was sold in-bulk by such
 petroleum or aviation fuel business to a purchaser for such  purchaser's
 own  use  and  consumption and (iii) such sale gave rise to a debt which
 became worthless, as that term is used for federal income tax  purposes,
 and  where  such debt is deducted as a worthless debt for federal income
 tax purposes for the taxable year  covering  the  month  in  which  such
 refund  claim relating to such debt is filed. Provided, however, for the
 purposes of this section, a sale of motor fuel  and  [enhanced]  HIGHWAY
 diesel  motor  fuel  to  a  filling station shall be deemed to be a sale
 in-bulk  for  such  filling  station's  own  use  and  consumption  and,
 provided,  further,  in  no  event  shall  a worthless debt qualify with
 respect to the refund hereunder where such debt  arises  from  a  retail
 sale  at a filling station or sale wherein product is delivered directly
 into the fuel tank of a motor vehicle, airplane or other conveyance.
 (c) Upon receipt of a claim for refund in processible  form,  interest
 shall be allowed and paid at the overpayment rate set by the commission
 er  pursuant to subdivision twenty-sixth of section one hundred seventy
 one of this chapter from the date of the receipt of the refund claim  to
 the  date  immediately  preceding the date of the refund check except no
 such interest shall be allowed or paid if the  refund  check  is  mailed
 
       S. 2811--B                         63
 within  ninety  days  of  such  receipt  and except no interest shall be
 allowed or paid if the amount thereof would be  less  than  one  dollar.
 Provided, further, the refund shall be granted pro rata against sections
 three  hundred  one-a,  three  hundred  one-e, [three hundred one-g] and
 three hundred one-j of this article, as the case may  be,  to  the  same
 extent  as  represented  by  the remittance of the petroleum business or
 aviation fuel business with respect to the gallonage represented by  the
 worthless debt.
 

S 31. Subdivision (b) of section 302 of the tax law, as added by chap
 ter 190 of the laws of 1990, is amended to read as follows:

 (b)  Residual  petroleum product business. The department [of taxation
 and finance], upon the application of a  corporation  or  unincorporated
 business,  shall register such corporation or unincorporated business as
 a residual petroleum product business except that the  commissioner  [of
 taxation and finance] may refuse to register an applicant for any of the
 grounds  specified  in  subdivision  two  or five of section two hundred
 eighty-three of this chapter or in subdivision (d) of this section.  The
 application  shall  be  in such form and contain such information as the
 commissioner shall prescribe. All of the provisions of subdivisions two,
 four, five, six, seven, eight, nine  and  ten  of  section  two  hundred
 eighty-three  of  this  chapter relating to registration of distributors
 shall be applicable to the registration of  residual  petroleum  product
 businesses  under  this section with the same force and effect as if the
 language of those subdivisions had been incorporated  in  full  in  this
 section  and  had  expressly  referred  to  the registration of residual
 petroleum product businesses and the tax imposed by this  article,  with
 such  modification as may be necessary in order to adapt the language of
 such provisions to the provisions of  this  article,  provided,  specif
 ically, that the term "distributor" shall be read as "residual petroleum
 product  business"  and  the  [terms] TERM "motor fuel" [and "automotive
 fuel"] shall be read as "residual petroleum product". Provided, however,
 that if the commissioner is satisfied  that  the  requirements  of  such
 provisions  for  registration  are not necessary in order to protect tax
 revenues, the commissioner may limit or modify  such  requirements  with
 respect  to corporations or unincorporated businesses not required to be
 registered as distributors of motor fuel or diesel motor fuel.
 

S 32.

Section 312 of the tax law, as amended by  chapter  166  of  the
 laws  of  1991 and subdivision (b) as amended by section 8 of part EE of
 chapter 63 of the laws of 2000, is amended to read as follows:

 

S 312. Deposit and disposition of revenue.--[(a) Except as provided in
 sections three hundred one-f and three hundred one-g of this chapter, of
 all of the taxes, interest and penalties collected or  received  by  the
 commissioner  of taxation and finance under section three hundred one of
 this article with respect to any taxable year  commencing  on  or  after
 April  first,  nineteen  hundred  eighty-four and to that portion of any
 taxable year commencing prior thereto to the extent of that  portion  of
 such  year  which  includes the period which commences with April first,
 nineteen hundred eighty-four, seventy-two and seven-tenths percent shall
 be deposited and disposed of pursuant to the provisions of  section  one
 hundred  seventy-one-a  of this chapter and the balance thereof shall be
 deposited in the mass transportation operating assistance  fund  to  the
 credit  of  the  metropolitan  mass  transportation operating assistance
 account and  the  public  transportation  systems  operating  assistance
 account  thereof in the manner provided by subdivision eleven of section
 one hundred eighty-two-a of this chapter. Provided,  however,  that  the
 actual  amount  of  such  taxes,  interest  and penalties which shall be
 
       S. 2811--B                         64
 deposited in such mass transportation operating assistance fund pursuant
 to this section during the twelve-month period from April  first,  nine-
 teen  hundred  eighty-four to and including March thirty-first, nineteen
 hundred  eighty-five  shall not be less than an amount which, when added
 to the actual amount that is deposited in such fund during such  twelve-
 month  period and that is attributable to the taxes, interest and penal-
 ties collected and received under section one  hundred  eighty-two-a  of
 this  chapter, yields the sum of seventy-nine million five hundred thou-
 sand dollars and provided further that of such actual amounts  deposited
 in  such fund pursuant to this section and to section one hundred eight-
 y-two-a of this chapter during the twelve-month period from April first,
 nineteen hundred eighty-five to  March  thirty-first,  nineteen  hundred
 eighty-six and during the twelve-month period from April first, nineteen
 hundred eighty-six to March thirty-first, nineteen hundred eighty-seven,
 the  amount  which shall be deposited to the credit of the public trans-
 portation systems operating assistance account thereof during each  such
 period  shall  be  not  less  than  thirty-six million dollars. Provided
 further that if the total amount deposited in  the  mass  transportation
 operating  assistance  fund  during  the  twelve month period commencing
 April first, nineteen hundred eighty-five pursuant to this  section  and
 to  section one hundred eighty-two-a of this chapter is less than eighty
 million dollars, the comptroller shall deposit  to  the  credit  of  the
 metropolitan  mass  transportation  operating  assistance  account on or
 after April first, nineteen hundred eighty-six and  on  or  before  June
 thirtieth,  nineteen  hundred  eighty-six  from any taxes, interest, and
 penalties collected or received by  the  commissioner  of  taxation  and
 finance  under this article in addition to amounts which would otherwise
 be deposited to the credit of the mass transportation operating  assist-
 ance  fund,  an  amount  equal  to the difference between eighty million
 dollars and the amounts actually deposited in  the  mass  transportation
 operating  assistance  fund  during such twelve-month period pursuant to
 this section and to section one hundred eighty-two-a  of  this  chapter.
 Provided  further  that if the total amount deposited in the mass trans-
 portation operating assistance  fund  during  the  twelve  month  period
 commencing  April  first,  nineteen  hundred eighty-six pursuant to this
 section and to section one hundred eighty-two-a of this chapter,  exclu-
 sive of the amount deposited in such fund to the credit of the metropol-
 itan  mass transportation operating assistance account on or after April
 first, nineteen hundred eighty-six and  on  or  before  June  thirtieth,
 nineteen  hundred eighty-six pursuant to the preceding sentence, is less
 than eighty million dollars, the comptroller shall deposit to the credit
 of the metropolitan mass transportation operating assistance account  on
 or  after  April  first,  nineteen hundred eighty-seven and on or before
 June thirtieth, nineteen hundred eighty-seven from any taxes,  interest,
 and  penalties collected or received by the commissioner of taxation and
 finance under this article in addition to amounts which would  otherwise
 be  deposited to the credit of the mass transportation operating assist-
 ance fund, an amount equal to  the  difference  between  eighty  million
 dollars  and  the  amounts actually deposited in the mass transportation
 operating assistance fund during such twelve-month  period  pursuant  to
 this  section  and  to section one hundred eighty-two-a of this chapter,
 exclusive of the amount deposited in such fund  to  the  credit  of  the
 metropolitan  mass  transportation  operating  assistance  account on or
 after April first, nineteen hundred eighty-six and  on  or  before  June
 thirtieth,   nineteen  hundred  eighty-six  pursuant  to  the  preceding
 sentence. Provided, further, however, with respect  to  all  taxes,  and
 
       S. 2811--B                         65
 interest  and  penalties  relating thereto, collected or received by the
 commissioner of taxation and finance under the tax  imposed  by  section
 three  hundred  one  of  this  article  with respect to any taxable year
 commencing  on and after June first, nineteen hundred ninety and to that
 portion of any taxable year commencing prior thereto to  the  extent  of
 that portion of such year which includes the period which commences June
 first, nineteen hundred ninety, eighty-nine and one-half percent of such
 collections   shall  be  deposited  and  disposed  of  pursuant  to  the
 provisions of section one hundred seventy-one-a of this chapter and  the
 balance  thereof shall be deposited in the mass transportation operating
 assistance fund to the credit of the  metropolitan  mass  transportation
 operating assistance account and the public transportation systems oper-
 ating  assistance  account thereof in the manner provided by subdivision
 eleven of section one hundred eighty-two-a of this chapter.
 (b) Of all of the taxes collected or received by the  commissioner  on
 or  before  March  thirty-first,  nineteen  hundred ninety-one under the
 taxes imposed by sections three hundred one-a and three hundred one-e of
 this article, and all interest and penalties relating  thereto,  eighty-
 seven and five-hundredths percent of such collections shall be deposited
 and disposed of pursuant to the provisions of section one hundred seven-
 ty-one-a  of  this chapter and the balance thereof shall be deposited in
 the mass transportation operating assistance fund to the credit  of  the
 metropolitan  mass  transportation  operating assistance account and the
 public transportation systems operating assistance  account  thereof  in
 the  manner provided by subdivision eleven of section one hundred eight-
 y-two-a of this chapter. Of all taxes, interest and penalties  collected
 or  received  after March thirty-first, nineteen hundred ninety-one, and
 before April  first,  nineteen  hundred  ninety-three,  from  the  taxes
 imposed  by sections three hundred one-a and three hundred one-e of this
 article, initially thirty-five percent shall be deposited  and  disposed
 of pursuant to such section one hundred seventy-one-a. The balance ther-
 eof  shall  then be disposed of as follows: seventy-two and seven-tenths
 percent shall be deposited and disposed of pursuant to such section  one
 hundred seventy-one-a and twenty-seven and three-tenths percent shall be
 deposited  in  such  mass  transportation  operating  assistance fund as
 prescribed in the aforestated manner. Except as otherwise  provided,  of
 all  taxes,  interest  and  penalties  collected or received after March
 thirty-first, nineteen hundred ninety-three,  and  before  April  first,
 nineteen  hundred  ninety-four, from the taxes imposed by sections three
 hundred one-a and three hundred one-e of  this  article,  (i)  initially
 fifty-four  percent shall be deposited, as prescribed by subdivision (d)
 of section three hundred one-j of this chapter,  (ii)  twenty-eight  and
 three-tenths percent shall be deposited and disposed of pursuant to such
 section  one  hundred  seventy-one-a of this chapter in the general fund
 and (iii) seventeen and seven-tenths percent shall be deposited in  such
 mass  transportation  operating  assistance  fund  as  prescribed in the
 aforestated manner. Provided, however, that, prior to such deposit, from
 the amounts so collected or received during  the  period  commencing  on
 January  first, nineteen hundred ninety-four and ending on March thirty-
 first, nineteen hundred ninety-four, an amount equal to the  portion  of
 the  taxes,  interest  and  penalties so received or collected resulting
 from the amendments made by sections forty-two, forty-three  and  forty-
 four of chapter fifty-seven of the laws of nineteen hundred ninety-three
 shall  be deposited and disposed of pursuant to the provisions of subdi-
 vision one of section one hundred seventy-one-a of this chapter.  Except
 as otherwise provided, of all taxes, interest and penalties collected or
 
       S. 2811--B                         66
 received on or after April first, nineteen hundred ninety-four, from the
 taxes imposed by sections three hundred one-a and three hundred one-e of
 this  article,  (i)  initially fifty-four percent shall be deposited, as
 prescribed  by  subdivision  (d)  of section three hundred one-j of this
 article, (ii) twenty-eight and three-tenths percent shall  be  deposited
 and  disposed  of  pursuant to such section one hundred seventy-one-a of
 this chapter in the general fund, (iii) seven and  nine  hundred  sixty-
 five  thousandths percent shall be deposited in such mass transportation
 operating assistance fund as prescribed in the  aforestated  manner  and
 (iv)  nine  and  seven  hundred thirty-five thousandths percent shall be
 deposited  in  the  revenue  accumulation  fund.  Except  as   otherwise
 provided,  of all taxes, interest and penalties collected or received on
 or after  September  first,  nineteen  hundred  ninety-four  and  before
 September first, nineteen hundred ninety-five, from the taxes imposed by
 sections  three  hundred  one-a and three hundred one-e of this article,
 (i) initially fifty-nine percent shall be deposited,  as  prescribed  by
 subdivision  (d)  of  section  three hundred one-j of this article, (ii)
 twenty-two and four-tenths percent shall be deposited  and  disposed  of
 pursuant  to  such  section one hundred seventy-one-a of this chapter in
 the general fund, (iii) eight  and  three  hundred  seventy  thousandths
 percent shall be deposited in such mass transportation operating assist-
 ance  fund  as prescribed in the aforestated manner and (iv) ten and two
 hundred thirty thousandths percent shall be  deposited  in  the  revenue
 accumulation  fund. Except as otherwise provided, of all taxes, interest
 and penalties, collected or received on or after September first,  nine-
 teen  hundred ninety-five and before April first, nineteen hundred nine-
 ty-six from the taxes imposed by sections three hundred one-a and  three
 hundred  one-e of this article, (i) initially sixty-two and eight-tenths
 percent shall be deposited as prescribed by subdivision (d)  of  section
 three  hundred  one-j  of  this  article, (ii) eighteen percent shall be
 deposited and disposed of pursuant to section one hundred  seventy-one-a
 of  this  chapter in the general fund, (iii) eight and six hundred forty
 thousandths percent shall be deposited in such mass transportation oper-
 ating assistance fund as prescribed in the aforestated manner  and  (iv)
 ten and five hundred sixty thousandths percent shall be deposited in the
 revenue  accumulation  fund. Except as otherwise provided, of all taxes,
 interest and penalties collected or received on or  after  April  first,
 nineteen  hundred ninety-six, and before January first, nineteen hundred
 ninety-seven from the taxes imposed by sections three hundred one-a  and
 three  hundred  one-e  of  this  article,  (i) initially sixty-three and
 three-tenths percent shall be deposited, as  prescribed  by  subdivision
 (d)  of  section three hundred one-j of this article, (ii) seventeen and
 four-tenths percent shall be deposited and disposed of pursuant to  such
 section  one  hundred  seventy-one-a of this chapter in the general fund
 and (iii) nineteen and three-tenths percent shall be deposited  in  such
 mass  transportation  operating  assistance  fund  as  prescribed in the
 aforestated manner.  Except as otherwise provided, of all taxes,  inter-
 est and penalties collected or received on or after January first, nine-
 teen  hundred  ninety-seven  and  before January first, nineteen hundred
 ninety-eight from the taxes imposed by sections three hundred one-a  and
 three  hundred  one-e  of this article, (i) initially sixty-six and two-
 tenths percent shall be deposited, as prescribed by subdivision  (d)  of
 section  three hundred one-j of this article, (ii) fourteen and one-half
 percent shall be deposited and disposed of pursuant to such section  one
 hundred  seventy-one-a  of  this  chapter  in the general fund and (iii)
 nineteen and three-tenths percent shall be deposited in such mass trans-
 
       S. 2811--B                         67
 portation operating assistance fund as  prescribed  in  the  aforestated
 manner.  Except as otherwise provided, of all taxes, interest and penal-
 ties  collected  or received on or after January first, nineteen hundred
 ninety-eight  and  before April first, nineteen hundred ninety-nine from
 the taxes imposed by sections three  hundred  one-a  and  three  hundred
 one-e  of  this article, (i) initially sixty-eight and one-tenth percent
 shall be deposited, as prescribed by subdivision (d)  of  section  three
 hundred one-j of this article, (ii) twelve and four-tenths percent shall
 be deposited and disposed of pursuant to such section one hundred seven-
 ty-one-a  of  this  chapter  in  the general fund and (iii) nineteen and
 one-half percent shall be deposited in such mass transportation  operat-
 ing  assistance fund as prescribed in the aforestated manner.  Except as
 otherwise provided, of all taxes, interest and  penalties  collected  or
 received on or after April first, nineteen hundred ninety-nine, from the
 taxes imposed by sections three hundred one-a and three hundred one-e of
 this article, (i) initially sixty-nine and eight-tenths percent shall be
 deposited,  as  prescribed  by  subdivision (d) of section three hundred
 one-j of this article, (ii) ten and seven-tenths percent shall be depos-
 ited and disposed of pursuant to such section one hundred  seventy-one-a
 of  this  chapter  in  the  general fund and (iii) nineteen and one-half
 percent shall be deposited in such mass transportation operating assist-
 ance fund as prescribed in the aforestated manner.] Except as  otherwise
 provided,  of all taxes, interest and penalties collected or received on
 or after April first, two  thousand  one,  from  the  taxes  imposed  by
 sections  three  hundred  one-a and three hundred one-e of this article,
 (i) initially eighty and three-tenths percent  shall  be  deposited,  as
 prescribed  by  subdivision  (d)  of section three hundred one-j of this
 article and (ii) nineteen and seven-tenths percent shall be deposited in
 such mass transportation operating assistance fund [as prescribed in the
 aforestated manner] TO THE CREDIT OF THE METROPOLITAN  MASS  TRANSPORTA
 TION  OPERATING ASSISTANCE ACCOUNT AND THE PUBLIC TRANSPORTATION SYSTEMS
 OPERATING ASSISTANCE ACCOUNT THEREOF IN THE MANNER PROVIDED BY  SUBDIVI
 SION  ELEVEN  OF  SECTION  ONE  HUNDRED  EIGHTY-TWO-A  OF  THIS CHAPTER.
 [Provided, further, that on or before the twenty-fifth day of each month
 commencing with October, nineteen hundred ninety  and  terminating  with
 the  month  of March, two thousand one, the comptroller shall deduct the
 amount of six hundred twenty-five thousand dollars prior to any  deposit
 or  disposition  of  the  taxes,  interest  and  penalties  collected or
 received pursuant to such sections three hundred one-a and three hundred
 one-e and shall pay such amount to the state treasury to the  credit  of
 the  general fund.] Provided, further that on or before the twenty-fifth
 day of each month commencing with April, two  thousand  one,  the  comp
 troller  shall  deduct  the  amount  of six hundred twenty-five thousand
 dollars prior to any deposit or disposition of the taxes, interest,  and
 penalties  collected or received pursuant to such sections three hundred
 one-a and three hundred one-e and shall deposit such amount in the dedi
 cated fund accounts pursuant to subdivision (d) of section three hundred
 one-j of  this  article.  Provided,  further,  that  commencing  January
 fifteenth,  nineteen  hundred ninety-one, and on or before the tenth day
 of March and the fifteenth day of June and September of such  year,  the
 commissioner shall, based on information supplied by taxpayers and other
 appropriate  sources,  estimate the amount of the utility credit author
 ized by section three hundred one-d  of  this  article  which  has  been
 accrued  to  reduce tax liability under section one hundred eighty-six-a
 of this chapter during the period covered by such estimate  and  certify
 to  the  state  comptroller such estimated amount. The comptroller shall
 
       S. 2811--B                         68
 forthwith, after receiving such certificate, deduct the amount  of  such
 credit so certified by the commissioner prior to any deposit or disposi
 tion of the taxes, interest and penalties collected or received pursuant
 to  such  sections three hundred one-a and three hundred one-e and shall
 pay such amount so certified and deducted into the state treasury to the
 credit of the general fund. [As soon as practicable after  April  first,
 nineteen  hundred  ninety-one,  nineteen hundred ninety-two and nineteen
 hundred ninety-three, but before June fifteenth of each such  year,  the
 commissioner  shall determine the amount of the utility tax credit which
 has been actually used to reduce tax liability under  such  section  one
 hundred eighty-six-a and shall certify the difference between such actu-
 al  amount and the earlier estimated amount.] Also, subsequently, during
 the fiscal year when  the  commissioner  becomes  aware  of  changes  or
 modifications  with  respect  to  actual  credit usage, the commissioner
 shall, as soon as practicable, issue a certification setting  forth  the
 amount  of  any required adjustment to the amount of actual credit usage
 previously certified. After receiving the certificate of the commission
 er with respect to actual credit usage or modification of the same,  the
 comptroller  shall forthwith adjust general fund receipts and the reven
 ues to be deposited or disposed of under this  article  to  reflect  the
 difference  so certified by the commissioner. The commissioner shall not
 be liable for any overestimate or underestimate of  the  amount  of  the
 utility credit which has been accrued to reduce tax liability under such
 section  one  hundred eighty-six-a. Nor shall the commissioner be liable
 for any inaccuracy in any certificate with respect to the amount of such
 credit actually used or any required adjustment with respect  to  actual
 credit  usage,  but  the commissioner shall as soon as practicable after
 discovery of any error adjust the next certification under this  section
 to reflect any such error.
 [On or before July thirty-first, nineteen hundred ninety-two and on or
 before July thirty-first, nineteen hundred ninety-three, the commission-
 er  shall  conduct  the  following  reconciliation  with  respect to the
 preceding fiscal year: he shall multiply the total of all taxes,  penal-
 ties  and  interest, after refunds and reimbursements, which are derived
 from the motor fuel component, the  automotive-type  diesel  motor  fuel
 component  and  the  aviation gasoline component by twenty fifty-fifths;
 the total of all  taxes,  penalties  and  interest,  after  refunds  and
 reimbursements,  which  are  derived  from the nonautomotive-type diesel
 motor fuel component (excluding taxes, penalties and interest which  are
 derived  from  product with respect to which the credit or reimbursement
 provided by section three hundred one-d is taken)  by  twenty-fiftieths;
 and all taxes, penalties and interest, after refunds and reimbursements,
 which are derived from the residual petroleum product component (exclud-
 ing  taxes,  penalties  and interest which are derived from product with
 respect to which the credit or reimbursement provided by  section  three
 hundred one-d is taken) by twenty-fortieths. The products of the forego-
 ing  multiplications  shall  be  added together and the resulting sum of
 such products shall be compared with the total of the amounts  initially
 distributed  during  such  fiscal  year  with respect to such components
 (excluding receipts derived from product with respect to which the cred-
 it or reimbursement provided by section three hundred one-d is taken and
 excluding any amount which represents a reconciliation adjustment pursu-
 ant to this paragraph) pursuant to section one hundred seventy-one-a  of
 this  chapter  which represented thirty-five percent of the total, after
 refunds  and  reimbursements,  of  all  taxes,  penalties  and  interest
 collected  or  received  during  such  fiscal  year under sections three
 
       S. 2811--B                         69
 hundred one-a and three hundred one-e during the months of  such  fiscal
 year with respect to such components. The commissioner shall then certi-
 fy  the  amount  of  such  difference to the comptroller. If the amounts
 initially  distributed  in  such fiscal year are greater than the sum of
 such products, the comptroller shall withhold an amount equal  to  twen-
 ty-seven  and  three-tenths  percent  of  such difference from the first
 moneys otherwise payable to the general fund pursuant to  this  subdivi-
 sion  and  shall  pay  such  amount to the mass transportation operating
 assistance fund to the credit of the  metropolitan  mass  transportation
 operating assistance account and the public transportation systems oper-
 ating  assistance  account  thereof  in  the  aforestated manner. If the
 amounts initially distributed in such fiscal year are less than the  sum
 of  such  products,  the  comptroller  shall withhold an amount equal to
 twenty-seven and three-tenths percent of such difference from the  first
 moneys otherwise payable to the mass transportation operating assistance
 fund  pursuant  to  this  subdivision  and  shall pay such amount to the
 general fund.
 When the commissioner becomes aware of changes or  modifications  with
 respect  to  the distribution of revenue under this article, the commis-
 sioner shall, as soon as  practicable,  issue  a  certification  setting
 forth the amount of any required adjustment. After receiving the certif-
 icate  of  the  commissioner  with respect to any adjustments, the comp-
 troller shall forthwith adjust general fund receipts and the revenues to
 be deposited or disposed of under this article to reflect the difference
 so certified by the commissioner. The commissioner shall not  be  liable
 for any overestimate or underestimate of the amount of the distribution.
 Nor  shall  the commissioner be liable for any inaccuracy in any certif-
 icate with respect to the amount of the  distribution  or  any  required
 adjustment  with respect to the distribution, but the commissioner shall
 as soon as practicable after discovery of  any  error  adjust  the  next
 certification  under  this  section to reflect any such error.] Prior to
 making deposits as provided in this  [subdivision]  SECTION,  the  comp
 troller shall retain such amount as the commissioner may determine to be
 necessary,  subject  to  the approval of the director of the budget, for
 reasonable costs of the department in administering and  collecting  the
 taxes  deposited  pursuant to this [subdivision] SECTION and for refunds
 and reimbursements with respect to such taxes, out of  which  the  comp
 troller  shall  pay any refunds or reimbursements of such taxes to which
 taxpayers shall be entitled.
 

S 33. Subdivision (b) of section 315 of the tax  law,  as  amended  by
 section  156 of part A of chapter 389 of the laws of 1997, is amended to
 read as follows:

 (b) Joint administration of taxes.  In addition to the powers  granted
 to  the commissioner in this chapter, the commissioner is hereby author
 ized to make provisions for the joint administration,  in  whole  or  in
 part,  of  the  taxes  imposed by articles twelve-A and twenty-eight and
 pursuant to the authority of article twenty-nine of  this  chapter  upon
 [automotive fuel] MOTOR FUEL AND DIESEL MOTOR FUEL and the taxes imposed
 by  this article, including the joint reporting, assessment, collection,
 determination and  refund  of  such  taxes,  and  for  that  purpose  to
 prescribe  that any of the commissioner's functions under such articles,
 and any returns, forms,  statements,  documents  or  information  to  be
 submitted to the commissioner under such articles, any books and records
 to be kept for purposes of the taxes imposed or authorized to be imposed
 by  such  articles,  any schedules of amounts to be collected under such
 articles, any registration required under such articles, and the payment
 
       S. 2811--B                         70
 of taxes under such articles, shall be on a joint basis with respect  to
 the  taxes  imposed by or pursuant to such articles.  Provided, notwith
 standing any provision of this article to the contrary, in the  further
 ance  of  joint  administration,  the  provisions  of subdivision one of
 section two hundred eighty-five-a and subdivision  one  of  section  two
 hundred  eighty-nine-c  of this chapter shall apply to the taxes imposed
 under this article with the same force and effect as if those provisions
 specifically referred  to  the  taxes  imposed  hereunder  and  all  the
 products with respect to which the taxes are imposed under this article.
 Provided,  further,  a  reimbursement (or credit) of taxes imposed under
 this article shall be available to subsequent purchasers of motor  fuel,
 diesel  motor fuel or residual petroleum product under the circumstances
 specified in subdivision eight of section two hundred  eighty-nine-c  of
 this  chapter with respect to the export of such products.  In addition,
 all the provisions of subdivision one of section two hundred  eighty-six
 of  this  chapter shall be applicable to all of the products included in
 the measure of the tax imposed by this article and  the  powers  of  the
 commissioner  in  administering  the  tax  imposed by this article shall
 include these set forth in such subdivision.  Moreover, the  commission
 er,  in order to preserve the revenue from the tax imposed by this arti
 cle, shall, by regulation, require that the movement of residual  petro
 leum  product  into  or  in  this  state  be  accompanied  by a tracking
 document. [Such manifest or other tracking document shall be  prescribed
 only  after  consultation  with  the state motor fuels taxation advisory
 council (created by section forty-one of chapter forty-four of the  laws
 of  nineteen  hundred  eighty-five) as to its form and content and as to
 whether an existing industry document (or a  modified  version  thereof)
 may adequately serve the tracking purpose so that such existing industry
 document  may be prescribed as the tracking document.] Also, the commis
 sioner may require (i) that any  returns,  forms,  statements  or  other
 document  with  respect  to  motor fuel or diesel motor fuel required of
 transporters or terminal operators under such article twelve-A  of  this
 chapter  apply with the same force and effect to persons transporting or
 storing residual petroleum product, (ii) a certification that particular
 gallonage of motor fuel, diesel motor fuel or residual petroleum product
 has been included in the measure of the tax imposed by this article  and
 such tax has been paid, and (iii) that the certification required pursu
 ant to section two hundred eighty-five-a or two hundred eighty-five-b of
 this chapter be expanded to include the tax imposed by this article.
 

S  34.  Subdivision  10  of  section 501 of the tax law, as amended by
 chapter 407 of the laws of 1990, is amended to read as follows:

 10. "Automotive fuel" shall mean, SOLELY FOR PURPOSES OF THIS ARTICLE,
 diesel motor fuel as defined in  subdivision  fourteen  of  section  two
 hundred eighty-two of this chapter and motor fuel as defined in subdivi
 sion two of section two hundred eighty-two of this chapter.
 

S 35. Subdivision (b) of section 528 of the tax law, as added by chap
 ter 170 of the laws of 1994, is amended to read as follows:

 (b) Cooperative agreements. Notwithstanding any inconsistent provision
 of  law,  the  commissioner  is  authorized  to enter into a cooperative
 agreement with other states, the District of Columbia  or  provinces  or
 territories  of Canada for the administration of the tax imposed by this
 article and similar taxes imposed by other member jurisdictions and  for
 the  reporting  and  payment of tax to a single base state and a propor
 tional sharing of revenue of taxes relating to fuel use among the juris
 dictions where a qualified motor vehicle is operated. The agreement  may
 provide  for  determining  the base state for carriers, carriers records
 
       S. 2811--B                         71
 requirements, audit procedures, exchange of information, persons  eligi
 ble for tax licensing, defining qualified motor vehicles, determining if
 bonding  is  required  and  requiring bonds to secure the tax imposed by
 this  article  and  similar taxes imposed by other member jurisdictions,
 specifying reporting requirements and periods including defining uniform
 penalty and interest rates for late reporting, determining  methods  for
 collecting  and  forwarding  of taxes, interest and penalties to another
 jurisdiction, notice and timing of hearings and other provisions as will
 facilitate the administration of the agreement.  The  commissioner  may,
 pursuant  to  the terms of the agreement, forward to the proper officers
 of another member jurisdiction any  information  in  the  commissioner's
 possession  relating to the manufacture, receipt, sale, use, transporta
 tion or shipment of [automotive fuel] MOTOR FUEL OR DIESEL MOTOR FUEL by
 any person and may share any information relating to the  administration
 of  taxes pursuant to the agreement with such officers. The commissioner
 may disclose to the proper officers of another member  jurisdiction  the
 location of offices, motor vehicles and other real and personal property
 of  carriers.  The agreement may provide for each member jurisdiction to
 audit the records of persons based in the member jurisdiction and deter
 mine taxes due each member  jurisdiction.  The  commissioner  may  adopt
 rules  and  regulations  for  the  administration and enforcement of the
 agreement. In connection with the administration of taxes under  such  a
 cooperative agreement, the commissioner may enter into an agreement with
 other  member  jurisdictions and any banks, banking houses, trust compa
 nies or other similar institutions with respect to the  payment  of  any
 tax,  fees,  penalty  or  interest  to such banks, banking houses, trust
 companies or similar institutions and the filing of returns and  reports
 with such banks, banking houses, trust companies or similar institutions
 as agent of the commissioner and such other member jurisdictions. Pursu
 ant  to  a  written  agreement  made with one or more of the appropriate
 departments, agencies, officers or instrumentalities of other  jurisdic
 tions, the commissioner may let contracts for provision of such services
 to the department and to one or more of such entities of other jurisdic
 tions;  provided,  that  provisions shall be made in all such agreements
 with the participating governmental entities and in all  such  contracts
 let  by the commissioner for the assumption by each of the participating
 governmental entities of sole responsibility for its proportionate share
 of the costs under the terms of  such  contract.  The  commissioner  may
 contract  for  such services jointly with and pursuant to a contract let
 by the appropriate department, agency,  officer  or  instrumentality  of
 another  jurisdiction;  provided that (1) the commissioner shall approve
 the proposed  terms  and  conditions  of  all  such  joint  governmental
 contracts,  (2) the letting of such joint governmental contract shall be
 based on invitation of  competitive  bids  or  proposals,  and  (3)  the
 participation  by  the  department  in  any such joint contract shall be
 preceded by an evaluation and finding in  writing  by  the  commissioner
 that a reasonable potential exists for the saving of costs by the state,
 by means of such joint governmental contract.
 

S  36.  The  opening  paragraph of subparagraph (ii) of paragraph 4 of
 subdivision (b) of section 1101 of the tax law, as  amended  by  chapter
 261 of the laws of 1988, is amended to read as follows:

 Notwithstanding  the provisions of subparagraph (i) of this paragraph,
 no motor fuel or diesel motor fuel shall be sold or used in  this  state
 without payment, and inclusion in the sales price of such motor fuel, of
 the  tax on motor fuel required to be prepaid pursuant to the provisions
 of section eleven hundred two of this article except where  a  provision
 
       S. 2811--B                         72
 of this article relating to motor fuel or diesel motor fuel specifically
 provides  otherwise  and  except in the case of a sale or use subject to
 tax under section eleven hundred five or eleven hundred ten, respective
 ly,  of  this article. Provided, however, except for such requirement of
 prepayment of tax required by section eleven hundred two of  this  arti
 cle,  the provisions of this subparagraph shall not otherwise modify the
 meaning of the term "retail sale" as used in this article.  For purposes
 of this subparagraph and sections eleven  hundred  two,  eleven  hundred
 eleven, eleven hundred twenty, eleven hundred thirty-two, eleven hundred
 thirty-four,  eleven  hundred  thirty-five,  eleven  hundred thirty-six,
 ELEVEN HUNDRED FORTY-TWO, ELEVEN HUNDRED FORTY-FIVE and eighteen hundred
 seventeen of this chapter, the following terms shall have the  following
 meanings:

 

S  37.  Clause  (A) of subparagraph (ii) of paragraph 4 of subdivision
 (b) of section 1101 of the tax law, as amended by  chapter  261  of  the
 laws of 1988, is amended to read as follows:

 (A) "[Automotive fuel"] PETROLEUM PRODUCTS" means diesel motor fuel as
 defined  in  subdivision  fourteen  of section two hundred eighty-two of
 this chapter, other  than  kerosene  or  propane  used  for  residential
 purposes,  or  motor  fuel  as defined in subdivision two of section two
 hundred eighty-two of this chapter. The  phrase  "used  for  residential
 purposes"  shall have the same meaning as it has for purposes of section
 eleven hundred five-A of this article.
 

S 38. Clause (F) of subparagraph (ii) of paragraph  4  of  subdivision
 (b)  of  section 1101 of the tax law is REPEALED and a new clause (F) is
 added to read as follows:

 (F) THE TERMS "HIGHWAY DIESEL  MOTOR  FUEL"  AND  "NON-HIGHWAY  DIESEL
 MOTOR  FUEL"  SHALL  HAVE  THE SAME MEANING AS THEY HAVE FOR PURPOSES OF
 ARTICLE TWELVE-A OF THIS CHAPTER.
 

S 39. Paragraph 2 of subdivision (a) of section 1102 of the  tax  law,
 as  separately amended by section 9 of part W-1 of chapter 109 and chap
 ter 302 of the laws of 2006, is amended to read as follows:

 (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
 on  account  of  the  taxes  imposed by this article and pursuant to the
 authority of article twenty-nine of this chapter, a tax upon the sale or
 use of diesel motor fuel in this state. The tax shall be computed  based
 upon  the number of gallons of diesel motor fuel sold or used. Provided,
 however, if the tax has not been imposed  prior  thereto,  it  shall  be
 imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
 station. The collection of such tax shall not be made applicable to  the
 sale  or use of diesel motor fuel under circumstances which preclude the
 collection of such tax by reason of the United States  constitution  and
 of  laws  of the United States enacted pursuant thereto. The prepaid tax
 on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously
 untaxed  [diesel  motor  fuel  which is not enhanced] NON-HIGHWAY Diesel
 motor fuel to a person registered as a distributor of Diesel motor  fuel
 other  than a sale to such person which involves a delivery at a filling
 station or into a repository which is equipped  with  a  hose  or  other
 apparatus  by  which  such fuel can be dispensed into the fuel tank of a
 motor vehicle, OR (ii) the sale to or delivery at a filling  station  or
 other  retail  vendor  of  water-white  kerosene  provided  such filling
 station or other retail vendor  only  sells  such  water-white  kerosene
 exclusively  for  heating  purposes in containers of no more than twenty
 gallons or to the sale of CNG or hydrogen [or (iii)  the  sale  of  dyed
 diesel  motor fuel as set forth in clause (A) or (B) of subparagraph (i)
 
       S. 2811--B                         73
 of  paragraph  (c)  of  subdivision  three  of   section   two   hundred
 eighty-two-a of this chapter].
 

S 39-a. Paragraph 2 of subdivision (a) of section 1102 of the tax law,
 as  amended  by  chapter  302 of the laws of 2006, is amended to read as
 follows:

 (2) Every distributor of diesel motor fuel shall pay, as a  prepayment
 on  account  of  the  taxes  imposed by this article and pursuant to the
 authority of article twenty-nine of this chapter, a tax upon the sale or
 use of diesel motor fuel in this state. The tax shall be computed  based
 upon  the number of gallons of diesel motor fuel sold or used. Provided,
 however, if the tax has not been imposed  prior  thereto,  it  shall  be
 imposed  on  the  delivery  of  diesel  motor  fuel  to a retail service
 station. The collection of such tax shall not be made applicable to  the
 sale  or use of diesel motor fuel under circumstances which preclude the
 collection of such tax by reason of the United States  constitution  and
 of  laws  of the United States enacted pursuant thereto. The prepaid tax
 on diesel motor fuel shall not apply  to  (i)  the  sale  of  previously
 untaxed  [diesel  motor  fuel  which is not enhanced] NON-HIGHWAY Diesel
 motor fuel to a person registered as a distributor of Diesel motor  fuel
 other  than a sale to such person which involves a delivery at a filling
 station or into a repository which is equipped  with  a  hose  or  other
 apparatus  by  which  such fuel can be dispensed into the fuel tank of a
 motor vehicle, OR (ii) the sale to or delivery at a filling  station  or
 other  retail  vendor  of  water-white  kerosene  provided  such filling
 station or other retail vendor  only  sells  such  water-white  kerosene
 exclusively  for  heating  purposes in containers of no more than twenty
 gallons [or (iii) the sale of dyed diesel motor fuel  as  set  forth  in
 clause  (A)  or  (B) of subparagraph (i) of paragraph (c) of subdivision
 three of section two hundred eighty-two-a of this chapter].
 

S 40. Subsection (a) of section 1105-A of the tax law, as  amended  by
 section  1  of  part  B of chapter 35 of the laws of 2006, is amended to
 read as follows:

 (a) Notwithstanding any other provisions of this article, but not  for
 purposes  of  the  taxes imposed by section eleven hundred eight of this
 part or authorized pursuant to the authority of article  twenty-nine  of
 this  chapter,  the  taxes  imposed by subdivision (a) or (b) of section
 eleven hundred five OF THIS PART on the receipts from the retail sale of
 fuel oil and coal used for residential purposes; the receipts  from  the
 retail  sale  of  wood  used  for  residential heating purposes; and the
 receipts from every sale, other than for resale, of propane (except when
 sold in containers of less than one hundred pounds), natural gas,  elec
 tricity, steam and gas, electric and steam services used for residential
 purposes  shall  be  paid  at  the  rate of three percent for the period
 commencing January  first,  nineteen  hundred  seventy-nine  and  ending
 December thirty-first, nineteen hundred seventy-nine; at the rate of two
 and  one-half  percent for the period commencing January first, nineteen
 hundred eighty and ending September thirtieth, nineteen hundred  eighty,
 and  at  the  rate  of zero percent on and after October first, nineteen
 hundred eighty. The provisions of this subsection shall not apply  to  a
 sale  of  [(i)] diesel motor fuel which involves a delivery at a filling
 station or into a repository which is equipped  with  a  hose  or  other
 apparatus  by  which  such fuel can be dispensed into the fuel tank of a
 motor vehicle [and (ii) enhanced diesel motor fuel except in the case of
 a sale of such enhanced diesel motor fuel used exclusively for  residen-
 tial  purposes  which  is  delivered  into  a  storage tank which is not
 equipped with a hose or other  apparatus  by  which  such  fuel  can  be
 
       S. 2811--B                         74
 dispensed into the fuel tank of a motor vehicle and such storage tank is
 attached  to  the  heating  unit  burning  such fuel, provided that each
 delivery of such fuel of over four thousand five hundred  gallons  shall
 be  evidenced  by a certificate signed by the purchaser stating that the
 product will be used exclusively for residential purposes].
 

S 41. Subdivision (j) of section 1115 of the tax law,  as  amended  by
 section 12 of part W-1 of chapter 109 of the laws of 2006, is amended to
 read as follows:

 (j) The exemptions provided in this section shall not apply to the tax
 required  to  be  prepaid  pursuant  to the provisions of section eleven
 hundred two of this article nor to the taxes imposed by sections  eleven
 hundred  five  and  eleven  hundred  ten of this article with respect to
 receipts from sales and uses of motor fuel or diesel motor fuel,  except
 that  the exemptions provided in paragraphs nine and forty-two of subdi
 vision (a) of this section shall apply to the tax required to be prepaid
 pursuant to the provisions of section eleven hundred two of this article
 and to the taxes imposed by sections  eleven  hundred  five  and  eleven
 hundred  ten  of this article with respect to sales and uses of kero-jet
 fuel, CNG, hydrogen and E85, provided, however,  the  exemption  allowed
 for  E85  shall  be  subject  to the additional requirements provided in
 section eleven hundred two of this article  with  respect  to  E85.  The
 exemption  provided  in  subdivision  (c) of this section shall apply to
 sales and uses of NON-HIGHWAY diesel motor fuel [which is  not  enhanced
 diesel  motor  fuel] but only if all of such fuel is consumed other than
 on the PUBLIC highways of this state[, provided, however, this exemption
 shall in no event apply to a sale of diesel motor fuel which involves  a
 delivery  at  a  filling  station or into a repository which is equipped
 with a hose or other apparatus by which such fuel can be dispensed  into
 the fuel tank of a motor vehicle]. The exemption provided in subdivision
 (c)  of this section shall apply to sales and uses of [no more than four
 thousand five hundred gallons of] NON-HIGHWAY diesel motor  fuel  [in  a
 thirty-day  period]  for use or consumption either in the production for
 sale of tangible personal property by farming or in a  commercial  horse
 boarding  operation, or in both but only if all of such fuel is consumed
 other than on the PUBLIC highways of this state (except for the  use  of
 the  PUBLIC  highways to reach adjacent farmlands or adjacent lands used
 in a commercial horse boarding operation, or both)[, provided,  however,
 such  exemption shall be applicable to the sale or use of more than four
 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
 od for such use or consumption in  accordance  with  a  prior  clearance
 given by the commissioner].
 

S 41-a.  Subdivision (j) of section 1115 of the tax law, as amended by
 section  8  of  part  B of chapter 63 of the laws of 2000, is amended to
 read as follows:

 (j) The exemptions provided in this section shall not apply to the tax
 required to be prepaid pursuant to  the  provisions  of  section  eleven
 hundred  two of this article nor to the taxes imposed by sections eleven
 hundred five and eleven hundred ten of  this  article  with  respect  to
 receipts  from sales and uses of motor fuel or diesel motor fuel, except
 that the exemption provided in paragraph nine of subdivision (a) of this
 section shall apply to the tax required to be prepaid  pursuant  to  the
 provisions  of  section  eleven  hundred  two of this article and to the
 taxes imposed by sections eleven hundred five and eleven hundred ten  of
 this  article  with  respect  to  sales  and  uses of kero-jet fuel. The
 exemption provided in subdivision (c) of this  section  shall  apply  to
 sales  and  uses of NON-HIGHWAY diesel motor fuel [which is not enhanced
 
       S. 2811--B                         75
 diesel motor fuel] but only if all of such fuel is consumed  other  than
 on the PUBLIC highways of this state[, provided, however, this exemption
 shall  in no event apply to a sale of diesel motor fuel which involves a
 delivery  at  a  filling  station or into a repository which is equipped
 with a hose or other apparatus by which such fuel can be dispensed  into
 the fuel tank of a motor vehicle]. The exemption provided in subdivision
 (c)  of this section shall apply to sales and uses of [no more than four
 thousand five hundred gallons of] NON-HIGHWAY diesel motor  fuel  [in  a
 thirty-day  period]  for use or consumption either in the production for
 sale of tangible personal property by farming or in a  commercial  horse
 boarding  operation, or in both but only if all of such fuel is consumed
 other than on the PUBLIC highways of this state (except for the  use  of
 the  PUBLIC  highways to reach adjacent farmlands or adjacent lands used
 in a commercial horse boarding operation, or both)[, provided,  however,
 such  exemption shall be applicable to the sale or use of more than four
 thousand five hundred gallons of diesel motor fuel in a thirty-day peri-
 od for such use or consumption in  accordance  with  a  prior  clearance
 given by the commissioner].
 

S  42.  Subdivision  (e) of section 1120 of the tax law, as amended by
 chapter 2 of the laws of 1995, is amended to read as follows:

 (e) Immediate export. With respect to (i) motor fuel  imported,  manu
 factured or sold or purchased in this state, and (ii) [enhanced] HIGHWAY
 diesel  motor  fuel,  a  refund  or credit shall be allowed a registered
 distributor of this state or a purchaser  of  the  tax  required  to  be
 prepaid  pursuant  to  section eleven hundred two of this article in the
 amount of such tax paid by or included in the price paid by a  distribu
 tor or such purchaser if such fuel was exported from this state for sale
 outside  this state, such distributor or such purchaser, as the case may
 be, exporting such fuel is duly  registered  with  or  licensed  by  the
 taxing  authorities  of  the  state  to which such fuel is exported as a
 distributor or a dealer in the fuel being so exported, and in connection
 with such exportation such fuel was immediately shipped to an identified
 facility in the state to which such fuel is exported, and  provided  the
 applicant  complies  with  all requirements and rules and regulations of
 the commissioner, including evidentiary requirements, relating thereto.
 

S 43. Subparagraph (i) of paragraph 3 of subdivision  (h)  of  section
 1132  of  the tax law, as amended by chapter 261 of the laws of 1988, is
 amended to read as follows:

 (i) For the purpose of the proper administration of this  article  and
 to  prevent evasion of the tax hereby imposed, it shall be presumed that
 all retail sales of motor fuel or diesel motor fuel are subject  to  the
 tax  required  to  be  collected  by  subdivision  (a) of section eleven
 hundred five of this article or paid by the provisions of section eleven
 hundred ten of this article until the contrary is  established,  and  it
 shall  be  presumed  that  all motor fuel or diesel motor fuel imported,
 manufactured, [subjected to enhancement,] sold, received or possessed by
 any person in this state, which such person cannot otherwise account for
 as having been sold subject to the  tax  required  to  be  collected  by
 subdivision (a) of section eleven hundred five or paid by the provisions
 of  section eleven hundred ten of this article, has been sold subject to
 the tax required to be collected by subdivision (a)  of  section  eleven
 hundred  five  or  paid  by the provisions of section eleven hundred ten
 except that no such presumption shall apply with respect to  motor  fuel
 or  diesel motor fuel in the fuel tank of a motor vehicle used to propel
 such vehicle or to motor fuel in small drums or similar containers.  The
 
       S. 2811--B                         76
 burden  of  proving  that  any  sale is not so subject shall be upon the
 person required to collect such tax and the purchaser of such fuel.
 

S  44. Subparagraph (iii) of paragraph 1 of subdivision (a) of section
 1134 of the tax law, as amended by section 160 of part A of chapter  389
 of the laws of 1997, is amended to read as follows:

 (iii)  every  person  selling  [automotive  fuel]  PETROLEUM  PRODUCTS
 including persons who or which are not distributors,
 

S 45. Subdivision (d) of section 1135 of the tax law,  as  amended  by
 chapter  44  of  the laws of 1985 and as relettered by chapter 61 of the
 laws of 1989, is amended to read as follows:

 (d) Every person selling or holding large volumes of [automotive fuel]
 PETROLEUM PRODUCTS shall keep records for such periods and in the manner
 prescribed by the [tax commission] COMMISSIONER pursuant  to  rules  and
 regulations. Such records shall show (1) the number of gallons of [auto-
 motive  fuel] PETROLEUM PRODUCTS purchased, the price paid therefor, the
 amount of tax paid pursuant to the provisions of section eleven  hundred
 two  of this article [and the regional average retail sales price appli-
 cable thereto] and (2) the number of gallons sold, and the price paid by
 the purchaser to whom such person sells the [automotive fuel]  PETROLEUM
 PRODUCTS,  and  the amount of tax included in such price pursuant to the
 provisions of section  eleven  hundred  two  of  this  article  and  the
 [regional  average  retail  sales  price or the] amount of tax collected
 pursuant to the provisions of subdivision (a) of section eleven  hundred
 five  of  this  article applicable to such sale together with such addi
 tional information as the [tax commission] COMMISSIONER  shall  require.
 The  [regional  average retail sales price, and the] amount of tax shall
 be calculated in the manner set forth in section eleven  hundred  eleven
 of this article.
 

S  46.  Subdivision  (a) of section 1136 of the tax law, as amended by
 chapter 89 of the laws of 1976, paragraphs 1, 2, 3 and 5 as amended  and
 paragraph  6  as added by chapter 2 of the laws of 1995 and paragraphs 4
 and 7 as amended by section 2-e of part M-1 of chapter 106 of  the  laws
 of 2006, is amended to read as follows:

 (a)  (1)  Every  person  required to register with the commissioner as
 provided in section eleven hundred thirty-four OF THIS PART whose  taxa
 ble  receipts, amusement charges and rents total less than three hundred
 thousand dollars, or in the case of any such person who is a distributor
 whose sales of [automotive fuel] PETROLEUM PRODUCTS total less than  one
 hundred  thousand  gallons, in every quarter of the preceding four quar
 ters, shall only file a return quarterly with the commissioner.
 (2) Every  person  required  to  register  with  the  commissioner  as
 provided  in section eleven hundred thirty-four OF THIS PART whose taxa
 ble receipts, amusement charges and rents total three  hundred  thousand
 dollars  or more, or in the case of any such person who is a distributor
 whose sales of [automotive fuel] PETROLEUM PRODUCTS  total  one  hundred
 thousand gallons or more, in any quarter of the preceding four quarters,
 shall,  in  addition to filing a quarterly return described in paragraph
 one of this subdivision, and except as  otherwise  provided  in  section
 eleven  hundred two or eleven hundred three of this article, file either
 a long-form or short-form part-quarterly return monthly with the commis
 sioner.
 (3) However, a person required to register with  the  commissioner  as
 provided in section eleven hundred thirty-four OF THIS PART only because
 such  person  is  purchasing  or  selling tangible personal property for
 resale, and who is not required to  collect  any  tax  or  pay  any  tax
 directly  to the commissioner under this article, shall file an informa
 
       S. 2811--B                         77
 tion return annually in such form as  the  commissioner  may  prescribe.
 Likewise,  a  person,  who  is  required  to register and who is selling
 [automotive fuel] PETROLEUM PRODUCTS who is not a distributor  of  motor
 fuel, shall file an information return quarterly or, if the commissioner
 deems  necessary,  monthly,  in  such  form  as  the  commissioner shall
 prescribe.
 (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect tax on rents shall show all rents received or  charged  and  the
 amount of tax thereon.
 (5)  The returns of any seller of [automotive fuel] PETROLEUM PRODUCTS
 shall show the number of gallons of [automotive fuel] PETROLEUM PRODUCTS
 sold, together with such  additional  information  as  the  commissioner
 shall  require  in  order  to certify the amount of taxes, penalties and
 interest payable to local taxing jurisdictions imposed on  the  sale  or
 use  of  [automotive fuel] PETROLEUM PRODUCTS pursuant to the provisions
 of section twelve hundred sixty-one of this chapter.
 (6) The returns of any seller of cigarettes shall show the  amount  of
 prepaid  tax  assumed  or paid thereon and passed through, together with
 such additional information as the commissioner shall require.
 (7) Taxable receipts as used in this  section  shall  include  taxable
 receipts from the sale of [automotive fuel] PETROLEUM PRODUCTS and ciga
 rettes and any receipts from the sale of motor fuel or diesel motor fuel
 or  cigarettes in this state whether or not such receipts are subject to
 the taxes imposed by section eleven hundred two, eleven  hundred  three,
 eleven hundred five or eleven hundred ten of this article and regardless
 of  whether  the  provisions  of section eleven hundred twenty or eleven
 hundred twenty-one of this article are applicable to the  taxes  imposed
 in  respect  of  such  receipts  or  numbers of gallons of motor fuel or
 diesel motor fuel sold.
 [(i)] (8) For purposes of this article the term "long-form, part-quar
 terly return" shall mean a return in  a  form  determined  by  the  [tax
 commission]  COMMISSIONER  providing  for  the calculation of the actual
 sales and compensating use taxes for the preceding month in  the  manner
 set  forth in subdivisions (a) and (b) of section eleven hundred thirty
 seven OF THIS PART. A person filing a long-form,  part-quarterly  return
 for  each of the months contained in a quarter shall also be required to
 file a quarterly return for such quarter.
 [(ii)] (9) For purposes of this article the  term  "short-form,  part
 quarterly  return"  shall mean a return which shall be available for use
 in filing as a return for the first two months of any quarter  and  only
 by  a person required to file a return monthly who has had at least four
 successive quarterly tax periods immediately  preceding  the  month  for
 which  the  return  is  to be filed and who elects such use, and is in a
 form determined by the [tax commission] COMMISSIONER and  providing  for
 the  calculation  of  one-third  of  the total state and local sales and
 compensating use taxes paid  by  the  person  to  the  [tax  commission]
 COMMISSIONER in the comparable quarter of the immediately preceding year
 under  this  article  and  as taxes imposed pursuant to the authority of
 
       S. 2811--B                         78
 article twenty-nine with respect to all receipts, amusement charges  and
 rents.
 

S 47. Subdivision 11 of section 1142 of the tax law, as added by chap
 ter 930 of the laws of 1982, is amended to read as follows:

 11.  To  make such provision pursuant to rules and regulations for the
 joint administration, in whole or in part, of the state and local  taxes
 imposed  by  this  article and authorized by article twenty-nine of this
 chapter upon the sale of [automotive fuel] PETROLEUM  PRODUCTS  and  the
 taxes  imposed  by article twelve-A of this chapter and authorized to be
 imposed by such article,  including  the  joint  reporting,  assessment,
 collection, determination and refund of such taxes, and for that purpose
 to  prescribe  that  any  of the [commission's] COMMISSIONER'S functions
 under said articles, and any returns, forms,  statements,  documents  or
 information  to be submitted to the [commission] COMMISSIONER under said
 articles, any books and records to be kept for  purposes  of  the  taxes
 imposed  or  authorized by said articles, any schedules of amounts to be
 collected under said articles,  any  registration  required  under  said
 articles,  and  the  payment  of taxes under said articles shall be on a
 joint basis with respect to the taxes imposed by said articles.
 

S 48. Subparagraph (i) of paragraph 3 of subdivision  (a)  of  section
 1145  of  the  tax  law, as amended by chapter 2 of the laws of 1995, is
 amended to read as follows:

 (i) Any person required to obtain a  certificate  of  authority  under
 section  eleven hundred thirty-four OF THIS PART who, without possessing
 a valid certificate of authority, (A) sells tangible  personal  property
 or  services  subject  to  tax, receives amusement charges or operates a
 hotel, (B) purchases or sells tangible personal property for resale, (C)
 sells [automotive fuel] PETROLEUM  PRODUCTS,  or  (D)  sells  cigarettes
 shall,  in  addition  to  any  other penalty imposed by this chapter, be
 subject to a penalty in an amount not exceeding five hundred dollars for
 the first day on which such sales or purchases are made, plus an  amount
 not  exceeding two hundred dollars for each subsequent day on which such
 sales or purchases are made, not to exceed ten thousand dollars  in  the
 aggregate.
 

S  49.  Subparagraph  (i) of paragraph 3 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part B of chapter 35  of
 the laws of 2006, is amended to read as follows:

 (i) Notwithstanding any other provision of law to the contrary but not
 with  respect  to  cities  subject  to  the provisions of section eleven
 hundred eight of this [article] CHAPTER, any city or  county,  except  a
 county  wholly  contained  within  a  city,  may  provide that the taxes
 imposed, pursuant to this subdivision, by such city  or  county  on  the
 retail  sale  or use of fuel oil and coal used for residential purposes,
 the retail sale or use of wood used for  residential  heating  purposes,
 the  sale,  other  than  for  resale,  of  propane  (except when sold in
 containers of less than one hundred pounds), natural  gas,  electricity,
 steam and gas, electric and steam services used for residential purposes
 and  the  use of gas or electricity used for residential purposes may be
 imposed at a lower rate than the uniform local rate imposed pursuant  to
 the  opening  paragraph  of this section, as long as such rate is one of
 the rates authorized by such paragraph  or  such  sale  or  use  may  be
 exempted  from such taxes. Provided, however, such lower rate must apply
 to all such energy sources and services and at the same rate and no such
 exemption may be enacted unless such exemption applies to all such ener
 gy sources and services. The provisions of this subparagraph  shall  not
 apply  to  a  sale  or  use  of [(i)] diesel motor fuel which involves a
 
       S. 2811--B                         79
 delivery at a filling station or into a  repository  which  is  equipped
 with  a hose or other apparatus by which such fuel can be dispensed into
 the fuel tank of a motor vehicle [and (ii) enhanced  diesel  motor  fuel
 except  in  the case of a sale or use of such enhanced diesel motor fuel
 used exclusively for residential purposes  which  is  delivered  into  a
 storage  tank  which  is  not equipped with a hose or other apparatus by
 which such fuel can be dispensed into the fuel tank of a  motor  vehicle
 and such storage tank is attached to the heating unit burning such fuel,
 provided  that  each  delivery  of  such fuel of over four thousand five
 hundred gallons shall be  evidenced  by  a  certificate  signed  by  the
 purchaser stating that the product will be used exclusively for residen-
 tial purposes].
 

S  50.  Subdivision  (c) of section 1812 of the tax law, as amended by
 section 25 of subpart I of part V-1 of chapter 57 of the laws  of  2009,
 is amended to read as follows:

 (c)  Any  owner of a filling station who shall willfully and knowingly
 have in his OR HER custody, possession or under his OR HER  control  any
 motor  fuel  or  Diesel  motor  fuel  [on  which] (1) ON WHICH the taxes
 imposed by or pursuant to the authority of such article  have  not  been
 assumed  or  paid by a distributor registered as such under such article
 [or], (2) ON WHICH the taxes imposed by or pursuant to the authority  of
 such  article  have  not been included in the cost to him OR HER of such
 fuel where such taxes were required to have been passed through  to  him
 OR  HER  and  included  in  the cost to him OR HER of such fuel,  OR (3)
 WHICH IS DYED DIESEL MOTOR FUEL AS DEFINED BY SUBDIVISION EIGHTEEN-A  OF
 SECTION  TWO  HUNDRED EIGHTY-TWO OF THIS CHAPTER (EXCEPT FOR WATER-WHITE
 KEROSENE), shall [in either case,] be guilty of a class  E  felony.  For
 purposes  of  this subdivision, such owner shall willfully and knowingly
 have in his OR HER custody, possession or under his OR HER  control  any
 motor  fuel  or  Diesel  motor  fuel  on  which such taxes have not been
 assumed or paid by a distributor registered as such where such owner has
 knowledge of the requirement that such taxes be paid and where,  to  his
 OR  HER  knowledge, such taxes have not been assumed or paid by a regis
 tered distributor on such motor fuel or Diesel motor  fuel.  Such  owner
 shall  willfully and knowingly have in his OR HER custody, possession or
 under his OR HER control any motor fuel or Diesel motor  fuel  on  which
 such  taxes  are  required to have been passed through to him OR HER and
 have not been included in his OR HER cost where such owner has knowledge
 of the requirement that such taxes be passed through and  where  to  his
 knowledge  such  taxes have not been so included. SUCH OWNER SHALL WILL
 FULLY AND KNOWINGLY HAVE IN HIS OR HER CUSTODY, POSSESSION OR UNDER  HIS
 OR  HER CONTROL ANY DYED DIESEL MOTOR FUEL (EXCEPT WATER-WHITE KEROSENE)
 WHERE SUCH OWNER HAS KNOWLEDGE OF THE REQUIREMENT THAT DYED DIESEL MOTOR
 FUEL (EXCEPT WATER-WHITE KEROSENE) MAY NOT BE IN  HIS  OR  HER  CUSTODY,
 POSSESSION OR UNDER HIS OR HER CONTROL.
 

S  51.  Subdivision (e) of section 1812 of the tax law is REPEALED and
 subdivision (f) is relettered subdivision (e).
 

S 52.

Section 1812-a of the tax law, as added by chapter  261  of  the
 laws of 1988, is amended to read as follows:

 

S  1812-a.  Person not registered as distributor of Diesel motor fuel.
 (a) Any person who, while not registered  as  a  distributor  of  Diesel
 motor  fuel pursuant to the provisions of article twelve-A of this chap
 ter, [engages in the enhancement,] makes a sale or use within the  state
 of  Diesel motor fuel (other than a retail sale not in bulk or the self
 use of Diesel motor fuel which has been the subject of a  retail  sale),
 imports  or  causes  Diesel  motor fuel to be imported into the state or
 
       S. 2811--B                         80
 produces, refines, manufactures or compounds Diesel  motor  fuel  within
 the  state  shall  be guilty of a misdemeanor. If, within any ninety day
 period, two thousand nine hundred gallons or more of Diesel  motor  fuel
 are  subjected to [enhancement or] sale or use (other than a retail sale
 not in bulk or the self-use of Diesel motor  fuel  which  has  been  the
 subject  of a retail sale) within the state or are imported or caused to
 be imported by any person while not so registered as  a  distributor  of
 Diesel motor fuel, such person shall be guilty of a class E felony.
 (b) Any person whose registration under article twelve-A of this chap
 ter  applies  only  to  the importation, sale and distribution of Diesel
 motor fuel for [the purposes] USE OTHER THAN  ON  A  PUBLIC  HIGHWAY  AS
 described  in  subparagraph (i) of paragraph (b) of subdivision three of
 section two hundred eighty-two-a of this chapter who delivers  NON-HIGH
 WAY  Diesel  motor  fuel  at  a filling station [other than for the sole
 purpose of heating such station] or into a repository  equipped  with  a
 hose  or  other  apparatus by which NON-HIGHWAY Diesel motor fuel can be
 dispensed into the fuel tank of a  motor  vehicle,  other  than  such  a
 repository which is located on the premises of such registrant where the
 Diesel  motor fuel delivered therein is used exclusively for the purpose
 of fueling motor vehicles operated by  registrant  for  the  purpose  of
 distributing  Diesel  motor  fuel  for  the  purposes  described in such
 subparagraph (i), shall be guilty of a misdemeanor. If, within any nine
 ty day period, any such person whose registration under article twelve-A
 of this chapter applies only to the importation, sale  and  distribution
 of  NON-HIGHWAY Diesel motor fuel for the purposes described in subpara
 graph (i) of paragraph (b) of subdivision three of section  two  hundred
 eighty-two-a of this chapter so unlawfully delivers a total of one thou
 sand  gallons  or  more  of Diesel motor fuel at such filling station or
 stations or into such repository or repositories (or  a  combination  of
 both such filling stations and repositories), then, such person shall be
 guilty of a class E felony.
 (c)  Any  person who has twice been convicted under this section shall
 be guilty of a class E felony  for  any  subsequent  violation  of  this
 section,  regardless of the amount of Diesel motor fuel involved in such
 violation. For purposes  of  this  section,  the  terms  ["enhancement"]
 "NON-HIGHWAY DIESEL MOTOR FUEL" and "retail sale not in bulk" shall have
 the  same  meaning  they  have  for purposes of article twelve-A of this
 chapter.
 

S 53. Subdivisions (a) and (b) of section 1817  of  the  tax  law,  as
 amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
 of 2009, is amended to read as follows:

 (a)  Any  person  required  to obtain a certificate of authority under
 section eleven hundred thirty-four of this chapter who, without possess
 ing a valid certificate  of  authority,  willfully  (1)  sells  tangible
 personal property or services subject to tax, receives amusement charges
 or  operates  a hotel, (2) purchases or sells tangible personal property
 for resale, or (3) sells [automotive fuel] PETROLEUM PRODUCTS;  and  any
 person  who fails to surrender a certificate of authority as required by
 such article shall be guilty of a misdemeanor.
 (b) Any person required to obtain a  certificate  of  authority  under
 section eleven hundred thirty-four of this chapter who within five years
 after  a determination by the [tax commission] COMMISSIONER, pursuant to
 such section, to suspend, revoke or refuse to  issue  a  certificate  of
 authority  has  become  final, and without possession of a valid certif
 icate of authority (1) sells  tangible  personal  property  or  services
 subject  to  tax,  receives  amusement  charges or operates a hotel, (2)
 
       S. 2811--B                         81
 purchases or sells tangible personal property for resale, or  (3)  sells
 [automotive  fuel] PETROLEUM PRODUCTS, shall be guilty of a misdemeanor.
 It shall be an affirmative defense that such person performed  the  acts
 described  in  this subdivision without knowledge of such determination.
 Any  person  who  violates  a  provision  of  this   subdivision,   upon
 conviction,  shall be subject to a fine in any amount authorized by this
 article, but not less than five hundred  dollars,  in  addition  to  any
 other penalty provided by law.
 

S 54. The section heading, subdivisions (a), (b) and (c), paragraph 3,
 subparagraph  (D)  of paragraph 4 and paragraph 6 of subdivision (d) and
 subdivisions (e) and (g) of section 1848 of the tax  law,  as  added  by
 chapter  276 of the laws of 1986 and subparagraph (D) of paragraph 4 and
 paragraph 6 of subdivision (d) as amended by chapter 190 of the laws  of
 1990, are amended to read as follows:

 Forfeiture action with respect to motor fuel and DIESEL MOTOR FUEL AND
 vehicle  carrying  such  fuel.  (a) Temporary seizure. Whenever a police
 officer designated in section 1.20 of the criminal procedure  law  or  a
 peace  officer  designated  in  subdivision four of section 2.10 of such
 law, acting pursuant to his special duties,  shall  discover  any  motor
 fuel OR DIESEL MOTOR FUEL which is being imported for use, distribution,
 storage  or sale in the state where the person importing or causing such
 motor fuel OR DIESEL MOTOR FUEL to be imported is not  registered  as  a
 distributor  under  section  two  hundred  eighty-three  OR  SECTION TWO
 HUNDRED EIGHTY-TWO-A, of this chapter, AS THE CASE MAY BE,  such  police
 officer  or  peace  officer  is  hereby  authorized  to  seize  and take
 possession of such motor fuel OR DIESEL MOTOR FUEL,  together  with  the
 vehicle  or  other  means of transportation used to transport such motor
 fuel.
 (b) Retention of property. The department [of  taxation  and  finance]
 shall  hold  and safely keep such motor fuel, DIESEL MOTOR FUEL, vehicle
 or other means of transportation seized pursuant to subdivision  (a)  of
 this  section.   Seized motor fuel OR DIESEL MOTOR FUEL may be deposited
 to the credit of the department [of taxation and finance] at a  terminal
 or other storage facility within the state or may be sold by the depart
 ment on the open market.
 (c) Confirmation of temporary seizure. Within five business days after
 the temporary seizure of motor fuel, DIESEL MOTOR FUEL, vehicle or other
 means of transportation pursuant to subdivision (a) of this section, the
 department  [of taxation and finance] shall move in supreme court in any
 county, on such notice as the court shall direct to the  owners  of  the
 property,  to confirm the temporary seizure. If the department [of taxa-
 tion and finance] fails to make such motion within the required  period,
 such seized property shall be restored to the owners thereof as provided
 in  subdivision (e) of this section. On a motion for an order confirming
 the seizure, the department [of taxation and  finance]  shall  show,  by
 affidavit  and  such  other  written  evidence as may be submitted, that
 there is a cause of action for forfeiture under subdivision (d) of  this
 section  and that there are grounds for confirmation of the seizure. The
 department shall include, in its motion  papers,  an  inventory  of  all
 seized  property.  The  court  shall  grant  an application for an order
 confirming the seizure when it determines that there  is  a  substantial
 probability  that  the department [of taxation and finance] will prevail
 on the issue of forfeiture.
 (3) Forfeiture of motor fuel OR DIESEL MOTOR FUEL  together  with  the
 vehicle  or  other  means of transportation used to transport such motor
 fuel OR DIESEL MOTOR FUEL shall be adjudged  where  the  department  [of
 
       S. 2811--B                         82
 taxation and finance] proves, by clear and convincing evidence, that the
 person  importing  or causing such motor fuel OR DIESEL MOTOR FUEL to be
 imported was not registered as a distributor under section  two  hundred
 eighty-three OR SECTION TWO HUNDRED EIGHTY-TWO-A of this chapter, AS THE
 CASE  MAY  BE. All defendants in a forfeiture action brought pursuant to
 this article shall have the right to trial by jury on any issue of fact.
 (D) The court may grant the relief provided in subparagraph (A) [here-
 of] OF THIS PARAGRAPH if it finds that such relief is warranted  by  the
 existence  of  some  compelling  factor,  consideration  or circumstance
 demonstrating that forfeiture of the property or any part thereof, would
 not serve the ends of justice. Reporting and payment of the tax  imposed
 pursuant  to  article  twelve-A  or article twenty-eight of this chapter
 with respect to such motor fuel OR DIESEL MOTOR FUEL subsequent  to  the
 seizure of such fuel shall not constitute a compelling factor, consider
 ation or circumstance warranting the granting of the relief provided for
 in  subparagraph (A) [hereof] of this paragraph.  In determining whether
 such relief is warranted by the existence  of  some  compelling  factor,
 consideration  or  circumstances  pursuant  to this paragraph, the court
 may, however, take into account the fact that such taxes with respect to
 the seized fuel have been reported and remitted to the  state  prior  to
 the  temporary seizure of such fuel if the unregistered importation into
 the state was effected in  good  faith  and  without  knowledge  of  the
 requirement  of  registration and without intent to evade tax. The court
 must issue a written decision, stating the basis  for  an  order  issued
 pursuant to this paragraph.
 (6)  The total that may be recovered shall not exceed the value of the
 motor fuel OR DIESEL MOTOR FUEL seized  and,  in  addition,  either  the
 value  of the vehicle or other means of transportation used to transport
 such fuel or three times the amount of the tax and penalty  under  arti
 cles twelve-A, thirteen-A and twenty-eight and pursuant to the authority
 of article twenty-nine of this chapter with respect to the motor fuel OR
 DIESEL MOTOR FUEL, whichever is less.
 (e)  Return  of  property.  If  (1)  the  department  [of taxation and
 finance] fails to move for  confirmation  of  the  seizure  pursuant  to
 subdivision (c) of this section or (2) a court denies an application for
 an  order  confirming the seizure or (3) judgment is entered against the
 department in the forfeiture action and that judgment is affirmed  after
 all appeals are exhausted, then the department shall restore such seized
 motor fuel OR DIESEL MOTOR FUEL, or motor fuel OR DIESEL MOTOR FUEL of a
 like  quantity and type, or such seized vehicle or other means of trans
 portation to the owners thereof. Alternatively,  if  such  seized  motor
 fuel  OR  DIESEL MOTOR FUEL has been sold as provided in subdivision (b)
 of this section, the department shall pay to the owners  of  such  motor
 fuel  OR  DIESEL MOTOR FUEL the proceeds of such sale or, if greater, an
 amount of money representing the fair market value of the motor fuel  OR
 DIESEL MOTOR FUEL at the time of the seizure.
 (g)  Disposal  of  property. The department [of taxation and finance],
 after a judicial determination of forfeiture, shall, in its  discretion,
 either  retain  such  seized  property for its official use or sell such
 forfeited property at public sale. The net proceeds of any such sale, or
 of any sale of seized motor fuel OR DIESEL MOTOR  FUEL  as  provided  in
 subdivision  (b) of this section, after deduction of the lawful expenses
 incurred, shall be deposited and disposed of pursuant to the  provisions
 of  section  one  hundred  seventy-one-a of this chapter with respect to
 deposit and disposition of revenue.
 
       S. 2811--B                         83
 

S 55. Paragraph (q) of subdivision 34 of section 1.20 of the  criminal
 procedure law, as amended by chapter 318 of the laws of 2002, is amended
 to read as follows:

 (q) An employee of the department of taxation and finance (i) assigned
 to  enforcement  of the taxes imposed under or pursuant to the authority
 of article twelve-A of the tax law and administered by the  commissioner
 of taxation and finance, taxes imposed under or pursuant to the authori
 ty  of  article  eighteen of the tax law and administered by the commis
 sioner, taxes imposed under article twenty of the tax law, or  sales  or
 compensating  use taxes relating to [automotive fuel] PETROLEUM PRODUCTS
 or cigarettes imposed under article  twenty-eight  or  pursuant  to  the
 authority  of article twenty-nine of the tax law and administered by the
 commissioner or (ii) designated  as  a  revenue  crimes  specialist  and
 assigned  to  the enforcement of the taxes described in paragraph (c) of
 subdivision four of section 2.10 of  this  title,  for  the  purpose  of
 applying  for  and  executing  search warrants under article six hundred
 ninety of this chapter, for the purpose of acting as  a  claiming  agent
 under  article  thirteen-A  of  the  civil  practice  law  and  rules in
 connection with the enforcement of the taxes referred to above  and  for
 the  purpose  of executing warrants of arrest relating to the respective
 crimes specified in subdivision four of section 2.10 of this title.
 

S 56. Paragraph (a) of subdivision 4 of section 2.10 of  the  criminal
 procedure  law,  as amended by chapter 2 of the laws of 1995, is amended
 to read as follows:

 (a) to the enforcement of any of the criminal or seizure  and  forfei
 ture  provisions  of  the tax law relating to (i) taxes imposed under or
 pursuant to the authority of article twelve-A of the tax law and  admin
 istered by the commissioner, (ii) taxes imposed under or pursuant to the
 authority  of  article  eighteen  of the tax law and administered by the
 commissioner, (iii) taxes imposed under article twenty of the  tax  law,
 or  (iv)  sales  or compensating use taxes relating to [automotive fuel]
 PETROLEUM PRODUCTS or cigarettes imposed under article  twenty-eight  or
 pursuant  to  the  authority  of  article twenty-nine of the tax law and
 administered by the commissioner or
 

S 57. Sections 11-2033, 11-2034, 11-2035, 11-2036, 11-2037 and 11-2038
 of the administrative code of the city of New York are REPEALED.
 

S 58. This act shall take effect September 1, 2011 and shall apply  to
 sales  or  uses  occurring  on or after such date in accordance with the
 applicable transitional provisions in sections 1106 and 1217 of the  tax
 law; provided, however, that:

 (a) the amendments to subdivisions 22 and 23 of section 282 of the tax
 law, made by section one of this act shall not affect the repeal of such
 subdivisions and shall be deemed repealed therewith;
 (b)  the  amendments to paragraph 2 of subdivision (a) of section 1102
 of the tax law made by section thirty-nine of this act shall be  subject
 to the expiration and reversion of such paragraph pursuant to section 19
 of  part  W-1  of chapter 109 of the laws of 2006, as amended, when upon
 such date the provisions of section thirty-nine-a of this act shall take
 effect; and
 (c) the amendments to subdivision (j) of section 1115 of the  tax  law
 made by section forty-one of this act shall be subject to the expiration
 and  reversion of such subdivision pursuant to section 19 of part W-1 of
 chapter 109 of the laws of 2006, as amended, when  upon  such  date  the
 provisions of section forty-one-a of this act shall take effect.
 PART L
 
       S. 2811--B                         84
 

Section  1.  Subdivision 22 of section 282 of the tax law, as added by
 section 1 of part W-1 of chapter 109 of the laws of 2006, is amended  to
 read as follows:

 22.  "E85"  means  a  [mixture  consisting  by  volume  of eighty-five
 percent] FUEL BLEND CONSISTING OF ethanol and [the  remainder  of  which
 is] motor fuel, WHICH MEETS THE ASTM INTERNATIONAL ACTIVE STANDARD D5798
 FOR FUEL ETHANOL.
 

S 2.

Section 19 of part W-1 of chapter 109 of the laws of 2006, amend
 ing  the  tax  law  relating to providing exemptions, reimbursements and
 credits from various taxes for certain alternative fuels, is amended  to
 read as follows:

 

S  19. This act shall take effect immediately; provided, however, that
 sections one through thirteen of this act shall take effect September 1,
 2006 and shall be deemed repealed on September 1, [2011] 2012  and  such
 repeal  shall  apply  in  accordance  with  the  applicable transitional
 provisions of sections 1106 and 1217 of the tax law, and shall apply  to
 sales  made,  fuel  compounded or manufactured, and uses occurring on or
 after such date, and with respect to sections seven  through  eleven  of
 this  act,  in  accordance  with  applicable  transitional provisions of
 sections 1106 and 1217 of the  tax  law;  provided,  however,  that  the
 commissioner  of  taxation  and finance shall be authorized on and after
 the date this act shall have become a law to adopt and amend  any  rules
 or  regulations  and  to  take  any  steps  necessary  to  implement the
 provisions of this act; provided further that sections fourteen  through
 sixteen  of  this  act  shall take effect immediately and shall apply to
 taxable years beginning on or after January 1, 2006.
 

S 3. This act shall take effect immediately; provided,  however,  that
 the amendments made to subdivision 22 of section 282 of the tax law made
 by  section one of this act shall not affect the repeal of such subdivi
 sion and shall be deemed repealed therewith.
 PART M
 

Section 1.

Section 11 of part EE of chapter 63 of the  laws  of  2000,
 amending  the  tax law and other laws relating to modifying the distrib
 ution of funds from the motor vehicle fuel excise  tax,  as  amended  by
 section  1-b  of part A of chapter 63 of the laws of 2005, is amended to
 read as follows:

 

S 11. Notwithstanding any other law, rule or regulation to the contra
 ry, the comptroller is hereby authorized  and  directed  to  deposit  in
 equal  monthly installments and distribute pursuant to the provisions of
 subdivision (d) of section 301-j of the tax law amounts listed below  to
 the  credit of the dedicated highway and bridge trust fund and the dedi
 cated mass transportation trust fund from [taxes  and  fees]  ALL  MOTOR
 VEHICLE  RECEIPTS  now  deposited  into  the  general  fund  pursuant to
 provisions of the vehicle and traffic law:   twenty-eight  million  four
 hundred  thousand  dollars  from  April  1, 2002 through March 31, 2003,
 sixty-seven million nine hundred thousand dollars  from  April  1,  2003
 through March 31, 2004, one hundred seventy million one hundred thousand
 dollars  from  April  1,  2004  through  March 31, 2005, and one hundred
 percent of all [taxes and  fees]  MOTOR  VEHICLE  RECEIPTS  pursuant  to
 provisions  of  the  vehicle  and  traffic  law  that  are not otherwise
 directed to be deposited in a fund other  than  the  general  fund  from
 April  1,  2005  through  March  31, 2006, and the same amount each year
 thereafter.
 

S 2. This act shall take effect April 1, 2011.
 
       S. 2811--B                         85
 PART N
 

Section  1.  Paragraph  1  of subdivision a of section 1612 of the tax
 law, as amended by chapter 147 of the laws of 2010, is amended  to  read
 as follows:

 (1) sixty percent of the total amount for which tickets have been sold
 for  a lawful KENO OR SIMILAR STYLE lottery game [introduced on or after
 the  effective  date  of  this  paragraph,  subject  to  the   following
 provisions:
 (A) such game shall be available only on premises occupied by licensed
 lottery sales agents, subject to the following provisions:
 (i)  if  the licensee holds a license issued pursuant to the alcoholic
 beverage control law to sell alcoholic beverages for consumption on  the
 premises, then not less than twenty-five percent of the gross sales must
 result from sales of food;
 (ii)  if  the  licensee does not hold a license issued pursuant to the
 alcoholic beverage control law to sell alcoholic beverages for  consump-
 tion  on  the  premises,  then  the  premises must have a minimum square
 footage greater than two thousand five hundred square feet;
 (iii) notwithstanding the foregoing provisions,  television  equipment
 that  automatically  displays  the  results  of  such  drawings  may  be
 installed and used without regard to the percentage of food sales or the
 square footage if such premises are used as:
 (I) a commercial bowling establishment, or
 (II) a facility authorized under the racing, pari-mutuel wagering  and
 breeding law to accept pari-mutuel wagers;
 (B) the rules for the operation of such game shall be as prescribed by
 regulations  promulgated  and adopted by the division, provided however,
 that such rules shall provide that no person under the age of twenty-one
 may participate in such games on the premises of a licensee who holds  a
 license  issued  pursuant  to the alcoholic beverage control law to sell
 alcoholic beverages for consumption  on  the  premises;  and,  provided,
 further,  that such regulations may be revised on an emergency basis not
 later than ninety days after the enactment of this paragraph in order to
 conform such regulations to the requirements of this paragraph]; or
 

S 2. This act shall take effect immediately.
 PART O
 

Section 1. Subparagraph (ii)  of  paragraph  1  of  subdivision  b  of
 section  1612  of  the  tax law is amended by adding a new clause (I) to
 read as follows:

 (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY FACILITIES,  VENDOR'S  CAPITAL
 AWARDS,  FEES  PAYABLE  TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT
 CONTRACTORS, OR RACING SUPPORT PAYMENTS.
 

S 2.

Section 1617-a of the tax law is amended by adding a new subdivi
 sion f to read as follows:

 F. (1) THE DIVISION MAY ADMINISTER A FREE PLAY  ALLOWANCE  PROGRAM  TO
 OFFER  PLAYERS  OR  PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES FREE PLAY
 CREDITS FOR THE PURPOSE OF  INCREASING  REVENUES  EARNED  BY  THE  VIDEO
 LOTTERY  PROGRAM  FOR THE SUPPORT OF EDUCATION. FOR THE PURPOSES OF THIS
 
       S. 2811--B                         86
 SUBDIVISION, "FREE PLAY  ALLOWANCE  CREDIT"  MEANS  A  SPECIFIED  DOLLAR
 AMOUNT  THAT  (I)  MAY  BE USED BY A PLAYER TO PLAY A VIDEO LOTTERY GAME
 WITHOUT PAYING ANY OTHER CONSIDERATION, AND (II)  IS  NOT  USED  IN  THE
 CALCULATION OF TOTAL REVENUE WAGERED AFTER PAYOUT OF PRIZES.
 (2)  FOR EACH VIDEO LOTTERY FACILITY, THE DIVISION SHALL AUTHORIZE THE
 USE OF FREE PLAY ALLOWANCE CREDITS IF  THE  OPERATOR  OF  SUCH  FACILITY
 SUBMITS  A  WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE THAT THE
 DIVISION DETERMINES IS DESIGNED TO INCREASE THE AMOUNT OF REVENUE EARNED
 BY VIDEO LOTTERY GAMING AT SUCH FACILITY FOR THE SUPPORT OF EDUCATION.
 (3) FOR EACH VIDEO LOTTERY FACILITY, THE ANNUAL VALUE OF THE FREE PLAY
 ALLOWANCE CREDITS AUTHORIZED FOR USE BY THE OPERATOR  PURSUANT  TO  THIS
 SUBDIVISION SHALL NOT EXCEED AN AMOUNT EQUAL TO TEN PERCENT OF THE TOTAL
 AMOUNT  WAGERED ON VIDEO LOTTERY GAMES AFTER PAYOUT OF PRIZES. THE DIVI
 SION SHALL ESTABLISH PROCEDURES TO ASSURE THAT FREE PLAY ALLOWANCE CRED
 ITS DO NOT EXCEED SUCH AMOUNT.
 (4) THE DIVISION, IN CONJUNCTION WITH THE DIRECTOR OF THE BUDGET,  MAY
 SUSPEND  THE  USE  OF FREE PLAY ALLOWANCE CREDITS AUTHORIZED PURSUANT TO
 THIS SUBDIVISION WHENEVER THEY JOINTLY DETERMINE THAT THE  USE  OF  FREE
 PLAY  ALLOWANCE  CREDITS  ARE  NOT EFFECTIVE IN INCREASING THE AMOUNT OF
 REVENUE EARNED FOR THE SUPPORT OF EDUCATION, AND SUCH  USE  MAY  NOT  BE
 RESUMED  UNLESS  THE  OPERATOR OF SUCH FACILITY SUBMITS A NEW OR REVISED
 WRITTEN PLAN FOR THE USE OF THE FREE PLAY ALLOWANCE  THAT  THE  DIVISION
 DETERMINES  IS  DESIGNED  MORE EFFECTIVELY TO PRODUCE AN INCREASE IN THE
 AMOUNT OF REVENUE EARNED BY VIDEO LOTTERY GAMING AT  SUCH  FACILITY  FOR
 THE SUPPORT OF EDUCATION.
 (5) NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT THE OPERA
 TOR OF A VIDEO LOTTERY FACILITY FROM OFFERING FREE PLAY CREDITS TO PLAY
 ERS OR PROSPECTIVE PLAYERS OF VIDEO LOTTERY GAMES WHEN THE VALUE OF SUCH
 FREE  PLAY  CREDITS  IS  INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT
 WAGERED ON VIDEO LOTTERY GAMES AND THE TOTAL AMOUNT WAGERED AFTER PAYOUT
 OF PRIZES, AND THE OPERATOR OF SUCH FACILITY PAYS THE DIVISION THE  FULL
 AMOUNT DUE AS THE RESULT OF SUCH CALCULATIONS.
 (6)  THE  DIVISION  MAY  AMEND  THE  CONTRACT WITH THE PROVIDER OF THE
 CENTRAL COMPUTER SYSTEM THAT CONTROLS THE VIDEO LOTTERY  NETWORK  DURING
 THE TERM OF SUCH CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDI
 VISION TO PROVIDE ADDITIONAL CONSIDERATION TO SUCH PROVIDER IN AN AMOUNT
 DETERMINED  BY  THE DIVISION TO BE NECESSARY TO COMPENSATE FOR (I) PROC
 ESSING FREE PLAY ALLOWANCE TRANSACTIONS  AND  (II)  SYSTEM  UPDATES  AND
 MODIFICATIONS OTHERWISE NEEDED AS OF SUCH EFFECTIVE DATE.
 

S 3. This act shall take effect immediately.
 PART P
 

Section  1.  Paragraph  2  of subdivision a of section 1612 of the tax
 law, as amended by section 1 of part P of chapter  85  of  the  laws  of
 2002, is amended to read as follows:

 (2) sixty-five percent of the total amount for which tickets have been
 sold  for  the  "Instant Cash" game in which the participant purchases a
 preprinted ticket on which dollar amounts or symbols  are  concealed  on
 the face or the back of such ticket, provided however up to [three such]
 FIVE  NEW  games  may  be  offered  during the fiscal year, seventy-five
 percent of the total amount for which tickets have been  sold  for  such
 [three] FIVE games in which the participant purchases a preprinted tick
 et  on  which dollar amounts or symbols are concealed on the face or the
 back of such ticket; or
 

S 2. This act shall take effect immediately.
 
       S. 2811--B                         87
 PART Q
 

Section  1.  Paragraph  3  of subdivision a of section 1612 of the tax
 law, as amended by section 2 of part D of chapter 383  of  the  laws  of
 2001, is amended to read as follows:

 (3) fifty percent of the total amount for which tickets have been sold
 for  games  known  as: (A) the "Daily Numbers Game" or "Win 4", discrete
 games in which the participants select no more than  three  or  four  of
 their own numbers to match with three or four numbers drawn by the divi
 sion  for  purposes of determining winners of such games, (B) "Pick 10",
 offered no more than once daily, in which  participants  select  from  a
 specified  field  of  numbers a subset of ten numbers to match against a
 subset of numbers to be drawn by the division from such field of numbers
 for the purpose of determining winners  of  such  game,  (C)  "Take  5",
 offered  no  more  than  once daily, in which participants select from a
 specified field of numbers a subset of five numbers to match  against  a
 subset  of  five  numbers to be drawn by the division from such field of
 numbers for purposes of determining winners of such game,  and  (D)  any
 joint, multi-jurisdiction, and out-of-state lottery, EXCEPT SUCH PERCENT
 MAY EXCEED FIFTY PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS HAVE BEEN
 SOLD  FOR  ANY JOINT, MULTI-JURISDICTION, AND OUT-OF-STATE LOTTERY IF AT
 LEAST TWO-THIRDS OF THE  LOTTERY  JURISDICTIONS  PARTICIPATING  IN  SUCH
 LOTTERY  AGREE  TO A PERCENTAGE THAT EXCEEDS FIFTY PERCENT AND EXCEPT AS
 OTHERWISE PROVIDED IN PARAGRAPH ONE OF SUBDIVISION B OF THIS SECTION FOR
 ANY JOINT, MULTI-JURISDICTION, OUT-OF-STATE VIDEO LOTTERY GAMING; or
 

S 2. This act shall take effect immediately.
 PART R
 

Section 1. The opening paragraph of paragraph 1 of  subdivision  b  of
 section  1612  of  the  tax  law, as amended by section 1 of part O-1 of
 chapter 57 of the laws of 2009, is amended to read as follows:

 Notwithstanding section one hundred twenty-one of  the  state  finance
 law,  on  or  before the twentieth day of each month, the division shall
 pay into the state treasury, to the credit of  the  state  lottery  fund
 created  by section ninety-two-c of the state finance law, not less than
 forty-five percent of the total amount for which tickets have been  sold
 for  games  defined  in  paragraph four of subdivision a of this section
 during the preceding month, not less than  thirty-five  percent  of  the
 total amount for which tickets have been sold for games defined in para
 graph three of subdivision a of this section during the preceding month,
 not  less than twenty percent of the total amount for which tickets have
 been sold for games defined in paragraph two of subdivision  a  of  this
 section during the preceding month, provided however that for games with
 a  prize  payout  of  seventy-five percent of the total amount for which
 tickets have been sold, the division shall pay not less than ten percent
 of sales into the state treasury and not less than  twenty-five  percent
 of  the  total amount for which tickets have been sold for games defined
 in paragraph one of subdivision a of this section during  the  preceding
 month;  and the balance of the total revenue after payout for prizes for
 games known as "video lottery gaming," INCLUDING ANY JOINT, MULTI-JURIS
 DICTION, AND OUT-OF-STATE VIDEO LOTTERY GAMING,
 

S 2. Paragraph 1 of subdivision c of section 1612 of the tax  law,  as
 amended  by  section  2 of part CC of chapter 61 of the laws of 2005, is
 amended to read as follows:

 
       S. 2811--B                         88
 1. The specifications for video lottery gaming, INCLUDING  ANY  JOINT,
 MULTI-JURISDICTION,  AND  OUT-OF-STATE  VIDEO  LOTTERY  GAMING, shall be
 designed in such a manner as to pay prizes that  average  no  less  than
 ninety percent of sales.
 

S 3. This act shall take effect immediately.
 PART S
 

Section  1.    Paragraph  (a)  of subdivision 1 of section 1003 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  C  of  chapter  134 of the laws of 2010, is amended to read as
 follows:

 (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to  the  board  for  a
 license so to do. Applications for licenses shall be in such form as may
 be  prescribed  by the board and shall contain such information or other
 material or evidence as the board  may  require.  No  license  shall  be
 issued  by the board authorizing the simulcast transmission of thorough
 bred races from a track located in Suffolk  county.  The  fee  for  such
 licenses  shall  be five hundred dollars per simulcast facility per year
 payable by the licensee to the board for deposit into the general  fund.
 Except  as  provided herein, the board shall not approve any application
 to conduct simulcasting into individual or group  residences,  homes  or
 other areas for the purposes of or in connection with pari-mutuel wager
 ing.  The board may approve simulcasting into residences, homes or other
 areas to be conducted jointly by one or more regional off-track  betting
 corporations and one or more of the following: a franchised corporation,
 thoroughbred racing corporation or a harness racing corporation or asso
 ciation;  provided  (i) the simulcasting consists only of those races on
 which pari-mutuel betting is authorized by this chapter at one  or  more
 simulcast  facilities  for  each  of  the  contracting off-track betting
 corporations which shall include wagers made in accordance with  section
 one thousand fifteen, one thousand sixteen and one thousand seventeen of
 this  article;  provided  further  that the contract provisions or other
 simulcast arrangements for such simulcast  facility  shall  be  no  less
 favorable than those in effect on January first, two thousand five; (ii)
 that  each  off-track  betting  corporation having within its geographic
 boundaries such residences, homes or other areas technically capable  of
 receiving  the  simulcast signal shall be a contracting party; (iii) the
 distribution of revenues shall be subject to  contractual  agreement  of
 the  parties  except that statutory payments to non-contracting parties,
 if any, may not be reduced; provided, however, that  nothing  herein  to
 the  contrary  shall  prevent  a  track  from televising its races on an
 irregular basis primarily for promotional or marketing purposes as found
 by the board. For purposes of this paragraph, the provisions of  section
 one  thousand  thirteen  of  this article shall not apply. Any agreement
 authorizing an in-home simulcasting experiment commencing prior  to  May
 fifteenth,  nineteen  hundred  ninety-five,  may,  and all its terms, be
 extended until June thirtieth, two thousand [eleven]  TWELVE;  provided,
 however,  that  any  party to such agreement may elect to terminate such
 agreement upon conveying written notice to all  other  parties  of  such
 agreement  at  least  forty-five days prior to the effective date of the
 termination, via registered mail. Any party to  an  agreement  receiving
 
       S. 2811--B                         89
 such  notice of an intent to terminate, may request the board to mediate
 between the parties new terms and conditions in a replacement  agreement
 between the parties as will permit continuation of an in-home experiment
 until  June thirtieth, two thousand [eleven] TWELVE; and (iv) no in-home
 simulcasting in the thoroughbred special betting  district  shall  occur
 without the approval of the regional thoroughbred track.
 

S  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section 2 of part C of chapter 134 of the laws of 2010,  is  amended  to
 read as follows:

 (iii) Of the sums retained by a receiving track located in Westchester
 county  on  races received from a franchised corporation, for the period
 commencing January first, two thousand eight and continuing through June
 thirtieth, two thousand [eleven] TWELVE, the amount used exclusively for
 purses to be awarded at races conducted by such receiving track shall be
 computed as follows: of the sums so retained, two and  one-half  percent
 of  the  total pools. Such amount shall be increased or decreased in the
 amount of fifty percent of the difference in  total  commissions  deter
 mined  by  comparing  the total commissions available after July twenty
 first, nineteen hundred ninety-five to the total commissions that  would
 have  been  available to such track prior to July twenty-first, nineteen
 hundred ninety-five.
 

S 3. The opening paragraph of subdivision 1 of  section  1014  of  the
 racing,  pari-mutuel  wagering and breeding law, as amended by section 3
 of part C of chapter 134 of the laws of 2010,  is  amended  to  read  as
 follows:

 The  provisions of this section shall govern the simulcasting of races
 conducted at thoroughbred tracks located in another state or country  on
 any day during which a franchised corporation is conducting a race meet
 ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
 thirtieth, two thousand [eleven] TWELVE and on  any  day  regardless  of
 whether  or not a franchised corporation is conducting a race meeting in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two thousand [eleven] TWELVE.  On any day on which a  franchised  corpo
 ration  has  not  scheduled  a  racing program but a thoroughbred racing
 corporation located within the state is conducting  racing,  every  off
 track  betting corporation branch office and every simulcasting facility
 licensed in accordance  with  section  one  thousand  seven  (that  have
 entered  into  a  written  agreement with such facility's representative
 horsemen's organization, as approved by the board), one thousand  eight,
 or  one  thousand  nine  of  this  article shall be authorized to accept
 wagers and display the live simulcast signal  from  thoroughbred  tracks
 located  in  another  state  or foreign country subject to the following
 provisions:

 

S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
 and breeding law, as amended by section 4 of part C of  chapter  134  of
 the laws of 2010, is amended to read as follows:

 1.  The  provisions  of  this section shall govern the simulcasting of
 races conducted at harness tracks located in another  state  or  country
 during  the period July first, nineteen hundred ninety-four through June
 thirtieth, two thousand [eleven] TWELVE.  This section  shall  supersede
 all inconsistent provisions of this chapter.
 

S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  C  of  chapter  134 of the laws of 2010, is amended to read as
 follows:

 
       S. 2811--B                         90
 The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth, two thousand [eleven] TWELVE.  Every off-track betting corpo
 ration branch office and every simulcasting facility licensed in accord
 ance  with  section  one thousand seven that have entered into a written
 agreement with such facility's representative horsemen's organization as
 approved by the board, one thousand eight or one thousand nine  of  this
 article  shall be authorized to accept wagers and display the live full
 card simulcast signal of thoroughbred tracks (which may include  quarter
 horse  or  mixed  meetings provided that all such wagering on such races
 shall be construed to be thoroughbred races) located in another state or
 foreign country, subject to the following provisions; provided, however,
 no such written agreement shall be required of a franchised  corporation
 licensed in accordance with section one thousand seven of this article:

 

S  6. The opening paragraph of section 1018 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 6 of part C of  chapter
 134 of the laws of 2010, is amended to read as follows:

 Notwithstanding  any  other  provision of this chapter, for the period
 July twenty-fifth, two thousand one through September eighth, two  thou
 sand  [ten]  ELEVEN,  when a franchised corporation is conducting a race
 meeting within the  state  at  Saratoga  Race  Course,  every  off-track
 betting  corporation  branch  office  and  every  simulcasting  facility
 licensed in accordance with section one thousand seven (that has entered
 into a written agreement with such facility's representative  horsemen's
 organization  as approved by the board), one thousand eight or one thou
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  simulcast signal from thoroughbred tracks located in
 another state, provided that such facility shall accept wagers on  races
 run  at  all  in-state  thoroughbred  tracks which are conducting racing
 programs subject to the following provisions; provided, however, no such
 written agreement shall be required of a franchised corporation licensed
 in accordance with section one thousand seven of this article.
 

S 7.

Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting,  as  amended  by section 7 of part C of chapter 134 of the
 laws of 2010, is amended to read as follows:

 

S 32. This act shall take effect immediately and the  pari-mutuel  tax
 reductions  in  section  six  of  this  act  shall  expire and be deemed
 repealed on  July  1,  [2011]  2012;  provided,  however,  that  nothing
 contained  herein  shall be deemed to affect the application, qualifica
 tion, expiration, or repeal of any  provision  of  law  amended  by  any
 section  of  this act, and such provisions shall be applied or qualified
 or shall expire or be deemed repealed in the same manner,  to  the  same
 extent  and on the same date as the case may be as otherwise provided by
 law; provided further, however, that sections twenty-three  and  twenty
 five of this act shall remain in full force and effect only until May 1,
 1997 and at such time shall be deemed to be repealed.
 

S  8. 

Section  54  of  chapter  346 of the laws of 1990, amending the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting and the imposition of certain taxes, as amended by  section
 8  of  part  C of chapter 134 of the laws of 2010, is amended to read as
 follows:

 

S 54. This act  shall  take  effect  immediately;  provided,  however,
 sections  three  through twelve of this act shall take effect on January
 
       S. 2811--B                         91
 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed
 ing law, as added by section thirty-eight of this act, shall expire  and
 be  deemed repealed on July 1, [2011] 2012; and section eighteen of this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.
 

S  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 10 of  part
 C of chapter 134 of the laws of 2010, is amended to read as follows:

 (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the racing and  wagering
 board.  Such rate may not be changed more than once per calendar quarter
 to be effective on the first day of the calendar quarter. "Exotic  bets"
 and  "multiple  bets"  shall have the meanings set forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty
 first,  two  thousand  one, such tax on all wagers shall be two and six
 tenths per centum and for the  period  April  first,  two  thousand  one
 through December thirty-first, two thousand [eleven] TWELVE, such tax on
 all  wagers  shall  be one and six-tenths per centum, plus, in each such
 period, twenty per centum of the breaks. Payment to the New  York  state
 thoroughbred  breeding  and  development  fund by such franchised corpo
 
       S. 2811--B                         92
 ration shall be one-half of one per centum of total daily on-track pari
 mutuel pools resulting from regular, multiple and exotic bets and  three
 per  centum  of super exotic bets provided, however, that for the period
 September  tenth,  nineteen  hundred  ninety-nine  through March thirty
 first, two thousand one, such payment shall be  six-tenths  of  one  per
 centum  of  regular,  multiple and exotic pools and for the period April
 first, two thousand one  through  December  thirty-first,  two  thousand
 [eleven] TWELVE, such payment shall be seven-tenths of one per centum of
 such pools.
 

S  10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager
 ing and breeding law, as amended by section 11 of part C of chapter  134
 of the laws of 2010, is amended to read as follows:

 5.  The  provisions  of this section shall expire and be of no further
 force and effect after June thirtieth, two thousand [eleven] TWELVE.
 

S 11. This act shall take effect immediately.
 PART T
 

Section 1. Paragraph (h) of subdivision 12-G of section 210 of the tax
 law is REPEALED.
 

S 2. This act shall take effect immediately.
 PART U
 

Section 1. Paragraphs (a) and (b) of subdivision 2 of section 480-a of
 the tax law, as amended by section 125 of part C of chapter  58  of  the
 laws of 2009, are amended to read as follows:

 (a)  (i)  Every retail dealer and every person owning or, if the owner
 is not the operator, then any  person  operating  one  or  more  vending
 machines  through  which cigarettes or tobacco products are sold in this
 state, who is required under section eleven hundred thirty-six  of  this
 chapter to file a return for the quarterly period ending on the last day
 of August, nineteen hundred ninety or for the quarterly period ending on
 the  last day of August in any year thereafter, must file an application
 for registration under this section with that quarterly return, in  such
 form as shall be prescribed by the commissioner.
 (ii) Each retail dealer must pay an application fee with the quarterly
 return  [described by subparagraph (i) of this paragraph] OF TWO HUNDRED
 DOLLARS for each retail place of business in this state through which it
 sells cigarettes or tobacco products[, which is based on gross sales  of
 that  place  of business during the previous calendar year. The applica-
 tion fee is: one thousand dollars for each retail place of business with
 gross sales totaling less than one million dollars;  two  thousand  five
 hundred  dollars  for  each  retail  place  of business with gross sales
 totaling at least one million dollars but less than ten million dollars;
 and five thousand dollars for each retail place of business  with  gross
 sales totaling at least ten million dollars].
 (iii) Every person who owns or, if the owner is not the operator, then
 any person who operates one or more vending machines through which ciga
 rettes or tobacco products are sold in this state, regardless of whether
 located on the premises of the vending machine owner or, if the owner is
 not  the  operator, then the premises of the operator or the premises of
 any other person, must pay an application fee with the quarterly  return
 [described  by  subparagraph (i) of this paragraph] OF FIFTY DOLLARS for
 each vending machine[, which is based on gross  sales  of  that  vending
 machine  during  the previous calendar year. The application fee is: two
 
       S. 2811--B                         93
 hundred fifty dollars for each vending machine with gross sales totaling
 less than one hundred thousand dollars; six hundred twenty-five  dollars
 for  each vending machine with gross sales totaling at least one hundred
 thousand dollars but less than one million dollars; and one thousand two
 hundred fifty dollars for each vending machine with gross sales totaling
 at  least one million dollars]. The department will issue a registration
 certificate, as prescribed by  the  commissioner,  after  receipt  of  a
 registration  application and the appropriate registration fee, prior to
 the next succeeding January first.
 (b) Every retail dealer and every person who owns or, if the owner  is
 not  the  operator,  then  any  person  who operates one or more vending
 machines through which cigarettes or tobacco products are sold  in  this
 state  who  commences  business  after  the last day of August, nineteen
 hundred ninety, or who commences selling cigarettes or tobacco  products
 at  retail  through  a  new or different place of business in this state
 after such date, or who commences selling cigarettes or tobacco products
 through new or different vending machines after  such  date,  must  file
 with  the  commissioner  an  application  for  registration,  in  a form
 prescribed by him or her, at least thirty days prior to commencing busi
 ness or commencing sales. Each application must  be  accompanied  by  an
 application fee OF TWO HUNDRED DOLLARS for each retail place of business
 and FIFTY DOLLARS FOR each vending machine to be registered. [The amount
 of  the application fee is determined by subparagraphs (ii) and (iii) of
 paragraph (a) of this subdivision, except that any retail place of busi-
 ness or vending machine with zero dollars  in  gross  sales  during  the
 previous calendar year is subject to the lowest application fee required
 by such subparagraphs.] The department, within ten days after receipt of
 an  application for registration under this paragraph and payment of the
 proper fee for application for registration, will issue  a  registration
 certificate, as prescribed by the commissioner, for each retail place of
 business or cigarette or tobacco products vending machine registered.
 

S 2.

Section 482 of the tax law, as amended by section 10 of part D of
 chapter 134 of the laws of 2010, is amended to read as follows:

 

S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter
 est  and  penalties collected or received by the commissioner under this
 article and article twenty-A of this  chapter  shall  be  deposited  and
 disposed  of  pursuant to the provisions of section one hundred seventy
 one-a of this chapter.  (b)  From  the  taxes,  interest  and  penalties
 collected  or  received  by the commissioner under sections four hundred
 seventy-one and four hundred seventy-one-a of this article, effective on
 and  after  March  first,  two  thousand,  forty-nine   and   fifty-five
 hundredths, and effective on and after February first, two thousand two,
 forty-three  and  seventy  hundredths;  and  effective  on and after May
 first, two thousand  two,  sixty-four  and  fifty-five  hundredths;  and
 effective  on  and  after April first, two thousand three, sixty-one and
 twenty-two hundredths percent; and effective on and  after  June  third,
 two  thousand  eight,  seventy  and  sixty-three hundredths percent; and
 effective on and after July first, two thousand ten, seventy-six percent
 collected or received under those sections  must  be  deposited  to  the
 credit  of  the  tobacco  control  and  insurance initiatives pool to be
 established and distributed by the commissioner of health in  accordance
 with section twenty-eight hundred seven-v of the public health law. [(c)
 From  the  fees collected or received by the commissioner under subdivi-
 sion two of section four hundred eighty-a of this article, effective  on
 or  after  September  first,  two thousand nine, any monies collected or
 received under that section in excess of three million dollars  must  be
 
       S. 2811--B                         94
 deposited to the credit of the tobacco control and insurance initiatives
 pool  to be distributed by the commissioner of health in accordance with
 section twenty-eight hundred seven-v of the public health law.]
 

S  3.  Subdivisions  (a) and (b) of section 92-dd of the state finance
 law, as amended by section 125-c of part C of chapter 58 of the laws  of
 2009, are amended to read as follows:

 (a)  On  and  after  April  first,  two thousand five, such fund shall
 consist of the revenues heretofore and hereafter collected  or  required
 to  be  deposited  pursuant  to paragraph (a) of subdivision eighteen of
 section twenty-eight hundred seven-c, and sections twenty-eight  hundred
 seven-j,  twenty-eight  hundred seven-s and twenty-eight hundred seven-t
 of the public health law, [subdivisions (b) and  (c)  of]  section  four
 hundred  eighty-two  of  the  tax law and required to be credited to the
 tobacco control and insurance  initiatives  pool,  subparagraph  (O)  of
 paragraph  four of subsection (j) of section four thousand three hundred
 one of the insurance law, section twenty-seven of part A of chapter  one
 of  the laws of two thousand two and all other moneys credited or trans
 ferred thereto from any other fund or source pursuant to law.
 (b) The pool administrator under contract  with  the  commissioner  of
 health  pursuant  to  section twenty-eight hundred seven-y of the public
 health law shall continue to collect moneys required to be collected  or
 deposited  pursuant  to paragraph (a) of subdivision eighteen of section
 twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j,
 twenty-eight hundred seven-s and twenty-eight  hundred  seven-t  of  the
 public  health  law, and shall deposit such moneys in the HCRA resources
 fund. The comptroller shall deposit moneys collected or required  to  be
 deposited pursuant to [subdivisions (b) and (c) of] section four hundred
 eighty-two  of  the  tax  law and required to be credited to the tobacco
 control and insurance initiatives pool, subparagraph  (O)  of  paragraph
 four of subsection (j) of section four thousand three hundred one of the
 insurance law, section twenty-seven of part A of chapter one of the laws
 of two thousand two and all other moneys credited or transferred thereto
 from  any  other  fund  or  source pursuant to law in the HCRA resources
 fund.
 

S 4. 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, 2009 and shall apply only to  fees  related
 to  applications  for registration for the 2010 calendar year and there
 after; and provided further, however, that sections  two  and  three  of
 this  act  shall  be deemed to have been in full force and effect on and
 after September 1, 2009.
 PART V
 

Section 1. Paragraph 34 of subdivision (b) of section 1101 of the  tax
 law,  as  amended  by  section 1 of part WW of chapter 57 of the laws of
 2010, is amended to read as follows:

 (34) Transportation service. The service of transporting, carrying  or
 conveying  a  person  or persons by livery service WHERE PAYMENT FOR THE
 SERVICE IS IN A FORM OTHER THAN CASH; whether to a single destination or
 to multiple destinations; and whether the compensation  paid  by  or  on
 behalf  of the passenger is based on mileage, trip, time consumed or any
 other basis. A service that begins and ends  in  this  state  is  deemed
 intra-state even if it passes outside this state during a portion of the
 trip. However, transportation service does not include transportation of
 persons  in  connection  with  funerals. Transportation service includes
 
       S. 2811--B                         95
 transporting, carrying, or conveying property of the person being trans
 ported, whether owned by or in the care of such person. In  addition  to
 what  is  included  in the definition of "receipt" in paragraph three of
 this  subdivision,  receipts  from  the  sale  of transportation service
 subject to tax include any handling, carrying, baggage, booking service,
 administrative, mark-up, additional, or other  charge,  of  any  nature,
 made  in  conjunction  with  the  transportation service. Livery service
 means service provided by LIVERY, limousine, black car or other  [motor]
 FOR-HIRE vehicle, with a driver, but excluding (i) a taxicab[,] AND (ii)
 a  bus,  [and  (iii), in a city of one million or more in this state, an
 affiliated livery vehicle,] and excluding any scheduled public  service.
 LIVERY  MEANS  A  FOR-HIRE  VEHICLE WITH A SEATING CAPACITY OF UP TO SIX
 PERSONS, INCLUDING THE DRIVER, AND CHARGES FOR SERVICE ON THE  BASIS  OF
 FLAT  RATE,  TIME,  MILEAGE,  OR ZONES. Limousine means a vehicle with a
 seating capacity of up to fourteen persons, excluding the driver.  Black
 car  means  a  for-hire  vehicle  dispatched  from  a  central facility.
 ["Affiliated livery vehicle" means a for-hire motor vehicle with a seat-
 ing capacity of up to six persons, including the driver,  other  than  a
 black  car  or  luxury limousine, that is authorized and licensed by the
 taxi and limousine commission of a city of one million  or  more  to  be
 dispatched  by  a  base  station located in such a city and regulated by
 such taxi and limousine commission; and the charges for service provided
 by an affiliated livery vehicle are on the basis  of  flat  rate,  time,
 mileage, or zones and not on a garage to garage basis.]
 

S  2.  Subparagraph  (i)  of paragraph 2 of subdivision (o) of section
 1111 of the tax law, as added by section 4 of part U-1 of chapter 57  of
 the laws of 2009, is amended to read as follows:

 (i)  Any  municipality or public corporation that establishes or regu
 lates LIVERY, black car, limousine or  other  FOR-HIRE  vehicle  service
 fares  must  adjust  those  fares  to include therein the tax imposed by
 paragraph ten of subdivision (c) of section eleven hundred five of  this
 part  and  the taxes imposed by other sections of this part and pursuant
 to the authority of article twenty-nine of this chapter on the  services
 taxed  by  such  paragraph ten and must require that any meters or other
 devices in the vehicles or otherwise that measure fares be  adjusted  to
 include  these  taxes,  as the same are from time to time imposed and as
 the rates of those taxes may change.
 

S 3. This act shall take effect immediately; provided,  however,  that
 the  provisions  of this act shall first be implemented on the first day
 of a sales tax quarterly period, as such period is described in subdivi
 sion (b) of section 1136 of the tax law, next commencing after this  act
 shall have become a law.
 PART W
 

Section 1.  Subdivision 2 of section 470 of the tax law, as amended by
 section  15  of part D of chapter 134 of the laws of 2010, is amended to
 read as follows:

 2. "Tobacco products." Any cigar,  including  a  little  cigar,  BLUNT
 WRAP,  or  tobacco,  other  than cigarettes, intended for consumption by
 smoking, chewing, or as snuff.
 

S 2.

Section 470 of the tax law is amended by adding a new subdivision
 2-c to read as follows:

 2-C. "BLUNT WRAP." ANY INDIVIDUAL TOBACCO WRAPPER,  ALSO  KNOWN  AS  A
 WRAP  OR  ROLL-YOUR-OWN  CIGAR WRAP, THAT IS MADE WHOLLY OR IN PART FROM
 TOBACCO, INCLUDING RECONSTITUTED TOBACCO, WHETHER IN THE FORM  OF  SHEET
 
       S. 2811--B                         96
 OR TUBE, IF SUCH A WRAP IS DESIGNED TO BE SOLD TO INDIVIDUALS AND NOT TO
 INCLUDE TOBACCO LEAF.
 

S  3.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
 as amended by section 18 of part D of chapter 134 of the laws  of  2010,
 is amended to read as follows:

 (a)  Such  tax on tobacco products other than CIGARS, snuff and little
 cigars shall be at the rate of seventy-five  percent  of  the  wholesale
 price,  and  is  intended  to  be imposed only once upon the sale of any
 tobacco products other than snuff and little cigars.
 

S 4. Subdivision 1 of section 471-b of  the  tax  law  is  amended  by
 adding a new paragraph (d) to read as follows:

 (D) SUCH TAX ON CIGARS SHALL BE AT THE RATE OF SEVENTY-FIVE PERCENT OF
 THE WHOLESALE PRICE OR ONE DOLLAR PER CIGAR, WHICHEVER IS LESS.
 

S 5. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
 as  amended  by section 20 of part D of chapter 134 of the laws of 2010,
 is amended to read as follows:

 (i) Such tax on tobacco products other than CIGARS, snuff  and  little
 cigars  shall  be  at  the rate of seventy-five percent of the wholesale
 price.
 

S 6. Subdivision (a) of section 471-c of the tax  law  is  amended  by
 adding a new paragraph (iv) to read as follows:

 (IV)  SUCH  TAX ON CIGARS SHALL BE AT THE RATE OF SEVENTY-FIVE PERCENT
 OF THE WHOLESALE PRICE OR ONE DOLLAR PER CIGAR, WHICHEVER IS LESS.
 

S 7.

Section 1399-aa of the public health law is amended by  adding  a
 new subdivision 7-a to read as follows:

 7-A.  "BLUNT WRAP" MEANS ANY INDIVIDUAL TOBACCO WRAPPER, ALSO KNOWN AS
 A WRAP OR ROLL-YOUR-OWN CIGAR WRAP, THAT IS MADE WHOLLY OR IN PART  FROM
 TOBACCO,  INCLUDING  RECONSTITUTED TOBACCO, WHETHER IN THE FORM OF SHEET
 OR TUBE, IF SUCH A WRAP IS DESIGNED TO BE SOLD TO INDIVIDUALS AND NOT TO
 INCLUDE TOBACCO LEAF.
 

S 8. Subdivision 2 of section 1399-gg of the  public  health  law,  as
 added by chapter 513 of the laws of 2004, is amended to read as follows:

 2.  No  person  engaged  in  the business of manufacturing, selling or
 otherwise distributing tobacco products,  herbal  cigarettes,  cigarette
 wrapping  papers,  wrapping leaves or tubes, or any agent or employee of
 such person, shall manufacture or cause to be manufactured for  sale  in
 this  state,  or  sell  or  distribute in this state: (a) any package or
 other container of cigarettes containing fewer than  twenty  cigarettes;
 (b) any package of roll-your-own tobacco containing less than six-tenths
 of  an  ounce of tobacco; or (c) any package or other container of ciga
 rette wrapping papers, wrapping  leaves  or  tubes  OR  BLUNT  WRAPS  AS
 DEFINED  IN SUBDIVISION SEVEN-A OF SECTION THIRTEEN HUNDRED NINETY-NINE
 AA OF THIS ARTICLE, that are or are held out to be suitable for  use  or
 used as devices to wrap tobacco for smoking, containing fewer than twen
 ty sheets, leaves or tubes.
 

S  9. Notwithstanding any provision of law to the contrary, any inven
 tory of tobacco products as of  12:01  am  on  June  1,  2011  that  are
 affected by the provisions of this act shall be eligible for a refund of
 tax  for the difference between the new rate of tax and taxes previously
 paid on such product pursuant to the provision of section 476 of the tax
 law.
 

S 10. This act shall take effect June 1, 2011.
 PART X
 
       S. 2811--B                         97
 

Section 1.

Section 34 of the tax law, as added by section 2 of part  Y
 of chapter 57 of the laws of 2010, is amended to read as follows:

 

S 34. Temporary deferral payout credits. 1. The amounts of nonrefunda
 ble  credits  that are deferred pursuant to section thirty-three of this
 article, AS ADDED BY PART Y OF CHAPTER FIFTY-SEVEN OF THE  LAWS  OF  TWO
 THOUSAND  TEN, in taxable years beginning on or after January first, two
 thousand ten and before January first, two thousand  thirteen  shall  be
 accumulated and constitute the taxpayer's temporary deferral nonrefunda
 ble payout credit.
 2.    EARNED NONREFUNDABLE TEMPORARY DEFERRAL PAYOUT CREDIT SHALL MEAN
 THE AMOUNT OF CREDITS ALLOWABLE IN TAXABLE YEARS BEGINNING ON  OR  AFTER
 JANUARY  FIRST,  TWO THOUSAND TEN AND BEFORE JANUARY FIRST, TWO THOUSAND
 THIRTEEN, WHICH ARE NOT CARRIED OVER FROM TAX YEARS BEGINNING  PRIOR  TO
 JANUARY  FIRST,  TWO THOUSAND TEN, TO WHICH SUBDIVISION THREE OF SECTION
 THIRTY-THREE OF THIS ARTICLE WOULD APPLY. The taxpayer may  first  claim
 this credit in the taxable year beginning on or after January first, two
 thousand  thirteen  and before January first, two thousand fourteen. The
 taxpayer shall be allowed to claim this  credit  until  the  accumulated
 amounts  are  exhausted. The credit shall be allowed against the taxpay
 er's tax as provided in the provisions referenced in  paragraph  (a)  of
 subdivision [three] FOUR of this section.
 [2.]  3.  The amounts of refundable credits that are deferred pursuant
 to section thirty-three of this article, AS ADDED BY PART Y  OF  CHAPTER
 FIFTY-SEVEN  OF THE LAWS OF TWO THOUSAND TEN, in taxable years beginning
 on or after January first, two thousand ten and  before  January  first,
 two thousand thirteen shall be accumulated and constitute the taxpayer's
 temporary  deferral refundable payout credit. In the taxable year begin
 ning on or after January first, two thousand thirteen and before January
 first, two thousand fourteen, the taxpayer shall be allowed to  claim  a
 credit  equal to fifty percent of the amount accumulated. In the taxable
 year beginning on or after January  first,  two  thousand  fourteen  and
 before  January  first,  two  thousand  fifteen,  the  taxpayer shall be
 allowed to claim a credit equal to seventy-five percent of  the  balance
 of  the  amount  accumulated.  In the taxable year beginning on or after
 January first, two thousand fifteen and before January first, two  thou
 sand  sixteen,  the taxpayer shall be allowed to claim a credit equal to
 the remaining balance of the amount accumulated.  The  credit  shall  be
 allowed  against the taxpayer's tax as provided in the provisions refer
 enced in paragraph (b) of subdivision [three] FOUR of this section.
 [3.] 4. (a) For application of the  temporary  deferral  nonrefundable
 payout credit, see the following provisions of this chapter:

 (1) Article 9: section [187-0] 187-O
 (2) Article 9-A: section 210(41)
 (3) Article 22: section 606(qq)
 (4) Article 32: section 1456(v)
 (5) Article 33: section 1511(y)
 (b)  For application of the temporary deferral refundable payout cred
 it, see the following provisions of this chapter:

 (1) Article 9: section 187-p
 (2) Article 9-A: section 210(42)
 (3) Article 22: section 606(rr)
 (4) Article 32: section 1456(w)
 (5) Article 33: section 1511(z)
 

S 2. Subdivision 41 of section 210 of the tax law, as added by section
 4 of part Y of chapter 57 of the laws of 2010, is  amended  to  read  as
 follows:

 
       S. 2811--B                         98
 41.  Temporary  deferral nonrefundable payout credit. (a) Allowance of
 credit. A taxpayer shall be allowed a credit, to be computed as provided
 in subdivision one of section thirty-four of this chapter,  against  the
 tax imposed by this article.
 (b)  Application  of credit. The credit allowed under this subdivision
 for any taxable year shall not reduce the tax due for that year to  less
 than  [the amount prescribed in paragraph (d) of subdivision one of this
 section] ZERO.   However, if the amount of  credit  allowed  under  this
 subdivision  for any taxable year reduces the tax to [such amount] ZERO,
 any amount of credit thus not deductible in such taxable year SHALL  BE:

 (1)  IF  THE  AMOUNT  OF  EARNED NONREFUNDABLE TEMPORARY DEFERRAL PAYOUT
 CREDITS IS ZERO THEN THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR  may
 be  carried over to the following year or years and may be deducted from
 the taxpayer's tax for such year or years;  OR  (2)  IF  THE  AMOUNT  OF
 EARNED  NONREFUNDABLE  TEMPORARY DEFERRAL PAYOUT CREDITS IS GREATER THAN
 ZERO THEN THE TAXPAYER MAY TREAT AN AMOUNT EQUAL TO THE  LESSER  OF  THE
 EARNED NONREFUNDABLE TEMPORARY DEFERRAL PAYOUT CREDITS AND THE AMOUNT OF
 CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR AS AN OVERPAYMENT OF TAX.
 

S 3. This act shall take effect immediately.
 PART Y
 

Section  1. 

Section  4  of  part  A of chapter 57 of the laws of 2010
 amending the tax law relating to the statutory limitation on the biofuel
 production credit and the qualified emerging technology company  facili
 ties, operations and training credits, is amended to read as follows:

 

S 4. This act shall take effect immediately and apply to taxable years
 beginning  on  or  after January 1, 2010; PROVIDED HOWEVER, THAT SECTION
 ONE OF THIS ACT SHALL APPLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANU
 ARY 1, 2011.
 

S 2. This act shall take effect immediately.
 PART Z
 

Section 1. Subparagraph (i) of paragraph  (b)  of  subdivision  12  of
 section  210  of  the  tax law, as amended by chapter 637 of the laws of
 2008, is amended to read as follows:

 (i) A credit shall be allowed under this subdivision with  respect  to
 tangible personal property and other tangible property, including build
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred sixty-seven  of  the  [internal  revenue
 code]  INTERNAL  REVENUE CODE, have a useful life of four years or more,
 are acquired by purchase as defined in section one hundred  seventy-nine
 (d)  of  the [internal revenue code] INTERNAL REVENUE CODE, have a situs
 in this state and are (A)  principally  used  by  the  taxpayer  in  the
 production  of goods by manufacturing, processing, assembling, refining,
 mining, extracting, farming,  agriculture,  horticulture,  floriculture,
 viticulture or commercial fishing, (B) industrial waste treatment facil
 ities  or air pollution control facilities, used in the taxpayer's trade
 or business, (C) research and development property, (D) principally used
 in the ordinary course of the taxpayer's trade or business as  a  broker
 or  dealer  in connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination, or transfer) of stocks, bonds or other securi
 ties as defined in section  four  hundred  seventy-five  (c)(2)  of  the
 Internal  Revenue  Code,  or  of  commodities as defined in section four
 
       S. 2811--B                         99
 hundred seventy-five (e) of the Internal Revenue Code,  (E)  principally
 used  in  the  ordinary  course  of  the taxpayer's trade or business of
 providing investment advisory services for a regulated investment compa
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code,  or  lending,  loan  arrangement  or  loan origination services to
 customers in connection with the purchase or sale (which  shall  include
 but  not  be limited to the issuance, entering into, assumption, offset,
 assignment, termination,  or  transfer)  of  securities  as  defined  in
 section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
 (E-1) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR
 BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES, OR  THE  SERVICE  OF
 MANAGING INVESTMENT PORTFOLIOS TO ACHIEVE SPECIFIC INVESTMENT OBJECTIVES
 FOR  ACCOUNTS  OVER ONE MILLION DOLLARS OF ACCREDITED INVESTORS (AS THAT
 TERM IS DEFINED IN RULE 501 OF REGULATION D OF  THE  SECURITIES  ACT  OF
 1933), IF THE TAXPAYER SATISFIES THE FOLLOWING CRITERIA: (I) THE TAXPAY
 ER IS A REGULATED BROKER OR DEALER OR AN AFFILIATE OF A REGULATED BROKER
 OR  DEALER,  (II)  THE  TAXPAYER  IS REGISTERED AS AN INVESTMENT ADVISER
 UNDER SECTION TWO HUNDRED THREE OF THE INVESTMENT ADVISER ACT  OF  1940,
 AS AMENDED, AND (III) AT LEAST ONE CLIENT OF THE TAXPAYER IS A REGULATED
 INVESTMENT  COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE
 INTERNAL REVENUE CODE THAT HAS ASSETS IN EXCESS OF ONE  HUNDRED  MILLION
 DOLLARS,  (F)  principally used in the ordinary course of the taxpayer's
 business as an exchange registered as  a  national  securities  exchange
 within  the  meaning  of  sections  3(a)(1)  and  6(a) of the Securities
 Exchange Act of  1934  or  a  board  of  trade  as  defined  in  section
 1410(a)(1) of the New York Not-for-Profit Corporation Law or as an enti
 ty  that  is  wholly  owned  by  one  or  more  such national securities
 exchanges or boards of trade and that provides automation  or  technical
 services thereto, or (G) principally used as a qualified film production
 facility  including  qualified film production facilities having a situs
 in an empire zone designated as such pursuant to article  eighteen-B  of
 the general municipal law, where the taxpayer is providing three or more
 services  to  any  qualified film production company using the facility,
 including such services as a studio lighting  grid,  lighting  and  grip
 equipment,  multi-line  phone  service, broadband information technology
 access, industrial scale electrical capacity,  food  services,  security
 services, and heating, ventilation and air conditioning. For purposes of
 clauses (D), (E), (E-1) and (F) of this subparagraph, property purchased
 by  a  taxpayer  affiliated  with a regulated broker, dealer, registered
 investment adviser, national securities exchange or board of  trade,  is
 allowed  a  credit under this subdivision if the property is used by its
 affiliated regulated  broker,  dealer,  registered  investment  adviser,
 national  securities  exchange or board of trade in accordance with this
 subdivision. For purposes of determining if the property is  principally
 used  in  qualifying uses, the uses by the taxpayer described in clauses
 (D) [and], (E), AND (E-1) of this subparagraph  may  be  aggregated.  In
 addition,  the  uses  by  the taxpayer, its affiliated regulated broker,
 dealer, and registered investment adviser under [either or both] ANY  of
 those  clauses  may be aggregated.   Provided, however, a taxpayer shall
 not be allowed the credit provided by clauses (D), (E), (E-1) and (F) of
 this subparagraph unless (I) eighty percent or  more  of  the  employees
 performing  the  administrative  and support functions resulting from or
 related to the qualifying uses of such equipment  are  located  in  this
 state  or (II) the average number of employees that perform the adminis
 trative and support functions resulting from or related to the  qualify
 ing  uses  of  such  equipment  and are located in this state during the
 
       S. 2811--B                         100
 taxable year for which the credit is claimed is equal to or greater than
 ninety-five percent of the average  number  of  employees  that  perform
 these  functions  and  are  located  in this state during the thirty-six
 months  immediately  preceding the year for which the credit is claimed,
 or (III) the number of employees located in this state during the  taxa
 ble  year  for  which  the credit is claimed is equal to or greater than
 ninety percent of the number of  employees  located  in  this  state  on
 December thirty-first, nineteen hundred ninety-eight or, if the taxpayer
 was  not  a calendar year taxpayer in nineteen hundred ninety-eight, the
 last day of its first taxable year ending after  December  thirty-first,
 nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in
 this  state after the taxable year beginning in nineteen hundred ninety
 eight, then the taxpayer is not required to satisfy the employment  test
 provided  in  the  preceding sentence of this subparagraph for its first
 taxable year. For purposes of clause  (III)  of  this  subparagraph  the
 employment test will be based on the number of employees located in this
 state  on the last day of the first taxable year the taxpayer is subject
 to tax in this state. If the uses of the property must be aggregated  to
 determine  whether  the property is principally used in qualifying uses,
 then either each affiliate using the property must satisfy this  employ
 ment  test  or this employment test must be satisfied through the aggre
 gation of the  employees  of  the  taxpayer,  its  affiliated  regulated
 broker,  dealer,  and  registered investment adviser using the property.
 For purposes of this subdivision, the term  "goods"  shall  not  include
 electricity.
 

S  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
 of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
 amended to read as follows:

 (A)  A  credit  shall be allowed under this subsection with respect to
 tangible personal property and other tangible property, including build
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (i) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti
 culture,  floriculture,  viticulture  or commercial fishing, (ii) indus
 trial waste treatment facilities or air  pollution  control  facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade  or business as a broker or dealer in connection with the purchase
 or sale (which shall include but not be limited to the issuance,  enter
 ing  into,  assumption, offset, assignment, termination, or transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section 475(e) of the Internal Revenue Code, (v)  principally
 used  in  the  ordinary  course  of  the taxpayer's trade or business of
 providing investment advisory services for a regulated investment compa
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code, or lending, loan  arrangement  or  loan  origination  services  to
 customers  in  connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination,  or  transfer)  of  securities  as  defined in
 section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
 or  (vi) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE
 
       S. 2811--B                         101
 OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES, OR THE SERVICE OF
 MANAGING INVESTMENT PORTFOLIOS TO ACHIEVE SPECIFIC INVESTMENT OBJECTIVES
 FOR ACCOUNTS OVER ONE MILLION DOLLARS OF ACCREDITED INVESTORS  (AS  THAT
 TERM  IS  DEFINED  IN  RULE 501 OF REGULATION D OF THE SECURITIES ACT OF
 1933), IF THE TAXPAYER SATISFIES THE FOLLOWING CRITERIA: (I) THE TAXPAY
 ER IS A REGULATED BROKER OR DEALER OR AN AFFILIATE OF A REGULATED BROKER
 OR DEALER, (II) THE TAXPAYER IS  REGISTERED  AS  AN  INVESTMENT  ADVISER
 UNDER  SECTION  TWO HUNDRED THREE OF THE INVESTMENT ADVISER ACT OF 1940,
 AS AMENDED, AND (III) AT LEAST ONE CLIENT OF THE TAXPAYER IS A REGULATED
 INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF  THE
 INTERNAL  REVENUE  CODE THAT HAS ASSETS IN EXCESS OF ONE HUNDRED MILLION
 DOLLARS, (VII) principally used as a qualified film production  facility
 including  qualified  film  production  facilities  having a situs in an
 empire zone designated as such pursuant to  article  eighteen-B  of  the
 general  municipal  law,  where  the taxpayer is providing three or more
 services to any qualified film production company  using  the  facility,
 including  such  services  as  a studio lighting grid, lighting and grip
 equipment, multi-line phone service,  broadband  information  technology
 access,  industrial  scale  electrical capacity, food services, security
 services, and heating, ventilation and air conditioning. For purposes of
 clauses  (iv)  [and],  (v)  AND  (VI)  of  this  subparagraph,  property
 purchased  by  a taxpayer affiliated with a regulated broker, dealer, or
 registered investment adviser is allowed a credit under this  subsection
 if  the  property  is used by its affiliated regulated broker, dealer or
 registered investment adviser in accordance with  this  subsection.  For
 purposes  of determining if the property is principally used in qualify
 ing uses, the uses by the taxpayer described in clauses (iv) and (v)  of
 this  subparagraph  may  be  aggregated.  In  addition,  the uses by the
 taxpayer, its affiliated regulated broker, dealer and registered invest
 ment adviser under either or both of those clauses  may  be  aggregated.
 Provided,  however,  a taxpayer shall not be allowed the credit provided
 by clauses (iv) [and], (v) AND (VI)  of  this  subparagraph  unless  (I)
 eighty  percent  or  more of the employees performing the administrative
 and support functions resulting from or related to the  qualifying  uses
 of  such equipment are located in this state, or (II) the average number
 of employees that  perform  the  administrative  and  support  functions
 resulting  from  or related to the qualifying uses of such equipment and
 are located in this state during the taxable year for which  the  credit
 is  claimed is equal to or greater than ninety-five percent of the aver
 age number of employees that perform these functions and are located  in
 this  state  during the thirty-six months immediately preceding the year
 for which the credit is  claimed,  or  (III)  the  number  of  employees
 located  in  this  state during the taxable year for which the credit is
 claimed is equal to or greater than ninety  percent  of  the  number  of
 employees  located  in  this  state  on  December thirty-first, nineteen
 hundred ninety-eight or, if the taxpayer was not a calendar year taxpay
 er in nineteen hundred ninety-eight, the last day of its  first  taxable
 year  ending after December thirty-first, nineteen hundred ninety-eight.
 If the taxpayer becomes subject to tax in this state after  the  taxable
 year  beginning  in  nineteen hundred ninety-eight, then the taxpayer is
 not required to satisfy the employment test provided  in  the  preceding
 sentence  of  this  subparagraph  for  its  first  taxable year. For the
 purposes of clause (III) of this subparagraph the employment  test  will
 be  based  on  the number of employees located in this state on the last
 day of the first taxable year the taxpayer is subject  to  tax  in  this
 state.  If  the  uses  of  the  property must be aggregated to determine
 
       S. 2811--B                         102
 whether the property is principally used in qualifying uses, then either
 each affiliate using the property must satisfy this employment  test  or
 this  employment  test  must be satisfied through the aggregation of the
 employees  of the taxpayer, its affiliated regulated broker, dealer, and
 registered investment adviser using the property. For purposes  of  this
 subsection, the term "goods" shall not include electricity.
 

S  3. Paragraph 2 of subsection (i) of section 1456 of the tax law, as
 amended by chapter 637 of the laws  of  2008,  is  amended  to  read  as
 follows:

 (2)  A  credit  shall be allowed under this subsection with respect to
 tangible personal property and other tangible property, including build
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the Internal Revenue
 Code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  Internal
 Revenue Code, have a situs in this state and are (A) principally used in
 the  ordinary  course of the taxpayer's trade or business as a broker or
 dealer in connection with the purchase or sale (which shall include  but
 not  be  limited  to  the  issuance,  entering into, assumption, offset,
 assignment, termination, or transfer) of stocks, bonds or other  securi
 ties  as  defined  in  section  four hundred seventy-five (c) (2) of the
 Internal Revenue Code, or of commodities  as  defined  in  section  four
 hundred seventy-five (e) of the Internal Revenue Code, or (B) principal
 ly  used  in  the ordinary course of the taxpayer's trade or business of
 providing investment advisory services for a regulated investment compa
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code, or lending, loan  arrangement  or  loan  origination  services  to
 customers  in  connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination,  or  transfer)  of  securities  as  defined in
 section four hundred seventy-five (c) (2) of the Internal  Revenue  Code
 OR  (C)  PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE
 OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES, OR THE SERVICE OF
 MANAGING INVESTMENT PORTFOLIOS TO ACHIEVE SPECIFIC INVESTMENT OBJECTIVES
 FOR ACCOUNTS OVER ONE MILLION DOLLARS OF ACCREDITED INVESTORS  (AS  THAT
 TERM  IS  DEFINED  IN  RULE 501 OF REGULATION D OF THE SECURITIES ACT OF
 1933), IF THE TAXPAYER SATISFIES THE FOLLOWING CRITERIA: (I) THE TAXPAY
 ER IS A REGULATED BROKER OR DEALER OR AN AFFILIATE OF A REGULATED BROKER
 OR DEALER, (II) THE TAXPAYER IS  REGISTERED  AS  AN  INVESTMENT  ADVISER
 UNDER  SECTION  TWO HUNDRED THREE OF THE INVESTMENT ADVISER ACT OF 1940,
 AS AMENDED, AND (III) AT LEAST ONE CLIENT OF THE TAXPAYER IS A REGULATED
 INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF  THE
 INTERNAL  REVENUE  CODE THAT HAS ASSETS IN EXCESS OF ONE HUNDRED MILLION
 DOLLARS.  For purposes of subparagraphs (A) [and], (B) AND (C)  of  this
 paragraph,  property purchased by a taxpayer affiliated with a regulated
 broker, dealer, or registered investment adviser  is  allowed  a  credit
 under  this  subsection  if the property is used by its affiliated regu
 lated broker, dealer, or registered  investment  adviser  in  accordance
 with  this  subsection.  For  purposes of determining if the property is
 principally used in qualifying uses, the uses by the taxpayer  described
 in  subparagraphs (A) [and], (B) AND (C) of this paragraph may be aggre
 gated. In addition, the uses by the taxpayer, its  affiliated  regulated
 broker, dealer and registered investment adviser under either or both of
 such subparagraphs may be aggregated.
 

S 4. This act shall take effect immediately.
 
       S. 2811--B                         103
 PART AA
 

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]  TWO 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 operations of the depart
 ment of public service 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] 2012; 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 the same date and in the same
 manner as part NN of chapter  59  of  the  laws  of  2009  took  effect;
 provided that the amendment to paragraph (a) of subdivision 6 of section
 18-a of the public service law made by section one of this act shall not
 affect  the expiration and repeal of such subdivision 6 and shall expire
 and be deemed repealed therewith.
 PART BB
 

Section 1.

Section 800 of the tax law, as added by section 1 of part C
 of chapter 25 of the laws of 2009, is amended to read as follows:

 

S 800. Definitions. For the purposes of this article:

 (a) Metropolitan commuter transportation  district.  The  metropolitan
 commuter  transportation  district  ("MCTD") means the area of the state
 included in the district created and governed by section twelve  hundred
 sixty-two of the public authorities law.
 (b)  Employer.  Employer  means  an  employer  required by section six
 hundred seventy-one of this chapter to  deduct  and  withhold  tax  from
 wages, that has a payroll expense in excess of two thousand five hundred
 dollars in any calendar quarter; other than
 (1) any agency or instrumentality of the United States;
 (2) the United Nations; [or]
 
       S. 2811--B                         104
 (3)  an interstate agency or public corporation created pursuant to an
 agreement or compact with another state or the Dominion of Canada; OR
 (4)  ANY  PUBLIC SCHOOL DISTRICT OR NON-PUBLIC SCHOOL, WHICH SHALL NOT
 INCLUDE A SPECIAL ACT SCHOOL DISTRICT AS DEFINED IN SECTION  FOUR  THOU
 SAND ONE OF THE EDUCATION LAW.
 (c)  Payroll  expense. Payroll expense means wages and compensation as
 defined in sections 3121 and 3231 of the internal revenue code  (without
 regard  to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all
 covered employees.
 (d) Covered employee.  Covered  employee  means  an  employee  who  is
 employed within the MCTD.
 (e)  Net earnings from self-employment. Net earnings from self-employ
 ment has the same meaning as in section 1402  of  the  internal  revenue
 code.
 

S 2. This act shall take effect immediately.
 PART CC
 

Section  1.  Paragraph  (a)  of subdivision 3 of section 33 of the tax
 law, as added by section 1 of part Y of chapter 57 of the laws of  2010,
 is amended to read as follows:

 (a)  This section shall apply to the credits allowed under the follow
 ing provisions in article nine-a of  this  chapter  and  any  applicable
 counterpart  provisions  in  articles  nine,  twenty-two, thirty-two and
 thirty-three of this chapter:

 

Section 210(12) investment tax credit
 

Section 210(12-B) empire zone investment tax credit
 

Section 210(12-C) empire zone employment incentive credit
 

Section 210(12-D) employment incentive credit
 

Section 210(12-E) QETC employment credit
 

Section 210(12-F) QETC capital tax credit
 

Section 210(12-G) QETC facilities, operations, and training credit
 

Section 210(17) special additional mortgage recording tax credit
 

Section 210(19) empire zone wage tax credit
 

Section 210(20) empire zone capital tax credit
 

Section 210(21-a) credit for servicing certain mortgages
 

Section 210(23) credit for employment of persons with disabilities
 

Section 210(24) alternative fuels credit
 

Section 210(25) credit for purchase of an automated external defibril
 lator
 

Section 210(27) QEZE credit for real property taxes
 

Section 210(28) QEZE tax reduction credit
 

Section 210(30) low income housing credit
 

Section 210(31) green building credit
 

Section 210(33) brownfield redevelopment tax credit
 

Section 210(34) remediated brownfield credit for real  property  taxes
 for qualified sites
 

Section 210(35) environmental remediation insurance credit
 

Section 210(37) security training tax credit
 

Section  210(37)  credit  for  fuel cell electric generating equipment
 expenditures
 

Section 210(38) conservation easement tax credit
 

Section 210(38) empire state commercial production credit
 

Section 210(38) biofuel production credit
 

Section 210(39) clean heating fuel credit
 [Section 210(40) credit for rehabilitation of historic properties]
 
       S. 2811--B                         105
 

Section 210(40) credit for companies  who  provide  transportation  to
 individuals with disabilities
 

S 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2011.
 PART DD
 

Section  1.  Subdivisions 2, 3, 4, 5 and 6 of section 4 of chapter 912
 of the laws of 1920 relating to the regulation of boxing,  sparring  and
 wrestling, subdivisions 2 and 6 as amended by chapter 437 of the laws of
 2002  and subdivisions 3, 4 and 5 as added by chapter 603 of the laws of
 1981, are amended to read as follows:

 2. The advisory board shall have power and it shall be the duty of the
 board to prepare and submit to the commission for  approval  regulations
 and  standards  for  the physical examination of professional boxers AND
 PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS  including,  without  limita
 tion,  pre-fight  and/or post-fight examinations and periodic comprehen
 sive examinations. The board shall continue  to  serve  in  an  advisory
 capacity  to  the commission and from time to time prepare and submit to
 the commission for approval, such additional regulations  and  standards
 of  examination as in their judgment will safeguard the physical welfare
 of professional boxers licensed by the commission.  The  advisory  board
 shall  recommend  to  the  commission  from  time to time such qualified
 physicians, for the  purpose  of  conducting  physical  examinations  of
 professional  boxers  AND PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS and
 other services as the rules of the commission shall provide;  and  shall
 recommend  to the commission a schedule of fees to be paid to physicians
 for such examinations and other services as required by this act.
 3. The advisory board  shall  develop  appropriate  medical  education
 programs  for all commission personnel involved in the conduct of boxing
 and sparring matches or exhibitions  OR  PROFESSIONAL  COMBATIVE  SPORTS
 MATCHES OR EXHIBITIONS so that such personnel can recognize and act upon
 evidence of potential or actual adverse medical indications in a partic
 ipant prior to or during the course of a match OR EXHIBITION.
 4.  The advisory board shall review the credentials and performance of
 each commission physician on an annual basis as  a  condition  of  reap
 pointment  of  each  such  physician,  including  each  such physician's
 comprehension of the medical literature on boxing OR PROFESSIONAL COMBA
 TIVE SPORTS referred to in subdivision five of this section.
 5. The advisory board shall recommend to the commission a  compilation
 of medical publications on the medical aspects of boxing OR PROFESSIONAL
 COMBATIVE SPORTS which shall be maintained by the commission and be made
 available for review to all commission personnel involved in the conduct
 of  any boxing or sparring match or exhibition OR PROFESSIONAL COMBATIVE
 SPORTS MATCH OR EXHIBITION.
 6. The advisory board shall also advise the commission on any study of
 equipment, procedures or personnel which will, in their opinion, promote
 the safety of boxing  participants  AND  PROFESSIONAL  COMBATIVE  SPORTS
 PARTICIPANTS.
 

S  2. 

Section  5-a of chapter 912 of the laws of 1920 relating to the
 regulation of boxing, sparring and wrestling, as added by chapter 14  of
 the laws of 1997, is amended to read as follows:

 

S 5-a. Combative sports. 1. DEFINITIONS. AS USED IN THIS SECTION:

 (A)  "BOARD"  MEANS  MEDICAL  ADVISORY BOARD AS ESTABLISHED IN SECTION
 FOUR OF THIS ACT.
 
       S. 2811--B                         106
 (B) A "combative sport" shall mean any professional match  or  exhibi
 tion  other than boxing, sparring, wrestling or martial arts wherein the
 contestants deliver, or are not forbidden by the applicable rules there
 of from delivering kicks, punches or blows of any kind to the body of an
 opponent  or  opponents.  For  the  purposes  of  this section, the term
 "martial arts" shall include any professional match or exhibition  OF  A
 SINGLE  DISCIPLINE sanctioned by AN ORGANIZATION APPROVED BY THE COMMIS
 SION, INCLUDING, BUT NOT LIMITED TO, any of the following organizations:

 U.S. Judo Association, U.S. Judo, Inc., U.S. Judo Federation,  U.S.  Tae
 Kwon  Do  Union,  North American Sport Karate Association, U.S.A. Karate
 Foundation, U.S. Karate, Inc., World  Karate  Association,  Professional
 Karate  Association,  Karate  International, International Kenpo Associ
 ation, or World Wide Kenpo Association. The  commission  [is  authorized
 to]  SHALL  promulgate  regulations  which  would establish a process to
 allow for the inclusion or removal of martial  arts  organizations  from
 the above list. Such process shall include but not be limited to consid
 eration  of  the  following  factors:    [(a)] (1) is the organization's
 primary purpose to provide instruction in self defense techniques; [(b)]
 (2) does the organization require  the  use  of  hand,  feet  and  groin
 protection during any competition or bout; and [(c)] (3) does the organ
 ization  have  an  established  set  of rules that require the immediate
 termination of any competition or bout when any participant has received
 severe punishment or is in danger of suffering serious physical injury.
 (C) "COMMISSION" MEANS THE STATE ATHLETIC COMMISSION AS  PROVIDED  FOR
 IN  SECTION  ONE OF THIS CHAPTER OR AN AGENT OF THE COMMISSION ACTING ON
 ITS BEHALF.
 (D) "MIXED MARTIAL  ARTS"  MEANS  ANY  PROFESSIONAL  COMBATIVE  SPORTS
 COMPETITION  WHEREIN THE RULES OF SUCH COMPETITION SUBJECT TO THE APPLI
 CABLE LIMITATIONS AS SET FORTH BY THE COMMISSION AUTHORIZE  PROFESSIONAL
 COMBATIVE  SPORTS MATCHES OR EXHIBITIONS BETWEEN VARIOUS FIGHTING DISCI
 PLINES, INCLUDING THE UTILIZATION OF PERMITTED MARTIAL ARTS  TECHNIQUES,
 INCLUDING  STRIKING,  KICKING  AND  GRAPPLING.  NO  NON-PROFESSIONAL  OR
 AMATEUR BOUT, EXHIBITION OR PARTICIPANT  SHALL  BE  AUTHORIZED  BY  THIS
 SECTION.
 (E) "PROFESSIONAL COMBATIVE SPORTS PARTICIPANT" OR "PARTICIPANT" SHALL
 MEAN A COMBATIVE SPORTS FIGHTER WHO COMPETES FOR A MONEY PRIZE OR TEACH
 ES  OR  PURSUES  OR  ASSISTS  IN THE PRACTICE OF MIXED MARTIAL ARTS AS A
 MEANS OF OBTAINING A LIVELIHOOD  OR  PECUNIARY  GAIN,  AND  ANY  CONTEST
 CONFORMING TO THE RULES, REGULATIONS AND REQUIREMENTS OF THIS SECTION.
 (F) "PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION" SHALL MEAN ANY
 MATCH  OR  EXHIBITION  THAT  MUST  BE  APPROVED  BY THE COMMISSION WHERE
 PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS RECEIVE CONSIDERATION OF  ANY
 VALUE OR AN ADMISSION IS CHARGED.
 1-A.  COMMISSION REVIEW. THE COMMISSION SHALL REVIEW EACH MARTIAL ARTS
 SANCTIONING ORGANIZATION, INCLUDING THOSE LISTED IN SUBDIVISION  ONE  OF
 THIS  SECTION,  AT  LEAST  BIENNIALLY, OR SOONER IF DETERMINED NECESSARY
 BASED UPON THE PERIODIC COMPLIANCE CHECKS OR COMPLAINTS TO  THE  COMMIS
 SION,  TO  DETERMINE  CONTINUATION  OF  THE  COMMISSION'S  APPROVAL. THE
 COMMISSION SHALL CONTINUE APPROVAL OR SHALL SUSPEND OR  REVOKE  APPROVAL
 BASED  UPON COMPLIANCE OF THE ORGANIZATION WITH THE APPROVED SANCTIONING
 STANDARDS AND ITS ABILITY TO  SUPERVISE  MATCHES  IN  THE  STATE.    THE
 COMMISSION  SHALL  ACT UPON ANY APPLICATION FOR INCLUSION IN THE LIST IN
 PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION WITHIN  SIXTY  DAYS  OF
 THE DATE SUCH APPLICATION IS MADE TO THE COMMISSION.
 1-B.  MIXED  MARTIAL ARTS COMPETITION. THE COMMISSION SHALL PROMULGATE
 RULES AND REGULATIONS TO ALLOW FOR MIXED MARTIAL ARTS COMPETITIONS TO BE
 
       S. 2811--B                         107
 CONDUCTED, HELD, OR GIVEN WITHIN THE STATE OF NEW YORK AND  SHALL  ALLOW
 FOR  LICENSES TO BE APPROVED BY THE COMMISSION FOR SUCH MATCHES OR EXHI
 BITIONS. THE COMMISSION IS AUTHORIZED  TO  PROMULGATE  RULES  AND  REGU
 LATIONS  TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION. SUCH RULES AND
 REGULATIONS SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE  ADOPTION  OF
 UNIFIED RULES OF MIXED MARTIAL ARTS, A LICENSING PROCESS FOR MATCHES AND
 EXHIBITIONS,  A  FEE SCHEDULE FOR SUCH LICENSES, PROCEDURES TO ALLOW FOR
 THE PARTICIPATION, PROMOTION, AND ADVANCEMENT OF SUCH EVENTS, THE HEALTH
 AND SAFETY OF PARTICIPANTS, AND THE BEST INTERESTS OF MIXED MARTIAL ARTS
 AND THE ADOPTION OF RULES AND REGULATIONS FOR LICENSING  AND  REGULATION
 OF  ANY AND ALL GYMS, CLUBS, TRAINING CAMPS AND OTHER ORGANIZATIONS THAT
 MAINTAIN TRAINING FACILITIES PROVIDING CONTACT SPARRING FOR PERSONS  WHO
 PREPARE FOR PARTICIPATION IN SUCH PROFESSIONAL COMBATIVE SPORTS OR EXHI
 BITIONS, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION.
 (B)  THE  COMMISSION  IS  AUTHORIZED  AND DIRECTED TO REQUIRE THAT ALL
 SITES WHEREIN PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED  SHALL  COMPLY
 WITH  STATE  AND  APPLICABLE  LOCAL SANITARY CODES APPROPRIATE TO SCHOOL
 ATHLETIC FACILITIES.
 2. [No combative sport shall be conducted, held or  given  within  the
 state of New York, and no licenses may be approved by the commission for
 such matches or exhibitions.
 3.  (a)  A  person  who knowingly advances or profits from a combative
 sport activity shall be guilty of a class A misdemeanor,  and  shall  be
 guilty of a class E felony if he or she has been convicted in the previ-
 ous five years of violating this subdivision.
 (b)  A  person  advances a combative sport activity when, acting other
 than as a spectator, he or she engages in conduct which materially  aids
 any combative sport. Such conduct includes but is not limited to conduct
 directed  toward  the creation, establishment or performance of a comba-
 tive sport, toward the acquisition or maintenance of premises, parapher-
 nalia, equipment or  apparatus  therefor,  toward  the  solicitation  or
 inducement of persons to attend or participate therein, toward the actu-
 al  conduct of the performance thereof, toward the arrangement of any of
 its financial or promotional phases, or toward  any  other  phase  of  a
 combative  sport.  One  advances a combative sport activity when, having
 substantial proprietary or other  authoritative  control  over  premises
 being  used  with his or her knowledge for purposes of a combative sport
 activity, he or she permits such to occur or continue or makes no effort
 to prevent its occurrence or continuation.
 (c) A person profits from a combative sport activity when  he  or  she
 accepts  or  receives money or other property with intent to participate
 in the proceeds of a combative sport activity, or pursuant to an  agree-
 ment  or understanding with any person whereby he or she participates or
 is to participate in the proceeds of a combative sport activity.
 (d) Any person who knowingly advances  or  profits  from  a  combative
 sport  activity  shall  also be subject to a civil penalty not to exceed
 for the first violation ten thousand dollars or twice the amount of gain
 derived therefrom whichever is greater, or for  a  subsequent  violation
 twenty  thousand  dollars  or twice the amount of gain derived therefrom
 whichever is greater.  The  attorney  general  is  hereby  empowered  to
 commence  judicial  proceedings  to recover such penalties and to obtain
 injunctive relief to enforce the provisions of  this  section.]  PROFES
 SIONAL COMBATIVE SPORTS MATCHES AND EXHIBITIONS AUTHORIZED. NO COMBATIVE
 SPORTS  MATCH OR EXHIBITION SHALL BE CONDUCTED, HELD OR GIVEN WITHIN THE
 STATE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION  AND  THE
 RULES  AND  REGULATIONS  PROMULGATED BY THE COMMISSION PURSUANT THERETO.
 
       S. 2811--B                         108
 THE COMMISSION SHALL DIRECT A REPRESENTATIVE TO BE PRESENT AT EACH PLACE
 WHERE COMBATIVE SPORTS ARE TO BE HELD PURSUANT TO THE PROVISIONS OF THIS
 SECTION.  SUCH  REPRESENTATIVE  SHALL  ASCERTAIN  THE  EXACT  CONDITIONS
 SURROUNDING  SUCH  MATCH  OR EXHIBITION AND MAKE A WRITTEN REPORT OF THE
 SAME IN THE MANNER AND FORM PRESCRIBED BY THE COMMISSION. SUCH COMBATIVE
 SPORTS MATCHES OR EXHIBITIONS MAY BE HELD IN ANY BUILDING FOR WHICH  THE
 COMMISSION  IN  ITS  DISCRETION MAY ISSUE A LICENSE. WHERE SUCH MATCH OR
 EXHIBITION IS AUTHORIZED TO BE HELD IN A STATE OR CITY OWNED ARMORY, THE
 PROVISION OF THE MILITARY LAW IN RESPECT THERETO MUST BE COMPLIED  WITH,
 BUT  NO SUCH MATCH OR EXHIBITION SHALL BE HELD IN A BUILDING WHOLLY USED
 FOR RELIGIOUS SERVICES.
 3. JURISDICTION OF COMMISSION. (A) THE COMMISSION SHALL HAVE AND HERE
 BY IS VESTED WITH THE SOLE DIRECTION, MANAGEMENT, CONTROL AND  JURISDIC
 TION OVER ALL PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS TO BE
 CONDUCTED,  HELD  OR  GIVEN  WITHIN  THE  STATE OF NEW YORK AND OVER ALL
 LICENSES TO ANY AND ALL PERSONS WHO PARTICIPATE IN SUCH COMBATIVE SPORTS
 MATCHES OR EXHIBITIONS AND OVER ANY AND ALL GYMS, CLUBS, TRAINING  CAMPS
 AND  OTHER  ORGANIZATIONS  THAT  MAINTAIN  TRAINING FACILITIES PROVIDING
 CONTACT SPARRING FOR PERSONS  WHO  PREPARE  FOR  PARTICIPATION  IN  SUCH
 PROFESSIONAL  COMBATIVE  SPORTS  OR  EXHIBITIONS,  EXCEPT  AS  OTHERWISE
 PROVIDED IN THIS SECTION.
 (B) THE COMMISSION IS AUTHORIZED AND  DIRECTED  TO  REQUIRE  THAT  ALL
 SITES  WHEREIN  PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED SHALL COMPLY
 WITH STATE AND APPLICABLE LOCAL SANITARY  CODES  APPROPRIATE  TO  SCHOOL
 ATHLETIC FACILITIES.
 4.  ENTITIES  REQUIRED  TO  PROCURE  LICENSES;  PROFESSIONAL COMBATIVE
 SPORTS PARTICIPANTS DEFINED. EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION
 SIX OF THIS SECTION, ALL CORPORATIONS, PERSONS, LIMITED LIABILITY COMPA
 NIES, REFEREES, JUDGES, CORPORATION TREASURERS,  PROFESSIONAL  COMBATIVE
 SPORTS  PARTICIPANTS,  THEIR  MANAGERS,  PROMOTERS,  TRAINERS  AND CHIEF
 SECONDS SHALL BE LICENSED BY THE COMMISSION, AND NO SUCH ENTITY SHALL BE
 PERMITTED TO PARTICIPATE, EITHER DIRECTLY OR INDIRECTLY, IN ANY  PROFES
 SIONAL  COMBATIVE  SPORTS  MATCH  OR EXHIBITION, OR THE HOLDING THEREOF,
 UNLESS SUCH ENTITY SHALL HAVE FIRST PROCURED A LICENSE FROM THE  COMMIS
 SION.  THE  COMMISSION  SHALL ESTABLISH BY RULE AND REGULATION LICENSING
 STANDARDS FOR REFEREES, JUDGES, MANAGERS, PROMOTERS, TRAINERS AND  CHIEF
 SECONDS.    ANY MATCH OR EXHIBITION CONFORMING TO THE RULES, REGULATIONS
 AND REQUIREMENTS OF THIS SECTION SHALL BE DEEMED TO  BE  A  PROFESSIONAL
 COMBATIVE SPORTS MATCH OR EXHIBITION.
 5.  LICENSE  TO  ENTITIES.  (A) THE COMMISSION MAY, IN ITS DISCRETION,
 ISSUE A LICENSE TO CONDUCT OR HOLD PROFESSIONAL COMBATIVE SPORTS MATCHES
 OR EXHIBITIONS, SUBJECT TO THE PROVISIONS HEREOF, TO ANY PERSON,  CORPO
 RATION OR LIMITED LIABILITY COMPANY DULY INCORPORATED OR FORMED, HEREIN
 AFTER REFERRED TO AS "ENTITY".
 (B) A PROSPECTIVE LICENSEE MUST SUBMIT TO THE COMMISSION PROOF THAT IT
 CAN FURNISH SUITABLE PREMISES IN WHICH SUCH MATCH OR EXHIBITION IS TO BE
 HELD.
 (C)  UPON WRITTEN APPLICATION AND THE PAYMENT OF A FEE OF FIVE HUNDRED
 DOLLARS WHICH MUST ACCOMPANY THE APPLICATION, THE COMMISSION  MAY  GRANT
 TO ANY ENTITY HOLDING A LICENSE ISSUED HEREUNDER, THE PRIVILEGE OF HOLD
 ING SUCH A MATCH OR EXHIBITION ON A SPECIFIED DATE IN OTHER PREMISES, OR
 IN  ANOTHER  LOCATION, THAN THE PREMISES OF LOCATION PREVIOUSLY APPROVED
 BY THE COMMISSION, SUBJECT HOWEVER TO APPROVAL OF THE COMMISSION AND THE
 RULES AND REGULATIONS OF THE COMMISSION.
 (D) ALL PENALTIES IMPOSED AND COLLECTED BY  THE  COMMISSION  FROM  ANY
 ENTITY LICENSED UNDER THE PROVISIONS OF THIS ACT, WHICH FINES AND PENAL
 
       S. 2811--B                         109
 TIES  ARE  IMPOSED AND COLLECTED UNDER THE AUTHORITY HEREBY VESTED SHALL
 WITHIN THIRTY DAYS AFTER THE RECEIPT THEREOF BY THE COMMISSION  BE  PAID
 BY THEM INTO THE STATE TREASURY.
 6. TEMPORARY WORKING PERMITS FOR PROFESSIONAL COMBATIVE SPORTS PARTIC
 IPANTS,  MANAGERS,  TRAINERS AND CHIEF SECONDS. THE COMMISSION MAY ISSUE
 TEMPORARY WORKING PERMITS TO PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS,
 THEIR MANAGERS, TRAINERS AND CHIEF SECONDS. A TEMPORARY  WORKING  PERMIT
 SHALL AUTHORIZE THE EMPLOYMENT OF THE HOLDER OF SUCH PERMIT TO ENGAGE IN
 A  SINGLE MATCH OR EXHIBITION AT A SPECIFIED TIME AND PLACE. A TEMPORARY
 WORKING PERMIT MAY BE ISSUED IF IN THE JUDGMENT OF  THE  COMMISSION  THE
 PARTICIPATION  OF  THE HOLDER THEREOF IN A PROFESSIONAL COMBATIVE SPORTS
 MATCH OR EXHIBITION WILL BE CONSISTENT WITH THE PURPOSES AND  PROVISIONS
 OF  THIS  SECTION, THE BEST INTERESTS OF COMBATIVE SPORTS GENERALLY, AND
 THE PUBLIC  INTEREST,  CONVENIENCE  OR  NECESSITY.  THE  COMMISSION  MAY
 REQUIRE  THAT  PROFESSIONAL  COMBATIVE  SPORTS PARTICIPANTS APPLYING FOR
 TEMPORARY WORKING PERMITS UNDERGO A PHYSICAL  EXAMINATION,  NEUROLOGICAL
 OR  NEUROPSYCHOLOGICAL  TEST OR PROCEDURE, INCLUDING COMPUTED TOMOGRAPHY
 OR MEDICALLY EQUIVALENT PROCEDURE. THE FEE FOR  SUCH  TEMPORARY  WORKING
 PERMIT SHALL BE TWENTY DOLLARS.
 7.  LICENSE  FEES;  TERM  OF  LICENSES; RENEWALS. EACH APPLICANT FOR A
 PROMOTER LICENSE SHALL, BEFORE A LICENSE IS ISSUED  BY  THE  COMMISSION,
 PAY  TO  THE  COMMISSION,  AN  ANNUAL LICENSE FEE AS FOLLOWS:  WHERE THE
 SEATING CAPACITY IS NOT  MORE  THAN  TWO  THOUSAND  FIVE  HUNDRED,  FIVE
 HUNDRED  DOLLARS;  WHERE  THE SEATING CAPACITY IS MORE THAN TWO THOUSAND
 FIVE HUNDRED BUT NOT MORE THAN  FIVE  THOUSAND,  ONE  THOUSAND  DOLLARS;
 WHERE  THE SEATING CAPACITY IS MORE THAN FIVE THOUSAND BUT NOT MORE THAN
 FIFTEEN THOUSAND, ONE THOUSAND FIVE HUNDRED DOLLARS; WHERE  THE  SEATING
 CAPACITY  IS  MORE  THAN  FIFTEEN THOUSAND BUT NOT MORE THAN TWENTY-FIVE
 THOUSAND, TWO THOUSAND FIVE HUNDRED DOLLARS; WHERE THE SEATING  CAPACITY
 IS  MORE THAN TWENTY-FIVE THOUSAND, THREE THOUSAND FIVE HUNDRED DOLLARS;
 REFEREE, ONE HUNDRED DOLLARS; JUDGES, ONE HUNDRED DOLLARS;  PROFESSIONAL
 COMBATIVE  SPORTS  PARTICIPANTS, FIFTY DOLLARS; MANAGERS, FIFTY DOLLARS;
 TRAINERS, FIFTY DOLLARS; AND CHIEF SECONDS, FORTY DOLLARS. EACH  LICENSE
 OR RENEWAL THEREOF ISSUED PURSUANT TO THIS SUBDIVISION ON OR AFTER OCTO
 BER  FIRST SHALL BE EFFECTIVE FOR A LICENSE YEAR EXPIRING ON THE THIRTI
 ETH DAY OF SEPTEMBER FOLLOWING THE DATE  OF  ITS  ISSUANCE.  THE  ANNUAL
 LICENSE  FEE PRESCRIBED BY THIS SUBDIVISION SHALL BE THE LICENSE FEE DUE
 AND PAYABLE THEREFOR AND SHALL BE PAID IN ADVANCE AT THE  TIME  APPLICA
 TION  IS MADE THEREFOR, AND EACH SUCH LICENSE MAY BE RENEWED FOR PERIODS
 OF ONE YEAR UPON THE PAYMENT OF THE ANNUAL  LICENSE  FEE  PRESCRIBED  BY
 THIS  SUBDIVISION.  WITHIN THREE YEARS FROM THE DATE OF PAYMENT AND UPON
 THE AUDIT OF THE COMPTROLLER, THE COMMISSION MAY REFUND ANY FEE,  UNFOR
 FEITED  POSTED GUARANTEE OR TAX PAID PURSUANT TO THIS SECTION, FOR WHICH
 NO LICENSE IS ISSUED OR NO SERVICE RENDERED OR REFUND  THAT  PORTION  OF
 THE PAYMENT THAT IS IN EXCESS OF THE AMOUNT PRESCRIBED BY STATUTE.
 8.  APPLICATION FOR LICENSE; FINGERPRINTS. (A) EVERY APPLICATION FOR A
 LICENSE SHALL BE IN WRITING, SHALL BE ADDRESSED TO THE COMMISSION, SHALL
 BE SUBSCRIBED BY THE APPLICANT, AND AFFIRMED BY HIM AS  TRUE  UNDER  THE
 PENALTIES  OF  PERJURY, AND SHALL SET FORTH SUCH FACTS AS THE PROVISIONS
 HEREOF AND THE RULES AND REGULATIONS OF THE COMMISSION MAY REQUIRE.
 (B) WHEN AN APPLICATION IS MADE FOR A LICENSE UNDER THIS SECTION,  THE
 COMMISSION  MAY  CAUSE  THE  FINGERPRINTS  OF SUCH APPLICANT, OR IF SUCH
 APPLICANT BE A CORPORATION, OF THE OFFICERS OF SUCH CORPORATION,  OR  IF
 SUCH  APPLICANT  BE  A  LIMITED  LIABILITY  COMPANY, THE MANAGER OF SUCH
 LIMITED LIABILITY COMPANY TO BE TAKEN IN DUPLICATE. THE APPLICANT  SHALL
 BE  RESPONSIBLE  FOR THE COST OF HAVING HIS FINGERPRINTS TAKEN.  IF SUCH
 
       S. 2811--B                         110
 FINGERPRINTS ARE TAKEN, ONE COPY SHALL BE TRANSMITTED TO THE DIVISION OF
 CRIMINAL JUSTICE SERVICES IN ACCORDANCE WITH THE RULES  AND  REGULATIONS
 OF  THE  DIVISION  OF  CRIMINAL JUSTICE SERVICES AND ONE SHALL REMAIN ON
 FILE  IN  THE  OFFICE  OF  THE  COMMISSION.  NO  SUCH FINGERPRINT MAY BE
 INSPECTED BY ANY PERSON, OTHER THAN A PEACE OFFICER, EXCEPT ON ORDER  OF
 A JUDGE OR JUSTICE OF A COURT OF RECORD.  THE DIVISION IS HEREBY AUTHOR
 IZED  TO TRANSMIT CRIMINAL HISTORY INFORMATION TO THE COMMISSION FOR THE
 PURPOSES OF THIS PARAGRAPH.  THE INFORMATION OBTAINED BY ANY SUCH  FING
 ERPRINT  EXAMINATION  SHALL BE FOR THE GUIDANCE OF THE COMMISSION IN THE
 EXERCISE OF ITS DISCRETION IN GRANTING OR WITHHOLDING THE LICENSE.   THE
 COMMISSION SHALL PROVIDE SUCH APPLICANT WITH A COPY OF HIS OR HER CRIMI
 NAL   HISTORY   RECORD,   IF  ANY,  TOGETHER  WITH  A  COPY  OF  ARTICLE
 TWENTY-THREE-A OF THE CORRECTION LAW, AND INFORM SUCH APPLICANT  OF  HIS
 OR  HER  RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED
 IN SUCH RECORD PURSUANT TO REGULATIONS AND PROCEDURES ESTABLISHED BY THE
 DIVISION OF CRIMINAL JUSTICE  SERVICES.  ALL  DETERMINATIONS  TO  ISSUE,
 RENEW,  SUSPEND  OR  REVOKE  A  LICENSE SHALL BE MADE IN ACCORDANCE WITH
 SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF  THE  EXECUTIVE
 LAW AND ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW.
 9.  STANDARDS  FOR THE ISSUANCE OF LICENSES. (A) IF IN THE JUDGMENT OF
 THE COMMISSION THE FINANCIAL RESPONSIBILITY, EXPERIENCE,  CHARACTER  AND
 GENERAL  FITNESS  OF AN APPLICANT, INCLUDING IN THE CASE OF CORPORATIONS
 ITS OFFICERS AND STOCKHOLDERS, ARE SUCH THAT THE PARTICIPATION  OF  SUCH
 APPLICANT  WILL  BE  CONSISTENT  WITH  THE  BEST  INTERESTS OF COMBATIVE
 SPORTS, THE PURPOSES OF THIS SECTION INCLUDING  THE  SAFETY  OF  PROFES
 SIONAL  COMBATIVE  SPORTS  PARTICIPANTS,  AND  IN  THE  PUBLIC INTEREST,
 CONVENIENCE OR NECESSITY,  THE  COMMISSION  SHALL  GRANT  A  LICENSE  IN
 ACCORDANCE WITH THE PROVISIONS CONTAINED IN THIS SUBDIVISION.
 (B)  ANY  PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANT  APPLYING FOR A
 LICENSE OR RENEWAL OF A LICENSE UNDER THIS SUBDIVISION SHALL  UNDERGO  A
 COMPREHENSIVE  PHYSICAL  EXAMINATION INCLUDING CLINICAL NEUROLOGICAL AND
 NEUROPSYCHOLOGICAL EXAMINATIONS BY A PHYSICIAN APPROVED BY  THE  COMMIS
 SION.  IF,  AT  THE TIME OF SUCH EXAMINATION, THERE IS ANY INDICATION OF
 BRAIN INJURY, OR FOR ANY OTHER REASON THE PHYSICIAN DEEMS  IT  APPROPRI
 ATE,  THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT SHALL BE REQUIRED TO
 UNDERGO FURTHER NEUROLOGICAL AND NEUROPSYCHOLOGICAL  EXAMINATIONS  BY  A
 NEUROLOGIST  INCLUDING,  BUT  NOT  LIMITED  TO, A COMPUTED TOMOGRAPHY OR
 MEDICALLY EQUIVALENT PROCEDURE. THE COMMISSION SHALL NOT ISSUE A LICENSE
 TO A PROFESSIONAL COMBATIVE SPORTS PARTICIPANT UNTIL  SUCH  EXAMINATIONS
 ARE  COMPLETED  AND  REVIEWED BY THE COMMISSION. THE RESULTS OF ALL SUCH
 EXAMINATIONS HEREIN REQUIRED SHALL BECOME A  PART  OF  THE  PROFESSIONAL
 COMBATIVE SPORTS PARTICIPANT'S PERMANENT MEDICAL RECORD AS MAINTAINED BY
 THE  COMMISSION.  THE  COST  OF ALL SUCH EXAMINATIONS CALLED FOR IN THIS
 SUBDIVISION SHALL BE ASSUMED BY  THE  STATE  IF  SUCH  EXAMINATIONS  ARE
 PERFORMED BY A PHYSICIAN OR NEUROLOGIST APPROVED BY THE COMMISSION.
 (C)  ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED UNDER THIS
 CHAPTER SHALL, AS A CONDITION OF LICENSURE, WAIVE RIGHT OF CONFIDENTIAL
 ITY OF MEDICAL RECORDS RELATING TO TREATMENT OF ANY  PHYSICAL  CONDITION
 WHICH RELATES TO HIS ABILITY TO FIGHT. ALL MEDICAL REPORTS SUBMITTED TO,
 AND  ALL MEDICAL RECORDS OF THE MEDICAL ADVISORY BOARD OR THE COMMISSION
 RELATIVE TO THE PHYSICAL EXAMINATION OR CONDITION  OF  COMBATIVE  SPORTS
 PARTICIPANTS  SHALL  BE  CONSIDERED  CONFIDENTIAL,  AND SHALL BE OPEN TO
 EXAMINATION ONLY TO THE COMMISSION OR ITS AUTHORIZED REPRESENTATIVE,  TO
 THE  LICENSED PARTICIPANT, MANAGER OR CHIEF SECOND UPON WRITTEN APPLICA
 TION TO EXAMINE SAID RECORDS, OR UPON THE ORDER OF A COURT OF  COMPETENT
 JURISDICTION IN AN APPROPRIATE CASE.
 
       S. 2811--B                         111
 10.  FINANCIAL  INTEREST IN PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS
 PROHIBITED. NO ENTITY SHALL HAVE, EITHER  DIRECTLY  OR  INDIRECTLY,  ANY
 FINANCIAL  INTEREST  IN  A  PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANT
 COMPETING ON PREMISES OWNED OR LEASED BY THE ENTITY, OR  IN  WHICH  SUCH
 ENTITY  IS  OTHERWISE INTERESTED EXCEPT PURSUANT TO THE SPECIFIC WRITTEN
 AUTHORIZATION OF THE COMMISSION.
 11. PAYMENTS NOT TO BE MADE BEFORE CONTESTS. NO PROFESSIONAL COMBATIVE
 SPORTS PARTICIPANT SHALL BE PAID FOR SERVICES BEFORE  THE  CONTEST,  AND
 SHOULD  IT BE DETERMINED BY THE COMMISSION THAT SUCH PARTICIPANT DID NOT
 GIVE AN HONEST EXHIBITION OF HIS SKILL, SUCH SERVICE SHALL NOT  BE  PAID
 FOR.
 12.  SHAM  OR  COLLUSIVE  EVENTS. (A) ANY PERSON, INCLUDING ANY CORPO
 RATION AND THE OFFICERS THEREOF, ANY PHYSICIAN, LIMITED LIABILITY COMPA
 NY, REFEREE, JUDGE, PROFESSIONAL COMBATIVE SPORTS PARTICIPANT,  MANAGER,
 TRAINER OR CHIEF SECOND, WHO SHALL PROMOTE, CONDUCT, GIVE OR PARTICIPATE
 IN  ANY SHAM OR COLLUSIVE PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBI
 TION, SHALL BE DEPRIVED OF HIS LICENSE BY THE COMMISSION.
 (B) NO LICENSED ENTITY SHALL KNOWINGLY ENGAGE IN A COURSE  OF  CONDUCT
 IN  WHICH  PROFESSIONAL  COMBATIVE  SPORTS  MATCHES  OR  EXHIBITIONS ARE
 ARRANGED WHERE ONE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT HAS  SKILLS
 OR  EXPERIENCE  SIGNIFICANTLY IN EXCESS OF THE OTHER PROFESSIONAL COMBA
 TIVE SPORTS PARTICIPANT SO THAT A MISMATCH RESULTS WITH THE POTENTIAL OF
 PHYSICAL HARM TO THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT. IF  SUCH
 ACTION  OCCURS,  THE  COMMISSION  MAY  EXERCISE ITS POWERS TO DISCIPLINE
 UNDER SUBDIVISIONS THIRTEEN AND FOURTEEN OF THIS SECTION, PROVIDED  THAT
 NOTHING  IN THIS SUBDIVISION SHALL AUTHORIZE THE COMMISSION TO INTERVENE
 OR PROHIBIT A PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHIBITION  SOLELY
 ON  THE BASIS OF THE DIFFERENCE BETWEEN RESPECTIVE PARTICIPANT'S MARTIAL
 ARTS DISCIPLINES.
 13. IMPOSITION OF PENALTIES FOR VIOLATIONS. ANY ENTITY, LICENSED UNDER
 THE PROVISIONS OF THIS SECTION, THAT SHALL KNOWINGLY VIOLATE ANY RULE OR
 ORDER OF THE COMMISSION OR ANY PROVISION OF THIS SECTION, IN ADDITION TO
 ANY OTHER PENALTY BY LAW PRESCRIBED, SHALL BE LIABLE TO A CIVIL  PENALTY
 NOT  EXCEEDING FIVE THOUSAND DOLLARS TO BE IMPOSED BY THE COMMISSION, TO
 BE SUED FOR BY THE ATTORNEY GENERAL IN THE NAME OF  

THE PEOPLE  OF  THE
 STATE  OF  NEW  YORK  IF  DIRECTED  BY THE COMMISSION. THE AMOUNT OF THE
 PENALTY COLLECTED BY THE COMMISSION OR RECOVERED IN ANY SUCH ACTION,  OR
 PAID  TO THE COMMISSION UPON A COMPROMISE AS HEREINAFTER PROVIDED, SHALL
 BE TRANSMITTED BY THE DEPARTMENT OF STATE INTO THE  STATE  TREASURY  AND
 CREDITED  TO  THE  GENERAL  FUND.  THE  COMMISSION, FOR CAUSE SHOWN, MAY
 EXTEND THE TIME FOR THE PAYMENT OF SUCH PENALTY AND, BY COMPROMISE,  MAY
 ACCEPT  LESS  THAN  THE  AMOUNT OF SUCH PENALTY AS IMPOSED IN SETTLEMENT
 THEREOF.
 14. REVOCATION OR SUSPENSION OF LICENSES. (A) ANY LICENSE ISSUED UNDER
 THE PROVISIONS OF THIS SECTION  MAY  BE  REVOKED  OR  SUSPENDED  BY  THE
 COMMISSION  FOR THE REASON THEREIN STATED, THAT THE LICENSEE HAS, IN THE
 JUDGMENT OF THE COMMISSION, BEEN GUILTY OF AN  ACT  DETRIMENTAL  TO  THE
 INTERESTS  OF  COMBATIVE  SPORTS  GENERALLY  OR  TO THE PUBLIC INTEREST,
 CONVENIENCE OR NECESSITY.
 (B) WITHOUT OTHERWISE LIMITING THE DISCRETION  OF  THE  COMMISSION  AS
 PROVIDED IN THIS SECTION, THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE
 OR  REFUSE TO RENEW OR ISSUE A LICENSE, IF IT SHALL FIND THAT THE APPLI
 CANT OR PARTICIPANT: (1) HAS BEEN CONVICTED OF A CRIME IN ANY  JURISDIC
 TION;  (2)  IS  ASSOCIATING  OR  CONSORTING  WITH  ANY PERSON WHO HAS OR
 PERSONS WHO HAVE BEEN CONVICTED OF A CRIME OR CRIMES IN ANY JURISDICTION
 OR JURISDICTIONS; (3) HAS BEEN GUILTY  OF  OR  ATTEMPTED  ANY  FRAUD  OR
 
       S. 2811--B                         112
 MISREPRESENTATION  IN CONNECTION WITH COMBATIVE SPORTS; (4) HAS VIOLATED
 OR ATTEMPTED TO VIOLATE ANY LAW WITH RESPECT TO COMBATIVE SPORTS IN  ANY
 JURISDICTION  OR  ANY  RULE,  REGULATION  OR ORDER OF THE COMMISSION, OR
 SHALL  HAVE  VIOLATED ANY RULE OF COMBATIVE SPORTS WHICH SHALL HAVE BEEN
 APPROVED OR ADOPTED BY THE COMMISSION, OR HAS BEEN GUILTY OF OR  ENGAGED
 IN  SIMILAR, RELATED OR LIKE PRACTICES; OR (5) HAS NOT ACTED IN THE BEST
 INTEREST OF MIXED MARTIAL ARTS.   ALL DETERMINATIONS  TO  ISSUE,  RENEW,
 SUSPEND OR REVOKE A LICENSE SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION
 SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI
 CLE TWENTY-THREE-A OF THE CORRECTION LAW AS APPLICABLE.
 (C)  NO  SUCH  PARTICIPANT  MAY, UNDER ANY   CIRCUMSTANCES, COMPETE OR
 APPEAR IN A PROFESSIONAL COMBATIVE SPORTS  MATCH  OR  EXHIBITION  WITHIN
 NINETY  DAYS  OF HAVING SUFFERED A KNOCKOUT OR TECHNICAL KNOCKOUT IN ANY
 SUCH MATCH OR EXHIBITION WITHOUT CLEARANCE BY THE BOARD, OR WITHIN NINE
 TY DAYS OF BEING RENDERED UNCONSCIOUS IN ANY SUCH  MATCH  OR  EXHIBITION
 WHERE  THERE  IS  EVIDENCE OF HEAD TRAUMA AS DETERMINED BY THE ATTENDING
 COMMISSION PHYSICIAN AND SHALL UNDERGO  SUCH  EXAMINATIONS  AS  REQUIRED
 UNDER  PARAGRAPH  (B) OF SUBDIVISION TWENTY OF THIS SECTION. THE PROFES
 SIONAL COMBATIVE SPORTS PARTICIPANT SHALL BE CONSIDERED  SUSPENDED  FROM
 PROFESSIONAL  COMBATIVE  SPORTS MATCHES OR EXHIBITIONS BY THE COMMISSION
 AND SHALL FORFEIT HIS LICENSE TO THE COMMISSION DURING SUCH  PERIOD  AND
 SUCH  LICENSE SHALL NOT BE RETURNED TO THE PARTICIPANT UNTIL THE PARTIC
 IPANT HAS MET ALL REQUIREMENTS, MEDICAL AND OTHERWISE, FOR REINSTATEMENT
 OF SUCH LICENSE. ALL SUCH SUSPENSIONS SHALL BE RECORDED IN  THE  PARTIC
 IPANT'S LICENSE BY A COMMISSION OFFICIAL.
 (D)  THE  COMMISSION MAY AT ANY TIME SUSPEND, REVOKE OR DENY A PARTIC
 IPANT'S LICENSE OR TEMPORARY WORKING PERMIT FOR MEDICAL REASONS  AT  THE
 RECOMMENDATION OF THE BOARD.
 (E)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, IF ANY OTHER STATE
 SHALL REVOKE A LICENSEE'S LICENSE TO COMPETE OR APPEAR IN A PROFESSIONAL
 COMBATIVE SPORTS MATCH OR EXHIBITION IN THAT STATE BASED  ON  A  KNOWING
 AND  INTENTIONAL  ENGAGEMENT  IN ANY PROHIBITED PRACTICES OF SUCH STATE,
 THE COMMISSION MAY ACT TO REVOKE ANY LICENSE TO COMPETE OR APPEAR  IN  A
 PROFESSIONAL  COMBATIVE SPORTS MATCH OR EXHIBITION ISSUED TO SUCH LICEN
 SEE PURSUANT TO THE PROVISIONS OF THIS SECTION.
 (F) THE COMMISSION MAY SUSPEND ANY LICENSE IT HAS ISSUED  BY  A  DATED
 NOTICE  TO THAT EFFECT TO THE SUSPENDED LICENSEE, MAILED OR DELIVERED TO
 THE LICENSEE, AND SPECIFYING THE EFFECTIVE DATE AND TERM OF THE  SUSPEN
 SION, PROVIDED HOWEVER THAT THE COMMISSION REPRESENTATIVE IN CHARGE OF A
 CONTEST OR EXHIBITION MAY THEN AND THERE TEMPORARILY SUSPEND ANY LICENSE
 ISSUED  BY  THE COMMISSION WITHOUT SUCH NOTICE. IN THE EVENT OF A TEMPO
 RARY SUSPENSION, THE COMMISSION SHALL MAIL OR DELIVER THE NOTICE TO  THE
 SUSPENDED  LICENSEE  WITHIN  THREE  BUSINESS  DAYS  AFTER  THE TEMPORARY
 SUSPENSION. IN EITHER CASE SUCH SUSPENSION MAY BE  WITHOUT  ANY  ADVANCE
 HEARING.  UPON  THE  RECEIPT OF SUCH NOTICE OF SUSPENSION, THE SUSPENDED
 LICENSEE MAY APPLY TO THE COMMISSION FOR A  HEARING  ON  THE  MATTER  TO
 DETERMINE  WHETHER SUCH SUSPENSION SHOULD BE RESCINDED. SUCH APPLICATION
 FOR A HEARING MUST BE IN WRITING AND MUST BE RECEIVED BY THE  COMMISSION
 WITHIN  THIRTY  DAYS AFTER THE DATE OF NOTICE OF SUSPENSION. THE COMMIS
 SION SHALL HAVE THE AUTHORITY TO REVOKE ANY LICENSE ISSUED BY IT. BEFORE
 ANY LICENSE IS SO REVOKED, THE LICENSEE WILL BE OFFERED THE  OPPORTUNITY
 AT  A  HEARING  HELD BY OR ON BEHALF OF THE COMMISSION TO SHOW CAUSE WHY
 THE LICENSE SHOULD NOT BE REVOKED. THE COMMISSION SHALL OFFER THE OPPOR
 TUNITY FOR A HEARING TO AN  AFFECTED  PERSON  BEFORE  TAKING  ANY  FINAL
 ACTION NEGATIVELY AFFECTING SUCH PERSON'S INDIVIDUAL PRIVILEGES OR PROP
 ERTY  GRANTED  BY  A LICENSE DULY ISSUED BY THE COMMISSION OR A CONTRACT
 
       S. 2811--B                         113
 APPROVED BY AND FILED WITH THE COMMISSION. IN ALL SUCH HEARINGS,  LICEN
 SEES  AND OTHER WITNESSES SHALL TESTIFY UNDER OATH OR AFFIRMATION, WHICH
 MAY BE ADMINISTERED BY ANY COMMISSIONER OR AUTHORIZED REPRESENTATIVE  OF
 THE  COMMISSION ACTUALLY PRESENT. THE COMMISSION SHALL BE THE SOLE JUDGE
 OF THE RELEVANCY AND COMPETENCY OF TESTIMONY  AND  OTHER  EVIDENCE,  THE
 CREDIBILITY  OF WITNESSES, AND THE SUFFICIENCY OF EVIDENCE. HEARINGS MAY
 BE CONDUCTED BY REPRESENTATIVES OF THE COMMISSION IN THE  DISCRETION  OF
 THE COMMISSION. IN SUCH CASES, THE COMMISSION REPRESENTATIVES CONDUCTING
 THE  HEARING  SHALL  SUBMIT  FINDINGS OF FACT AND RECOMMENDATIONS TO THE
 COMMISSION, WHICH SHALL NOT BE BINDING ON THE COMMISSION.
 15. ADVERTISING MATTER TO STATE ADMISSION PRICE. IT SHALL BE THE  DUTY
 OF  EVERY ENTITY PROMOTING OR CONDUCTING A PROFESSIONAL COMBATIVE SPORTS
 MATCH OR EXHIBITION SUBJECT TO THE PROVISIONS OF THIS SECTION  TO  CAUSE
 TO  BE INSERTED IN EACH SHOW CARD, BILL, POSTER, NEWSPAPER ADVERTISEMENT
 OF ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION  GIVEN  BY  IT,
 THE  PRICE  OF  ADMISSION  THERETO.  VIOLATION OF THE PROVISIONS OF THIS
 SUBDIVISION SHALL SUBJECT THE ENTITY TO A FINE OF ONE HUNDRED DOLLARS.
 16. TICKETS TO INDICATE PURCHASE PRICE. ALL TICKETS  OF  ADMISSION  TO
 ANY SUCH COMBATIVE SPORTS MATCH OR EXHIBITION SHALL BE CONTROLLED BY THE
 PROVISIONS  OF ARTICLE TWENTY-FIVE OF THE ARTS AND CULTURAL AFFAIRS LAW.
 IT SHALL BE UNLAWFUL FOR ANY ENTITY TO ADMIT TO SUCH MATCH OR EXHIBITION
 A NUMBER OF PEOPLE GREATER THAN THE SEATING CAPACITY OF THE PLACE  WHERE
 SUCH MATCH OR EXHIBITION IS HELD. VIOLATION OF THIS SUBDIVISION SHALL BE
 A  MISDEMEANOR  AND  SHALL  BE  PUNISHABLE AS SUCH AND IN ADDITION SHALL
 INCUR FORFEITURE OF LICENSE.
 17. EQUIPMENT OF BUILDINGS FOR MATCHES OR EXHIBITIONS.  ALL  BUILDINGS
 OR  STRUCTURES  USED  OR  INTENDED TO BE USED FOR HOLDING OR GIVING SUCH
 PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS SHALL  BE  PROPERLY
 VENTILATED  AND  PROVIDED  WITH  FIRE EXITS AND FIRE ESCAPES, AND IN ALL
 MANNER CONFORM TO THE LAWS, ORDINANCES  AND  REGULATIONS  PERTAINING  TO
 BUILDINGS IN THE CITY, TOWN OR VILLAGE WHERE SITUATED.
 18.  AGE  OF  PARTICIPANTS AND SPECTATORS.  NO PERSON UNDER THE AGE OF
 EIGHTEEN YEARS SHALL PARTICIPATE IN ANY  PROFESSIONAL  COMBATIVE  SPORTS
 MATCH  OR  EXHIBITION, AND NO PERSON UNDER SIXTEEN YEARS OF AGE SHALL BE
 PERMITTED TO ATTEND AS A SPECTATOR; PROVIDED,  HOWEVER,  THAT  A  PERSON
 UNDER  THE AGE OF SIXTEEN SHALL BE PERMITTED TO ATTEND AS A SPECTATOR IF
 ACCOMPANIED BY A PARENT OR GUARDIAN.
 19. REGULATION OF CONDUCT OF MATCHES OR EXHIBITIONS.  (A)  EXCEPT  FOR
 CHAMPIONSHIP  MATCHES,  WHICH  SHALL  NOT  BE  MORE THAN FIVE ROUNDS, NO
 COMBATIVE SPORTS MATCH OR EXHIBITION SHALL BE MORE THAN THREE ROUNDS  IN
 LENGTH.    NO  PARTICIPANT  SHALL BE ALLOWED TO PARTICIPATE IN MORE THAN
 THREE MATCHES OR EXHIBITIONS OR COMPETE  FOR  MORE  THAN  SIXTY  MINUTES
 WITHIN  SEVENTY-TWO  CONSECUTIVE HOURS.  NO PARTICIPANT SHALL BE ALLOWED
 TO COMPETE IN ANY SUCH MATCH OR EXHIBITION WITHOUT WEARING A  MOUTHGUARD
 AND A PROTECTIVE GROIN CUP.  AT EACH PROFESSIONAL COMBATIVE SPORTS MATCH
 OR  EXHIBITION, THERE SHALL BE IN ATTENDANCE A DULY LICENSED REFEREE WHO
 SHALL DIRECT AND CONTROL THE SAME.  BEFORE  STARTING  SUCH  CONTEST  THE
 REFEREE SHALL ASCERTAIN FROM EACH PARTICIPANT THE NAME OF HIS MANAGER OR
 CHIEF  SECOND,  AND  SHALL HOLD SUCH MANAGER OR CHIEF SECOND RESPONSIBLE
 FOR THE CONDUCT OF HIS ASSISTANT SECONDS  DURING  THE  PROGRESS  OF  THE
 MATCH  OR  EXHIBITION.    THE  COMMISSION  SHALL  HAVE  THE POWER IN ITS
 DISCRETION TO DECLARE FORFEITED ANY PRIZE, REMUNERATION OR PURSE, OR ANY
 PART THEREOF, BELONGING TO THE PARTICIPANTS OR ONE OF THEM, OR THE SHARE
 THEREOF OF ANY MANAGER OR CHIEF SECOND IF IN ITS JUDGMENT, SUCH  PARTIC
 IPANT  OR  PARTICIPANTS ARE NOT HONESTLY COMPETING OR THE PARTICIPANT OR
 MANAGER OR CHIEF SECOND OF A  PARTICIPANT,  AS  THE  CASE  MAY  BE,  HAS
 
       S. 2811--B                         114
 COMMITTED  AN  ACT  IN  THE  PREMISES IN VIOLATION OF ANY RULE, ORDER OR
 REGULATION OF THE COMMISSION. THE AMOUNT  SO  FORFEITED  SHALL  BE  PAID
 WITHIN  FORTY-EIGHT  HOURS  TO  THE  COMMISSION.  THERE SHALL ALSO BE IN
 ATTENDANCE,  THREE  DULY LICENSED JUDGES WHO SHALL AT THE TERMINATION OF
 EACH SUCH COMBATIVE SPORTS MATCH OR EXHIBITION  RENDER  THEIR  DECISION.
 THE WINNER OF SUCH MATCH OR EXHIBITION SHALL BE DETERMINED IN ACCORDANCE
 WITH  A SCORING SYSTEM PRESCRIBED BY THE COMMISSION.  PROVIDED, HOWEVER,
 THAT A PARTICIPANT MAY TERMINATE THE CONTEST BY SIGNALLING TO THE REFER
 EE THAT SUCH PARTICIPANT SUBMITS TO THE OPPONENT.
 (B) THE COMMISSION MAY BY RULE, REGULATION OR ORDER, REQUIRE THE PRES
 ENCE OF ANY MEDICAL EQUIPMENT AND PERSONNEL AT EACH PROFESSIONAL  COMBA
 TIVE  SPORTS  MATCH  OR EXHIBITION AS IS NECESSARY OR BENEFICIAL FOR THE
 SAFETY AND PROTECTION OF THE CONTESTANTS; AND MAY ALSO REQUIRE THE PRES
 ENCE OF AN AMBULANCE OR OTHER APPARATUS AT THE SITE OF ANY SUCH MATCH OR
 EXHIBITION OR THE PROMULGATION OF AN  EMERGENCY  MEDICAL  PLAN  IN  LIEU
 THEREOF.
 (C) THE COMMISSION SHALL PRESCRIBE BY RULE OR REGULATION THE RESPONSI
 BILITIES  OF  MANAGERS,  TRAINERS AND CHIEF SECONDS PRIOR TO, DURING AND
 AFTER A COMBATIVE SPORTS MATCH OR EXHIBITION IN  ORDER  TO  PROMOTE  THE
 SAFETY OF THE PARTICIPANTS AT ALL TIMES.
 (D)  THE  COMMISSION  SHALL  REQUIRE  BY  RULE  OR REGULATION THAT ANY
 PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED  UNDER  THIS  SECTION
 PRESENT  TO A DESIGNATED COMMISSION OFFICIAL, BEFORE EACH MATCH OR EXHI
 BITION IN WHICH HE FIGHTS IN THIS STATE, A LICENSE WHICH  SHALL  INCLUDE
 BUT  NOT  BE LIMITED TO THE FOLLOWING INFORMATION: (1) THE PARTICIPANT'S
 NAME, PHOTOGRAPH, SOCIAL SECURITY NUMBER, DATE OF BIRTH, AND OTHER IDEN
 TIFYING INFORMATION; (2) THE PARTICIPANT'S  PRIOR  MATCH  OR  EXHIBITION
 HISTORY  INCLUDING  THE DATES, LOCATION, AND DECISION OF SUCH MATCHES OR
 EXHIBITIONS; AND (3) THE PARTICIPANT'S MEDICAL HISTORY, RELATING TO  ANY
 PHYSICAL CONDITION, MEDICAL TEST OR PROCEDURE WHICH RELATES TO HIS ABIL
 ITY TO FIGHT, AND A RECORD OF ALL MEDICAL SUSPENSIONS.
 20. EXAMINATION BY PHYSICIAN; COST. (A) ALL PARTICIPANTS MUST BE EXAM
 INED  BY  A  PHYSICIAN  DESIGNATED BY THE COMMISSION BEFORE ENTERING THE
 RING AND EACH SUCH PHYSICIAN SHALL IMMEDIATELY FILE WITH THE  COMMISSION
 A  WRITTEN REPORT OF SUCH EXAMINATION. THE COST OF ANY SUCH EXAMINATION,
 AS PRESCRIBED BY A SCHEDULE OF FEES ESTABLISHED BY THE COMMISSION, SHALL
 BE PAID BY THE ENTITY CONDUCTING THE MATCH OR EXHIBITION TO THE  COMMIS
 SION,  WHICH  SHALL THEN PAY THE FEE COVERING SUCH COST TO THE EXAMINING
 PHYSICIAN, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
 (B) ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED OR  PERMIT
 TED  UNDER THIS SECTION RENDERED UNCONSCIOUS OR SUFFERING HEAD TRAUMA AS
 DETERMINED BY THE ATTENDING PHYSICIAN SHALL BE IMMEDIATELY  EXAMINED  BY
 THE  ATTENDING  COMMISSION  PHYSICIAN  AND  SHALL BE REQUIRED TO UNDERGO
 NEUROLOGICAL  AND  NEUROPSYCHOLOGICAL  EXAMINATIONS  BY  A   NEUROLOGIST
 INCLUDING  BUT  NOT LIMITED TO A COMPUTED TOMOGRAPHY OR MEDICALLY EQUIV
 ALENT PROCEDURE. ANY PARTICIPANT SO INJURED  SHALL  NOT  APPEAR  IN  ANY
 MATCH  OR  EXHIBITION UNTIL RESULTS OF SUCH EXAMINATIONS ARE REVIEWED BY
 THE COMMISSION. THE RESULTS OF ALL  SUCH  EXAMINATIONS  HEREIN  REQUIRED
 SHALL  BECOME  A  PART OF THE PARTICIPANT'S PERMANENT MEDICAL RECORDS AS
 MAINTAINED BY THE COMMISSION AND SHALL BE  USED  BY  THE  COMMISSION  TO
 DETERMINE  WHETHER  A  PARTICIPANT  SHALL  BE PERMITTED TO APPEAR IN ANY
 FUTURE PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION.  THE COSTS  OF
 ALL  SUCH  EXAMINATIONS CALLED FOR IN THIS PARAGRAPH SHALL BE ASSUMED BY
 THE ENTITY OR PROMOTER IF SUCH EXAMINATIONS ARE PERFORMED BY A PHYSICIAN
 APPROVED BY THE COMMISSION.
 
       S. 2811--B                         115
 (C) THE COMMISSION MAY AT ANY TIME REQUIRE  A  LICENSED  OR  PERMITTED
 PARTICIPANT  TO UNDERGO A PHYSICAL EXAMINATION, INCLUDING ANY NEUROLOGI
 CAL OR NEUROPSYCHOLOGICAL TEST OR PROCEDURE. THE COST OF SUCH EXAM SHALL
 BE ASSUMED BY THE STATE.
 21.  PHYSICIAN  TO  BE IN ATTENDANCE; POWERS OF SUCH PHYSICIAN. (A) IT
 SHALL BE THE DUTY OF EVERY ENTITY LICENSED TO CONDUCT A COMBATIVE SPORTS
 MATCH OR EXHIBITION, TO HAVE IN ATTENDANCE AT EVERY MATCH OR  EXHIBITION
 AT  LEAST  ONE PHYSICIAN DESIGNATED BY THE COMMISSION AS THE RULES SHALL
 PROVIDE. THE COMMISSION MAY ESTABLISH A SCHEDULE OF FEES TO BE  PAID  BY
 THE  LICENSEE  TO  COVER THE COST OF SUCH ATTENDANCE. SUCH FEES SHALL BE
 PAID TO THE COMMISSION, WHICH SHALL THEN PAY SUCH FEES TO THE PHYSICIANS
 ENTITLED THERETO, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
 (B) THE PHYSICIAN SHALL TERMINATE ANY  PROFESSIONAL  COMBATIVE  SPORTS
 MATCH  OR EXHIBITION IF IN THE OPINION OF SUCH PHYSICIAN ANY PARTICIPANT
 HAS RECEIVED SEVERE PUNISHMENT OR IS IN DANGER OF SERIOUS PHYSICAL INJU
 RY. IN THE EVENT OF ANY SERIOUS PHYSICAL INJURY,  SUCH  PHYSICIAN  SHALL
 IMMEDIATELY  RENDER ANY EMERGENCY TREATMENT NECESSARY, RECOMMEND FURTHER
 TREATMENT OR HOSPITALIZATION IF REQUIRED, AND FULLY  REPORT  THE  ENTIRE
 MATTER  TO  THE  COMMISSION  WITHIN  TWENTY-FOUR HOURS AND IF NECESSARY,
 SUBSEQUENTLY THEREAFTER.  SUCH  PHYSICIAN  MAY  ALSO  REQUIRE  THAT  THE
 INJURED  PARTICIPANT  AND HIS MANAGER OR CHIEF SECOND REMAIN IN THE RING
 OR ON THE PREMISES OR REPORT TO A HOSPITAL AFTER THE  CONTEST  FOR  SUCH
 PERIOD OF TIME AS SUCH PHYSICIAN DEEMS ADVISABLE.
 (C)  SUCH  PHYSICIAN  MAY  ENTER THE RING AT ANY TIME DURING A PROFES
 SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION AND MAY TERMINATE THE  MATCH
 OR  EXHIBITION IF IN HIS OPINION THE SAME IS NECESSARY TO PREVENT SEVERE
 PUNISHMENT OR SERIOUS PHYSICAL INJURY TO A PARTICIPANT.
 22. BOND. BEFORE A LICENSE SHALL BE GRANTED TO AN ENTITY TO CONDUCT  A
 PROFESSIONAL  COMBATIVE  SPORTS MATCH OR EXHIBITION, THE APPLICANT SHALL
 EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN AMOUNT TO  BE  DETER
 MINED  BY  THE  COMMISSION, TO BE APPROVED AS TO FORM AND SUFFICIENCY OF
 SURETIES THEREON  BY  THE  COMPTROLLER,  CONDITIONED  FOR  THE  FAITHFUL
 PERFORMANCE  BY  SUCH  ENTITY  OF THE PROVISIONS OF THIS SECTION AND THE
 RULES AND REGULATIONS  OF  THE  COMMISSION,  AND  UPON  THE  FILING  AND
 APPROVAL  OF  SUCH  BOND THE COMPTROLLER SHALL ISSUE TO SUCH APPLICANT A
 CERTIFICATE OF SUCH FILING AND APPROVAL, WHICH SHALL BE BY  SUCH  APPLI
 CANT  FILED  IN  THE  OFFICE  OF THE COMMISSION WITH ITS APPLICATION FOR
 LICENSE, AND NO SUCH LICENSE SHALL  BE  ISSUED  UNTIL  SUCH  CERTIFICATE
 SHALL  BE  FILED. IN CASE OF DEFAULT IN SUCH PERFORMANCE, THE COMMISSION
 MAY IMPOSE UPON THE DELINQUENT A PENALTY IN THE SUM OF NOT MORE THAN ONE
 THOUSAND DOLLARS FOR EACH OFFENSE, WHICH MAY BE RECOVERED BY THE  ATTOR
 NEY  GENERAL  IN  THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK IN THE
 SAME MANNER AS OTHER PENALTIES ARE  RECOVERED  BY  LAW;  ANY  AMOUNT  SO
 RECOVERED SHALL BE PAID INTO THE TREASURY.
 23.  BOND  FOR PURSES, SALARIES AND OTHER EXPENSES. IN ADDITION TO THE
 BOND REQUIRED BY SUBDIVISION TWENTY-TWO OF THIS SECTION, EACH  APPLICANT
 FOR  A LICENSE TO CONDUCT PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHI
 BITIONS SHALL EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN  AMOUNT
 TO  BE DETERMINED BY THE COMMISSION TO BE APPROVED AS TO FORM AND SUFFI
 CIENCY OF SURETIES THEREON BY THE COMPTROLLER, CONDITIONED FOR AND GUAR
 ANTEEING THE PAYMENT  OF  PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANTS'
 PURSES,  SALARIES  OF CLUB EMPLOYEES LICENSED BY THE COMMISSION, AND THE
 LEGITIMATE EXPENSES OF PRINTING TICKETS AND ALL ADVERTISING MATERIAL.
 24. DUTY TO PROVIDE  INSURANCE  FOR  LICENSED  PROFESSIONAL  COMBATIVE
 SPORTS  PARTICIPANTS.    (A)  ALL  ENTITIES HAVING LICENSES AS PROMOTERS
 SHALL CONTINUOUSLY PROVIDE INSURANCE  FOR  THE  PROTECTION  OF  LICENSED
 
       S. 2811--B                         116
 PROFESSIONAL  COMBATIVE  SPORTS  PARTICIPANTS, APPEARING IN PROFESSIONAL
 COMBATIVE SPORTS MATCHES OR EXHIBITIONS.  SUCH INSURANCE COVERAGE  SHALL
 PROVIDE  FOR REIMBURSEMENT TO THE LICENSED ATHLETE FOR MEDICAL, SURGICAL
 AND  HOSPITAL  CARE,  WITH A MINIMUM LIMIT OF FIFTY THOUSAND DOLLARS FOR
 INJURIES SUSTAINED WHILE PARTICIPATING IN ANY PROGRAM OPERATED UNDER THE
 CONTROL OF SUCH LICENSED PROMOTER AND FOR A PAYMENT OF ONE HUNDRED THOU
 SAND DOLLARS TO THE ESTATE OF ANY DECEASED ATHLETE WHERE SUCH  DEATH  IS
 OCCASIONED  BY INJURIES RECEIVED DURING THE COURSE OF A MATCH OR EXHIBI
 TION IN WHICH SUCH LICENSED ATHLETE PARTICIPATED UNDER THE PROMOTION  OR
 CONTROL OF ANY LICENSED PROMOTER.  THE COMMISSION MAY FROM TIME TO TIME,
 IN ITS DISCRETION, INCREASE THE AMOUNT OF SUCH MINIMUM LIMITS.
 (B)  THE  FAILURE  TO PAY PREMIUMS ON SUCH INSURANCE AS IS REQUIRED BY
 PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CAUSE FOR THE  SUSPENSION  OR
 THE REVOCATION OF THE LICENSE OF SUCH DEFAULTING PROMOTER.
 25. NOTICE OF CONTEST; COLLECTION OF TAX. (A) EVERY ENTITY HOLDING ANY
 PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION FOR WHICH AN ADMISSION
 FEE  IS  CHARGED  OR  RECEIVED, SHALL NOTIFY THE ATHLETIC COMMISSION TEN
 DAYS IN ADVANCE OF THE HOLDING OF SUCH CONTEST. ALL TICKETS OF ADMISSION
 TO ANY SUCH MATCH OR EXHIBITION SHALL BE PROCURED FROM  A  PRINTER  DULY
 AUTHORIZED  BY  THE  STATE ATHLETIC COMMISSION TO PRINT SUCH TICKETS AND
 SHALL BEAR CLEARLY UPON THE FACE THEREOF THE PURCHASE PRICE AND LOCATION
 OF SAME. AN ENTITY FAILING TO FULLY COMPLY WITH THIS  SECTION  SHALL  BE
 SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS TO BE COLLECTED BY AND PAID
 TO  THE  DEPARTMENT OF STATE. AN ENTITY IS PROHIBITED FROM OPERATING ANY
 MATCHES OR EXHIBITIONS UNTIL ALL PENALTIES DUE PURSUANT TO THIS SUBDIVI
 SION AND TAXES, INTEREST AND PENALTIES DUE PURSUANT TO ARTICLE  NINETEEN
 OF THE TAX LAW HAVE BEEN PAID.
 (B) PURSUANT TO DIRECTION BY THE COMMISSIONER OF TAXATION AND FINANCE,
 EMPLOYEES  OR OFFICERS OF THE ATHLETIC COMMISSION SHALL ACT AS AGENTS OF
 THE COMMISSIONER OF TAXATION AND FINANCE TO COLLECT THE TAX  IMPOSED  BY
 ARTICLE  NINETEEN  OF THE TAX LAW. THE ATHLETIC COMMISSION SHALL PROVIDE
 THE COMMISSIONER OF TAXATION AND FINANCE WITH SUCH INFORMATION AND TECH
 NICAL ASSISTANCE AS MAY BE NECESSARY FOR THE  PROPER  ADMINISTRATION  OF
 SUCH TAX.
 26.  REGULATION  OF  JUDGES. (A) JUDGES FOR ANY PROFESSIONAL COMBATIVE
 SPORTS MATCH OR EXHIBITION UNDER  THE  JURISDICTION  OF  THE  COMMISSION
 SHALL  BE  SELECTED  BY THE COMMISSION FROM A LIST OF QUALIFIED LICENSED
 JUDGES MAINTAINED BY THE COMMISSION.
 (B) ANY PROFESSIONAL COMBATIVE SPORT  PARTICIPANT,  MANAGER  OR  CHIEF
 SECOND MAY PROTEST THE ASSIGNMENT OF A JUDGE TO A PROFESSIONAL COMBATIVE
 SPORTS  MATCH  OR  EXHIBITION  AND THE PROTESTING PROFESSIONAL COMBATIVE
 SPORTS PARTICIPANT, MANAGER OR CHIEF SECOND MAY BE HEARD BY THE  COMMIS
 SION  OR  ITS  DESIGNEE  IF  SUCH  PROTEST  IS TIMELY. IF THE PROTEST IS
 UNTIMELY IT SHALL BE SUMMARILY REJECTED.
 (C) EACH PERSON SEEKING TO BE LICENSED AS A JUDGE  BY  THE  COMMISSION
 SHALL  BE  REQUIRED  TO SUBMIT TO OR PROVIDE PROOF OF AN EYE EXAMINATION
 AND ANNUALLY THEREAFTER ON  THE  ANNIVERSARY  OF  THE  ISSUANCE  OF  THE
 LICENSE. EACH PERSON SEEKING TO BE A PROFESSIONAL COMBATIVE SPORTS JUDGE
 IN  THE  STATE SHALL BE CERTIFIED AS HAVING COMPLETED A TRAINING PROGRAM
 AS APPROVED BY THE COMMISSION AND SHALL HAVE PASSED A  WRITTEN  EXAMINA
 TION  APPROVED BY THE COMMISSION COVERING ASPECTS OF PROFESSIONAL COMBA
 TIVE SPORTS INCLUDING, BUT NOT LIMITED TO, THE RULES OF THE  SPORT,  THE
 LAW  OF  THE  STATE RELATING TO THE COMMISSION, AND BASIC FIRST AID. THE
 COMMISSION SHALL ESTABLISH CONTINUING EDUCATION PROGRAMS TO KEEP  LICEN
 SEES CURRENT ON AREAS OF REQUIRED KNOWLEDGE.
 
       S. 2811--B                         117
 (D)  EACH  PERSON  SEEKING  A  LICENSE  TO BE A PROFESSIONAL COMBATIVE
 SPORTS JUDGE IN THIS STATE SHALL BE REQUIRED TO  FILL  OUT  A  FINANCIAL
 QUESTIONNAIRE CERTIFYING UNDER PENALTY OF PERJURY FULL DISCLOSURE OF THE
 JUDGE'S  FINANCIAL SITUATION ON A QUESTIONNAIRE TO BE PROMULGATED BY THE
 COMMISSION. SUCH QUESTIONNAIRE SHALL BE IN A FORM AND MANNER APPROVED BY
 THE  COMMISSION  AND  SHALL PROVIDE INFORMATION AS TO AREAS OF ACTUAL OR
 POTENTIAL  CONFLICTS  OF  INTEREST  AS  WELL  AS  APPEARANCES  OF   SUCH
 CONFLICTS,  INCLUDING FINANCIAL RESPONSIBILITY. WITHIN FORTY-EIGHT HOURS
 OF ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION, EACH COMBATIVE
 SPORTS JUDGE SHALL FILE  WITH  THE  COMMISSION  A  FINANCIAL  DISCLOSURE
 STATEMENT  IN SUCH FORM AND MANNER AS SHALL BE ACCEPTABLE TO THE COMMIS
 SION.
 (E) ONLY A PERSON LICENSED BY THE COMMISSION MAY JUDGE A  PROFESSIONAL
 COMBATIVE SPORTS MATCH OR EXHIBITION.
 27. TRAINING FACILITIES. (A) THE COMMISSION MAY, IN ITS DISCRETION AND
 IN  ACCORDANCE WITH REGULATIONS ADOPTED BY THE COMMISSION TO PROTECT THE
 HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS IN TRAIN
 ING, ISSUE A LICENSE TO OPERATE A TRAINING  FACILITY  PROVIDING  CONTACT
 SPARRING MAINTAINED EITHER EXCLUSIVELY OR IN PART FOR THE USE OF PROFES
 SIONAL  COMBATIVE  SPORT PARTICIPANTS. THE REGULATIONS OF THE COMMISSION
 SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING SUBJECTS TO  PROTECT
 THE HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS:

 (1) REQUIREMENTS FOR FIRST AID MATERIALS TO BE STORED IN AN ACCESSIBLE
 LOCATION  ON  THE  PREMISES  AND  FOR  THE PRESENCE ON THE PREMISES OF A
 PERSON TRAINED AND CERTIFIED IN THE USE OF SUCH MATERIALS AND PROCEDURES
 FOR CARDIO-PULMONARY RESUSCITATION AT ALL TIMES DURING WHICH THE FACILI
 TY IS OPEN FOR TRAINING PURPOSES;
 (2) PROMINENT POSTING ADJACENT TO AN ACCESSIBLE TELEPHONE OF THE TELE
 PHONE NUMBER FOR EMERGENCY MEDICAL SERVICES AT THE NEAREST HOSPITAL;
 (3) CLEAN AND SANITARY BATHROOMS, SHOWER ROOMS, LOCKER ROOMS AND  FOOD
 SERVING AND STORAGE AREAS;
 (4)  ADEQUATE  VENTILATION  AND  LIGHTING  OF  ACCESSIBLE AREAS OF THE
 TRAINING FACILITY;
 (5) ESTABLISHMENT OF A POLICY CONCERNING THE RESTRICTION OF SMOKING IN
 TRAINING AREAS, INCLUDING PROVISIONS FOR ITS ENFORCEMENT BY THE FACILITY
 OPERATOR;
 (6) COMPLIANCE WITH STATE AND LOCAL FIRE ORDINANCES;
 (7) INSPECTION AND APPROVAL OF RINGS AS REQUIRED BY SUBDIVISION THIRTY
 OF THIS SECTION; AND
 (8) ESTABLISHMENT OF A  POLICY  FOR  POSTING  ALL  COMMISSION  LICENSE
 SUSPENSIONS AND LICENSE REVOCATIONS RECEIVED FROM THE COMMISSION INCLUD
 ING  PROVISIONS  FOR  ENFORCEMENT OF SUCH SUSPENSIONS AND REVOCATIONS BY
 THE FACILITY OPERATOR.
 (B) A PROSPECTIVE LICENSEE SHALL SUBMIT TO THE COMMISSION  PROOF  THAT
 IT  CAN  FURNISH  SUITABLE  FACILITIES  IN  WHICH  THE TRAINING IS TO BE
 CONDUCTED, INCLUDING THE MAKING OF SUCH  TRAINING  FACILITIES  AVAILABLE
 FOR INSPECTION BY THE COMMISSION AT ANY TIME DURING WHICH TRAINING IS IN
 PROGRESS.
 28.  TEMPORARY  TRAINING  FACILITIES.  ANY TRAINING FACILITY PROVIDING
 CONTACT SPARRING ESTABLISHED AND MAINTAINED ON A TEMPORARY BASIS FOR THE
 PURPOSE OF PREPARING A PROFESSIONAL COMBATIVE SPORT  PARTICIPANT  FOR  A
 SPECIFIC  PROFESSIONAL  COMBATIVE  SPORTS  MATCH  OR  EXHIBITION  TO  BE
 CONDUCTED, HELD OR GIVEN WITHIN THE STATE OF NEW YORK  SHALL  BE  EXEMPT
 FROM  THIS  ACT  INSOFAR AS IT CONCERNS THE LICENSING OF SUCH FACILITIES
 IF, IN THE JUDGMENT OF THE COMMISSION, ESTABLISHMENT AND MAINTENANCE  OF
 SUCH  FACILITY  WILL  BE  CONSISTENT WITH THE PURPOSES AND PROVISIONS OF
 
       S. 2811--B                         118
 THIS CHAPTER, THE BEST INTERESTS OF PROFESSIONAL COMBATIVE SPORTS GENER
 ALLY, AND THE PUBLIC INTEREST, CONVENIENCE OR NECESSITY.
 29.  WEIGHTS;  CLASSES AND RULES. THE WEIGHTS AND CLASSES OF COMBATIVE
 SPORT PARTICIPANTS AND THE RULES AND REGULATIONS OF PROFESSIONAL  COMBA
 TIVE SPORTS SHALL BE PRESCRIBED BY THE COMMISSION.
 30.  RINGS  OR FIGHTING AREAS.  NO PROFESSIONAL COMBATIVE SPORTS MATCH
 OR EXHIBITION OR TRAINING ACTIVITY SHALL BE PERMITTED  IN  ANY  RING  OR
 FIGHTING  AREA  UNLESS SUCH RING OR FIGHTING AREA HAS BEEN INSPECTED AND
 APPROVED BY THE COMMISSION.  THE  COMMISSION  SHALL  PRESCRIBE  STANDARD
 ACCEPTABLE SIZE AND QUALITY REQUIREMENTS FOR RINGS OR FIGHTING AREAS AND
 APPURTENANCES THERETO.
 31.  MISDEMEANOR. ANY ENTITY WHO INTENTIONALLY, DIRECTLY OR INDIRECTLY
 CONDUCTS, HOLDS OR GIVES A PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHI
 BITION  OR  PARTICIPATES EITHER DIRECTLY OR INDIRECTLY IN ANY SUCH MATCH
 OR EXHIBITION AS A REFEREE, JUDGE, CORPORATION  TREASURER,  PROFESSIONAL
 COMBATIVE  SPORTS  PARTICIPANT,  MANAGER,  PROMOTER,  TRAINER  OR  CHIEF
 SECOND, WITHOUT FIRST HAVING PROCURED AN APPROPRIATE LICENSE  OR  PERMIT
 AS PRESCRIBED IN THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
 

S  3. 

Section  6  of  chapter 912 of the laws of 1920 relating to the
 regulation of boxing, sparring and wrestling, as amended by chapter  437
 of the laws of 2002 and subdivision 1 as designated and subdivision 2 as
 added by chapter 673 of the laws of 2003, is amended to read as follows:

 

S  6.  Jurisdiction  of  commission.  1. The commission shall have and
 hereby is vested with the sole direction, management, control and juris
 diction over all such boxing and  sparring  matches  or  exhibitions  OR
 PROFESSIONAL  COMBATIVE  SPORTS  MATCHES OR EXHIBITIONS to be conducted,
 held or given within the state of New York and over all licenses to  any
 and  all  persons  who participate in such boxing or sparring matches or
 exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS  and
 over  any  and  all  gyms, clubs, training camps and other organizations
 that maintain training facilities providing contact sparring for persons
 who prepare for participation in such  boxing  or  sparring  matches  or
 exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS, and
 over the promotion of professional wrestling exhibitions OR PROFESSIONAL
 COMBATIVE  SPORTS  MATCHES  OR EXHIBITIONS to the extent provided for in
 sections 5, 9, 19, 20, 28-a, 28-b and 33 of this act, except  as  other
 wise provided in this act.
 2. The commission is authorized and directed to require that all sites
 wherein  boxing,  sparring  and  wrestling  matches  and  exhibitions OR
 PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS are conducted shall
 comply with state and applicable local  sanitary  codes  appropriate  to
 school athletic facilities.
 

S  4.  Subdivision  1  of  section  451  of the tax law, as amended by
 section 1 of part F of chapter 407 of the laws of 1999,  is  amended  to
 read as follows:

 1.  "Gross  receipts  from  ticket  sales"  shall mean the total gross
 receipts of every person from the sale of tickets to any professional or
 amateur boxing, sparring or wrestling match or exhibition OR ANY PROFES
 SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION  held  in  this  state,  and
 without  any  deduction  whatsoever for commissions, brokerage, distrib
 ution fees, advertising or any other expenses, charges  and  recoupments
 in respect thereto.
 

S  5.

Section 452 of the tax law, as amended by section 2 of part F of
 chapter 407 of the laws of 1999, is amended to read as follows:

 

S 452. Imposition of tax. 1. On  and  after  October  first,  nineteen
 hundred  ninety-nine, a tax is hereby imposed and shall be paid upon the
 
       S. 2811--B                         119
 gross receipts of every  person  holding  any  professional  or  amateur
 boxing,  sparring  or  wrestling match or exhibition in this state. Such
 tax shall be imposed on such gross receipts, exclusive  of  any  federal
 taxes, as follows:

 (a)  three percent of gross receipts from ticket sales, except that in
 no event shall the tax imposed by this  [subdivision]  PARAGRAPH  exceed
 fifty thousand dollars for any match or exhibition;
 (b)  three  percent of gross receipts from broadcasting rights, except
 that in no event shall the tax imposed by this  [subdivision]  PARAGRAPH
 exceed fifty thousand dollars for any match or exhibition.
 2. ON AND AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A TAX IS HERE
 BY  IMPOSED  AND  SHALL  BE PAID UPON THE GROSS RECEIPTS OF EVERY PERSON
 HOLDING ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR  EXHIBITION  IN  THIS
 STATE.  SUCH  TAX  SHALL BE IMPOSED ON SUCH GROSS RECEIPTS, EXCLUSIVE OF
 ANY FEDERAL TAXES, AS FOLLOWS:

 (A) EIGHT AND ONE-HALF PERCENT OF GROSS RECEIPTS  FROM  TICKET  SALES;
 AND
 (B)  THREE  PERCENT OF GROSS RECEIPTS FROM BROADCASTING RIGHTS, EXCEPT
 THAT IN NO EVENT SHALL THE TAX IMPOSED BY THIS  PARAGRAPH  EXCEED  FIFTY
 THOUSAND DOLLARS FOR ANY MATCH OR EXHIBITION.
 

S  6.  This  act shall take effect on the ninetieth day after it shall
 have become a law, and shall expire and be deemed repealed 3 years after
 it shall take effect; provided, however, that effective immediately, the
 addition, amendment and/or repeal of any rule  or  regulation  necessary
 for  the  implementation of this act on its effective date is authorized
 and directed to be made and completed on or before such effective date.
 PART EE
 

Section 1. Legislative findings. The legislature finds, with regard to
 non-admitted insurance policies with risk exposures located in  multiple
 states,  the  111th  United  States  Congress has stipulated in title V,
 subtitle B, the Non-Admitted and Reinsurance Reform Act of 2010  of  the
 Dodd-Frank  Wall  Street Reform and Consumer Protection Act (hereinafter
 the NRRA) that:

 1. The placement of non-admitted insurance shall  be  subject  to  the
 statutory  and  regulatory  requirements  solely  of  the insured's home
 state, and
 2. Any law, regulation, provision or action of any state that  applies
 or  purports to apply to non-admitted insurance sold to, solicited by or
 negotiated with an insured whose home state is another  state  shall  be
 preempted  with  respect to such application; except that any state law,
 rule or regulation that restricts the placement of workers' compensation
 insurance or excess  insurance  for  self-funded  workers'  compensation
 plans with a non-admitted insurer shall not be preempted.
 The  legislature  finds further that in compliance with NRRA, no state
 other than the home state of an insured  may  require  any  premium  tax
 payment for non-admitted insurance; and no state other than an insured's
 home state may require a surplus lines broker to be licensed in order to
 sell,  solicit  or negotiate non-admitted insurance with respect to such
 insured.
 The legislature finds further that the NRRA intends  that  the  states
 may  enter  into a compact or otherwise establish procedures to allocate
 among the states the premium taxes paid to an insured's home state;  and
 that  each state adopt nationwide uniform requirements, form, and proce
 dures, such as an interstate compact, that provide  for  the  reporting,
 
       S. 2811--B                         120
 payment,  collection  and  allocation  of premium taxes for non-admitted
 insurance.
 The  legislature  finds  further that after the expiration of the two
 year period beginning on the effective date of the NRRA, a state may not
 collect any fees relating to licensing of an individual or entity  as  a
 surplus  lines  licensee  in the state unless the state has in effect at
 such time laws or regulations that  provide  for  participation  by  the
 state  in the national insurance producer database of the National Asso
 ciation of Insurance Commissioners (hereinafter the NAIC) or  any  other
 equivalent  uniform national database for the licensure of surplus lines
 licensees and the renewal of such licenses.
 The legislature recognizes that a need exists for a  system  of  regu
 lation  that  will provide for surplus lines insurance to be placed with
 reputable and financially sound  non-admitted  insurers  and  that  will
 permit  orderly  access  to  surplus  lines  insurance in this state and
 encourage insurers to make new and innovative types of insurance  avail
 able to consumers in this state.
 The  legislature  finds  that protecting the revenue of this state and
 other compacting states may be accomplished by facilitating the  payment
 and  collection  of  premium tax on non-admitted insurance and providing
 for allocation of premium tax for non-admitted insurance of  multi-state
 risks among the states in accordance with uniform allocation formulas.
 The  legislature finds that the efficiency of the surplus lines market
 may be improved by eliminating  duplicative  and  inconsistent  tax  and
 regulatory requirements among the states and by promoting and protecting
 the  interests  of  surplus lines licensees who assist such insureds and
 non-admitted insurers, thereby ensuring the  continued  availability  of
 non-admitted insurance to consumers.
 Regulatory  compliance  with  respect to non-admitted insurance place
 ments may be streamlined by providing for exclusive single-state regula
 tory compliance for non-admitted insurance of multi-state risks, thereby
 providing certainty regarding such compliance to all persons who have an
 interest in such transactions, including but not  limited  to  insureds,
 regulators,  surplus  lines  licensees,  other  insurance  producers and
 surplus lines insurers.
 The legislature finds that coordination of  regulatory  resources  and
 expertise  between state insurance departments and other state agencies,
 as well as state surplus lines stamping offices, with respect to non-ad
 mitted insurance will be improved.
 

S 2. The insurance law is amended by adding a new article 29  to  read
 as follows:

 ARTICLE 29
 SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT
 SECTION 2901. SHORT TITLE.
 2902. PURPOSES.
 2903. DEFINITIONS.
 2904. ESTABLISHMENT OF THE COMMISSION AND VENUE.
 2905. AUTHORITY TO ESTABLISH MANDATORY RULES.
 2906. POWERS OF THE COMMISSION.
 2907. ORGANIZATION OF THE COMMISSION.
 2908. MEETINGS AND ACTS OF THE COMMISSION.
 2909. RULEMAKING FUNCTIONS OF THE COMMISSION.
 2910. COMMISSION RECORDS AND ENFORCEMENT.
 2911. DISPUTE RESOLUTION.
 2912. REVIEW OF COMMISSION DECISIONS.
 2913. FINANCE.
 
       S. 2811--B                         121
 2914. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT.
 2915. WITHDRAWAL, DEFAULT AND TERMINATION.
 2916. SEVERABILITY AND CONSTRUCTION.
 2917. BINDING EFFECT OF COMPACT AND OTHER LAWS.
 

S  2901.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT".
 

S 2902. PURPOSES. THE PURPOSES OF THIS COMPACT ARE:

 (A) TO IMPLEMENT THE EXPRESS PROVISIONS OF THE NON-ADMITTED AND  REIN
 SURANCE REFORM ACT OF 2010 (HEREINAFTER THE NRRA).
 (B)  TO  PROTECT  THE  PREMIUM  TAX  REVENUES OF THE COMPACTING STATES
 THROUGH FACILITATING THE  PAYMENT  AND  COLLECTION  OF  PREMIUM  TAX  ON
 NON-ADMITTED  INSURANCE;  AND TO PROTECT THE INTERESTS OF THE COMPACTING
 STATES BY SUPPORTING THE CONTINUED AVAILABILITY  OF  SUCH  INSURANCE  TO
 CONSUMERS; AND TO PROVIDE FOR ALLOCATION OF PREMIUM TAX FOR NON-ADMITTED
 INSURANCE  OF  MULTI-STATE  RISKS  AMONG  THE  STATES IN ACCORDANCE WITH
 UNIFORM ALLOCATION FORMULAS TO BE DEVELOPED, ADOPTED, AND IMPLEMENTED BY
 THE COMMISSION.
 (C) TO STREAMLINE AND IMPROVE THE  EFFICIENCY  OF  THE  SURPLUS  LINES
 MARKET  BY  ELIMINATING  DUPLICATIVE AND INCONSISTENT TAX AND REGULATORY
 REQUIREMENTS AMONG THE STATES; AND PROMOTE AND PROTECT THE  INTEREST  OF
 SURPLUS  LINES  LICENSEES  WHO  ASSIST  SUCH  INSUREDS AND SURPLUS LINES
 INSURERS, THEREBY ENSURING THE CONTINUED AVAILABILITY OF  SURPLUS  LINES
 INSURANCE TO CONSUMERS.
 (D)  TO  STREAMLINE REGULATORY COMPLIANCE WITH RESPECT TO NON-ADMITTED
 INSURANCE PLACEMENTS BY PROVIDING FOR EXCLUSIVE SINGLE-STATE  REGULATORY
 COMPLIANCE  FOR  NON-ADMITTED INSURANCE OF MULTI-STATE RISKS, IN ACCORD
 ANCE WITH RULES TO BE  ADOPTED  BY  THE  COMMISSION,  THEREBY  PROVIDING
 CERTAINTY  REGARDING SUCH COMPLIANCE TO ALL PERSONS WHO HAVE AN INTEREST
 IN SUCH TRANSACTIONS, INCLUDING BUT NOT LIMITED TO INSUREDS, REGULATORS,
 SURPLUS LINES LICENSEES, OTHER INSURANCE  PRODUCERS  AND  SURPLUS  LINES
 INSURERS.
 (E)  TO  ESTABLISH  A  CLEARINGHOUSE  FOR RECEIPT AND DISSEMINATION OF
 PREMIUM TAX AND CLEARINGHOUSE TRANSACTION DATA RELATED  TO  NON-ADMITTED
 INSURANCE  OF  MULTI-STATE RISKS, IN ACCORDANCE WITH RULES TO BE ADOPTED
 BY THE COMMISSION.
 (F) TO IMPROVE COORDINATION  OF  REGULATORY  RESOURCES  AND  EXPERTISE
 BETWEEN STATE INSURANCE DEPARTMENTS AND OTHER STATE AGENCIES, AS WELL AS
 STATE  SURPLUS  LINES  STAMPING  OFFICES,  WITH  RESPECT TO NON-ADMITTED
 INSURANCE.
 (G) TO ADOPT UNIFORM RULES TO PROVIDE FOR PREMIUM TAX PAYMENT, REPORT
 ING, ALLOCATION, DATA  COLLECTION  AND  DISSEMINATION  FOR  NON-ADMITTED
 INSURANCE  OF  MULTI-STATE  RISKS  AND SINGLE-STATE RISKS, IN ACCORDANCE
 WITH RULES TO BE ADOPTED BY THE COMMISSION, THEREBY PROMOTING THE  OVER
 ALL EFFICIENCY OF THE NON-ADMITTED INSURANCE MARKET.
 (H)  TO  ADOPT  UNIFORM  MANDATORY  RULES  WITH  RESPECT TO REGULATORY
 COMPLIANCE REQUIREMENTS FOR:

 (1) FOREIGN INSURER ELIGIBILITY REQUIREMENTS; AND
 (2) SURPLUS LINES POLICYHOLDER NOTICES.
 (I) TO ESTABLISH THE SURPLUS LINES  INSURANCE  MULTI-STATE  COMPLIANCE
 COMPACT COMMISSION.
 (J)  TO COORDINATE REPORTING OF CLEARINGHOUSE TRANSACTION DATA ON NON
 ADMITTED INSURANCE OF MULTI-STATE  RISKS  AMONG  COMPACTING  STATES  AND
 CONTRACTING STATES.
 (K)  TO  PERFORM  THESE  AND  SUCH  OTHER  RELATED FUNCTIONS AS MAY BE
 CONSISTENT WITH THE PURPOSES OF THE SURPLUS LINES INSURANCE  MULTI-STATE
 COMPLIANCE COMPACT.
 
       S. 2811--B                         122
 

S  2903.  DEFINITIONS.  FOR THE PURPOSES OF THIS COMPACT THE FOLLOWING
 DEFINITIONS SHALL APPLY:

 (A) "ADMITTED INSURER" MEANS AN INSURER THAT IS LICENSED OR AUTHORIZED
 TO  TRANSACT  THE BUSINESS OF INSURANCE UNDER THE LAW OF THE HOME STATE;
 FOR PURPOSES OF THIS COMPACT "ADMITTED  INSURER"  SHALL  NOT  INCLUDE  A
 DOMESTIC  SURPLUS  LINES  INSURER  AS MAY BE DEFINED BY APPLICABLE STATE
 LAW.
 (B) "AFFILIATE" MEANS, WITH RESPECT TO AN  INSURED,  ANY  ENTITY  THAT
 CONTROLS, IS CONTROLLED BY OR IS UNDER COMMON CONTROL WITH THE INSURED.
 (C)  "ALLOCATION FORMULA" MEANS THE UNIFORM METHODS PROMULGATED BY THE
 COMMISSION BY WHICH INSURED RISK EXPOSURES WILL BE APPORTIONED  TO  EACH
 STATE FOR THE PURPOSE OF CALCULATING PREMIUM TAXES DUE.
 (D)  "BYLAWS" MEANS THOSE BYLAWS ESTABLISHED BY THE COMMISSION FOR ITS
 GOVERNANCE OR FOR DIRECTING OR CONTROLLING THE COMMISSION'S  ACTIONS  OR
 CONDUCT.
 (E)  "CLEARINGHOUSE"  MEANS  THE COMMISSION'S OPERATIONS INVOLVING THE
 ACCEPTANCE, PROCESSING AND DISSEMINATION AMONG  THE  COMPACTING  STATES,
 CONTRACTING  STATES, SURPLUS LINES LICENSEES, INSUREDS AND OTHER PERSONS
 OF PREMIUM TAX  AND  CLEARINGHOUSE  TRANSACTION  DATA  FOR  NON-ADMITTED
 INSURANCE OF MULTI-STATE RISKS IN ACCORDANCE WITH THIS COMPACT AND RULES
 TO BE ADOPTED BY THE COMMISSION.
 (F)  "CLEARINGHOUSE  TRANSACTION DATA" MEANS THE INFORMATION REGARDING
 NON-ADMITTED INSURANCE OF MULTI-STATE RISKS  REQUIRED  TO  BE  REPORTED,
 ACCEPTED,  COLLECTED, PROCESSED AND DISSEMINATED BY SURPLUS LINES LICEN
 SEES FOR SURPLUS LINES INSURANCE AND INSUREDS FOR INDEPENDENTLY PROCURED
 INSURANCE UNDER THIS COMPACT AND RULES TO BE ADOPTED BY THE  COMMISSION.
 CLEARINGHOUSE   TRANSACTION   DATA   INCLUDES   INFORMATION  RELATED  TO
 SINGLE-STATE RISKS IF A STATE ELECTS TO HAVE THE  CLEARINGHOUSE  COLLECT
 TAXES ON SINGLE-STATE RISKS FOR SUCH STATE.
 (G)  "COMPACTING STATE" MEANS ANY STATE WHICH HAS ENACTED THIS COMPACT
 LEGISLATION AND WHICH HAS NOT WITHDRAWN PURSUANT TO  SUBSECTION  (A)  OF
 SECTION  TWENTY-NINE  HUNDRED FIFTEEN OF THIS ARTICLE OR BEEN TERMINATED
 PURSUANT TO SUBSECTION (B) OF SECTION  TWENTY-NINE  HUNDRED  FIFTEEN  OF
 THIS ARTICLE.
 (H) "COMMISSION" MEANS THE SURPLUS LINES INSURANCE MULTI-STATE COMPLI
 ANCE COMPACT COMMISSION ESTABLISHED BY THIS COMPACT.
 (I)  "COMMISSIONER" MEANS THE CHIEF INSURANCE REGULATORY OFFICIAL OF A
 STATE INCLUDING,  BUT  NOT  LIMITED  TO,  COMMISSIONER,  SUPERINTENDENT,
 DIRECTOR OR ADMINISTRATOR OR THEIR DESIGNEES.
 (J)  "CONTRACTING  STATE"  MEANS  ANY STATE WHICH HAS NOT ENACTED THIS
 COMPACT LEGISLATION BUT HAS ENTERED INTO A  WRITTEN  CONTRACT  WITH  THE
 COMMISSION  TO  UTILIZE  THE  SERVICES  OF  AND FULLY PARTICIPATE IN THE
 CLEARINGHOUSE.
 (K) "CONTROL" MEANS  ONE  ENTITY  HAS  POWER  OVER  ANOTHER.  FOR  THE
 PURPOSES OF THIS ARTICLE, AN ENTITY HAS CONTROL OVER ANOTHER ENTITY IF:

 (1)  THE  ENTITY  DIRECTLY OR INDIRECTLY OR ACTING THROUGH ONE OR MORE
 OTHER PERSONS OWN, CONTROLS OR HAS THE POWER TO VOTE TWENTY-FIVE PERCENT
 OR MORE OF ANY CLASS OF VOTING SECURITIES OF THE OTHER ENTITY; OR
 (2) SUCH ENTITY CONTROLS IN ANY MANNER THE ELECTION OF A  MAJORITY  OF
 THE DIRECTORS OR TRUSTEES OF THE OTHER ENTITY.
 (L) "HOME STATE" SHALL HAVE TWO MEANINGS DEPENDING ON CONTEXT:

 (1)  EXCEPT  AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, THE TERM
 "HOME STATE" MEANS, WITH RESPECT TO AN INSURED:

 (A) THE STATE IN WHICH AN INSURED MAINTAINS  ITS  PRINCIPAL  PLACE  OF
 BUSINESS  OR,  IN  THE CASE OF AN INDIVIDUAL, THE INDIVIDUAL'S PRINCIPAL
 RESIDENCE; OR
 
       S. 2811--B                         123
 (B) IF ONE HUNDRED PERCENT OF THE INSURED RISK IS LOCATED OUT  OF  THE
 STATE  REFERRED  TO  IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE STATE TO
 WHICH THE GREATEST PERCENTAGE OF THE INSURED'S TAXABLE PREMIUM FOR  THAT
 INSURANCE CONTRACT IS ALLOCATED.
 (2)  IF  MORE  THAN  ONE  INSURED  FROM  AN AFFILIATED GROUP ARE NAMED
 INSUREDS ON A SINGLE NON-ADMITTED INSURANCE  CONTRACT,  THE  TERM  "HOME
 STATE"  MEANS THE HOME STATE, AS DETERMINED PURSUANT TO PARAGRAPH ONE OF
 THIS SUBSECTION, OF THE MEMBER OF THE  AFFILIATED  GROUP  THAT  HAS  THE
 LARGEST  PERCENTAGE  OF  PREMIUM  ATTRIBUTED  TO IT UNDER SUCH INSURANCE
 CONTRACT.
 (M) "INDEPENDENTLY PROCURED INSURANCE" MEANS INSURANCE PROCURED BY  AN
 INSURED  DIRECTLY  FROM  A  SURPLUS  LINES INSURER OR OTHER NON-ADMITTED
 INSURER AS PERMITTED BY THE LAWS OF THE HOME STATE.
 (N) "INSURER ELIGIBILITY REQUIREMENTS" MEANS THE CRITERIA,  FORMS  AND
 PROCEDURES  ESTABLISHED  TO QUALIFY AS A SURPLUS LINES INSURER UNDER THE
 LAW OF THE HOME STATE PROVIDED THAT SUCH CRITERIA, FORMS AND  PROCEDURES
 ARE CONSISTENT WITH THE EXPRESS PROVISIONS OF THE NRRA ON AND AFTER JULY
 TWENTY-FIRST, TWO THOUSAND ELEVEN.
 (O)  "MEMBER" MEANS THE PERSON OR PERSONS CHOSEN BY A COMPACTING STATE
 AS ITS REPRESENTATIVE OR REPRESENTATIVES TO THE COMMISSION PROVIDED THAT
 EACH COMPACTING STATE SHALL BE LIMITED TO ONE VOTE.
 (P) "MULTI-STATE RISK" MEANS A RISK WITH  INSURED  EXPOSURES  IN  MORE
 THAN ONE STATE.
 (Q)  "NON-COMPACTING STATE" MEANS ANY STATE WHICH HAS NOT ADOPTED THIS
 COMPACT.
 (R) "NON-ADMITTED INSURANCE" MEANS SURPLUS LINES INSURANCE  AND  INDE
 PENDENTLY PROCURED INSURANCE.
 (S)  "NON-ADMITTED INSURER" MEANS AN INSURER THAT IS NOT AUTHORIZED OR
 ADMITTED TO TRANSACT THE BUSINESS OF INSURANCE UNDER THE LAW OF THE HOME
 STATE.
 (T) "NRRA" MEANS THE NON-ADMITTED AND REINSURANCE REFORM ACT OF  2010,
 FOUND  IN  TITLE  V,  SUBTITLE  B  OF THE FEDERAL DODD-FRANK WALL STREET
 REFORM AND CONSUMER PROTECTION ACT.
 (U) "POLICYHOLDER NOTICE" MEANS THE DISCLOSURE NOTICE OR STAMP THAT IS
 REQUIRED TO BE FURNISHED TO THE APPLICANT OR POLICYHOLDER IN  CONNECTION
 WITH A SURPLUS LINES INSURANCE PLACEMENT.
 (V)  "PREMIUM  TAX"  MEANS WITH RESPECT TO NON-ADMITTED INSURANCE, ANY
 TAX, FEE, ASSESSMENT OR OTHER CHARGE  IMPOSED  BY  A  GOVERNMENT  ENTITY
 DIRECTLY  OR  INDIRECTLY  BASED ON ANY PAYMENT MADE AS CONSIDERATION FOR
 SUCH INSURANCE, INCLUDING PREMIUM  DEPOSITS,  ASSESSMENTS,  REGISTRATION
 FEES AND ANY OTHER COMPENSATION GIVEN IN CONSIDERATION FOR A CONTRACT OF
 INSURANCE.
 (W)  "PRINCIPAL  PLACE  OF BUSINESS" MEANS WITH RESPECT TO DETERMINING
 THE HOME STATE OF THE INSURED, THE STATE WHERE THE INSURED MAINTAINS ITS
 HEADQUARTERS AND WHERE THE INSURED'S HIGH-LEVEL OFFICERS DIRECT, CONTROL
 AND COORDINATE THE BUSINESS ACTIVITIES OF THE INSURED.
 (X) "PURCHASING GROUP" MEANS ANY GROUP FORMED PURSUANT TO THE  LIABIL
 ITY  RISK RETENTION ACT WHICH HAS AS ONE OF ITS PURPOSES THE PURCHASE OF
 LIABILITY INSURANCE ON A GROUP BASIS, PURCHASES SUCH INSURANCE ONLY  FOR
 ITS  GROUP  MEMBERS AND ONLY TO COVER THEIR SIMILAR OR RELATED LIABILITY
 EXPOSURE AND IS COMPOSED OF MEMBERS WHOSE BUSINESSES OR  ACTIVITIES  ARE
 SIMILAR  OR  RELATED  WITH RESPECT TO THE LIABILITY TO WHICH MEMBERS ARE
 EXPOSED BY VIRTUE OF ANY RELATED, SIMILAR  OR  COMMON  BUSINESS,  TRADE,
 PRODUCT, SERVICES, PREMISES OR OPERATIONS AND IS DOMICILED IN ANY STATE.
 (Y)  "RULE"  MEANS  A STATEMENT OF GENERAL OR PARTICULAR APPLICABILITY
 AND FUTURE EFFECT PROMULGATED BY THE COMMISSION DESIGNED  TO  IMPLEMENT,
 
       S. 2811--B                         124
 INTERPRET  OR  PRESCRIBE  LAW  OR POLICY OR DESCRIBING THE ORGANIZATION,
 PROCEDURE OR PRACTICE REQUIREMENTS OF THE COMMISSION  WHICH  SHALL  HAVE
 THE FORCE AND EFFECT OF LAW IN THE COMPACTING STATES.
 (Z)  "SINGLE-STATE  RISK"  MEANS A RISK WITH INSURED EXPOSURES IN ONLY
 ONE STATE.
 (AA) "STATE" MEANS ANY STATE, DISTRICT  OR  TERRITORY  OF  THE  UNITED
 STATES OF AMERICA.
 (BB)  "STATE TRANSACTION DOCUMENTATION" MEANS THE INFORMATION REQUIRED
 UNDER THE LAWS OF THE HOME STATE TO BE FILED BY SURPLUS LINES  LICENSEES
 IN  ORDER  TO  REPORT SURPLUS LINES INSURANCE AND VERIFY COMPLIANCE WITH
 SURPLUS LINES LAWS AND BY INSUREDS  IN  ORDER  TO  REPORT  INDEPENDENTLY
 PROCURED INSURANCE.
 (CC)  "SURPLUS  LINES INSURANCE" MEANS INSURANCE PROCURED BY A SURPLUS
 LINES LICENSEE FROM A SURPLUS LINES INSURER OR OTHER NON-ADMITTED INSUR
 ER AS PERMITTED UNDER THE LAW OF THE HOME STATE.  FOR  THE  PURPOSES  OF
 THIS  COMPACT  "SURPLUS  LINES  INSURANCE"  SHALL  ALSO MEAN EXCESS LINE
 INSURANCE AS THAT TERM IS USED PURSUANT  TO  SECTION  TWO  THOUSAND  ONE
 HUNDRED FIVE OF THIS CHAPTER.
 (DD)  "SURPLUS  LINES  INSURER"  MEANS A NON-ADMITTED INSURER ELIGIBLE
 UNDER THE LAW OF THE HOME STATE TO ACCEPT BUSINESS FROM A SURPLUS  LINES
 LICENSEE.    FOR  THE  PURPOSES  OF THIS COMPACT "SURPLUS LINES INSURER"
 SHALL ALSO MEAN AN INSURER WHICH IS PERMITTED  TO  WRITE  SURPLUS  LINES
 INSURANCE UNDER THE LAWS OF THE STATE WHERE SUCH INSURER IS DOMICILED.
 (EE) "SURPLUS LINES LICENSEE" MEANS AN INDIVIDUAL, FIRM OR CORPORATION
 LICENSED  UNDER  THE LAW OF THE HOME STATE TO PLACE SURPLUS LINES INSUR
 ANCE.
 

S 2904. ESTABLISHMENT OF THE COMMISSION AND VENUE. (A) THE  COMPACTING
 STATES  HEREBY  CREATE  AND ESTABLISH A JOINT PUBLIC AGENCY KNOWN AS THE
 "SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT COMMISSION."
 (B) PURSUANT TO SECTION TWO THOUSAND NINE HUNDRED FIVE OF  THIS  ARTI
 CLE,  THE  COMMISSION WILL HAVE THE POWER TO ADOPT MANDATORY RULES WHICH
 ESTABLISH EXCLUSIVE HOME STATE AUTHORITY REGARDING  NON-ADMITTED  INSUR
 ANCE  OF  MULTI-STATE  RISKS,  ALLOCATION FORMULAS, CLEARINGHOUSE TRANS
 ACTION DATA, A CLEARINGHOUSE FOR RECEIPT AND DISTRIBUTION  OF  ALLOCATED
 PREMIUM  TAX  AND  CLEARINGHOUSE TRANSACTION DATA AND UNIFORM RULEMAKING
 PROCEDURES AND RULES FOR THE PURPOSE OF FINANCING, ADMINISTERING,  OPER
 ATING  AND ENFORCING COMPLIANCE WITH THE PROVISIONS OF THIS COMPACT, ITS
 BYLAWS AND RULES.
 (C) PURSUANT TO SECTION TWO THOUSAND NINE HUNDRED FIVE OF  THIS  ARTI
 CLE,  THE COMMISSION WILL HAVE THE POWER TO ADOPT MANDATORY RULES ESTAB
 LISHING FOREIGN INSURER  ELIGIBILITY  REQUIREMENTS  AND  A  CONCISE  AND
 OBJECTIVE  POLICYHOLDER  NOTICE  REGARDING THE NATURE OF A SURPLUS LINES
 PLACEMENT.
 (D) THE COMMISSION IS A BODY CORPORATE AND POLITIC AND  AN  INSTRUMEN
 TALITY OF THE COMPACTING STATES.
 (E)  THE  COMMISSION IS SOLELY RESPONSIBLE FOR ITS LIABILITIES, EXCEPT
 AS OTHERWISE SPECIFICALLY PROVIDED IN THIS COMPACT.
 (F) VENUE IS PROPER AND JUDICIAL PROCEEDINGS BY OR AGAINST THE COMMIS
 SION SHALL BE BROUGHT SOLELY AND EXCLUSIVELY IN  A  COURT  OF  COMPETENT
 JURISDICTION  WHERE  THE  PRINCIPAL OFFICE OF THE COMMISSION IS LOCATED.
 THE COMMISSION MAY WAIVE VENUE AND JURISDICTIONAL DEFENSES TO THE EXTENT
 IT ADOPTS OR CONSENTS TO PARTICIPATE IN ALTERNATIVE  DISPUTE  RESOLUTION
 PROCEEDINGS.
 

S  2905.  AUTHORITY TO ESTABLISH MANDATORY RULES. THE COMMISSION SHALL
 ADOPT MANDATORY RULES WHICH ESTABLISH:

 
       S. 2811--B                         125
 (A) ALLOCATION FORMULAS FOR EACH TYPE OF NON-ADMITTED INSURANCE COVER
 AGE, WHICH ALLOCATION FORMULAS MUST BE USED BY EACH COMPACTING STATE AND
 CONTRACTING STATE IN ACQUIRING PREMIUM TAX AND CLEARINGHOUSE TRANSACTION
 DATA FROM SURPLUS LINES LICENSEES AND  INSUREDS  FOR  REPORTING  TO  THE
 CLEARINGHOUSE  CREATED BY THE COMPACT COMMISSION. SUCH ALLOCATION FORMU
 LAS WILL BE ESTABLISHED WITH INPUT FROM SURPLUS LINES LICENSEES  AND  BE
 BASED UPON READILY AVAILABLE DATA WITH SIMPLICITY AND UNIFORMITY FOR THE
 SURPLUS LINES LICENSEE AS A MATERIAL CONSIDERATION.
 (B)  UNIFORM CLEARINGHOUSE TRANSACTION DATA REPORTING REQUIREMENTS FOR
 ALL INFORMATION REPORTED TO THE CLEARINGHOUSE.
 (C) METHODS BY WHICH COMPACTING STATES AND CONTRACTING STATES  REQUIRE
 SURPLUS  LINES  LICENSEES  AND INSUREDS TO PAY PREMIUM TAX AND TO REPORT
 CLEARINGHOUSE TRANSACTION DATA TO THE CLEARINGHOUSE, INCLUDING  BUT  NOT
 LIMITED  TO  PROCESSING  CLEARINGHOUSE  TRANSACTION  DATA  THROUGH STATE
 STAMPING AND SERVICE OFFICES,  STATE  INSURANCE  DEPARTMENTS,  OR  OTHER
 STATE-DESIGNATED AGENCIES OR ENTITIES.
 (D)  THAT NON-ADMITTED INSURANCE OF MULTI-STATE RISKS SHALL BE SUBJECT
 TO ALL OF THE REGULATORY  COMPLIANCE  REQUIREMENTS  OF  THE  HOME  STATE
 EXCLUSIVELY. HOME STATE REGULATORY COMPLIANCE REQUIREMENTS APPLICABLE TO
 SURPLUS LINES INSURANCE SHALL INCLUDE, BUT NOT BE LIMITED TO:

 (1)  PERSONS  REQUIRED  TO  BE  LICENSED TO SELL, SOLICIT OR NEGOTIATE
 SURPLUS LINES INSURANCE;
 (2) INSURER ELIGIBILITY REQUIREMENTS OR  OTHER  APPROVED  NON-ADMITTED
 INSURER REQUIREMENTS;
 (3) DILIGENT SEARCH; AND
 (4) STATE TRANSACTION DOCUMENTATION AND CLEARINGHOUSE TRANSACTION DATA
 REGARDING  THE  PAYMENT  OF PREMIUM TAX AS SET FORTH IN THIS COMPACT AND
 RULES TO BE ADOPTED BY THE COMMISSION. HOME STATE REGULATORY  COMPLIANCE
 REQUIREMENTS  APPLICABLE  TO INDEPENDENTLY PROCURED INSURANCE PLACEMENTS
 SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  PROVIDING  STATE  TRANSACTION
 DOCUMENTATION  AND  CLEARINGHOUSE TRANSACTION DATA REGARDING THE PAYMENT
 OF PREMIUM TAX AS SET FORTH IN THIS COMPACT AND RULES TO BE  ADOPTED  BY
 THE COMMISSION.
 (E)  THAT  EACH  COMPACTING STATE AND CONTRACTING STATE MAY CHARGE ITS
 OWN RATE OF TAXATION ON THE PREMIUM ALLOCATED TO SUCH STATE BASED ON THE
 APPLICABLE ALLOCATION FORMULA PROVIDED THAT THE  STATE  ESTABLISHES  ONE
 SINGLE  RATE OF TAXATION APPLICABLE TO ALL NON-ADMITTED INSURANCE TRANS
 ACTIONS AND NO OTHER TAX, FEE ASSESSMENT OR OTHER CHARGE BY ANY  GOVERN
 MENTAL  OR  QUASI-GOVERNMENTAL AGENCY BE PERMITTED.  NOTWITHSTANDING THE
 FOREGOING, STAMPING OFFICE FEES MAY BE CHARGED AS A SEPARATE, ADDITIONAL
 COST UNLESS SUCH FEES ARE INCORPORATED INTO A  STATE'S  SINGLE  RATE  OF
 TAXATION.
 (F) THAT ANY CHANGE IN THE RATE OF TAXATION BY ANY COMPACTING STATE OR
 CONTRACTING  STATE  BE  RESTRICTED  TO CHANGES MADE PROSPECTIVELY ON NOT
 LESS THAN NINETY DAYS ADVANCE NOTICE TO THE COMPACT COMMISSION.
 (G) THAT EACH COMPACTING STATE AND  CONTRACTING  STATE  SHALL  REQUIRE
 PREMIUM TAX PAYMENTS EITHER ANNUALLY, SEMI-ANNUALLY OR QUARTERLY UTILIZ
 ING  ONE  OR  MORE OF THE FOLLOWING DATES ONLY: MARCH FIRST, JUNE FIRST,
 SEPTEMBER FIRST AND DECEMBER FIRST.
 (H) THAT EACH COMPACTING STATE  AND  CONTRACTING  STATE  PROHIBIT  ANY
 OTHER STATE AGENCY OR POLITICAL SUBDIVISION FROM REQUIRING SURPLUS LINES
 LICENSEES  TO  PROVIDE  CLEARINGHOUSE  TRANSACTION DATA AND STATE TRANS
 ACTION DOCUMENTATION OTHER THAN TO THE INSURANCE DEPARTMENT OR TAX OFFI
 CIALS OF THE HOME STATE OR ONE SINGLE DESIGNATED AGENT THEREOF.
 (I) THE OBLIGATION OF THE HOME STATE BY ITSELF, THROUGH  A  DESIGNATED
 AGENT,  SURPLUS  LINES  STAMPING OR SERVICE OFFICE, TO COLLECT CLEARING
 
       S. 2811--B                         126
 HOUSE TRANSACTION DATA FROM SURPLUS LINES LICENSEES  AND  FROM  INSUREDS
 FOR INDEPENDENTLY PROCURED INSURANCE, WHERE APPLICABLE, FOR REPORTING TO
 THE CLEARINGHOUSE.
 (J)  A METHOD FOR THE CLEARINGHOUSE TO PERIODICALLY REPORT TO COMPACT
 ING STATES, CONTRACTING STATES, SURPLUS LINES LICENSEES AND INSUREDS WHO
 INDEPENDENTLY PROCURE INSURANCE ALL PREMIUM TAXES OWED TO  EACH  OF  THE
 COMPACTING  STATES  AND CONTRACTING STATES, THE DATES UPON WHICH PAYMENT
 OF SUCH PREMIUM TAXES ARE DUE AND A  METHOD  TO  PAY  THEM  THROUGH  THE
 CLEARINGHOUSE.
 (K)  THAT  EACH SURPLUS LINES LICENSEE IS REQUIRED TO BE LICENSED ONLY
 IN THE HOME STATE OF EACH INSURED FOR WHOM SURPLUS LINES  INSURANCE  HAS
 BEEN PROCURED.
 (L)  THAT  A  POLICY  CONSIDERED  TO BE SURPLUS LINES INSURANCE IN THE
 INSURED'S HOME STATE SHALL BE CONSIDERED SURPLUS LINES INSURANCE IN  ALL
 COMPACTING  STATES  AND  CONTRACTING STATES AND TAXED AS A SURPLUS LINES
 TRANSACTION IN ALL STATES TO WHICH A PORTION OF THE RISK  IS  ALLOCATED.
 EACH  COMPACTING  STATE AND CONTRACTING STATE SHALL REQUIRE EACH SURPLUS
 LINES LICENSEE TO PAY TO EVERY OTHER COMPACTING  STATE  AND  CONTRACTING
 STATE  PREMIUM  TAXES ON EACH MULTI-STATE RISK THROUGH THE CLEARINGHOUSE
 AT SUCH TAX RATE CHARGED ON SURPLUS LINES  TRANSACTIONS  IN  SUCH  OTHER
 COMPACTING  STATES  AND CONTRACTING STATES ON THE PORTION OF THE RISK IN
 EACH SUCH COMPACTING STATE AND CONTRACTING STATE AS  DETERMINED  BY  THE
 APPLICABLE UNIFORM ALLOCATION FORMULA ADOPTED BY THE COMMISSION. A POLI
 CY  CONSIDERED  TO  BE INDEPENDENTLY PROCURED INSURANCE IN THE INSURED'S
 HOME STATE SHALL BE CONSIDERED INDEPENDENTLY PROCURED INSURANCE  IN  ALL
 COMPACTING  STATES  AND  CONTRACTING  STATES.  EACH COMPACTING STATE AND
 CONTRACTING STATE SHALL REQUIRE THE INSURED TO PAY EVERY OTHER  COMPACT
 ING  STATE  AND  CONTRACTING  STATE THE INDEPENDENTLY PROCURED INSURANCE
 PREMIUM TAX ON EACH MULTI-STATE RISK THROUGH THE CLEARINGHOUSE  PURSUANT
 TO THE UNIFORM ALLOCATION FORMULA ADOPTED BY THE COMMISSION.
 (M)  UNIFORM FOREIGN INSURER ELIGIBILITY REQUIREMENTS AS AUTHORIZED BY
 THE NRRA.
 (N) A UNIFORM POLICYHOLDER NOTICE.
 (O) UNIFORM TREATMENT OF  PURCHASING  GROUP  SURPLUS  LINES  INSURANCE
 PLACEMENTS.
 

S  2906.  POWERS  OF  THE  COMMISSION.  THE  COMMISSION SHALL HAVE THE
 FOLLOWING POWERS:

 (A) TO PROMULGATE RULES AND OPERATING PROCEDURES, PURSUANT TO  SECTION
 TWO  THOUSAND  NINE  HUNDRED  NINE OF THIS ARTICLE, WHICH SHALL HAVE THE
 FORCE AND EFFECT OF LAW AND SHALL BE BINDING IN THE COMPACTING STATES TO
 THE EXTENT AND IN THE MANNER PROVIDED IN THIS ARTICLE;
 (B) TO BRING AND PROSECUTE LEGAL PROCEEDINGS OR ACTIONS IN THE NAME OF
 THE COMMISSION, PROVIDED  THAT  THE  STANDING  OF  ANY  STATE  INSURANCE
 DEPARTMENT TO SUE OR BE SUED UNDER APPLICABLE LAW SHALL NOT BE AFFECTED;
 (C)  TO  ISSUE  SUBPOENAS  REQUIRING  THE  ATTENDANCE AND TESTIMONY OF
 WITNESSES AND THE PRODUCTION OF EVIDENCE, PROVIDED HOWEVER, THE  COMMIS
 SION IS NOT EMPOWERED TO DEMAND OR SUBPOENA RECORDS OR DATA FROM NON-AD
 MITTED INSURERS;
 (D)  TO  ESTABLISH  AND  MAINTAIN OFFICES, INCLUDING THE CREATION OF A
 CLEARINGHOUSE FOR THE RECEIPT OF PREMIUM TAX  AND  CLEARINGHOUSE  TRANS
 ACTION  DATA  REGARDING  NON-ADMITTED  INSURANCE  OF  MULTI-STATE RISKS,
 SINGLE-STATE RISKS FOR STATES  WHICH  ELECT  TO  REQUIRE  SURPLUS  LINES
 LICENSEES TO PAY PREMIUM TAX ON SINGLE-STATE RISKS THROUGH THE CLEARING
 HOUSE AND TAX REPORTING FORMS;
 (E) TO PURCHASE AND MAINTAIN INSURANCE AND BONDS;
 
       S. 2811--B                         127
 (F)  TO  BORROW, ACCEPT OR CONTRACT FOR SERVICES OF PERSONNEL, INCLUD
 ING, BUT NOT LIMITED TO, EMPLOYEES OF A  COMPACTING  STATE  OR  STAMPING
 OFFICE,  PURSUANT TO AN OPEN, TRANSPARENT, OBJECTIVE COMPETITIVE PROCESS
 AND PROCEDURE ADOPTED BY THE COMMISSION;
 (G)  TO  HIRE  EMPLOYEES,  PROFESSIONALS  OR  SPECIALISTS AND ELECT OR
 APPOINT OFFICERS AND TO FIX THEIR COMPENSATION, DEFINE THEIR DUTIES  AND
 GIVE THEM APPROPRIATE AUTHORITY TO CARRY OUT THE PURPOSES OF THE COMPACT
 AND  DETERMINE  THEIR  QUALIFICATIONS, PURSUANT TO AN OPEN, TRANSPARENT,
 OBJECTIVE COMPETITIVE PROCESS AND PROCEDURE ADOPTED BY  THE  COMMISSION;
 AND TO ESTABLISH THE COMMISSION'S PERSONNEL POLICIES AND PROGRAMS RELAT
 ING  TO  CONFLICTS OF INTEREST, RATES OF COMPENSATION AND QUALIFICATIONS
 OF PERSONNEL AND OTHER RELATED PERSONNEL MATTERS;
 (H) TO ACCEPT ANY AND ALL APPROPRIATE DONATIONS AND GRANTS  OF  MONEY,
 EQUIPMENT,  SUPPLIES, MATERIALS AND SERVICES AND TO RECEIVE, UTILIZE AND
 DISPOSE OF THE SAME; PROVIDED THAT AT ALL  TIMES  THE  COMMISSION  SHALL
 AVOID ANY APPEARANCE OF IMPROPRIETY AND/OR CONFLICT OF INTEREST;
 (I)  TO  LEASE, PURCHASE, ACCEPT APPROPRIATE GIFTS OR DONATIONS OF, OR
 OTHERWISE TO OWN, HOLD, IMPROVE OR USE ANY PROPERTY, REAL,  PERSONAL  OR
 MIXED; PROVIDED THAT AT ALL TIMES THE COMMISSION SHALL AVOID ANY APPEAR
 ANCE OF IMPROPRIETY AND/OR CONFLICT OF INTEREST;
 (J)  TO  SELL,  CONVEY,  MORTGAGE, PLEDGE, LEASE, EXCHANGE, ABANDON OR
 OTHERWISE DISPOSE OF ANY PROPERTY, REAL, PERSONAL OR MIXED;
 (K) TO PROVIDE FOR TAX AUDIT RULES AND PROCEDURES FOR  THE  COMPACTING
 STATES WITH RESPECT TO THE ALLOCATION OF PREMIUM TAXES, INCLUDING:

 (1) MINIMUM AUDIT STANDARDS, INCLUDING SAMPLING METHODS;
 (2) REVIEW OF INTERNAL CONTROLS;
 (3) COOPERATION AND SHARING OF AUDIT RESPONSIBILITIES BETWEEN COMPACT
 ING STATES;
 (4)  HANDLING  OF  REFUNDS  OR CREDITS DUE TO OVERPAYMENTS OR IMPROPER
 ALLOCATION OF PREMIUM TAXES;
 (5) TAXPAYER RECORDS TO BE  REVIEWED  INCLUDING  A  MINIMUM  RETENTION
 PERIOD; AND
 (6)  AUTHORITY  OF  COMPACTING STATES TO REVIEW, CHALLENGE OR RE-AUDIT
 TAXPAYER RECORDS.
 (L) TO ENFORCE COMPLIANCE BY COMPACTING STATES AND CONTRACTING  STATES
 WITH RULES AND BYLAWS PURSUANT TO THE AUTHORITY SET FORTH IN SECTION TWO
 THOUSAND NINE HUNDRED SEVENTEEN OF THIS ARTICLE;
 (M)  TO  PROVIDE  FOR  DISPUTE  RESOLUTION AMONG COMPACTING STATES AND
 CONTRACTING STATES;
 (N) TO ADVISE COMPACTING STATES AND CONTRACTING STATES ON  TAX-RELATED
 ISSUES  RELATING  TO INSURERS, INSUREDS, SURPLUS LINES LICENSEES, AGENTS
 OR  BROKERS  DOMICILED  OR  DOING  BUSINESS  IN  NON-COMPACTING  STATES,
 CONSISTENT WITH THE PURPOSES OF THIS COMPACT;
 (O)  TO MAKE AVAILABLE ADVICE AND TRAINING TO THOSE PERSONNEL IN STATE
 STAMPING OFFICES, STATE INSURANCE DEPARTMENTS OR OTHER STATE DEPARTMENTS
 FOR RECORD KEEPING, TAX COMPLIANCE AND TAX  ALLOCATIONS;  AND  TO  BE  A
 RESOURCE FOR STATE INSURANCE DEPARTMENTS AND OTHER STATE DEPARTMENTS;
 (P) TO ESTABLISH A BUDGET AND MAKE EXPENDITURES;
 (Q) TO BORROW MONEY;
 (R)  TO  APPOINT AND OVERSEE COMMITTEES, INCLUDING ADVISORY COMMITTEES
 COMPRISED OF MEMBERS, STATE INSURANCE REGULATORS, STATE  LEGISLATORS  OR
 THEIR  REPRESENTATIVES,  INSURANCE INDUSTRY AND CONSUMER REPRESENTATIVES
 AND SUCH OTHER INTERESTED PERSONS AS MAY BE DESIGNATED IN  THIS  COMPACT
 AND THE BYLAWS;
 (S)  TO  ESTABLISH  AN  EXECUTIVE COMMITTEE OF NOT LESS THAN SEVEN NOR
 MORE THAN FIFTEEN REPRESENTATIVES, WHICH SHALL INCLUDE OFFICERS  ELECTED
 
       S. 2811--B                         128
 BY  THE COMMISSION AND SUCH OTHER REPRESENTATIVES AS PROVIDED FOR HEREIN
 AND DETERMINED BY THE BYLAWS.  REPRESENTATIVES OF THE EXECUTIVE  COMMIT
 TEE  SHALL  SERVE  A  ONE  YEAR  TERM.  REPRESENTATIVES OF THE EXECUTIVE
 COMMITTEE  SHALL  BE  ENTITLED TO ONE VOTE EACH. THE EXECUTIVE COMMITTEE
 SHALL HAVE THE POWER TO ACT ON BEHALF OF THE COMMISSION, WITH THE EXCEP
 TION OF RULEMAKING,  DURING  PERIODS  WHEN  THE  COMMISSION  IS  NOT  IN
 SESSION. THE EXECUTIVE COMMITTEE SHALL OVERSEE THE DAY TO DAY ACTIVITIES
 OF  THE  ADMINISTRATION  OF THE COMPACT, INCLUDING THE ACTIVITIES OF THE
 OPERATIONS COMMITTEE CREATED  UNDER  THIS  ARTICLE  AND  COMPLIANCE  AND
 ENFORCEMENT  OF  THE PROVISIONS OF THE COMPACT, ITS BYLAWS AND RULES AND
 SUCH OTHER DUTIES AS PROVIDED HEREIN AND AS DEEMED NECESSARY;
 (T) TO ESTABLISH AN OPERATIONS COMMITTEE OF NOT LESS  THAN  SEVEN  AND
 NOT  MORE  THAN  FIFTEEN  REPRESENTATIVES  TO  PROVIDE ANALYSIS, ADVICE,
 DETERMINATIONS AND RECOMMENDATIONS REGARDING  TECHNOLOGY,  SOFTWARE  AND
 SYSTEMS  INTEGRATION  TO  BE  ACQUIRED  BY THE COMMISSION AND TO PROVIDE
 ANALYSIS,  ADVICE,  DETERMINATIONS  AND  RECOMMENDATIONS  REGARDING  THE
 ESTABLISHMENT OF MANDATORY RULES TO BE ADOPTED BY THE COMMISSION;
 (U)  TO ENTER INTO CONTRACTS WITH CONTRACTING STATES SO THAT CONTRACT
 ING STATES CAN UTILIZE THE SERVICES OF  AND  FULLY  PARTICIPATE  IN  THE
 CLEARINGHOUSE  SUBJECT  TO  THE  TERMS  AND CONDITIONS SET FORTH IN SUCH
 CONTRACTS;
 (V) TO ADOPT AND USE A CORPORATE SEAL; AND
 (W) TO PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRIATE
 TO ACHIEVE THE PURPOSES OF THIS COMPACT CONSISTENT WITH THE STATE  REGU
 LATION OF THE BUSINESS OF INSURANCE.
 

S  2907. ORGANIZATION OF THE COMMISSION. (A) (1) EACH COMPACTING STATE
 SHALL HAVE AND BE LIMITED TO ONE MEMBER. EACH STATE SHALL DETERMINE  THE
 QUALIFICATIONS AND THE METHOD BY WHICH IT SELECTS A MEMBER AND SET FORTH
 THE SELECTION PROCESS IN THE ENABLING PROVISION OF THE LEGISLATION WHICH
 ENACTS THIS COMPACT. IN THE ABSENCE OF SUCH A PROVISION THE MEMBER SHALL
 BE APPOINTED BY THE GOVERNOR OF SUCH COMPACTING STATE. ANY MEMBER MAY BE
 REMOVED  OR  SUSPENDED  FROM  OFFICE AS PROVIDED BY THE LAW OF THE STATE
 FROM WHICH HE OR SHE SHALL BE APPOINTED. ANY VACANCY  OCCURRING  IN  THE
 COMMISSION SHALL BE FILLED IN ACCORDANCE WITH THE LAWS OF THE COMPACTING
 STATE WHEREIN THE VACANCY EXISTS.
 (2) EACH MEMBER SHALL BE ENTITLED TO ONE VOTE AND SHALL OTHERWISE HAVE
 AN  OPPORTUNITY  TO  PARTICIPATE  IN THE GOVERNANCE OF THE COMMISSION IN
 ACCORDANCE WITH THE BYLAWS.
 (3) THE COMMISSION SHALL, BY A MAJORITY VOTE OF THE MEMBERS, PRESCRIBE
 BYLAWS TO GOVERN ITS CONDUCT AS MAY BE NECESSARY OR APPROPRIATE TO CARRY
 OUT THE PURPOSES AND EXERCISE THE POWERS OF THE COMPACT  INCLUDING,  BUT
 NOT LIMITED TO:

 (A) ESTABLISHING THE FISCAL YEAR OF THE COMMISSION;
 (B)  PROVIDING  REASONABLE  PROCEDURES  FOR  HOLDING  MEETINGS  OF THE
 COMMISSION, THE EXECUTIVE COMMITTEE, AND THE OPERATIONS COMMITTEE;
 (C) PROVIDING REASONABLE STANDARDS AND PROCEDURES:

 (I) FOR THE ESTABLISHMENT AND MEETINGS OF COMMITTEES, AND
 (II) GOVERNING ANY GENERAL OR SPECIFIC DELEGATION OF ANY AUTHORITY  OR
 FUNCTION OF THE COMMISSION;
 (D)  PROVIDING  REASONABLE PROCEDURES FOR CALLING AND CONDUCTING MEET
 INGS OF THE COMMISSION THAT CONSIST OF A MAJORITY OF COMMISSION MEMBERS,
 ENSURING REASONABLE ADVANCE NOTICE OF EACH SUCH  MEETING  AND  PROVIDING
 FOR  THE  RIGHT  OF CITIZENS TO ATTEND EACH SUCH MEETING WITH ENUMERATED
 EXCEPTIONS DESIGNED TO PROTECT THE PUBLIC'S  INTEREST,  THE  PRIVACY  OF
 INDIVIDUALS  AND  INSURERS'  AND  SURPLUS  LINES  LICENSEES' PROPRIETARY
 INFORMATION, INCLUDING TRADE SECRETS. THE COMMISSION MAY MEET IN  CAMERA
 
       S. 2811--B                         129
 ONLY  AFTER A MAJORITY OF THE ENTIRE MEMBERSHIP VOTES TO CLOSE A MEETING
 IN TOTO OR IN PART. AS SOON AS PRACTICABLE,  THE  COMMISSION  MUST  MAKE
 PUBLIC:

 (I) A COPY OF THE VOTE TO CLOSE THE MEETING REVEALING THE VOTE OF EACH
 MEMBER WITH NO PROXY VOTES ALLOWED, AND
 (II) VOTES TAKEN DURING SUCH MEETING;
 (E)  ESTABLISHING  THE  TITLES,  DUTIES  AND  AUTHORITY AND REASONABLE
 PROCEDURES FOR THE ELECTION OF THE OFFICERS OF THE COMMISSION;
 (F) PROVIDING REASONABLE STANDARDS AND PROCEDURES FOR  THE  ESTABLISH
 MENT  OF THE PERSONNEL POLICIES AND PROGRAMS OF THE COMMISSION. NOTWITH
 STANDING ANY CIVIL SERVICE OR  OTHER  SIMILAR  LAWS  OF  ANY  COMPACTING
 STATE,  THE  BYLAWS  SHALL EXCLUSIVELY GOVERN THE PERSONNEL POLICIES AND
 PROGRAMS OF THE COMMISSION;
 (G) PROMULGATING A CODE OF ETHICS TO ADDRESS PERMISSIBLE AND PROHIBIT
 ED ACTIVITIES OF COMMISSION MEMBERS AND EMPLOYEES; AND
 (H) PROVIDING A MECHANISM FOR WINDING UP THE OPERATIONS OF THE COMMIS
 SION AND THE EQUITABLE DISPOSITION OF ANY EXCESS FUNDS  THAT  MAY  EXIST
 AFTER  THE TERMINATION OF THE COMPACT AFTER THE PAYMENT AND/OR RESERVING
 OF ALL OF ITS DEBTS AND OBLIGATIONS;
 (4) THE COMMISSION SHALL PUBLISH ITS BYLAWS IN A CONVENIENT  FORM  AND
 FILE  A COPY THEREOF AND A COPY OF ANY AMENDMENT THERETO WITH THE APPRO
 PRIATE AGENCY OR OFFICER IN EACH OF THE COMPACTING STATES.
 (B) (1) AN EXECUTIVE COMMITTEE OF THE COMMISSION  ("EXECUTIVE  COMMIT
 TEE")  SHALL  BE  ESTABLISHED.  ALL  ACTIONS OF THE EXECUTIVE COMMITTEE,
 INCLUDING COMPLIANCE AND ENFORCEMENT  ARE  SUBJECT  TO  THE  REVIEW  AND
 RATIFICATION  OF THE COMMISSION AS PROVIDED IN THE BYLAWS. THE EXECUTIVE
 COMMITTEE SHALL HAVE NO MORE THAN FIFTEEN  REPRESENTATIVES  OR  ONE  FOR
 EACH  STATE  IF THERE ARE LESS THAN FIFTEEN COMPACTING STATES, WHO SHALL
 SERVE FOR A TERM AND BE ESTABLISHED IN ACCORDANCE WITH THE BYLAWS.
 (2) THE EXECUTIVE COMMITTEE SHALL HAVE SUCH AUTHORITY  AND  DUTIES  AS
 MAY BE SET FORTH IN THE BYLAWS, INCLUDING BUT NOT LIMITED TO:

 (A) MANAGING THE AFFAIRS OF THE COMMISSION IN A MANNER CONSISTENT WITH
 THE BYLAWS AND PURPOSES OF THE COMMISSION;
 (B) ESTABLISHING AND OVERSEEING AN ORGANIZATIONAL STRUCTURE WITHIN AND
 APPROPRIATE PROCEDURES FOR THE COMMISSION TO PROVIDE FOR THE CREATION OF
 RULES AND OPERATING PROCEDURES;
 (C) OVERSEEING THE OFFICES OF THE COMMISSION; AND
 (D)  PLANNING, IMPLEMENTING AND COORDINATING COMMUNICATIONS AND ACTIV
 ITIES WITH OTHER STATE, FEDERAL AND LOCAL  GOVERNMENT  ORGANIZATIONS  IN
 ORDER TO ADVANCE THE GOALS OF THE COMMISSION.
 (3)  THE  COMMISSION  SHALL ANNUALLY ELECT OFFICERS FROM THE EXECUTIVE
 COMMITTEE, WITH EACH HAVING SUCH AUTHORITY AND DUTIES AS MAY  BE  SPECI
 FIED IN THE BYLAWS.
 (4)  THE  EXECUTIVE  COMMITTEE  MAY,  SUBJECT  TO  THE APPROVAL OF THE
 COMMISSION, APPOINT OR RETAIN AN EXECUTIVE  DIRECTOR  FOR  SUCH  PERIOD,
 UPON  SUCH TERMS AND CONDITIONS AND FOR SUCH COMPENSATION AS THE COMMIS
 SION MAY DEEM APPROPRIATE. THE EXECUTIVE DIRECTOR SHALL SERVE AS  SECRE
 TARY  TO THE COMMISSION BUT SHALL NOT BE A MEMBER OF THE COMMISSION. THE
 EXECUTIVE DIRECTOR SHALL HIRE AND SUPERVISE SUCH OTHER PERSONS AS MAY BE
 AUTHORIZED BY THE COMMISSION.
 (C) (1) AN OPERATIONS COMMITTEE SHALL BE ESTABLISHED. ALL  ACTIONS  OF
 THE  OPERATIONS COMMITTEE ARE SUBJECT TO THE REVIEW AND OVERSIGHT OF THE
 COMMISSION AND THE EXECUTIVE COMMITTEE  AND  MUST  BE  APPROVED  BY  THE
 COMMISSION.  THE  EXECUTIVE COMMITTEE WILL ACCEPT THE DETERMINATIONS AND
 RECOMMENDATIONS OF THE OPERATIONS COMMITTEE UNLESS GOOD CAUSE  IS  SHOWN
 WHY  SUCH DETERMINATIONS AND RECOMMENDATIONS SHOULD NOT BE APPROVED. ANY
 
       S. 2811--B                         130
 DISPUTES AS TO WHETHER GOOD CAUSE EXISTS TO REJECT ANY DETERMINATION  OR
 RECOMMENDATION  OF  THE  OPERATIONS  COMMITTEE  SHALL BE RESOLVED BY THE
 MAJORITY VOTE OF THE COMMISSION. THE OPERATIONS COMMITTEE SHALL HAVE  NO
 MORE  THAN  FIFTEEN  REPRESENTATIVES  OR ONE FOR EACH STATE IF THERE ARE
 LESS THAN FIFTEEN COMPACTING STATES, WHO SHALL  SERVE  FOR  A  TERM  AND
 SHALL  BE ESTABLISHED AS SET FORTH IN THE BYLAWS. THE OPERATIONS COMMIT
 TEE SHALL HAVE RESPONSIBILITY FOR:

 (A) EVALUATING TECHNOLOGY REQUIREMENTS FOR THE CLEARINGHOUSE,  ASSESS
 ING  EXISTING SYSTEMS USED BY STATE REGULATORY AGENCIES AND STATE STAMP
 ING OFFICES TO MAXIMIZE THE EFFICIENCY AND SUCCESSFUL INTEGRATION OF THE
 CLEARINGHOUSE TECHNOLOGY SYSTEMS WITH STATE AND  STATE  STAMPING  OFFICE
 TECHNOLOGY PLATFORMS AND TO MINIMIZE COSTS TO THE STATES, STATE STAMPING
 OFFICES AND THE CLEARINGHOUSE;
 (B)  MAKING  RECOMMENDATIONS  TO  THE EXECUTIVE COMMITTEE BASED ON ITS
 ANALYSIS AND DETERMINATION OF THE CLEARINGHOUSE TECHNOLOGY  REQUIREMENTS
 AND COMPATIBILITY WITH EXISTING STATE AND STATE STAMPING OFFICE SYSTEMS;
 (C)  EVALUATING  THE MOST SUITABLE PROPOSALS FOR ADOPTION AS MANDATORY
 RULES, ASSESSING SUCH PROPOSALS FOR EASE OF INTEGRATION  BY  STATES  AND
 LIKELIHOOD  OF  SUCCESSFUL IMPLEMENTATION AND TO REPORT TO THE EXECUTIVE
 COMMITTEE ITS DETERMINATIONS AND RECOMMENDATIONS; AND
 (D) SUCH OTHER DUTIES AND RESPONSIBILITIES AS ARE DELEGATED TO  IT  BY
 THE BYLAWS, THE EXECUTIVE COMMITTEE OR THE COMMISSION.
 (2)  ALL REPRESENTATIVES OF THE OPERATIONS COMMITTEE SHALL BE INDIVID
 UALS WHO HAVE EXTENSIVE EXPERIENCE  AND/OR  EMPLOYMENT  IN  THE  SURPLUS
 LINES  INSURANCE BUSINESS, INCLUDING, BUT NOT LIMITED TO, EXECUTIVES AND
 ATTORNEYS EMPLOYED BY SURPLUS LINES INSURERS, SURPLUS  LINES  LICENSEES,
 LAW  FIRMS,  STATE  INSURANCE DEPARTMENTS AND/OR STATE STAMPING OFFICES.
 OPERATIONS  COMMITTEE  REPRESENTATIVES  FROM  COMPACTING  STATES   WHICH
 UTILIZE  THE  SERVICES OF A STATE STAMPING OFFICE MUST APPOINT THE CHIEF
 OPERATING OFFICER OR A SENIOR MANAGER OF THE STATE  STAMPING  OFFICE  TO
 THE OPERATIONS COMMITTEE.
 (D)  (1)  A  LEGISLATIVE  COMMITTEE  COMPRISED OF STATE LEGISLATORS OR
 THEIR DESIGNEES SHALL BE ESTABLISHED TO MONITOR THE  OPERATIONS  OF  AND
 MAKE  RECOMMENDATIONS TO THE COMMISSION, INCLUDING THE EXECUTIVE COMMIT
 TEE; PROVIDED THAT THE MANNER OF SELECTION AND TERM OF  ANY  LEGISLATIVE
 COMMITTEE  MEMBER  SHALL  BE  AS  SET  FORTH IN THE BYLAWS. PRIOR TO THE
 ADOPTION BY THE COMMISSION OF ANY  UNIFORM  STANDARD,  REVISION  TO  THE
 BYLAWS,  ANNUAL BUDGET OR OTHER SIGNIFICANT MATTER AS MAY BE PROVIDED IN
 THE BYLAWS, THE EXECUTIVE COMMITTEE SHALL CONSULT WITH AND REPORT TO THE
 LEGISLATIVE COMMITTEE.
 (2) THE COMMISSION MAY ESTABLISH ADDITIONAL ADVISORY COMMITTEES AS ITS
 BYLAWS MAY PROVIDE FOR THE CARRYING OUT OF ITS FUNCTIONS.
 (E) THE COMMISSION SHALL MAINTAIN ITS CORPORATE BOOKS AND  RECORDS  IN
 ACCORDANCE WITH THE BYLAWS.
 (F)  (1)  THE  MEMBERS,  OFFICERS,  EXECUTIVE  DIRECTOR, EMPLOYEES AND
 REPRESENTATIVES OF THE COMMISSION, THE EXECUTIVE COMMITTEE AND ANY OTHER
 COMMITTEE OF THE COMMISSION SHALL BE IMMUNE  FROM  SUIT  AND  LIABILITY,
 EITHER  PERSONALLY  OR  IN  THEIR  OFFICIAL  CAPACITY, FOR ANY CLAIM FOR
 DAMAGE TO OR LOSS OF PROPERTY OR PERSONAL INJURY OR OTHER CIVIL  LIABIL
 ITY  CAUSED  BY  OR  ARISING  OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR
 OMISSION THAT OCCURRED, OR THAT THE PERSON AGAINST  WHOM  THE  CLAIM  IS
 MADE  HAD A REASONABLE BASIS FOR BELIEVING OCCURRED, WITHIN THE SCOPE OF
 COMMISSION EMPLOYMENT, DUTIES OR RESPONSIBILITIES; PROVIDED THAT NOTHING
 IN THIS PARAGRAPH SHALL BE CONSTRUED TO PROTECT  ANY  SUCH  PERSON  FROM
 SUIT  AND/OR  LIABILITY FOR ANY DAMAGE, LOSS, INJURY OR LIABILITY CAUSED
 BY THE INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT OF THAT PERSON.
 
       S. 2811--B                         131
 (2) THE COMMISSION SHALL DEFEND ANY MEMBER, OFFICER, EXECUTIVE  DIREC
 TOR, EMPLOYEE OR REPRESENTATIVE OF THE COMMISSION, THE EXECUTIVE COMMIT
 TEE OR ANY OTHER COMMITTEE OF THE COMMISSION IN ANY CIVIL ACTION SEEKING
 TO  IMPOSE  LIABILITY ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR
 OMISSION THAT OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES
 OR  RESPONSIBILITIES  OR  THAT THE PERSON AGAINST WHOM THE CLAIM IS MADE
 HAD A REASONABLE BASIS  FOR  BELIEVING  OCCURRED  WITHIN  THE  SCOPE  OF
 COMMISSION EMPLOYMENT, DUTIES OR RESPONSIBILITIES; PROVIDED THAT NOTHING
 HEREIN  SHALL BE CONSTRUED TO PROHIBIT THAT PERSON FROM RETAINING HIS OR
 HER OWN COUNSEL; AND PROVIDED FURTHER, THAT THE ACTUAL OR  ALLEGED  ACT,
 ERROR OR OMISSION DID NOT RESULT FROM THAT PERSON'S INTENTIONAL OR WILL
 FUL OR WANTON MISCONDUCT.
 (3) THE COMMISSION SHALL INDEMNIFY AND HOLD HARMLESS ANY MEMBER, OFFI
 CER,  EXECUTIVE  DIRECTOR, EMPLOYEE OR REPRESENTATIVE OF THE COMMISSION,
 EXECUTIVE COMMITTEE OR ANY OTHER COMMITTEE OF  THE  COMMISSION  FOR  THE
 AMOUNT  OF ANY SETTLEMENT OR JUDGMENT OBTAINED AGAINST THAT PERSON ARIS
 ING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR  OMISSION  THAT  OCCURRED
 WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR RESPONSIBILITIES OR
 THAT  SUCH  PERSON  HAD A REASONABLE BASIS FOR BELIEVING OCCURRED WITHIN
 THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR RESPONSIBILITIES, PROVIDED
 THAT THE ACTUAL OR ALLEGED ACT, ERROR OR OMISSION DID  NOT  RESULT  FROM
 THE INTENTIONAL OR WILLFUL OR WANTON MISCONDUCT OF THAT PERSON.
 

S  2908. MEETINGS AND ACTS OF THE COMMISSION. (A) THE COMMISSION SHALL
 MEET AND TAKE SUCH ACTIONS AS ARE CONSISTENT WITH THE PROVISIONS OF THIS
 COMPACT AND THE BYLAWS.
 (B) EACH MEMBER OF THE COMMISSION SHALL HAVE THE RIGHT  AND  POWER  TO
 CAST  A  VOTE  TO WHICH THAT COMPACTING STATE IS ENTITLED AND TO PARTIC
 IPATE IN THE BUSINESS AND AFFAIRS OF THE COMMISSION. A MEMBER SHALL VOTE
 IN PERSON OR BY SUCH OTHER MEANS AS PROVIDED IN THE BYLAWS.  THE  BYLAWS
 MAY PROVIDE FOR MEMBERS' PARTICIPATION IN MEETINGS BY TELEPHONE OR OTHER
 MEANS OF COMMUNICATION.
 (C) THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH CALENDAR YEAR.
 ADDITIONAL MEETINGS SHALL BE HELD AS SET FORTH IN THE BYLAWS.
 (D)  PUBLIC  NOTICE  SHALL  BE  GIVEN OF ALL MEETINGS AND ALL MEETINGS
 SHALL BE OPEN TO THE PUBLIC, EXCEPT AS SET FORTH IN THE RULES OR  OTHER
 WISE PROVIDED IN THE COMPACT.
 (E)  THE  COMMISSION  SHALL  PROMULGATE  RULES CONCERNING ITS MEETINGS
 CONSISTENT WITH THE  PRINCIPLES  CONTAINED  IN  THE  GOVERNMENT  IN  THE
 SUNSHINE ACT, 5 U.S.C.

S 552B, AS MAY BE AMENDED.
 (F)  THE COMMISSION AND ITS COMMITTEES MAY CLOSE A MEETING, OR PORTION
 THEREOF, WHERE IT DETERMINES BY MAJORITY VOTE THAT AN OPEN MEETING WOULD
 BE LIKELY TO:

 (1) RELATE SOLELY TO THE COMMISSION'S INTERNAL PERSONNEL PRACTICES AND
 PROCEDURES;
 (2) DISCLOSE MATTERS SPECIFICALLY EXEMPTED FROM DISCLOSURE BY  FEDERAL
 AND STATE STATUTE;
 (3)  DISCLOSE  TRADE  SECRETS  OR  COMMERCIAL OR FINANCIAL INFORMATION
 WHICH IS PRIVILEGED OR CONFIDENTIAL;
 (4) INVOLVE ACCUSING A PERSON OF A  CRIME,  OR  FORMALLY  CENSURING  A
 PERSON;
 (5)  DISCLOSE  INFORMATION OF A PERSONAL NATURE WHERE DISCLOSURE WOULD
 CONSTITUTE A CLEARLY UNWARRANTED INVASION OF PERSONAL PRIVACY;
 (6)  DISCLOSE  INVESTIGATIVE  RECORDS  COMPILED  FOR  LAW  ENFORCEMENT
 PURPOSES; OR
 (7)  SPECIFICALLY RELATE TO THE COMMISSION'S ISSUANCE OF A SUBPOENA OR
 ITS PARTICIPATION IN A CIVIL ACTION OR OTHER LEGAL PROCEEDING.
 
       S. 2811--B                         132
 (G) FOR A MEETING,  OR  PORTION  OF  A  MEETING,  CLOSED  PURSUANT  TO
 SUBSECTION (F) OF THIS SECTION, THE COMMISSION'S LEGAL COUNSEL OR DESIG
 NEE  SHALL  CERTIFY  THAT  THE MEETING MAY BE CLOSED AND SHALL REFERENCE
 EACH RELEVANT EXEMPTIVE PROVISION.   THE COMMISSION SHALL  KEEP  MINUTES
 WHICH  SHALL FULLY AND CLEARLY DESCRIBE ALL MATTERS DISCUSSED IN A MEET
 ING AND SHALL PROVIDE A FULL AND ACCURATE SUMMARY OF ACTIONS  TAKEN  AND
 THE  REASONS  THEREFORE,  INCLUDING A DESCRIPTION OF THE VIEWS EXPRESSED
 AND THE RECORD OF A  ROLL  CALL  VOTE.    ALL  DOCUMENTS  CONSIDERED  IN
 CONNECTION  WITH  AN  ACTION  SHALL  BE  IDENTIFIED IN SUCH MINUTES. ALL
 MINUTES AND DOCUMENTS OF A  CLOSED  MEETING  SHALL  REMAIN  UNDER  SEAL,
 SUBJECT TO RELEASE BY A MAJORITY VOTE OF THE COMMISSION.
 

S  2909.  RULEMAKING  FUNCTIONS  OF THE COMMISSION. (A) THE COMMISSION
 SHALL PROMULGATE REASONABLE RULES IN ORDER TO EFFECTIVELY AND EFFICIENT
 LY ACHIEVE THE PURPOSES OF THIS COMPACT. NOTWITHSTANDING THE  FOREGOING,
 IN  THE  EVENT  THE  COMMISSION  EXERCISES ITS RULEMAKING AUTHORITY IN A
 MANNER THAT IS BEYOND THE SCOPE OF THE PURPOSES OF THIS ARTICLE  OR  THE
 POWERS GRANTED HEREUNDER, THEN SUCH AN ACTION BY THE COMMISSION SHALL BE
 INVALID AND HAVE NO FORCE OR EFFECT.
 (B) RULES SHALL BE MADE PURSUANT TO A RULEMAKING PROCESS THAT SUBSTAN
 TIALLY CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981,
 FOUND  IN  VOLUME  FIFTEEN OF THE UNIFORM LAWS ANNOTATED, AS AMENDED, AS
 MAY BE APPROPRIATE TO THE OPERATIONS OF THE COMMISSION.
 (C) ALL RULES AND AMENDMENTS THERETO SHALL BECOME EFFECTIVE AS OF  THE
 DATE SPECIFIED IN EACH RULE, OPERATING PROCEDURE OR AMENDMENT.
 (D) NOT LATER THAN THIRTY DAYS AFTER A RULE IS PROMULGATED, ANY PERSON
 MAY  FILE  A PETITION FOR JUDICIAL REVIEW OF THE RULE; PROVIDED THAT THE
 FILING OF SUCH A PETITION SHALL NOT STAY OR OTHERWISE PREVENT  THE  RULE
 FROM BECOMING EFFECTIVE UNLESS THE COURT FINDS THAT THE PETITIONER HAS A
 SUBSTANTIAL LIKELIHOOD OF SUCCESS. THE COURT SHALL GIVE DEFERENCE TO THE
 ACTIONS  OF  THE COMMISSION CONSISTENT WITH APPLICABLE LAW AND SHALL NOT
 FIND THE RULE TO BE UNLAWFUL IF THE RULE REPRESENTS A  REASONABLE  EXER
 CISE OF THE COMMISSION'S AUTHORITY.
 

S  2910.  COMMISSION RECORDS AND ENFORCEMENT. (A) THE COMMISSION SHALL
 PROMULGATE RULES  ESTABLISHING  CONDITIONS  AND  PROCEDURES  FOR  PUBLIC
 INSPECTION  AND  COPYING OF ITS INFORMATION AND OFFICIAL RECORDS, EXCEPT
 SUCH INFORMATION AND  RECORDS  INVOLVING  THE  PRIVACY  OF  INDIVIDUALS,
 INSURERS, INSUREDS OR SURPLUS LINES LICENSEE TRADE SECRETS. STATE TRANS
 ACTION DOCUMENTATION AND CLEARINGHOUSE TRANSACTION DATA COLLECTED BY THE
 CLEARINGHOUSE  SHALL  BE  USED  FOR  ONLY THOSE PURPOSES EXPRESSED IN OR
 REASONABLY IMPLIED UNDER THE PROVISIONS OF THIS COMPACT AND THE  COMMIS
 SION SHALL AFFORD THIS DATA THE BROADEST PROTECTIONS AS PERMITTED BY ANY
 APPLICABLE  LAW  FOR  PROPRIETARY INFORMATION, TRADE SECRETS OR PERSONAL
 DATA. THE COMMISSION MAY PROMULGATE ADDITIONAL RULES UNDER WHICH IT  MAY
 MAKE  AVAILABLE TO FEDERAL AND STATE AGENCIES, INCLUDING LAW ENFORCEMENT
 AGENCIES, RECORDS AND INFORMATION OTHERWISE EXEMPT FROM  DISCLOSURE  AND
 MAY  ENTER  INTO  AGREEMENTS  WITH  SUCH AGENCIES TO RECEIVE OR EXCHANGE
 INFORMATION OR RECORDS  SUBJECT  TO  NONDISCLOSURE  AND  CONFIDENTIALITY
 PROVISIONS.
 (B) EXCEPT AS TO PRIVILEGED RECORDS, DATA AND INFORMATION, THE LAWS OF
 ANY  COMPACTING  STATE  PERTAINING  TO  CONFIDENTIALITY OR NONDISCLOSURE
 SHALL NOT RELIEVE ANY COMPACTING STATE MEMBER OF THE  DUTY  TO  DISCLOSE
 ANY  RELEVANT  RECORDS,  DATA OR INFORMATION TO THE COMMISSION; PROVIDED
 THAT DISCLOSURE TO THE COMMISSION SHALL NOT BE DEEMED TO WAIVE OR OTHER
 WISE AFFECT ANY CONFIDENTIALITY REQUIREMENT AND FURTHER  PROVIDED  THAT,
 EXCEPT  AS  OTHERWISE EXPRESSLY PROVIDED IN THIS ARTICLE, THE COMMISSION
 SHALL NOT BE SUBJECT TO THE COMPACTING STATE'S LAWS PERTAINING TO CONFI
 
       S. 2811--B                         133
 DENTIALITY AND NONDISCLOSURE WITH RESPECT TO RECORDS, DATA AND  INFORMA
 TION  IN  ITS  POSSESSION.    CONFIDENTIAL INFORMATION OF THE COMMISSION
 SHALL REMAIN CONFIDENTIAL AFTER SUCH  INFORMATION  IS  PROVIDED  TO  ANY
 MEMBER,  AND  THE  COMMISSION  SHALL MAINTAIN THE CONFIDENTIALITY OF ANY
 INFORMATION PROVIDED  BY  A  MEMBER  THAT  IS  CONFIDENTIAL  UNDER  THAT
 MEMBER'S STATE LAW.
 (C) THE COMMISSION SHALL MONITOR COMPACTING STATES FOR COMPLIANCE WITH
 DULY  ADOPTED BYLAWS AND RULES. THE COMMISSION SHALL NOTIFY ANY NON-COM
 PLYING COMPACTING STATE IN WRITING OF ITS NONCOMPLIANCE WITH  COMMISSION
 BYLAWS  OR  RULES.   IF A NON-COMPLYING COMPACTING STATE FAILS TO REMEDY
 ITS NONCOMPLIANCE WITHIN THE TIME SPECIFIED IN THE NOTICE OF  NONCOMPLI
 ANCE, THE COMPACTING STATE SHALL BE DEEMED TO BE IN DEFAULT AS SET FORTH
 IN SECTION TWO THOUSAND NINE HUNDRED FIFTEEN OF THIS ARTICLE.
 

S 2911. DISPUTE RESOLUTION. (A) BEFORE A MEMBER MAY BRING AN ACTION IN
 A COURT OF COMPETENT JURISDICTION FOR VIOLATION OF ANY PROVISION, STAND
 ARD  OR  REQUIREMENT  OF THE COMPACT, THE COMMISSION SHALL ATTEMPT, UPON
 THE REQUEST OF A MEMBER, TO RESOLVE ANY DISPUTES OR  OTHER  ISSUES  THAT
 ARE  SUBJECT  TO  THIS  COMPACT  AND WHICH MAY ARISE BETWEEN TWO OR MORE
 COMPACTING STATES, CONTRACTING STATES OR NON-COMPACTING STATES  AND  THE
 COMMISSION  SHALL PROMULGATE A RULE PROVIDING ALTERNATIVE DISPUTE RESOL
 UTION PROCEDURES FOR SUCH DISPUTES.
 (B) THE COMMISSION SHALL ALSO PROVIDE ALTERNATIVE  DISPUTE  RESOLUTION
 PROCEDURES  TO  RESOLVE  ANY  DISPUTES BETWEEN INSUREDS OR SURPLUS LINES
 LICENSEES CONCERNING A TAX CALCULATION OR ALLOCATION OR  RELATED  ISSUES
 WHICH ARE THE SUBJECT OF THIS COMPACT.
 (C) ANY ALTERNATIVE DISPUTE RESOLUTION PROCEDURES SHALL BE UTILIZED IN
 CIRCUMSTANCES  WHERE  A DISPUTE ARISES AS TO WHICH STATE CONSTITUTES THE
 HOME STATE.
 

S 2912. REVIEW OF COMMISSION  DECISIONS.  REGARDING  COMMISSION  DECI
 SIONS:

 (A) EXCEPT AS NECESSARY FOR PROMULGATING RULES TO FULFILL THE PURPOSES
 OF  THIS  COMPACT,  THE COMMISSION SHALL NOT HAVE AUTHORITY TO OTHERWISE
 REGULATE INSURANCE IN THE COMPACTING STATES.
 (B) NOT LATER THAN THIRTY DAYS AFTER THE COMMISSION HAS  GIVEN  NOTICE
 OF  ANY  RULE OR ALLOCATION FORMULA, ANY THIRD PARTY FILER OR COMPACTING
 STATE MAY APPEAL THE DETERMINATION TO A REVIEW PANEL  APPOINTED  BY  THE
 COMMISSION.  THE  COMMISSION  SHALL PROMULGATE RULES TO ESTABLISH PROCE
 DURES FOR APPOINTING SUCH REVIEW PANELS AND PROVIDE FOR NOTICE AND HEAR
 ING. AN ALLEGATION THAT THE COMMISSION,  IN  MAKING  COMPLIANCE  OR  TAX
 DETERMINATIONS ACTED ARBITRARILY, CAPRICIOUSLY OR IN A MANNER THAT IS AN
 ABUSE  OF  DISCRETION  OR  OTHERWISE  NOT IN ACCORDANCE WITH THE LAW, IS
 SUBJECT TO JUDICIAL REVIEW IN ACCORDANCE WITH SUBSECTION (F) OF  SECTION
 TWO THOUSAND NINE HUNDRED FOUR OF THIS ARTICLE.
 (C)  THE COMMISSION SHALL HAVE AUTHORITY TO MONITOR, REVIEW AND RECON
 SIDER COMMISSION DECISIONS UPON A FINDING  THAT  THE  DETERMINATIONS  OR
 ALLOCATIONS  DO  NOT  MEET  THE  RELEVANT  RULE.  WHERE APPROPRIATE, THE
 COMMISSION MAY WITHDRAW OR MODIFY ITS DETERMINATION OR ALLOCATION  AFTER
 PROPER  NOTICE  AND  HEARING, SUBJECT TO THE APPEAL PROCESS SET FORTH IN
 SUBSECTION (B) OF THIS SECTION.
 

S 2913. FINANCE. (A) THE COMMISSION  SHALL  PAY  OR  PROVIDE  FOR  THE
 PAYMENT  OF  THE  REASONABLE EXPENSES OF ITS ESTABLISHMENT AND ORGANIZA
 TION. TO FUND THE COST OF ITS  INITIAL  OPERATIONS  THE  COMMISSION  MAY
 ACCEPT  CONTRIBUTIONS,  GRANTS AND OTHER FORMS OF FUNDING FROM THE STATE
 STAMPING OFFICES, COMPACTING STATES AND OTHER SOURCES.
 (B) THE COMMISSION SHALL COLLECT A FEE PAYABLE BY THE INSURED DIRECTLY
 OR THROUGH A  SURPLUS  LINES  LICENSEE  ON  EACH  TRANSACTION  PROCESSED
 
       S. 2811--B                         134
 THROUGH  THE  COMPACT  CLEARINGHOUSE TO COVER THE COST OF THE OPERATIONS
 AND ACTIVITIES OF THE COMMISSION AND ITS STAFF IN A TOTAL AMOUNT  SUFFI
 CIENT TO COVER THE COMMISSION'S ANNUAL BUDGET.
 (C)  THE  COMMISSION'S  BUDGET FOR A FISCAL YEAR SHALL NOT BE APPROVED
 UNTIL IT HAS BEEN SUBJECT TO NOTICE AND COMMENT AS SET FORTH IN  SECTION
 TWO THOUSAND NINE HUNDRED NINE OF THIS ARTICLE.
 (D)  THE  COMMISSION SHALL BE REGARDED AS PERFORMING ESSENTIAL GOVERN
 MENTAL FUNCTIONS IN EXERCISING SUCH POWERS AND FUNCTIONS AND IN CARRYING
 OUT THE PROVISIONS OF THIS COMPACT AND OF ANY LAW RELATING  THERETO  AND
 SHALL  NOT  BE REQUIRED TO PAY ANY TAXES OR ASSESSMENTS OF ANY CHARACTER
 LEVIED BY ANY STATE OR POLITICAL SUBDIVISION THEREOF  UPON  ANY  OF  THE
 PROPERTY  USED  BY  IT FOR SUCH PURPOSES OR ANY INCOME OR REVENUE THERE
 FROM, INCLUDING ANY PROFIT FROM A SALE OR EXCHANGE.
 (E) THE COMMISSION SHALL KEEP COMPLETE AND ACCURATE  ACCOUNTS  OF  ALL
 ITS  INTERNAL RECEIPTS, INCLUDING GRANTS AND DONATIONS AND DISBURSEMENTS
 FOR ALL FUNDS UNDER ITS CONTROL.  THE INTERNAL FINANCIAL ACCOUNTS OF THE
 COMMISSION SHALL BE SUBJECT TO  THE  ACCOUNTING  PROCEDURES  ESTABLISHED
 UNDER  ITS  BYLAWS.  THE  FINANCIAL  ACCOUNTS  AND REPORTS INCLUDING THE
 SYSTEM OF INTERNAL CONTROLS AND PROCEDURES OF THE  COMMISSION  SHALL  BE
 AUDITED ANNUALLY BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT. UPON THE
 DETERMINATION  OF  THE  COMMISSION,  BUT  NOT LESS FREQUENTLY THAN EVERY
 THREE YEARS, THE REVIEW OF  THE  INDEPENDENT  AUDITOR  SHALL  INCLUDE  A
 MANAGEMENT AND PERFORMANCE AUDIT OF THE COMMISSION. THE COMMISSION SHALL
 MAKE  AN ANNUAL REPORT TO THE GOVERNOR AND LEGISLATURE OF THE COMPACTING
 STATES, WHICH SHALL INCLUDE A  REPORT  OF  THE  INDEPENDENT  AUDIT.  THE
 COMMISSION'S  INTERNAL ACCOUNTS SHALL NOT BE CONFIDENTIAL AND SUCH MATE
 RIALS MAY BE SHARED WITH THE COMMISSIONER, THE CONTROLLER OR THE  STAMP
 ING OFFICE OF ANY COMPACTING STATE UPON REQUEST; PROVIDED, HOWEVER, THAT
 ANY  WORK  PAPERS  RELATED  TO ANY INTERNAL OR INDEPENDENT AUDIT AND ANY
 INFORMATION REGARDING THE PRIVACY  OF  INDIVIDUALS  AND  LICENSEES'  AND
 INSURERS' PROPRIETARY INFORMATION, INCLUDING TRADE SECRETS, SHALL REMAIN
 CONFIDENTIAL.
 (F)  NO  COMPACTING  STATE SHALL HAVE ANY CLAIM TO OR OWNERSHIP OF ANY
 PROPERTY HELD BY OR VESTED IN THE COMMISSION OR TO ANY COMMISSION  FUNDS
 HELD PURSUANT TO THE PROVISIONS OF THIS COMPACT.
 (G)  THE  COMMISSION  SHALL  NOT  MAKE  ANY POLITICAL CONTRIBUTIONS TO
 CANDIDATES FOR ELECTED OFFICE, ELECTED OFFICIALS, POLITICAL  PARTIES  OR
 POLITICAL ACTION COMMITTEES. THE COMMISSION SHALL NOT ENGAGE IN LOBBYING
 EXCEPT WITH RESPECT TO CHANGES TO THIS COMPACT.
 

S 2914. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT. (A) ANY STATE
 IS ELIGIBLE TO BECOME A COMPACTING STATE.
 (B)  THE  COMPACT  SHALL BECOME EFFECTIVE AND BINDING UPON LEGISLATIVE
 ENACTMENT OF THE COMPACT INTO LAW BY TWO  COMPACTING  STATES;  PROVIDED,
 THE COMMISSION SHALL BECOME EFFECTIVE FOR PURPOSES OF ADOPTING RULES AND
 CREATING  THE  CLEARINGHOUSE  WHEN  THERE  ARE A TOTAL OF TEN COMPACTING
 STATES AND CONTRACTING STATES OR, ALTERNATIVELY, WHEN THERE ARE COMPACT
 ING STATES  AND  CONTRACTING  STATES  REPRESENTING  GREATER  THAN  FORTY
 PERCENT  OF  THE SURPLUS LINES INSURANCE PREMIUM VOLUME BASED ON RECORDS
 OF THE PERCENTAGE OF SURPLUS LINES INSURANCE PREMIUM SET FORTH IN APPEN
 DIX A OF SECTION TWO THOUSAND  ONE  HUNDRED  SEVENTEEN.  THEREAFTER,  IT
 SHALL BECOME EFFECTIVE AND BINDING AS TO ANY OTHER COMPACTING STATE UPON
 ENACTMENT  OF  THE  COMPACT  INTO LAW BY THAT STATE. NOTWITHSTANDING THE
 FOREGOING, THE CLEARINGHOUSE OPERATIONS AND THE DUTY TO REPORT CLEARING
 HOUSE TRANSACTION DATA SHALL BEGIN ON THE FIRST OF JANUARY OR THE  FIRST
 OF  JULY NEXT FOLLOWING THE FIRST ANNIVERSARY OF THE COMMISSION'S EFFEC
 TIVE DATE. FOR STATES WHICH JOIN THE COMPACT SUBSEQUENT TO THE EFFECTIVE
 
       S. 2811--B                         135
 DATE, A START DATE FOR REPORTING CLEARINGHOUSE TRANSACTION DATA SHALL BE
 SET BY THE COMMISSION PROVIDED SURPLUS LINES  LICENSEES  AND  ALL  OTHER
 INTERESTED PARTIES RECEIVE NOT LESS THAN NINETY DAYS ADVANCE NOTICE.
 (C)  AMENDMENTS  TO  THE COMPACT MAY BE PROPOSED BY THE COMMISSION FOR
 ENACTMENT BY THE COMPACTING STATES. NO AMENDMENT SHALL BECOME  EFFECTIVE
 AND  BINDING  UPON  THE  COMMISSION AND THE COMPACTING STATES UNLESS AND
 UNTIL ALL COMPACTING STATES ENACT THE AMENDMENT INTO LAW.
 

S 2915. WITHDRAWAL, DEFAULT AND TERMINATION. (A) (1)  ONCE  EFFECTIVE,
 THE  COMPACT  SHALL  CONTINUE  IN FORCE AND REMAIN BINDING UPON EACH AND
 EVERY COMPACTING STATE, PROVIDED THAT A COMPACTING  STATE  MAY  WITHDRAW
 FROM  THE  COMPACT  ("WITHDRAWING  STATE") BY ENACTING A STATUTE SPECIF
 ICALLY REPEALING THE STATUTE WHICH ENACTED THE COMPACT INTO LAW.
 (2) THE EFFECTIVE DATE OF WITHDRAWAL IS  THE  EFFECTIVE  DATE  OF  THE
 REPEALING  STATUTE.   HOWEVER, THE WITHDRAWAL SHALL NOT APPLY TO ANY TAX
 OR COMPLIANCE DETERMINATIONS APPROVED ON THE DATE THE REPEALING  STATUTE
 BECOMES  EFFECTIVE, EXCEPT BY MUTUAL AGREEMENT OF THE COMMISSION AND THE
 WITHDRAWING STATE UNLESS THE APPROVAL IS RESCINDED BY THE COMMISSION.
 (3) THE MEMBER OF THE WITHDRAWING STATE SHALL IMMEDIATELY  NOTIFY  THE
 EXECUTIVE  COMMITTEE  OF THE COMMISSION IN WRITING UPON THE INTRODUCTION
 OF LEGISLATION REPEALING THIS COMPACT IN THE WITHDRAWING STATE.
 (4) THE COMMISSION SHALL NOTIFY THE OTHER  COMPACTING  STATES  OF  THE
 INTRODUCTION  OF  SUCH  LEGISLATION WITHIN TEN DAYS AFTER ITS RECEIPT OF
 NOTICE THEREOF.
 (5) THE WITHDRAWING STATE IS RESPONSIBLE FOR ALL  OBLIGATIONS,  DUTIES
 AND  LIABILITIES  INCURRED  THROUGH  THE  EFFECTIVE  DATE OF WITHDRAWAL,
 INCLUDING ANY OBLIGATIONS, THE PERFORMANCE OF WHICH  EXTEND  BEYOND  THE
 EFFECTIVE  DATE OF WITHDRAWAL.  TO THE EXTENT THOSE OBLIGATIONS MAY HAVE
 BEEN RELEASED OR RELINQUISHED BY MUTUAL AGREEMENT OF THE COMMISSION  AND
 THE  WITHDRAWING  STATE,  THE  COMMISSION'S  DETERMINATIONS PRIOR TO THE
 EFFECTIVE DATE OF WITHDRAWAL SHALL CONTINUE TO BE EFFECTIVE AND BE GIVEN
 FULL FORCE AND EFFECT IN THE WITHDRAWING STATE, UNLESS FORMALLY RESCIND
 ED BY THE COMMISSION.
 (6) REINSTATEMENT FOLLOWING WITHDRAWAL OF ANY COMPACTING  STATE  SHALL
 OCCUR  UPON  THE  EFFECTIVE DATE OF THE WITHDRAWING STATE REENACTING THE
 COMPACT.
 (B) (1) IF THE COMMISSION DETERMINES THAT ANY COMPACTING STATE HAS  AT
 ANY TIME DEFAULTED ("DEFAULTING STATE") IN THE PERFORMANCE OF ANY OF ITS
 OBLIGATIONS  OR  RESPONSIBILITIES UNDER THIS COMPACT, THE BYLAWS OR DULY
 PROMULGATED RULES, THEN AFTER NOTICE AND HEARING AS  SET  FORTH  IN  THE
 BYLAWS, ALL RIGHTS, PRIVILEGES AND BENEFITS CONFERRED BY THIS COMPACT ON
 THE  DEFAULTING  STATE  SHALL  BE  SUSPENDED  FROM THE EFFECTIVE DATE OF
 DEFAULT AS FIXED BY THE COMMISSION. THE GROUNDS FOR DEFAULT INCLUDE, BUT
 ARE NOT LIMITED TO, FAILURE OF A COMPACTING STATE TO PERFORM  ITS  OBLI
 GATIONS  OR RESPONSIBILITIES AND ANY OTHER GROUNDS DESIGNATED IN COMMIS
 SION RULES. THE COMMISSION SHALL IMMEDIATELY NOTIFY THE DEFAULTING STATE
 IN WRITING OF THE DEFAULTING STATE'S SUSPENSION PENDING A  CURE  OF  THE
 DEFAULT.  THE  COMMISSION  SHALL  STIPULATE  THE CONDITIONS AND THE TIME
 PERIOD WITHIN WHICH THE DEFAULTING STATE MUST CURE ITS DEFAULT.  IF  THE
 DEFAULTING STATE FAILS TO CURE THE DEFAULT WITHIN THE TIME PERIOD SPECI
 FIED  BY  THE  COMMISSION, THE DEFAULTING STATE SHALL BE TERMINATED FROM
 THE COMPACT AND ALL RIGHTS, PRIVILEGES AND BENEFITS  CONFERRED  BY  THIS
 COMPACT SHALL BE TERMINATED FROM THE EFFECTIVE DATE OF TERMINATION.
 (2)  DECISIONS OF THE COMMISSION THAT ARE ISSUED ON THE EFFECTIVE DATE
 OF TERMINATION SHALL REMAIN IN FORCE IN THE DEFAULTING STATE IN THE SAME
 MANNER AS IF THE DEFAULTING STATE HAD WITHDRAWN VOLUNTARILY PURSUANT  TO
 SUBSECTION (A) OF THIS SECTION.
 
       S. 2811--B                         136
 (3)  REINSTATEMENT  FOLLOWING  TERMINATION  OF  ANY  COMPACTING  STATE
 REQUIRES A REENACTMENT OF THE COMPACT.
 (C)  (1)  THE  COMPACT  DISSOLVES EFFECTIVE UPON THE DATE OF THE WITH
 DRAWAL OR DEFAULT OF THE COMPACTING STATE WHICH  REDUCES  MEMBERSHIP  IN
 THE COMPACT TO ONE COMPACTING STATE.
 (2) UPON THE DISSOLUTION OF THIS COMPACT, THE COMPACT BECOMES NULL AND
 VOID  AND  SHALL  HAVE  NO  FURTHER FORCE OR EFFECT AND THE BUSINESS AND
 AFFAIRS OF THE COMMISSION SHALL BE WOUND UP AND ANY EXCESS  FUNDS  SHALL
 BE DISTRIBUTED IN ACCORDANCE WITH THE RULES AND BYLAWS.
 

S  2916.  SEVERABILITY  AND  CONSTRUCTION.  (A) THE PROVISIONS OF THIS
 COMPACT SHALL BE SEVERABLE  AND  IF  ANY  PHRASE,  CLAUSE,  SENTENCE  OR
 PROVISION  IS  DEEMED  UNENFORCEABLE,  THE  REMAINING  PROVISIONS OF THE
 COMPACT SHALL BE ENFORCEABLE.
 (B) THE PROVISIONS OF THIS COMPACT SHALL  BE  LIBERALLY  CONSTRUED  TO
 EFFECTUATE ITS PURPOSES.
 (C)  THROUGHOUT THIS COMPACT THE USE OF THE SINGULAR SHALL INCLUDE THE
 PLURAL AND VICE-VERSA.
 (D) THE HEADINGS AND CAPTIONS OF ARTICLES,  SECTIONS  AND  SUBSECTIONS
 USED  IN  THIS  COMPACT ARE FOR CONVENIENCE ONLY AND SHALL BE IGNORED IN
 CONSTRUING THE SUBSTANTIVE PROVISIONS OF THIS COMPACT.
 

S 2917. BINDING EFFECT OF COMPACT AND  OTHER  LAWS.  (A)  (1)  NOTHING
 HEREIN  PREVENTS THE ENFORCEMENT OF ANY OTHER LAW OF A COMPACTING STATE,
 EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION.
 (2) DECISIONS OF THE COMMISSION AND ANY RULES AND ANY  OTHER  REQUIRE
 MENTS  OF THE COMMISSION SHALL CONSTITUTE THE EXCLUSIVE RULE OR DETERMI
 NATION APPLICABLE TO  THE  COMPACTING  STATES.  ANY  LAW  OR  REGULATION
 REGARDING  NON-ADMITTED  INSURANCE OF MULTI-STATE RISKS THAT IS CONTRARY
 TO RULES OF THE COMMISSION IS PREEMPTED WITH RESPECT TO THE FOLLOWING:

 (A) CLEARINGHOUSE TRANSACTION DATA REPORTING REQUIREMENTS;
 (B) ALLOCATION FORMULA;
 (C) CLEARINGHOUSE TRANSACTION DATA COLLECTION REQUIREMENTS;
 (D) PREMIUM TAX PAYMENT TIME FRAMES AND RULES CONCERNING DISSEMINATION
 OF DATA AMONG  THE  COMPACTING  STATES  FOR  NON-ADMITTED  INSURANCE  OF
 MULTI-STATE RISKS AND SINGLE-STATE RISKS;
 (E)  EXCLUSIVE  COMPLIANCE WITH SURPLUS LINES LAW OF THE HOME STATE OF
 THE INSURED;
 (F) RULES FOR REPORTING TO A CLEARINGHOUSE FOR  RECEIPT  AND  DISTRIB
 UTION  OF  CLEARINGHOUSE TRANSACTION DATA RELATED TO NON-ADMITTED INSUR
 ANCE OF MULTI-STATE RISKS;
 (G) UNIFORM FOREIGN INSURERS ELIGIBILITY REQUIREMENTS;
 (H) UNIFORM POLICYHOLDER NOTICE; AND
 (I) UNIFORM TREATMENT  OF  PURCHASING  GROUPS  PROCURING  NON-ADMITTED
 INSURANCE.
 (3)  EXCEPT  AS SET FORTH IN SUBSECTION (B) OF THIS SECTION, ANY RULE,
 UNIFORM STANDARD OR OTHER REQUIREMENT OF THE COMMISSION SHALL CONSTITUTE
 THE EXCLUSIVE PROVISION THAT A COMMISSIONER MAY APPLY TO  COMPLIANCE  OR
 TAX  DETERMINATIONS.   NOTWITHSTANDING THE FOREGOING, NO ACTION TAKEN BY
 THE COMMISSION SHALL ABROGATE OR RESTRICT:

 (A) THE ACCESS OF ANY PERSON TO STATE COURTS;
 (B) THE AVAILABILITY OF ALTERNATIVE DISPUTE RESOLUTION  UNDER  SECTION
 TWO THOUSAND NINE HUNDRED ELEVEN OF THIS ARTICLE;
 (C)  REMEDIES AVAILABLE UNDER STATE LAW RELATED TO BREACH OF CONTRACT,
 TORT OR OTHER LAWS NOT SPECIFICALLY DIRECTED TO COMPLIANCE OR TAX DETER
 MINATIONS;
 (D) STATE LAW RELATING TO THE CONSTRUCTION OF INSURANCE CONTRACTS; OR
 
       S. 2811--B                         137
 (E) THE AUTHORITY OF THE ATTORNEY GENERAL OF THE STATE, INCLUDING  BUT
 NOT  LIMITED TO MAINTAINING ANY ACTIONS OR PROCEEDINGS, AS AUTHORIZED BY
 LAW.
 (B)  (1)  ALL  LAWFUL  ACTIONS  OF THE COMMISSION, INCLUDING ALL RULES
 PROMULGATED BY THE COMMISSION, ARE BINDING UPON THE  COMPACTING  STATES,
 EXCEPT AS PROVIDED HEREIN.
 (2)  ALL  AGREEMENTS  BETWEEN THE COMMISSION AND THE COMPACTING STATES
 ARE BINDING IN ACCORDANCE WITH THEIR TERMS.
 (3) UPON THE REQUEST OF A PARTY TO A  CONFLICT  OVER  THE  MEANING  OR
 INTERPRETATION  OF  COMMISSION  ACTIONS  AND UPON A MAJORITY VOTE OF THE
 COMPACTING STATES, THE COMMISSION MAY ISSUE ADVISORY OPINIONS  REGARDING
 THE  MEANING  OR INTERPRETATION IN DISPUTE. THIS PROVISION MAY BE IMPLE
 MENTED BY RULE AT THE DISCRETION OF THE COMMISSION.
 (4) IN THE EVENT ANY PROVISION OF THIS COMPACT EXCEEDS  THE  CONSTITU
 TIONAL  LIMITS  IMPOSED  ON THE LEGISLATURE OF ANY COMPACTING STATE, THE
 OBLIGATIONS, DUTIES, POWERS OR JURISDICTION SOUGHT TO  BE  CONFERRED  BY
 THAT PROVISION UPON THE COMMISSION SHALL BE INEFFECTIVE AS TO THAT STATE
 AND  THOSE  OBLIGATIONS,  DUTIES, POWERS OR JURISDICTION SHALL REMAIN IN
 THE COMPACTING STATE AND SHALL BE EXERCISED BY  THE  AGENCY  THEREOF  TO
 WHICH THOSE OBLIGATIONS, DUTIES, POWERS OR JURISDICTION ARE DELEGATED BY
 LAW IN EFFECT AT THE TIME THIS COMPACT BECOMES EFFECTIVE.
 APPENDIX A
 SURPLUS LINE INSURANCE PREMIUMS BY STATE
 PREMIUMS BASED ON              SHARE OF TOTAL
 STATE                      TAXES PAID                     PREMIUMS
 ALABAMA                       445,746,000                 1.47%
 ALASKA                         89,453,519                 0.29%
 ARIZONA                       663,703,267                 2.18%
 ARKANSAS                      201,859,750                 0.66%
 CALIFORNIA                  5,622,450,467                 18.49%
 COLORADO                      543,781,333                 1.79%
 CONNECTICUT                   329,358,800                 1.08%
 DELAWARE                       92,835,950                 0.31%
 FLORIDA                     2,660,908,760                 8.75%
 GEORGIA                       895,643,150                 2.95%
 HAWAII                        232,951,489                 0.77%
 IDAHO                          74,202,255                 0.24%
 ILLINOIS                    1,016,504,629                 3.34%
 INDIANA                       412,265,320                 1.36%
 IOWA                          135,130,933                 0.44%
 KANSAS                        160,279,300                 0.53%
 KENTUCKY                      167,996,133                 0.55%
 LOUISIANA                     853,173,280                 2.81%
 MAINE                          60,111,200                 0.20%
 MARYLAND                      434,887,600                 1.43%
 MASSACHUSETTS                 708,640,225                 2.33%
 MICHIGAN                      703,357,040                 2.31%
 MINNESOTA                     393,128,400                 1.29%
 MISSISSIPPI                   263,313,175                 0.87%
 MISSOURI                      404,489,860                 1.33%
 MONTANA                        64,692,873                 0.21%
 NEBRASKA                       92,141,167                 0.30%
 NEVADA                        354,271,514                 1.17%
 NEW HAMPSHIRE                 102,946,250                 0.34%
 NEW JERSEY                  1,087,994,033                 3.58%
 NEW MEXICO                     67,608,458                 0.22%
 
       S. 2811--B                         138
 NEW YORK                    2,768,618,083                 9.11%
 NORTH CAROLINA                514,965,060                 1.69%
 NORTH DAKOTA                   36,223,943                 0.12%
 OHIO                          342,000,000                 1.12%
 OKLAHOMA                      319,526,400                 1.05%
 OREGON                        312,702,150                 1.03%
 PENNSYLVANIA                  780,666,667                 2.57%
 RHODE ISLAND                   71,794,067                 0.24%
 SOUTH CAROLINA                412,489,825                 1.36%
 SOUTH DAKOTA                   38,702,120                 0.13%
 TENNESSEE                     451,775,240                 1.49%
 TEXAS                       3,059,170,454                 10.06%
 UTAH                          142,593,412                 0.47%
 VERMONT                        41,919,433                 0.14%
 VIRGINIA                      611,530,667                 2.01%
 WASHINGTON                    739,932,050                 2.43%
 WEST VIRGINIA                 130,476,250                 0.43%
 WISCONSIN                     248,758,333                 0.82%
 WYOMING                        40,526,967                 0.13%
 TOTAL                      30,400,197,251                 100.00%
 

S 3. Subsection (d) of section 2118 of the insurance law is amended by
 adding a new paragraph 4 to read as follows:

 (4)  IN  THE EVENT THAT THE SURPLUS LINES INSURANCE MULTISTATE COMPLI
 ANCE COMPACT ("SLIMPACT") IS ENACTED BY THIS STATE  AND  THE  COMMISSION
 CREATED THEREUNDER BECOMES ACTIVE PURSUANT TO THE PROVISION OF SLIMPACT,
 THEN  THIS STATE, WHEN IT IS THE HOME STATE OF THE INSURED, WILL REQUIRE
 THE PAYMENT OF TAXES BE ALLOCATED BASED UPON  SLIMPACT'S  PROVISIONS  TO
 ALL  OTHER  STATES  WHICH HAVE ADOPTED SLIMPACT; PROVIDED, HOWEVER, THAT
 THIS STATE WILL APPLY ITS STATE TAX TO THE PREMIUM FOR  ALL  RISK  EXPO
 SURES  ALLOCATED  TO  THIS  STATE  AND  TO RISK EXPOSURES LOCATED IN ANY
 STATES WHICH HAVE NOT ENACTED SLIMPACT.
 

S 4. Paragraph 1 of subsection (b) of section 9102  of  the  insurance
 law,  as  amended by chapter 190 of the laws of 1990, is amended to read
 as follows:

 (1) In determining the amount of gross premiums taxable in this  state
 pursuant  to paragraph one of subsection (d) of section two thousand one
 hundred eighteen of this chapter,  where  a  placement  of  excess  line
 insurance  covers  property or risks located or resident both in and out
 of this state, the sum paid to the superintendent shall be  computed  on
 that  portion  of the policy premium that is attributable to property or
 risks located or resident in this state, as determined by  reference  to
 an allocation schedule prescribed by the superintendent in a regulation.
 IN  THE  EVENT  THAT  THE  SURPLUS LINES INSURANCE MULTISTATE COMPLIANCE
 COMPACT ("SLIMPACT") IS ENACTED BY THIS STATE AND THE COMMISSION CREATED
 THEREUNDER BECOMES ACTIVE PURSUANT TO THE PROVISIONS OF  SLIMPACT,  THEN
 THIS  STATE,  WHEN IT IS THE HOME STATE OF THE INSURED, WILL REQUIRE THE
 PAYMENT OF TAXES BE ALLOCATED BASED UPON SLIMPACT'S  PROVISIONS  TO  ALL
 OTHER  STATES  WHICH HAVE ADOPTED SLIMPACT; PROVIDED, HOWEVER, THAT THIS
 STATE WILL APPLY ITS STATE TAX TO THE PREMIUM  FOR  ALL  RISK  EXPOSURES
 ALLOCATED  TO  THIS  STATE  AND  TO RISK EXPOSURES LOCATED IN ANY STATES
 WHICH HAVE NOT ENACTED SLIMPACT.
 

S 5.

Section 1552 of the tax law, as added by chapter 190 of the  laws
 of 1990, is amended to read as follows:

 

S  1552. Allocation. Where the taxable insurance contract covers risks
 located or resident both within and without this state,  the  amount  of
 
       S. 2811--B                         139
 premiums  allocable to risks resident or located within this state shall
 be determined pursuant to rules and regulations of the  commissioner  of
 taxation  and  finance.  In promulgating such rules and regulations, the
 commissioner of taxation and finance shall give due consideration to the
 rules  and  regulations  promulgated  by the superintendent of insurance
 pursuant to subsection (b) of section nine thousand one hundred  two  of
 the insurance law.  IN THE EVENT THAT THE SURPLUS LINES INSURANCE MULTI
 STATE  COMPLIANCE  COMPACT ("SLIMPACT") IS ENACTED BY THIS STATE AND THE
 COMMISSION CREATED THEREUNDER BECOMES ACTIVE PURSUANT TO THE  PROVISIONS
 OF  SLIMPACT, THEN THIS STATE, WHEN IT IS THE HOME STATE OF THE INSURED,
 WILL REQUIRE THE PAYMENT OF TAXES BE  ALLOCATED  BASED  UPON  SLIMPACT'S
 PROVISIONS  TO  ALL  OTHER STATES WHICH HAVE ADOPTED SLIMPACT; PROVIDED,
 HOWEVER, THAT THIS STATE WILL APPLY ITS STATE TAX TO THE PREMIUM FOR ALL
 RISK EXPOSURES ALLOCATED TO THIS STATE AND TO RISK EXPOSURES LOCATED  IN
 ANY STATES WHICH HAVE NOT ENACTED SLIMPACT.
 

S 6. This act shall take effect ninety days after July 21, 2011.
 PART FF
 

Section  1.  The tax law is amended by adding a new section 35 to read
 as follows:

 

S 35. COMMUNITY TRANSFORMATION PROGRAM CREDIT.   (A)  DEFINITIONS.  AS
 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN
 INGS:

 (1)  "TRANSFORMATION  COMMUNITY" MEANS A TOWN OR A CITY LOCATED WITHIN
 THREE MILES OF A CORRECTIONAL FACILITY, AS DEFINED IN PARAGRAPH  (A)  OF
 SUBDIVISION FOUR OF SECTION TWO OF THE CORRECTION LAW SUBJECT TO CLOSURE
 PURSUANT  TO  A  RECOMMENDATION OF THE PRISON EFFICIENCY TASK FORCE OR A
 SECURE FACILITY AS DEFINED IN SECTION FIVE HUNDRED FOUR-A OF THE  EXECU
 TIVE  LAW  SUBJECT  TO  CLOSURE PURSUANT TO A CHAPTER OF THE LAWS OF TWO
 THOUSAND ELEVEN.
 (2) "BASE EMPLOYMENT" MEANS THE AVERAGE NUMBER OF FULL TIME  EMPLOYEES
 OR  FULL  TIME  EQUIVALENT  EMPLOYEES IN THE STATE DURING THE BASE YEAR,
 WHERE THE BASE YEAR IS TWO THOUSAND ELEVEN.   FOR A NEW  BUSINESS,  BASE
 EMPLOYMENT SHALL BE ZERO.
 (3) "NET NEW JOB" MEANS ANY FULL TIME EMPLOYEE OR FULL TIME EQUIVALENT
 EMPLOYEE  THAT  CAUSES  THE  TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE
 BASE EMPLOYMENT.
 (4) "QUALIFIED BUSINESS ENTITY" MEANS A  BUSINESS  ENTITY  THAT  SHALL
 OPERATE  WITHIN  A TRANSFORMATION COMMUNITY, PROVIDED, HOWEVER, A QUALI
 FIED BUSINESS ENTITY SHALL NOT INCLUDE RETAIL ESTABLISHMENTS OR  OFFICES
 OF  PROFESSIONS  REQUIRED TO BE LICENSED BY THE STATE UNLESS SUCH RETAIL
 ESTABLISHMENTS OR OFFICES OF PROFESSIONS ARE TO BE LOCATED ON THE  PROP
 ERTY  OF THE CORRECTIONAL FACILITY OR SECURE FACILITY DESCRIBED IN PARA
 GRAPH ONE OF THIS SECTION.
 (5) "QUALIFIED INVESTMENT" MEANS AN INVESTMENT  IN  TANGIBLE  PROPERTY
 (INCLUDING  A BUILDING OR A STRUCTURAL COMPONENT OF A BUILDING) OWNED BY
 A QUALIFIED BUSINESS ENTITY WHICH:

 (I) IS DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF  THE
 INTERNAL REVENUE CODE;
 (II) HAS A USEFUL LIFE OF FOUR YEARS OR MORE;
 (III) IS ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVEN
 TY-NINE (D) OF THE INTERNAL REVENUE CODE;
 (IV) HAS A SITUS IN THE TRANSFORMATION COMMUNITY; AND
 
       S. 2811--B                         140
 (V)  IS  PLACED IN SERVICE IN THE TRANSFORMATION COMMUNITY ON OR AFTER
 THE DATE OF THE CLOSURE OF THE CORRECTIONAL FACILITY OR SECURED  FACILI
 TY.
 (6)  "TAX  BENEFIT  PERIOD"  MEANS  (I) FOR THE TAX CREDIT ESTABLISHED
 PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (B) OF THIS SECTION, FIVE TAXA
 BLE YEARS STARTING WITH THE YEAR IN WHICH NET NEW JOB CREATION OCCURS OR
 IN WHICH THE PROPERTY CONSTITUTING A  QUALIFIED  INVESTMENT  PROJECT  IS
 FIRST  PLACED  IN SERVICE OR (II) FOR THE CREDIT ESTABLISHED PURSUANT TO
 PARAGRAPH TWO OF SUBDIVISION (B)  OF  THIS  SECTION,  SIXTY  CONSECUTIVE
 MONTHS.
 (7)  "WITHHOLDING"  MEANS  THE  WITHHOLDING REQUIRED UNDER SECTION SIX
 HUNDRED SEVENTY-ONE OF THIS  CHAPTER  CALCULATED  USING  THE  EMPLOYEE'S
 APPLICABLE WAGE AND FILING STATUS WITH ONE EXEMPTION.
 (B)  GENERAL.  (1)  A QUALIFIED BUSINESS ENTITY THAT IS SUBJECT TO TAX
 UNDER ARTICLE NINE-A, TWENTY-TWO, THIRTY-TWO  OR  THIRTY-THREE  OF  THIS
 CHAPTER  SHALL  BE  ALLOWED  A  CREDIT AGAINST SUCH TAX, PURSUANT TO THE
 PROVISIONS REFERENCED IN THIS SECTION. THE AMOUNT OF THE CREDIT,  ALLOW
 ABLE FOR THE TAX BENEFIT PERIOD, IS THE SUM OF THE FOLLOWING THREE CRED
 IT COMPONENTS:

 (I) COMMUNITY TRANSFORMATION JOBS CREDIT;
 (II) COMMUNITY TRANSFORMATION INVESTMENT TAX CREDIT; AND
 (III) COMMUNITY TRANSFORMATION REAL PROPERTY TAX CREDIT.
 (2)  A QUALIFIED BUSINESS ENTITY THAT MAKES PURCHASES THAT ARE SUBJECT
 TO TAX UNDER ARTICLE TWENTY-EIGHT OR TWENTY-NINE OF THIS  CHAPTER  SHALL
 BE  ELIGIBLE TO CLAIM THE CREDIT OR REFUND DESCRIBED IN SUBDIVISIONS (A)
 AND (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER OR  ANY  LIKE
 CREDIT   OR   REFUND  IMPOSED  PURSUANT  TO  THE  AUTHORITY  OF  ARTICLE
 TWENTY-NINE OF THIS CHAPTER.
 (C) NOTIFICATION. THE DEPARTMENT  OF  CORRECTIONAL  SERVICES  AND  THE
 OFFICE OF CHILDREN AND FAMILY SERVICES SHALL NOTIFY THE DEPARTMENT WITH
 IN  TEN  DAYS  SUBSEQUENT TO THE RECOMMENDATION OF THE PRISON EFFICIENCY
 TASK FORCE OR THE DETERMINATION BY THE OFFICE  OF  CHILDREN  AND  FAMILY
 SERVICES. SUCH NOTIFICATION SHALL INCLUDE THE NAME OF THE FACILITY TO BE
 CLOSED,  THE LOCATION OF SUCH FACILITY, AND THE NAME OF ANY TOWN OR CITY
 LOCATED WITHIN THREE MILES OF SUCH FACILITY. THE DEPARTMENT  SHALL  MAKE
 THE INFORMATION PROVIDED IN SUCH NOTIFICATION AVAILABLE TO TAXPAYERS.
 (D)  COMMUNITY TRANSFORMATION JOBS CREDIT COMPONENT. A QUALIFIED BUSI
 NESS ENTITY SHALL BE ELIGIBLE TO CLAIM A CREDIT FOR EACH NET NEW JOB  IT
 CREATES  IN A TRANSFORMATION COMMUNITY. THE AMOUNT OF THE CREDIT ALLOWED
 UNDER THIS SECTION SHALL BE EQUAL TO THE AMOUNT OF WITHHOLDING  REMITTED
 TO  THE  STATE FOR EACH NEW EMPLOYEE.  THE CREDIT SHALL NOT BE MORE THAN
 FIVE THOUSAND DOLLARS FOR ANY NEW EMPLOYEE FOR ONE FULL YEAR OF  EMPLOY
 MENT;  IF  A  NEW  EMPLOYEE HAS BEEN HIRED FOR LESS THAN A FULL TAX YEAR
 THIS AMOUNT SHALL BE PRORATED AND APPORTIONED TO EACH TAX YEAR BUT SHALL
 IN NO WAY DECREASE THE  FULL  FIVE  YEARS  OF  CREDIT  ELIGIBILITY.  THE
 TAXPAYER  MAY  CLAIM  THIS  CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF
 FIVE YEARS OF EMPLOYMENT. THE TAXPAYER MAY  OFFSET  QUARTERLY  ESTIMATED
 RETURNS WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
 (E) COMMUNITY TRANSFORMATION INVESTMENT TAX CREDIT COMPONENT. A QUALI
 FIED  BUSINESS  ENTITY  SHALL BE ELIGIBLE TO CLAIM A CREDIT ON QUALIFIED
 INVESTMENTS WITHIN THE TRANSFORMATION COMMUNITY.  THE  CREDIT  SHALL  BE
 EQUAL  TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX
 PURPOSES OF THE QUALIFIED INVESTMENT. PROVIDED, HOWEVER, IF  THE  QUALI
 FIED INVESTMENT IS MADE WITH RESPECT TO THE REDEVELOPMENT OF THE CORREC
 TIONAL  FACILITY  OR  SECURE  FACILITY, THE CREDIT SHALL BE EQUAL TO TEN
 
       S. 2811--B                         141
 PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME  TAX  PURPOSES  OF
 THE QUALIFIED INVESTMENT.
 A  QUALIFIED  BUSINESS ENTITY MAY CLAIM BOTH THE COMMUNITY TRANSFORMA
 TION INVESTMENT TAX CREDIT COMPONENT AND THE INVESTMENT TAX  CREDIT  SET
 FORTH  IN  SUBDIVISION TWELVE OF SECTION TWO HUNDRED TEN, SUBSECTION (A)
 OF SECTION SIX HUNDRED  SIX,  OR  SUBSECTION  (I)  OF  SECTION  FOURTEEN
 HUNDRED  FIFTY-SIX  OF THIS CHAPTER FOR THE SAME PROPERTY IN ANY TAXABLE
 YEAR. EXPENSES INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION  ARE
 NOT ELIGIBLE TO BE INCLUDED IN THE CALCULATION OF THE CREDIT.
 (F)  COMMUNITY  TRANSFORMATION  REAL  PROPERTY TAX CREDIT. A QUALIFIED
 BUSINESS ENTITY SHALL BE ELIGIBLE TO CLAIM A CREDIT FOR A PERIOD OF FIVE
 YEARS. THE CREDIT SHALL BE EQUAL TO FIFTY PERCENT OF THE  ELIGIBLE  REAL
 PROPERTY TAXES ON THE REAL PROPERTY LOCATED IN THE TRANSFORMATION COMMU
 NITY  THAT  WERE  ASSESSED  AND  PAID. IN THE REMAINING YEARS THE CREDIT
 SHALL BE COMPUTED ACCORDING TO THE FOLLOWING SCHEDULE: YEAR  TWO:  FORTY
 PERCENT  OF ELIGIBLE REAL PROPERTY TAXES ON THE REAL PROPERTY LOCATED IN
 THE TRANSFORMATION COMMUNITY THAT WERE ASSESSED AND  PAID;  YEAR  THREE:

 THIRTY  PERCENT  OF  ELIGIBLE  REAL  PROPERTY TAXES ON THE REAL PROPERTY
 LOCATED IN THE TRANSFORMATION COMMUNITY THAT  WERE  ASSESSED  AND  PAID;
 YEAR  FOUR: TWENTY PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON REAL PROP
 ERTY LOCATED IN THE TRANSFORMATION  COMMUNITY  THAT  WERE  ASSESSED  AND
 PAID;  AND YEAR FIVE: TEN PERCENT OF ELIGIBLE REAL PROPERTY TAXES ON THE
 REAL PROPERTY LOCATED IN THE TRANSFORMATION COMMUNITY THAT WERE ASSESSED
 AND PAID. PROVIDED, HOWEVER,  IF  THE  REAL  PROPERTY  CONSISTS  OF  THE
 CORRECTIONAL  FACILITY OR THE SECURE FACILITY, THE CREDIT SHALL BE EQUAL
 TO ONE HUNDRED PERCENT OF THE ELIGIBLE REAL PROPERTY TAXES ON  THE  REAL
 PROPERTY  THAT WERE ASSESSED AND PAID. IN THE REMAINING YEARS THE CREDIT
 SHALL BE COMPUTED ACCORDING TO THE FOLLOWING SCHEDULE: YEAR TWO:  EIGHTY
 PERCENT  OF  ELIGIBLE REAL PROPERTY TAXES ON THE REAL PROPERTY THAT WERE
 ASSESSED AND PAID; YEAR THREE: SIXTY PERCENT OF ELIGIBLE  REAL  PROPERTY
 TAXES ON THE REAL PROPERTY THAT WERE ASSESSED AND PAID; YEAR FOUR: FORTY
 PERCENT  OF  ELIGIBLE  REAL  PROPERTY  TAXES  ON REAL PROPERTY THAT WERE
 ASSESSED AND PAID; AND YEAR FIVE: TWENTY PERCENT OF ELIGIBLE REAL  PROP
 ERTY  TAXES ON THE REAL PROPERTY LOCATED IN THE TRANSFORMATION COMMUNITY
 THAT WERE ASSESSED AND PAID.
 FOR PURPOSES OF THIS CREDIT, THE TERM  "ELIGIBLE  REAL  PROPERTY  TAXES"
 SHALL  HAVE THE SAME MEANING AS IN SUBDIVISION (E) OF SECTION FIFTEEN OF
 THIS CHAPTER, PROVIDED THAT SUCH SUBDIVISION SHALL  BE  READ  AS  IF  IT
 SPECIFICALLY REFERENCED THE COMMUNITY TRANSFORMATION PROGRAM AND PARTIC
 IPANTS IN THAT PROGRAM.
 (G)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:

 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43.
 (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
 (3) ARTICLE 32: SECTION 1456: SUBSECTION (X).
 (4) ARTICLE 33: SECTION 1511: SUBDIVISION (AA).
 

S 2.

Section 210 of the tax law is amended by adding a new subdivision
 43 to read as follows:

 43. COMMUNITY TRANSFORMATION PROGRAM CREDIT.  (A) ALLOWANCE OF CREDIT.
 A TAXPAYER WILL BE ALLOWED A CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  THIRTY-FIVE  OF  THIS  CHAPTER, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
 SUBDIVISION  ONE  OF  THIS  SECTION.  HOWEVER,  IF  THE AMOUNT OF CREDIT
 
       S. 2811--B                         142
 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
 SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
 YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
 IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
 THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
 SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
 INTEREST WILL BE PAID THEREON.
 

S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
 follows:

 (XXXII) COMMUNITY TRANSFORMATION     AMOUNT OF CREDIT UNDER
 PROGRAM CREDIT UNDER SUBSECTION      SUBDIVISION FORTY-THREE
 (SS)                                 OF SECTION TWO HUNDRED TEN
 OR UNDER SUBSECTION (X)
 OF SECTION FOURTEEN HUNDRED
 FIFTY-SIX
 

S 4.

Section 606 of the tax law is amended by adding a new  subsection
 (ss) to read as follows:

 (SS)  COMMUNITY  TRANSFORMATION PROGRAM CREDIT. (1) A TAXPAYER WILL BE
 ALLOWED A CREDIT, TO THE EXTENT ALLOWED UNDER SECTION THIRTY-ONE OF THIS
 CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
 PAID THEREON.
 

S  5.  Subdivision  (a)  of section 1119 of the tax law, as amended by
 chapter 686 of the laws of 1986, and as further amended by section 15 of
 part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:

 (a)  Subject  to the conditions and limitations provided for herein, a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a) of section eleven hundred five or section eleven hundred ten (1)  on
 the  sale or use of tangible personal property if the purchaser or user,
 in the performance of  a  contract,  later  incorporates  that  tangible
 personal  property into real property located outside this state, (2) on
 the sale or use of tangible personal property purchased in bulk, or  any
 portion  thereof,  which is stored and not used by the purchaser or user
 within this state if that property is  subsequently  reshipped  by  such
 purchaser  or  user  to  a point outside this state for use outside this
 state, (3) on the sale to or use by a  contractor  or  subcontractor  of
 tangible personal property if that property is used by him solely in the
 performance  of  a  pre-existing  lump  sum  or  unit price construction
 contract, (4) on the sale or use within this state of tangible  personal
 property,  not purchased for resale, if the use of such property in this
 state is restricted to fabricating such property (including  incorporat
 ing  it  into  or  assembling it with other tangible personal property),
 processing, printing or imprinting such property and  such  property  is
 then  shipped  to a point outside this state for use outside this state,
 (5) on the sale to or use by a veterinarian of drugs or medicine if such
 drugs or medicine are used by such veterinarian in  rendering  services,
 which  are  exempt pursuant to subdivision (f) of section eleven hundred
 fifteen of this chapter, to livestock or poultry used in the  production
 for  sale  of  tangible personal property by farming or if such drugs or
 medicine are sold to a person qualifying for the exemption provided  for
 
       S. 2811--B                         143
 in paragraph (6) of subdivision (a) of section eleven hundred fifteen of
 this  chapter  for use by such person on such livestock or poultry, [or]
 (6) on the sale of tangible  personal  property  purchased  for  use  in
 constructing,  expanding or rehabilitating industrial or commercial real
 property (other than property used or to be used exclusively by  one  or
 more registered vendors primarily engaged in the retail sale of tangible
 personal  property)  located  in  an  area  designated as an empire zone
 pursuant to article eighteen-B of the general municipal law, but only to
 the extent that such property becomes an integral component part of  the
 real  property,  OR  (7)  ON  THE  SALE  OF  TANGIBLE  PERSONAL PROPERTY
 PURCHASED FOR USE IN CONSTRUCTING, EXPANDING  OR  REHABILITATING  INDUS
 TRIAL  OR  COMMERCIAL  REAL  PROPERTY (OTHER THAN PROPERTY USED OR TO BE
 USED EXCLUSIVELY BY ONE OR MORE REGISTERED VENDORS PRIMARILY ENGAGED  IN
 THE RETAIL SALE OF TANGIBLE PERSONAL PROPERTY) LOCATED IN AN AREA DESIG
 NATED  AS  TRANSFORMATION  COMMUNITY  PURSUANT TO SECTION THIRTY-FIVE OF
 THIS CHAPTER, BUT ONLY TO THE EXTENT THAT SUCH PROPERTY BECOMES AN INTE
 GRAL COMPONENT PART OF THE REAL PROPERTY.   (For the purpose  of  clause
 (3)  of  the preceding sentence, the term "pre-existing lump sum or unit
 price construction contract" shall mean a contract for the  construction
 of  improvements  to real property under which the amount payable to the
 contractor or  subcontractor  is  fixed  without  regard  to  the  costs
 incurred  by him in the performance thereof, and which (i) was irrevoca
 bly entered into prior to the date of the enactment of this  article  or
 the  enactment  of  a  law increasing the rate of tax imposed under this
 article, or (ii) resulted from the acceptance by a  governmental  agency
 of  a  bid accompanied by a bond or other performance guaranty which was
 irrevocably submitted prior to such date.) Where the tax on the sale  or
 use  of  such tangible personal property has been paid to the vendor, to
 qualify for such refund or credit, such tangible personal property  must
 be  incorporated  into  real  property  as required in clause (1) above,
 reshipped as required in clause (2) above, used in the manner  described
 in  clauses  (3),  (4),  (5) [and], (6) AND (7) above within three years
 after the date such tax was payable to the tax commission by the  vendor
 pursuant  to  section  eleven hundred thirty-seven. Where the tax on the
 sale or use of such tangible personal property was paid by the applicant
 for the credit or refund directly to the tax commission, to qualify  for
 such  refund or credit, such tangible personal property must be incorpo
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4), (5) [and], (6) AND (7) above within three years after the date
 such tax was payable to the tax commission by such applicant pursuant to
 this article. An application for a refund or  credit  pursuant  to  this
 section  must  be filed with such commission within the time provided by
 subdivision (a) of section eleven hundred thirty-nine. Such  application
 shall  be  in  such  form  as the tax commission may prescribe. Where an
 application for credit has been filed,  the  applicant  may  immediately
 take  such  credit  on  the return which is due coincident with or imme
 diately subsequent to the time that he files his application for credit.
 However, the taking of the credit on the return shall be  deemed  to  be
 part  of  the  application  for  credit  and  shall  be  subject  to the
 provisions in respect to  applications  for  credit  in  section  eleven
 hundred thirty-nine as provided in subdivision (e) of such section. With
 respect  to  a sale or use described in clause (3) above where a pre-ex
 isting lump sum or unit  price  construction  contract  was  irrevocably
 entered  into  prior to the date of the enactment of this article or the
 bid accompanied by the performance guaranty was irrevocably submitted to
 
       S. 2811--B                         144
 the governmental agency prior to such date, the purchaser or user  shall
 be entitled to a refund or credit only of the amount by which the tax on
 such  sale  or use imposed under this article plus any tax imposed under
 the  authority  of  article  twenty-nine  exceeds the amount computed by
 applying against such sale or use the local rate  of  tax,  if  any,  in
 effect  at  the  time  such  contract  was  entered into or such bid was
 submitted.
 In the case of the enactment of a  law  increasing  the  rate  of  tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author
 ity  of  article  twenty-nine  exceeds  the  amount computed by applying
 against such sale or use the state and local rates of tax in  effect  at
 the time such contract was entered into or such bid was submitted.
 

S  6. Paragraphs 1 and 2 of subdivision (d) of section 1119 of the tax
 law, as added by section 31 of part S-1 of chapter 57  of  the  laws  of
 2009, are amended to read as follows:

 (1)  Subject  to  the  conditions and limitations provided for in this
 section, a refund or credit will be allowed for  taxes  imposed  on  the
 retail  sale  of tangible personal property described in subdivision (a)
 of section eleven hundred five of this article, and  on  every  sale  of
 services  described  in  subdivisions  (b)  and (c) of such section, and
 consideration given or contracted to be given for, or for  the  use  of,
 such  tangible  personal  property  or  services,  where  such  tangible
 personal property or services are sold to a qualified empire zone enter
 prise OR QUALIFIED BUSINESS ENTITY, AS  DEFINED  IN  PARAGRAPH  FOUR  OF
 SUBDIVISION  (A)  OF  SECTION THIRTY-FIVE OF THIS CHAPTER, provided that
 (A) such tangible personal property or tangible personal  property  upon
 which  such  a  service has been performed or such service (other than a
 service described in subdivision (b) of section eleven hundred  five  of
 this article) is directly and predominantly, or such a service described
 in clause (A) or (D) of paragraph one of such subdivision (b) of section
 eleven hundred five of this article is directly and exclusively, used or
 consumed  by such enterprise OR BUSINESS ENTITY in an area designated as
 an empire zone pursuant to article eighteen-B of the  general  municipal
 law  with respect to which such enterprise is certified pursuant to such
 article eighteen-B OR IN A TRANSFORMATION COMMUNITY AS DEFINED IN  PARA
 GRAPH  ONE OF SUBDIVISION (A) OF SECTION THIRTY-FIVE OF THIS CHAPTER, or
 (B) such a service described in clause (B) or (C) of  paragraph  one  of
 subdivision (b) of section eleven hundred five of this article is deliv
 ered  and  billed to such enterprise OR BUSINESS ENTITY at an address in
 such empire zone OR TRANSFORMATION COMMUNITY, or (C) the enterprise's OR
 ENTITY'S place of primary use of the service described in paragraph  two
 of  such subdivision (b) of section eleven hundred five is at an address
 in such empire zone  OR  TRANSFORMATION  COMMUNITY;  provided,  further,
 that,  in  order  for  a motor vehicle, as defined in subdivision (c) of
 section eleven hundred seventeen of this article, or  tangible  personal
 property related to such a motor vehicle to be found to be used predomi
 nantly in such a zone OR COMMUNITY, at least fifty percent of such motor
 vehicle's  use  shall be exclusively within such zone OR COMMUNITY or at
 least fifty percent of such motor vehicle's use shall be  in  activities
 originating  or  terminating  in  such  zone  OR COMMUNITY, or both; and
 either or both such usages shall be computed  either  on  the  basis  of
 mileage or hours of use, at the discretion of such enterprise OR ENTITY.
 For  purposes of this subdivision, tangible personal property related to
 such a motor vehicle shall include a  battery,  diesel  motor  fuel,  an
 
       S. 2811--B                         145
 engine,  engine  components,  motor  fuel,  a muffler, tires and similar
 tangible personal property used in or on such a motor vehicle.
 (2)  Subject  to  the  conditions and limitations provided for in this
 section, a refund or credit will be allowed for  taxes  imposed  on  the
 retail  sale  of, and consideration given or contracted to be given for,
 or for the use of, tangible personal  property  sold  to  a  contractor,
 subcontractor or repairman for use in (A) erecting a structure or build
 ing  of a qualified empire zone enterprise OR QUALIFIED BUSINESS ENTITY,
 (B) adding to, altering or improving real property, property or land  of
 such  an enterprise OR ENTITY or (C) maintaining, servicing or repairing
 real property, property or land of such an enterprise OR ENTITY, as  the
 terms  real  property, property or land are defined in the real property
 tax law; provided, however, no credit or refund will  be  allowed  under
 this  paragraph  unless  such tangible personal property is to become an
 integral component part of  such  structure,  building,  real  property,
 property  or land located in an area designated as an empire zone pursu
 ant to article eighteen-B of the general  municipal  law  in,  and  with
 respect  to  which such enterprise is certified pursuant to such article
 eighteen-B OR IN A TRANSFORMATION COMMUNITY AS DEFINED IN PARAGRAPH  ONE
 OF SUBDIVISION (A) OF SECTION THIRTY-FIVE OF THIS CHAPTER.
 

S 7.

Section 1456 of the tax law is amended by adding a new subsection
 (x) to read as follows:

 (X)  COMMUNITY TRANSFORMATION PROGRAM CREDIT. (1) ALLOWANCE OF CREDIT.
 A TAXPAYER WILL BE ALLOWED A CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  THIRTY-FIVE  OF  THIS  CHAPTER, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
 (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
 NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX  FIXED
 BY  PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY
 FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
 AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT
 ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
 PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU
 SAND  EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE
 PAID THEREON.
 

S 8.

Section 1511 of the tax law is amended by adding a  new  subdivi
 sion (aa) to read as follows:

 (AA) COMMUNITY TRANSFORMATION PROGRAM CREDIT. (1) ALLOWANCE OF CREDIT.
 A  TAXPAYER  WILL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN
 SECTION THIRTY-FIVE OF THIS CHAPTER, AGAINST THE TAXES IMPOSED  BY  THIS
 ARTICLE.
 (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
 THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
 

S 9. This act shall take effect immediately.
 PART GG
 
       S. 2811--B                         146
 

Section 1. Subdivision 9 of section 602  of  the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
 2008, is amended and a new subdivision 15 is added to read as follows:

 9.  "Cost of corporation's functions." All costs and expenses incurred
 by the corporation in connection with the performance of  the  functions
 of the corporation, including, but not limited to, operating expenses of
 the corporation, the cost of acquiring, constructing or equipping branch
 offices  and  other  facilities  and  premises  of the corporation, [and
 interest and principal on bonds,] notes  or  other  obligations  of  the
 corporation issued to finance the acquisition, construction or equipment
 of such offices, facilities or premises.
 15.  "VENDOR OPERATOR." THE VENDOR OPERATOR SHALL BE SELECTED PURSUANT
 TO THE PROVISIONS SET FORTH IN SECTION SIX HUNDRED TWENTY-FIVE  OF  THIS
 ARTICLE AND SHALL BE RESPONSIBLE FOR THE ADMINISTRATION AND OPERATION OF
 THE CORPORATION.
 

S 2.

Section 603 of the racing, pari-mutuel wagering and breeding law,
 as  amended  by  chapter  115 of the laws of 2008, is amended to read as
 follows:

 

S 603. New York city off-track betting corporation. 1.  A  corporation
 to  be  known  as  the  "New York city off-track betting corporation" is
 hereby created. Such corporation shall be a body corporate  and  politic
 constituting  a  public  benefit corporation. It shall be [administered]
 OVERSEEN by a board of directors consisting of five members, who may  be
 public officers, appointed by the governor for fixed terms as hereinaft
 er provided, one of whom shall be appointed on the recommendation of the
 temporary president of the senate, and one of whom shall be appointed on
 the recommendation of the speaker of the assembly.
 2.  THE TERMS OF ALL DIRECTORS SERVING A TERM THAT ENCOMPASSED JANUARY
 TWENTY-FIFTH, TWO THOUSAND ELEVEN, SHALL BE DEEMED TO HAVE  EXPIRED  AND
 NEW  DIRECTORS  SHALL  BE  APPOINTED.  Of  the  directors,  one shall be
 appointed for a term  ending  on  December  thirty-first,  two  thousand
 [nine] ELEVEN, one for a term ending on December thirty-first, two thou
 sand  [ten]  TWELVE, one for a term ending on December thirty-first, two
 thousand [twelve] THIRTEEN, and  the  two  directors  appointed  on  the
 recommendation  of the temporary president of the senate and the speaker
 of the assembly, for a term ending December thirty-first,  two  thousand
 fourteen.  Upon  the  expiration  of  such terms, the terms of office of
 their successors shall be six years. Vacancies occurring otherwise  than
 by expiration of term shall be filled for the unexpired term.
 3. The governor shall designate one of the directors to be chairman of
 the  board  of directors and may at his pleasure, change his designation
 of any such director to be chairman.
 4. Each director shall continue to serve  until  the  appointment  and
 qualification of his successor.
 5.  The  directors  shall be removable for cause by the governor, upon
 charges and after a hearing.
 6. The [powers] OVERSIGHT of the corporation shall be  vested  in  and
 exercised  by  the  board  at a meeting duly held at a time fixed by any
 by-law adopted by the board, or at any duly adjourned  meeting  of  such
 meeting  or  at  any  meeting  held upon reasonable notice to all of the
 directors, or upon written waiver thereof, and a majority of  the  whole
 number  of  directors  shall constitute a quorum[; provided that neither
 the business nor the powers of the corporation shall  be  transacted  or
 exercised  except  pursuant to the favorable vote of at least a majority
 of the directors present at a meeting at which a quorum  is  in  attend-
 ance].
 
       S. 2811--B                         147
 7.  The  board may delegate to one or more of the directors, officers,
 agents or employees of the corporation such powers and duties as it  may
 deem proper.
 8.  The  directors  shall be reimbursed for their actual and necessary
 expenses incurred in the performance of their official duties.
 9. The directors may engage in outside employment or in  a  profession
 or  business  EXCEPT  AS  AN EXECUTIVE OR LEGISLATIVE EMPLOYEE OR unless
 otherwise prohibited from doing so by virtue of holding  another  public
 office  subject to the provisions of section seventy-three of the public
 officers law.
 10. The board shall hold an annual meeting.
 11. The fiscal year of the corporation shall be the same as  [that  of
 the  city,  provided,  however,  that  the corporation shall have a nine
 month fiscal year from July first,  two  thousand  eight  through  March
 thirty-first,  two thousand nine, and then the fiscal year of the corpo-
 ration shall be the same as] the state.
 12. THE CORPORATION WILL BE ADMINISTERED BY THE  VENDOR  OPERATOR  AND
 THE POWERS OF THE CORPORATION SHALL BE VESTED IN THE VENDOR OPERATOR.
 

S  3.

Section 617 of the racing, pari-mutuel wagering and breeding law
 is amended to read as follows:

 

S 617. Exemption from taxation. [1.] The moneys and  property  of  the
 corporation  and  any property under its jurisdiction, control or super
 vision, and all of its activities and operations shall  be  exempt  from
 taxation.
 [2. The state covenants with the purchasers of and with all subsequent
 holders  and  transferees  of  bonds and notes issued by the corporation
 pursuant to this article, in consideration  of  the  acceptance  of  and
 payment  for the said bonds and notes, that the said bonds and notes and
 the income therefrom, and all moneys, funds and revenue pledged  to  pay
 or  secure the payment of such bonds and notes shall at all time be free
 from taxation, except for estate and gift taxes and taxes on transfers.]
 

S 4. The opening paragraph of section 621 of the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 115 of the laws of
 2008, is amended to read as follows:

 Within one hundred twenty days after the end of the fiscal year of the
 corporation, the [directors thereof] VENDOR OPERATOR shall submit to the
 governor, the legislature, the racing and wagering board and  the  state
 comptroller a complete and detailed report setting forth:

 

S  5.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new section 625 to read as follows:

 

S 625. SELECTION OF VENDOR OPERATOR. 1. THE NEW YORK STATE RACING  AND
 WAGERING  BOARD  SHALL SUBMIT, WITHIN THIRTY DAYS AFTER THESE PROVISIONS
 BECOME  LAW,  A  REQUEST  FOR  PROPOSALS  FROM  QUALIFYING  ENTITIES  AS
 DESCRIBED  HEREIN  FOR  THE  PURPOSE OF THE ADMINISTRATING OF THE CORPO
 RATION. THE ENTITY CHOSEN TO ADMINISTER THE CORPORATION SHALL ENTER INTO
 A CONTRACT WITH THE STATE FOR A TERM OF TEN YEARS, WHICH MAY BE  RENEWED
 SUBJECT  TO  THE APPROVAL OF THE STATE RACING AND WAGERING BOARD AND THE
 APPROVAL OF THE NEW YORK CITY OFF-TRACK BETTING BOARD OF DIRECTORS.
 2. ELIGIBLE ENTITIES SHALL CONSIST  OF  INDIVIDUALS,  PARTNERSHIPS  OR
 CORPORATIONS,  PUBLIC  OR  PRIVATE,  WHICH ARE REQUIRED AS PART OF THEIR
 PROPOSAL TO SUBMIT AT LEAST ONE BUSINESS PLAN FOR  THE  RE-ESTABLISHMENT
 AND  CONTINUATION OF A PROFITABLE CORPORATION. IN AWARDING THE CONTRACT,
 THE STATE RACING AND WAGERING BOARD MUST CONSIDER THE FOLLOWING CRITERIA
 WITH RESPECT TO EACH APPLICANT: ITS EXPERIENCE  IN  MANAGING  SUCCESSFUL
 BUSINESS ENTERPRISES, ITS EXPERIENCE IN THE RACING INDUSTRY, ITS EXPERI
 ENCE IN THE PARI-MUTUEL AND/OR OFF-TRACK BETTING INDUSTRIES, ITS EXPERI
 
       S. 2811--B                         148
 ENCE  IN  THE  ENTERTAINMENT  INDUSTRY,  THE FEASIBILITY OF ITS PROPOSED
 BUSINESS PLAN OR PLANS, AND ITS COMMITMENT TO USE ITS  BEST  EFFORTS  TO
 SUPPORT  THE  VIABILITY  OF OFF-TRACK BETTING IN THE CITY OF NEW YORK AS
 WELL AS THE RACING INDUSTRY THROUGHOUT THE STATE.
 3.  ALL  BUSINESS PLANS SUBMITTED BY AN ENTITY MUST INCLUDE PROVISIONS
 FOR PRIORITY FOR CONSIDERATION FOR EMPLOYMENT BY ANY FORMER EMPLOYEE  OF
 THE  CORPORATION  WHOSE  EMPLOYMENT  TERMINATED OTHER THAN FOR CAUSE, BY
 RETIREMENT, OR WITH A SEVERANCE AWARD. SUCH PLANS MUST ALSO PROVIDE  FOR
 REPRESENTATION OF OFF-TRACK BETTING BRANCH OFFICES, OR AN EQUIVALENT, IN
 ALL  OF  THE BOROUGHS OF THE CITY OF NEW YORK, WITH PREFERENCE GIVEN FOR
 BUSINESS PLANS THAT HAVE AT LEAST THREE FACILITIES IN EACH  BOROUGH  AND
 THAT  MAINTAIN  THE SAME RATIO OF ACCESS TO OFF-TRACK BETTING FACILITIES
 AS WAS PREVIOUSLY PROVIDED BY THE CORPORATION PRIOR TO  DECEMBER  FIRST,
 TWO THOUSAND TEN.
 4.  THE STATE RACING AND WAGERING BOARD SHALL MAKE PUBLIC ITS PRELIMI
 NARY SELECTION OF THE VENDOR OPERATOR NO LATER THAN THREE  MONTHS  AFTER
 THE SUBMISSION OF THE REQUEST FOR PROPOSALS, AND ALLOW FOR TWO WEEKS FOR
 PUBLIC  COMMENT. THE FINAL SELECTION AND THE CONTRACT BETWEEN THE VENDOR
 AND THE STATE MUST BE FINALIZED WITHIN THIRTY DAYS  OF  THE  PRELIMINARY
 SELECTION,  BUT  NO  SOONER  THAN THE END OF THE TWO WEEK PUBLIC COMMENT
 PERIOD.
 5. THE SELECTION OF VENDOR MAY BE REVOKED AND CANCELLED BY  THE  STATE
 RACING  AND  WAGERING  BOARD  FOR A MATERIAL BREACH OF CONTRACT OR FOR A
 VIOLATION OF THE RULES OF THE STATE RACING AND WAGERING BOARD OR IF SUCH
 VENDOR  OR  ITS  OFFICERS  OR  DIRECTORS  SHALL  KNOWINGLY  VIOLATE  THE
 PROVISIONS  OF THIS CHAPTER OR OF THE PENAL LAW. THE ACTION OF THE STATE
 RACING AND WAGERING BOARD IN REVOKING THE SELECTION SHALL BE  REVIEWABLE
 IN  THE  SUPREME  COURT  IN  THE  MANNER  PROVIDED BY AND SUBJECT TO THE
 PROVISIONS OF ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
 6. FOR CONTRACTS IN EXCESS OF ONE HUNDRED  THOUSAND  DOLLARS,  ENTERED
 INTO  BY  THE VENDOR FOR THE PROCUREMENT OF GOODS OR SERVICES, THE BOARD
 MAY REVIEW THE CHARACTER AND FITNESS OF THE  ENTITY  OR  ITS  PRINCIPALS
 ENTERING INTO CONTRACTS WITH THE VENDOR.
 

S  6. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6 of
 paragraph b of subdivision 1 of section 1016 of the racing,  pari-mutuel
 wagering and breeding law, as amended by chapter 18 of the laws of 2008,
 are amended to read as follows:

 (E)  On  days  when  a franchised corporation is not conducting a race
 meeting and when a licensed harness track is  neither  accepting  wagers
 nor  displaying  the signal from an in-state thoroughbred corporation or
 association or an out-of-state thoroughbred track:

 (i) Such licensed regional harness track shall receive in lieu of  any
 other  payments on wagers placed at off-track betting facilities outside
 the special betting district on races conducted by an in-state thorough
 bred racing corporation, [two  and  eight-tenths]  ONE  AND  FOUR-TENTHS
 percent  on regular and multiple bets during a regional meeting and [one
 and nine-tenths] NINETY-FIVE HUNDREDTHS percent of such bets if there is
 no regional meeting and [four  and  eight-tenths]  TWO  AND  FOUR-TENTHS
 percent  on exotic bets on days on which there is a regional meeting and
 [three and four-tenths] ONE AND SEVEN-TENTHS percent  of  such  bets  if
 there is no regional meeting.
 (ii)  Such licensed regional harness track shall receive [one and one-
 half] SEVENTY-FIVE HUNDREDTHS per centum on  total  regional  handle  on
 races conducted at out-of-state or out-of-country thoroughbred tracks.
 (iii)  In  those  regions  in  which  there  is more than one licensed
 regional harness track, if no track is accepting  wagers  or  displaying
 
       S. 2811--B                         149
 the  live  simulcast  signal  from the out-of-state track, the total sum
 shall be divided among the tracks in proportion to the ratio the  wagers
 placed on races conducted by each track bears to the corporation's total
 in-region  harness handle. If one or more tracks are accepting wagers or
 displaying the live simulcast signal, the total amount shall be  divided
 among  those  tracks  not  accepting  wagers or displaying the simulcast
 signal for an out-of-state track or in-state thoroughbred corporation or
 association.
 (F) Of the sums retained by a licensed harness facility,  [fifty]  ONE
 HUNDRED  percent  shall  be used exclusively for purses awarded in races
 conducted by such licensed facility [and  the  remaining  fifty  percent
 shall  be  retained  by such licensed facility for its general purposes,
 provided, however, that  in  a  harness  special  betting  district  the
 portion  of  the sums retained by a licensed harness facility to be used
 for purses or the methodology for calculating the amount to be used  for
 purses  may  be specified in a written contract between a harness racing
 association or corporation and  its  representative  horsemen's  associ-
 ation].
 

S  7. 

Section  1017  of the racing, pari-mutuel wagering and breeding
 law, as amended by chapter 18 of the laws of 2008, is amended to read as
 follows:

 

S 1017. Out-of-state or out-of-country races.  1.  Licensed  simulcast
 facilities  may  accept wagers and display the signal of out-of-state or
 out-of-country thoroughbred tracks after 7Labor P.M. in accordance  with
 the  provisions  of  this  section.  Such simulcasting may include mixed
 meetings if such meetings are integral to such racing programs  and  all
 such wagering on such races shall be construed to be thoroughbred races.
 For  facilities  located  within  the  special  betting  district,  such
 approval shall also be required from a thoroughbred  racing  corporation
 during  the  period  a  racing program is being conducted at such track.
 Such approval shall not be required on any day such thoroughbred  racing
 corporation  is  also accepting an out-of-state or out-of-country signal
 and wager, as authorized by this section. The provisions of section  one
 thousand  sixteen  of this article shall be applicable to the conduct of
 such simulcasting and the provisions of clauses (A) and (B) of  subpara
 graph  four  of  paragraph  b of subdivision one of section one thousand
 sixteen of this article shall apply  to  those  facilities  licensed  in
 accordance  with  sections  one  thousand eight and one thousand nine of
 this article and the provisions of clauses (A) and (B)  of  subparagraph
 six of paragraph b of subdivision one of section one thousand sixteen of
 this article shall apply to those facilities licensed in accordance with
 section  one thousand seven of this article, when such provisions are in
 full force and effect pursuant to such section. Provided,  however,  the
 provisions  of  section  one  thousand fourteen of this article shall be
 applicable to the conduct of such simulcasting, when such provisions are
 in full force and effect pursuant to such section.
 2. a. Maintenance of effort. Any off-track betting  corporation  which
 engages in accepting wagers on the simulcasts of thoroughbred races from
 out-of-state  or  out-of-country  as  permitted under subdivision one of
 this section shall submit to the board, for its approval, a schedule  of
 payments  to be made in any year or portion thereof, that such off-track
 corporation engages in nighttime thoroughbred simulcasting. In order  to
 be approved by the board, the payment schedule shall be identical to the
 actual payments and distributions of such payments to [tracks and] purs
 es  made  by  such  off-track  corporation pursuant to the provisions of
 section one thousand fifteen of this article during the year  two  thou
 
       S. 2811--B                         150
 sand  two,  as  derived  from out-of-state harness races displayed after
 6:00 P.M. If approved by the board, such  scheduled  payments  shall  be
 made  from  revenues derived from any simulcasting conducted pursuant to
 this section and section one thousand fifteen of this article.
 b.  Additional payments. During each calendar year, to the extent, and
 at such time in the event,  that  aggregate  statewide  wagering  handle
 after  7Labor P.M. on out-of-state and out-of-country thoroughbred races
 exceeds one hundred million dollars, each off-track betting  corporation
 conducting  such simulcasting shall pay to its regional harness track or
 tracks, an amount equal to [two] ONE percent of its proportionate  share
 of  such  excess  handle.  In  any  region  where  there are two or more
 regional harness tracks, such two percent shall be  divided  between  or
 among  the  tracks  in a proportion equal to the proportion of handle on
 live harness races conducted at such tracks during the preceding  calen
 dar year. [Fifty percent of the] THE sum received by each track pursuant
 to  this  paragraph  shall  be  used  exclusively for increasing purses,
 stakes and prizes at that regional harness track.
 

S 8. Subdivision 2 of section 529 of the racing, pari-mutuel  wagering
 and breeding law is amended to read as follows:

 2.  [Ninety-five  percent  of  the  balance  of such account remaining
 unclaimed as of the last day of February of such year shall be  paid  to
 the state tax commission by March fifteenth. On or before April tenth of
 each  year  the  balance of such account and any other unclaimed amounts
 received in the course of conducting off-track betting shall be paid  by
 such  corporation to the state tax commission. A penalty of five percent
 and interest at the rate of one percent per month from the due  date  to
 the  date  of  payment  of  the unclaimed balance due March fifteenth or
 April tenth, as the case may be, shall be payable in case  such  balance
 is  not  paid  when  due.  Such  amounts,  interest  and  penalties when
 collected by the state tax commission shall be deposited into the gener-
 al fund of the state treasury] ON APRIL FIRST OF EACH YEAR,  THE  AMOUNT
 OF  TICKETS  REMAINING  UNCLAIMED  FROM  THE  PRIOR YEAR MAY BE USED FOR
 CORPORATE PURPOSES.
 

S 9.

Section 509-a of the racing, pari-mutuel  wagering  and  breeding
 law,  as  added by chapter 681 of the laws of 1989 and the opening para
 graph as amended by chapter 346 of the laws of 1990, is amended to  read
 as follows
 

S  509-a.  Capital  acquisition  fund.  The corporation may create and
 establish a capital acquisition fund for the purpose  of  financing  the
 acquisition,  construction  or equipping of offices, facilities or prem
 ises of the corporation.  SUCH FUNDS MAY ALSO BE EXPENDED FOR THE  RENO
 VATION  OF  ANY  PROPERTIES, OR COSTS ASSOCIATED WITH THE CLOSURE OF ANY
 FACILITIES, AND ANY INVESTMENT OR  FUNDING  NECESSARY  TO  EFFECTUATE  A
 SHARED  SERVICES  OR JOINT VENTURE PLAN WITH ANY OTHER PRIVATE OR PUBLIC
 CORPORATION. Such capital acquisition fund  shall  consist  of  (i)  the
 amounts  specified  pursuant  to  subdivision  three-a  of  section five
 hundred thirty-two of this chapter;  and  (ii)  contributions  from  the
 corporation's pari-mutuel wagering pools, subject to the following limi
 tations:

 (1)  no  contribution  shall  exceed  the amount of one percent of the
 total pari-mutuel wagering pools for the quarter in which  the  contrib
 ution is made;
 (2) no contribution shall reduce the amount of quarterly net revenues,
 exclusive of surcharge revenues, to an amount less than fifty percent of
 such net revenues; and
 
       S. 2811--B                         151
 (3) the balance of the fund shall not exceed the lesser of one percent
 of  total  pari-mutuel  wagering pools for the previous twelve months or
 the undepreciated value of the  corporation's  offices,  facilities  and
 premises.
 

S  10.  Notwithstanding  the  foregoing,  all funds accumulated in the
 Suffolk regional off-track betting corporation capital acquisition fund,
 established pursuant to section 509-a of the racing, pari-mutuel  wager
 ing  and  breeding  law, prior to January 1, 2011 or deposited into such
 fund thereafter shall be made available to  the  Suffolk  regional  off
 track betting corporation for any corporate purpose under this act.
 

S 11. Subdivision 7 of section 532 of the racing, pari-mutuel wagering
 and  breeding  law,  as  added  by  chapter  115 of the laws of 2008, is
 amended to read as follows:

 7. Notwithstanding any other provision of this section,  any  payments
 otherwise  payable  to  a city with a population of one million or more,
 pursuant to this section, [other than payments pursuant to subparagraphs
 (i) and (iii) of paragraph b of subdivision three of this section, shall
 be payable to the corporation and shall be available for  its  corporate
 purposes] SHALL PAY REMAINING AMOUNTS TO THE COMPTROLLER OF THE STATE OF
 NEW  YORK FOR DEPOSIT IN THE NEW YORK CITY OFF-TRACK BETTING CORPORATION
 FUND.
 

S 12. Subdivision 2 of section 610 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 115 of  the  laws  of  2008,  is
 amended to read as follows:

 2.  All moneys due the city pursuant to article five-A of this chapter
 shall be paid to the  New  York  city  [comptroller]  OFF-TRACK  BETTING
 CORPORATION FUND.
 

S 13. Subdivision 6 of section 527 of the racing, pari-mutuel wagering
 and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
 amended to read as follows:

 6. The net amount remaining to each regional corporation after payment
 of taxes and distributions pursuant to this section and after payment of
 operating expenses and principal and interest on any obligations  shall,
 in  the  case  of  the  New  York city off-track betting corporation, be
 retained by the corporation, and in the case of  other  regional  corpo
 rations  shall  accrue and be payable to participating counties pursuant
 to section five hundred sixteen of this chapter; provided, however, that
 the [New York city off-track betting corporation] VENDOR OPERATOR, after
 payment of all current taxes and distributions shall use such net amount
 to pay all [liabilities] OPERATING EXPENSES of such corporation  [as  of
 the  effective  date  of  the  chapter of the laws of two thousand eight
 which amended this subdivision], and at such time as  all  [liabilities]
 OPERATING  EXPENSES  have  been paid, such [corporation] VENDOR OPERATOR
 shall pay ANY remaining amounts to the comptroller of the state  of  New
 York  for  deposit  in  the  [general  fund  of the state] NEW YORK CITY
 OFF-TRACK BETTING CORPORATION FUND.
 

S 14. The racing, pari-mutuel wagering and breeding law is amended  by
 adding a new section 626 to read as follows:

 

S  626. VENDOR OPERATOR FEE. AS CONSIDERATION FOR THE OPERATION OF THE
 CORPORATION, THE COMPTROLLER SHALL PAY A VENDOR FEE IN EXCHANGE FOR  THE
 DAILY OPERATIONS AND CAPITALIZATION OF A NEW YORK CITY OFF-TRACK BETTING
 OPERATION  TO  BE  PAID AS FOLLOWS:   IF THE ANNUAL DEPOSIT INTO THE NEW
 YORK CITY OFF-TRACK BETTING  CORPORATION  FUND  IS  LESS  THAN  TWO  AND
 ONE-HALF  MILLION DOLLARS, THE VENDOR OPERATOR SHALL RECEIVE ONE HUNDRED
 PERCENT OF THE ANNUAL DEPOSITS; IF THE ANNUAL DEPOSIT INTO THE NEW  YORK
 CITY  OFF-TRACK  BETTING  CORPORATION  FUND IS LESS THAN OR EQUAL TO TEN
 
       S. 2811--B                         152
 MILLION DOLLARS, THE VENDOR OPERATOR SHALL  BE  PAID  TWO  AND  ONE-HALF
 MILLION  DOLLARS AND THE REMAINING FUNDS SHALL BE DEPOSITED TO THE STATE
 GENERAL FUND; IF THE ANNUAL DEPOSIT IS MORE THAN  TEN  MILLION  DOLLARS,
 THE VENDOR OPERATOR SHALL BE PAID TWENTY-FIVE PERCENT OF THE TOTAL ANNU
 AL  DEPOSITS  AND  THE  REMAINING  FUNDS SHALL BE DEPOSITED TO THE STATE
 GENERAL FUND.
 

S 15. The state finance law is amended by adding a new section 97-kkkk
 to read as follows:

 

S 97-KKKK. NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND. 1.  THERE
 IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER, A SPECIAL  FUND
 TO BE KNOWN AS THE "NEW YORK CITY OFF-TRACK BETTING CORPORATION FUND".
 2.  SUCH FUND SHALL CONSIST OF ALL MONIES RECEIVED BY THE STATE PURSU
 ANT TO SUBDIVISIONS ONE AND SIX OF SECTION FIVE HUNDRED TWENTY-SEVEN AND
 SUBDIVISION SEVEN OF SECTION FIVE  HUNDRED  THIRTY-TWO  OF  THE  RACING,
 PARI-MUTUEL  WAGERING  AND  BREEDING  LAW.  ANY  INTEREST  EARNED BY THE
 INVESTMENT OF MONEYS IN SUCH FUND SHALL BE ADDED TO SUCH FUND, BECOME  A
 PART OF SUCH FUND, AND BE USED FOR THE PURPOSE OF SUCH FUND.
 3.  MONEYS  OF  THE  NEW  YORK CITY OFF-TRACK BETTING CORPORATION FUND
 SHALL BE MADE AVAILABLE TO THE COMPTROLLER FOR THE PURPOSE OF PAYING THE
 NEW YORK CITY OFF-TRACK BETTING VENDOR OPERATOR FEE DISTRIBUTED  ACCORD
 ING  TO SECTION SIX HUNDRED TWENTY-SIX OF THE RACING, PARI-MUTUEL WAGER
 ING AND BREEDING LAW; ALL REMAINING MONEY SHALL BE  DISBURSED  INTO  THE
 STATE GENERAL FUND.
 

S  16. The racing, pari-mutuel wagering and breeding law is amended by
 adding a new section 113 to read as follows:

 

S 113. TELEPHONE AND INTERNET WAGERING. THE STATE RACING AND  WAGERING
 BOARD SHALL DETERMINE WHETHER ELIMINATING OR REGULATING THE AUTHORITY OF
 OUT-OF-STATE  ENTITIES TO ACCEPT TELEPHONE AND/OR INTERNET WAGERING FROM
 NEW YORK STATE RESIDENTS PLACED  WHILE  IN  NEW  YORK  STATE,  WOULD  BE
 CONSISTENT  WITH  THE  OBJECTIVES  OF  OFF-TRACK  PARI-MUTUEL BETTING AS
 DEFINED IN SECTION FIVE HUNDRED EIGHTEEN OF  THIS  CHAPTER,  AND  IF  SO
 DETERMINED,  THE  STATE  RACING  AND WAGERING BOARD SHALL ESTABLISH SUCH
 GENERAL  REGULATIONS  TO  ELIMINATE  OR   REGULATE   THE   PRACTICE   OF
 OUT-OF-STATE ENTITIES OF ACCEPTING SUCH WAGERS.
 

S 17. Subdivision 4 of section 606 of the racing, pari-mutuel wagering
 and  breeding  law,  as  amended  by chapter 115 of the laws of 2008, is
 amended to read as follows:

 4. All [employees and officers] PRESENT AND  FUTURE  RETIREES  of  the
 corporation  in  classes  or  positions  whose incumbents, in equivalent
 classes or positions of the city, are eligible, as of the effective date
 hereof, to participate in, and receive benefits from any city authorized
 health insurance or  welfare  benefit  program,  shall  be  eligible  to
 participate  in,  and receive benefits from any such health insurance or
 welfare benefit program; provided, however, that the [corporation] STATE
 shall reimburse the city or its designee for the actual cost of benefits
 under this subdivision.
 

S 18. Subdivisions 4 and 5 of section 610 of the  racing,  pari-mutuel
 wagering and breeding law are REPEALED.
 

S 19.

Section 611 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 

S 20.

Section 612 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 

S 21.

Section 613 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 

S 22.

Section 614 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 
       S. 2811--B                         153
 

S 23.

Section 616 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 

S 24.

Section 620 of the racing, pari-mutuel wagering and breeding law
 is REPEALED.
 

S  25.  This  act shall take effect immediately; provided however that
 section ten of this act shall expire and be  deemed  repealed  June  30,
 2014.
 

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 GG of this act shall be
 as specifically set forth in the last section of such Parts.

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